A PROJECT REPORT
                                                    ON
                                                TI...
TO WHOM SO EVER IT MAY CONCERN


       It is to certify that monica rathorehas undertaken his summer training at
ICICI PR...
ABSTRACT

In the insurance industry, there are two channels of distribution- Alternate Distribution and Tide Agency.
Advis...
EXECUTIVE SUMMARY
       “Agency recruitment at ICICI PRUDENTIAL LIFE INSURANCE
                                        CO...
For studying the necessary criteria required to be a successful life advisor, a study was
made on the topic of analyzing t...
Opportunity Presentation has to be given to him. This presentation helps to a great extent in making that
person know abou...
A 17-day training schedule covers the mandatory IRDA training requirements and ICICI Prudential
product-training module. R...
 Sometimes, fresh graduates want to become advisors but the company denies making them an
         advisor as they are ve...
CONTENTS

PREFACE
Certificate from the guide
Certificate from the company
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
CHAPTER1: INTR...
INTRODUCTION

All the human beings on the earth know that they will die in future but they don’t want to die. They want
to...
India has traditionally been a high savings oriented country being on par with the thrifty Japan. Insurance
sector in the ...
1.1 HISTORY                       OF LIFE INSURANCE

Insurance concept had been found out way behind in 13 th and 14th cen...
The (non-life) insurance business, however, continued to thrive with the private sector till 1972. Their
operations were r...
OVERVIEW

With largest number of life insurance policies in force in the world, Insurance happens to be a mega
opportunity...
Insurance is a federal subject in India. There are two legislations that govern the sector- The Insurance
Act- 1938 and th...
1956: 245 Indian and foreign insurers and provident societies were taken over by the central government
and nationalised. ...
INSURANCE SECTOR REFORMS

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra,
...
and updating of technology to be carried out in the insurance industry. The committee
    emphasized that in order to impr...
1.2 LIFE INSURANCE MARKET

The Life Insurance market in India is an underdeveloped market that was only tapped by the
stat...
The private insurers also seem to be scoring big in other ways- they are persuading people to
take out bigger policies. Fo...
1.3 DEFINITION OF INSURANCE
 Insurance is a contractual-type financial intermediary that offers the public protection agai...
In the 17th century, the Tontine Annuity system was introduced where associations of individuals were
formed without any r...
1.4 Why do you need life Insurance?
You need Life Insurance because typically the need for income continues for those who ...
Mortgage and Debt protection
With increasing consumerism and ever-rising demands, loans and debts are now part of life. Li...
1.5 BENEFITS OF LIFE INSURANCE

Superior to Any Other Savings Plan
Unlike any other savings plan, a life insurance policy ...
Ready      Marketability and Suitability for Quick Borrowing

A life insurance policy can, after a certain time period (ge...
1.6 Life insurance V/S other investments
 Most investment options make your money work harder, but there are no substitut...
1.7 ROLE OF LIFE INSURANCE

 Security and Stability

 Investment

 Preservation of Health

 Increase Efficiency

 Sel...
1.8 INTRODUCTION TO THE COMPANY

ICICI (Industrial Credit and Investment Corporation of
India):
The World Bank, the Govern...
ICICI PRUDENTIAL LIFE INSURANCE
              COMPANY
                                           1. COMPANY

Under this to...
• HISTORICAL BACKGROUND


ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, and Prudential Pl...
• VISION


The company’s vision is “to make ICICI Prudential the dominant Life and Pensions player built on trust
by world...
• PROMOTERS
ICICI Ltd., was established in 1955 by the World Bank, the Government of India and the Indian Industry,
to pro...
 ICICI Bank currently has subsidiaries in United Kingdom and Canada, branches in Singapore and
     Bahrain and represent...
THE PRIVATE LINE UP


                          13.5            15.2
                                             5.5
    ...
Total Premium U/W Total No. of PoliciesAverage Premium Per

    Insurer                           Issued                Po...
10



11   AVIVA         1144    6135     7758     58478     14492   12509



12   AMP SANMAR    464     2300     3405    ...
Market Share of Private Players in Terms of Premium Upto Feb'04




                       4%    1%        9%
            ...
Market Share of Private Players in Terms of No.Of Policies upto
                            Feb ' 04




                 ...
• HOLDINGS
ICICI Bank and Prudential plc came together in 1993 and formed Prudential ICICI Asset Management

Company. ICIC...
• ORGANIZATION STRUCTURE,
                  DEPARTMENTATION AND DETAILS OF
                           DIVISION HEAD

 The ...
The ICICI Prudential Life Insurance Company Limited Board comprises of reputed people from the
finance industry both from ...
The various departments in the organization are:


    1. The Human Resource Department

    2. Investment Department

   ...
• FINANCIAL PERFORMANCE OF THE
                                  COMPANY
    Prudential ICICI Asset Management Company con...
Operating profit                1,044             1,612             54%             2,015      2,843   4,691


Less:Provis...
1.9 PRODUCTS AND SERVICES

The topics covered under this are:

             Product Mix

             Product Life Cycle...
• PRODUCT MIX
ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the
needs ...
Protection Solutions


LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 opti...
Child Plans




SmartKid education plans provide guaranteed educational benefits to a child along with life
insurance cove...
Retirement Solutions


               1. Forever Life is a retirement product targeted at individuals in their thirties.

...
designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary
        nominated by the...
4. Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till
            maturity, in the...
• PROMOTION STRATEGIES
Over the last few months, ICICI Prudential has been advertising in outdoor, TV and press. The compa...
The company also sets up stalls at various vacation fairs or events. Not only that, last year they had set up
a camp where...
• SEGMENTATION AND POSITIONING
                  STRATEGIES
At a broad level, ICICI Prudential aims to secure the families...
The Marketing function at ICICI Prudential covers many activities-


           •   Brand and media management,
          ...
• DISTRIBUTION AND CHANNEL
                           MANAGEMENT
The company has the highest distribution network having 7...
The company has 11 bankassurance tie-ups, having agreements with ICICI Bank, Federal Bank, South
Indian Bank, Bank of Indi...
“This strategic alliance with the ICICI Prudential Life is an extension of our
      philosophy to provide a complete rang...
According to Federal Bank chairman Shri. K. P. Padmakumar, “The bankassurance
      arrangement between to leading organiz...
(5)     Lord Krishna Bank:


           Lord Krishna Bank is another one of our partners based in Kerala. Starting with 7
...
CORPORATE AGENTS


ICICI Prudential has tie up with Corporate Agents. Some them are as under :




   (1)     Access Hospi...
(4)   Bluechip Online:


      Bluechip and ICICI Prudential shared a mutually rewarding journey with their strong
      p...
Direct Marketing


ICICI Prudential also markets for its products though different ways like telecalling, mail etc. As
men...
Tied Agency
        In life insurance business wide distribution network and tied agency is biggest source of getting
more...
pilot phase. There are 90 kiosks in the pilot phase and 1500 kiosks have been proposed. Also ICICI
Prudential along with I...
human resources were occupied in non-productive work like redialing the fax number in case the receiver
was busy at the ot...
Monica Report 2007
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Monica Report 2007

  1. 1. A PROJECT REPORT ON TITLE “Agency recruitment at ICICI PRUDENTIAL Life Insurance Company” Submitted to ACKNOWLEDGEMENT Education and learning knows no bars or inhibitions. It is rather a never-ending process. Similarly after completing almost one year in MBA from I.M.S., B.J.S.R. Jain College, Bikaner, the study conducted by me as part of my course curriculum has proved an exceptional enhancement of knowledge and learning for me. The completion of the project would not have been possible without the help of some persons. Without their contribution, the study could not have been comprehensive and a profound one. At the very outset, I sincerely thank my faculty guide Dr , Director Mr. S.K JAIN,, Faculty whose continuous support and guidance proved an effective impetus to my study. I am greatly indebted to my project guide Mr. SAURABH SHARMA branch Manager for their help and encouragement. I would also like to thank my family and my friends for their guidance and support, which helped me in every step during the course of my study. Above all, I thank god for his blessings without which I would not have been able to complete my project. 1
  2. 2. TO WHOM SO EVER IT MAY CONCERN It is to certify that monica rathorehas undertaken his summer training at ICICI PRUDENTIAL,bikaner. He has completed his summer training project on the topic “Agency recruitment at ICICI Life Insurance Company” under my supervision and guidance. To the best of my knowledge his work is genuine and satisfactory. I wish him all the best in his future endeavors. (Asst. Professor) 2
  3. 3. ABSTRACT In the insurance industry, there are two channels of distribution- Alternate Distribution and Tide Agency. Advisor Recruitment is the part of Tide Agency. My project is about agency recruitment & channel distribution of ICICI Prudential Life Insurance. It means company is recruiting advisors for expanding its business. Company adopts chain marketing as a methodology for expansion. In this project, I have to make a cold call to the target market, get the appointment with them, convince them & close the sale positively. The queries, which are asked by the client, should be solved by the discussion with the company guide. ……ICICI Prudential is immensely concentrating on the agency recruitment. It has 53000 advisors and it is planning to extend this number to 73000 by the end of the year 2007-08. For recruiting advisors, ICICI Prudential holds many activities like- they do direct marketing for recruiting advisors, they also recruit the management trainees for recruiting advisors, they also hold seminar and also include stall activities etc. 3
  4. 4. EXECUTIVE SUMMARY “Agency recruitment at ICICI PRUDENTIAL LIFE INSURANCE COMPANY” MAIN OBJECTIVES:  To study recruitment process at ICICI PRUDENTIAL LIFE INSURANCE COMPANY.  To study the current life insurance market scenario.  To study and formulate necessary criteria required being successful life advisors and offering necessary suggestions to the company. RESEARCH METHODOLOGY: Research Plan: For the purpose of study of Agency recruitment at ICICI PRUDENTIAL life insurance Company, the researcher has given BOP, telephonic conversations to the people for recruitment. For studying the current insurance market scenario, an exhaustive study and compilation of report was done from the data provided by the company form their database besides using other sources like yellow pages, reference data. 4
  5. 5. For studying the necessary criteria required to be a successful life advisor, a study was made on the topic of analyzing the current set of criteria set up the company for recruiting the Life Advisors. Sources of Data: Source of primary data 1. Natural Market • Relatives • Friends • Neighbors 2. Stall Operation 3. Survey 4.Seminar (Focus Group) Source of Secondary Data 1. Yellow Pages 2. Database of different companies LIGI Agents 3. Telecalling leads 4. Reference data. Contact method: Initially, the instructions given by the company were to work on natural market Company, i.e. relatives, friends, neighbors or the known ones. But being new to the city, this constraint of not having the natural market was there. One of the methods used in recruitment was to call people from Yellow Pages and take their appointments. Once the meeting is fixed with that person, then a B.O.P i.e. Business 5
  6. 6. Opportunity Presentation has to be given to him. This presentation helps to a great extent in making that person know about the Company, the benefits that he/she will get in getting associated with the Company. It just happens sometimes that a person might not concentrate on what is being told to him but when that person looks at that presentation it becomes easy to convince him as he is focused on the facts and figures mentioned in the presentation. Another method that can be followed to recruit agents for the company is that of leads which are given by the Company. These are those people who have shown their interest in having the agency to the telecallers. Once those people are interested, an appointment has to be fixed with them and explain them in detail about the agency business and answering their queries. The third method that can be followed is that of making cold calls to corporate offices, shops or those people whom a student feels can become advisors or who might be interested in becoming advisors. Here, the duty is to tell them about agency business, what they will get out of it and finally closing the deal. If they still have some queries or questions which could not be answered at that point of time, then they are requested to visit our office so that they may enquire about their doubts from Unit Managers and thus making them satisfied that their association with the Company is something which they will not regret. This method is also called PROSPECTING. Training At ICICI Prudential, the importance is given to training in a dynamic business environment. The advisors go through both generic and specific, professional programs that help them remain well informed and knowledgeable about the company’s products in the market. There is a further focus on soft skills such as communication, managing long-term relationships and selling skills, which are very relevant in a service-driven industry like life insurance. State of the art infrastructure training facilities coupled with an excellent faculty, guarantee an exceptional learning environment. For advisors who might be occupied with their daily business/professional routines, ICICI Prudential also offers convenient training options such as online and self-learning are also provided by the organization. 6
  7. 7. A 17-day training schedule covers the mandatory IRDA training requirements and ICICI Prudential product-training module. Revision session ensure that the candidates thoroughly understand the course contents and are well prepared for the licensing examination. Theoretical training is interspersed with practical appointment settings with potential customers, giving advisors a feel of how their business will work from the very first day. All through, the Unit Manager and the management provide continuous support to the advisors in achieving independence towards garnering business. Objectives  To study recruitment process at ICICI PRUDENTIAL LIFE INSURANCE COMPANY.  To study the current life insurance market scenario.  To study and formulate necessary criteria required being successful life advisors and offering necessary suggestions to the company. Limitation  As the movement throughout the city is not possible due to certain constraints so the movement was quite restricted.  People are not ready to go for training. As the training period is of 17 days and it involves full day, so it becomes difficult for them to leave their offices or shops for such a long time.  The compulsion of selling 12 policies in a year also restricts them from becoming advisors. If they do not fulfill this target, then their license is cancelled after a year.  Lack of trust on any company of Private Sector.  Lack of knowledge about the products of ICICI Prudential and their total and blind faith on LIC. 7
  8. 8.  Sometimes, fresh graduates want to become advisors but the company denies making them an advisor as they are very fickle-minded and also unreliable.  There is a problem in targeting Chartered Accountants. ICAI, which is the governing body of Chartered Accountants, does not allow them to become advisors. However, now they have permitted some CA’s to become advisors, but these are only those ones who are doing jobs somewhere and not allowed the ones who are doing their practice. So, still this decision is very dicey.  Sometimes, even those people want to become advisors for the company who are not a localite but then the major problem that they face is that they have got no natural market, so they are very susceptible about their performance and whether they will be able to generate business for the company or not, so they avoid to take up this challenge.  It was a great problem to get appointments from people in the month of March as most of them were busy in filing their returns.  Some people ask about comparative analysis with LIC.  Some people consider IRDA fees of Rs. 1000 as a constraint.  Non-availability of part-time training.  All small towns are not open for doing this business.  One person cannot take Life Insurance Agency of two different Companies.  Time constraint is the biggest constraint in taking up the study. SUGGESTIONS  Expand Distribution Network In Semi Rural Areas - Start business in all small towns.  Target Semi Rural Market - Offer agencies to localite people. - Open operation offices with highly educated team 8
  9. 9. CONTENTS PREFACE Certificate from the guide Certificate from the company ACKNOWLEDGEMENT EXECUTIVE SUMMARY CHAPTER1: INTRODUCTION 1.1 History of Life Insurance.................................................. 1.2 Life Insurance Market………………………………...... 1.3 Definition of Life Insurance............................................. 1.4 Why Do You Need Insurance……………………........... 1.5 Benefits of Life Insurance………………………………. 1.6 Life Insurance v/s Other Investments............................... 1.7 Role of Life Insurance....................................................... 1.8 Introduction to the Company........................................... 1.9Products and Services......................................................... CHAPTER2: PROJECT PROFILE 2.1 Objectives………………………………………..... 2.2 Significance of the study..………………………… 2.3 Methodology……………………………................. 2.4 Contact Method…………………………................. 2.5 Training…………………………………................. 2.6 Limitations………………………………………… CHAPTER3 : FACT AND FINDINGS…………………………………………. CHAPTER4 : SUGGESTIONS ………………………………………………… BIBLIOGRAPHY………………………………………………………………........ 9
  10. 10. INTRODUCTION All the human beings on the earth know that they will die in future but they don’t want to die. They want to fulfill all the dreams, which they had thought, but there are times when all these dreams can’t come true. Death is inevitable and yet we live our lives obvious to reality that may strike- when we have no idea. And when it happens, all the dreams come crashing down. In the words of D S Hansell “Insurance may be defined as a social device providing financial compensation for the effects of misfortune, the payment being made from the accumulated contributions of all the parties participating in the scheme” Life insurance is the only tool to secure our life in future. It also provides a safe guard to the uncertainty of our life. Life insurance is the cheapest investment tool in which we can earn more in a short period of time. The function of insurance is to protect you against losses you can't afford. This is done by transferring the risks of a person, business, or organization -- the "insured" -- to an insurance company, or "insurer." The insurer then reimburses the insured for "covered" losses -- i.e., those losses it pays for under the policy's terms. As the insurance consumer, you pay an amount of money, called a premium, to the insurer to transfer the risk. The insurer pools all its premiums into a large fund, and when a policyholder has a loss, the insurer draws funds from the pool to pay for the loss. Life is full of unexpected events that can create large financial losses. For example, whenever you drive, it is possible that you may have a costly accident. Risks affect you by causing worry about potential loss and how to deal with the consequences. Insurance reduces anxiety over a possible loss and absorbs the financial brunt of its consequences. 10
  11. 11. India has traditionally been a high savings oriented country being on par with the thrifty Japan. Insurance sector in the United States of America is as big in size as the banking industry there. This gives us an idea of how important the sector is. Insurance sector channelises the savings of the people to long-term investments. In India where infrastructure is said to be of critical importance, this sector will bring the nations own money for the nation. • The global life insurance market stands at $1,521.2 billion while the non-life insurance market is placed at $922.4 billion. • India takes the 23rd position with US $9.933 billion annual premium collections and a meager 0.41% share. Out of one billion people in India, only 35 million people are covered by insurance. • Indian insurance market is set to touch $25 billion by 2010, on the assumption of a 7 per cent real annual growth in GDP. In 3 years time we would expect the 10% of the population to be under some sort of an insurance cover. This assuming a premium of Rs. 5000 on an average, amounts to 100 million x Rs.5000 = Rs. 500 bn. This has made the sector the hottest one in India after IT. With social security and security to the public at large being the agenda for opening the sector, the role of the regulator becomes all the more serious and one that would be carefully watched at every step. 11
  12. 12. 1.1 HISTORY OF LIFE INSURANCE Insurance concept had been found out way behind in 13 th and 14th century. The earliest reference to insurance has been found Babylonia, the Greeks and the Romans. The use of insurance appeared in the account of North Italian Merchant Bank that then dominated the international trade in Europe at that time. The oldest and earliest record of insurance come in the form of marine insurance where ships and the cargo were insured against perils such as pirates, storm, mutiny and wars. The first company known as the Sun Insurance Office Ltd. was set up in the Calcutta in the years 1710. After that a number of companies were established for marine and general insurance. The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more riskier for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The first general insurance company- Tital Insurance Company Limited was established in 1850. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalised monopoly corporation and LIC was born. Nationalisation was justified on the grounds that it would create much-needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State led planning and development. 12
  13. 13. The (non-life) insurance business, however, continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalised in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC). 13
  14. 14. OVERVIEW With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover, health insurance and non-life insurance continue to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long- term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementation, including geological risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long-term debt and equity for infrastructure projects. With long-term liability, they get a good asset- liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects. 14
  15. 15. Insurance is a federal subject in India. There are two legislations that govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999. PRESENT SCENARIO The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent. Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Committee. INSURANCE IN INDIA The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. A brief history of the Insurance sector: The business of life insurance in India in its existing form started in India in the year1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation was consolidated and amended by the Insurance Act with the objective of protecting the interests of the insuring public. 15
  16. 16. 1956: 245 Indian and foreign insurers and provident societies were taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crores from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1stJanuary 1973: 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. 16
  17. 17. INSURANCE SECTOR REFORMS In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:  Structure: Government stake in the insurance Companies to be brought down to 50% Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate.  Competition: Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies .Postal Life Insurance should be allowed to operate in the rural market .Only one State Level Life Insurance Company should be allowed to operate in each state.  Regulatory Body: The Insurance Act should be changed .An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent.  Investments: Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%.  GIC and its subsidiaries are not to hold more than 5% in any company (The recurrent holdings to be brought down to this level over a period of time)  Customer Service: LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations 17
  18. 18. and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 Crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body. The Insurance Regulatory and Development Authority Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken by them simultaneously were to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001. 18
  19. 19. 1.2 LIFE INSURANCE MARKET The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players have tripled to Rs 2000 crores in 2005- 06 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unit-linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. 19
  20. 20. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatization was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lac to Rs 1.2 lac- way bigger than the industry average. 20
  21. 21. 1.3 DEFINITION OF INSURANCE Insurance is a contractual-type financial intermediary that offers the public protection against the financial costs associated with the loss of life, health, or property in exchange for premiums. An agreement that guarantees the payment of a stated amount of monetary benefits upon the death of the insured. Risk insurance intended as protection against the financial consequences of the death of the insured person, which takes the form of payment of a previously agreed lump sum or pension to a beneficiary, if the insured person dies during the term of insurance. In the case of pure life insurance, without any endowment insurance component, no payments are due if the insured person survives the term of insurance. Insurance is that which provides protection against the economic loss caused by the death of the person insured. What is Insurance? Life Insurance is a contract providing for payment of a sum of money to the person assured or, to the person entitled to receive the same, on the happening of a certain event. A family is dependent for its food, clothing and shelter on the income brought by the family's breadwinner. The family is secure so long as this breadwinner is alive and is capable of earning. A sudden death (or disability) may leave the family in a financially difficult situation. Uncertainty of death is inherent in human life and this uncertainty makes it necessary to have some protection against the financial loss arising from untimely death. Life insurance offers this protection. The Greeks and Romans started the earliest type of life insurance. Contributions were made by all surviving members for the burial cost of a member. In case of the death of a member the cost of burial was made out of the contributed fund. 21
  22. 22. In the 17th century, the Tontine Annuity system was introduced where associations of individuals were formed without any reference to age, and a fund was created by equal contributions from each member. The sum collected was invested, and at the end of each year the interest was divided among the survivors. The last remaining survivor received both the year's interest and the entire amount of the principal. The first organized life insurance company was founded in 1759 in Philadelphia, in North America. Subsequently, over the past three centuries, numerous life insurance Companies sprung up, making life insurance a popular tool for protection coupled with investment. 22
  23. 23. 1.4 Why do you need life Insurance? You need Life Insurance because typically the need for income continues for those who are financially dependent on you, but there is no guarantee of your ability to earn consistently and for the rest of your life. Life insurance can help you safeguard the financial needs of your family. This need has become even more important due to steady disintegration of the prevalent joint family system, and emergence of nuclear families. The need to protect your family's ever growing needs is why you need Life Insurance. Replacement of Income Life insurance products can provide support to the family and take care of the family's financial requirements. It provides a lump sum or periodic payments to help replace the income stream, in case of an unfortunate event or an untimely demise of the breadwinner. Lifestyle Maintenance Life insurance products can help you build a corpus to protect and maintain your lifestyle against fluctuations in your future income. Costs of Education You need to support your child with a sound educational background, to help your child achieve his/her dreams. Life insurance products can help you fulfill these needs, whether you are there or not. Retirement Expenses Retirement is an age when an individual has fulfilled almost all his responsibilities and looks forward to relaxing. Life insurance products can help you lead a secure and tension free retired life by ensuring that you get guaranteed pension. 23
  24. 24. Mortgage and Debt protection With increasing consumerism and ever-rising demands, loans and debts are now part of life. Life insurance products help you ensure that your family is not unduly burdened with their repayments, in case of an unfortunate event or an untimely demise of the breadwinner. Hardships Protection Life insurance provides a sense of security to the income earner and to his/her family. Buying life insurance frees the individual from various unnecessary financial burdens that can otherwise make one spend sleepless nights. 24
  25. 25. 1.5 BENEFITS OF LIFE INSURANCE Superior to Any Other Savings Plan Unlike any other savings plan, a life insurance policy affords full protecton against risk of death. In the event of death of a policyholder, the insurance company makes available the full sum assured to the policyholders' near and dear ones. In comparison, any other savings plan would amount to the total savings accumulated till date. If the death occurs prematurely, such savings can be much lesser than the sum assured. Evidently, the potential financial loss to the family of the policyholder is sizable. Encourages and Forces Thrift A savings deposit can easily be withdrawn. The payment of life insurance premiums, however, is considered sacrosanct and is viewed with the same seriousness as the payment of interest on a mortgage. Thus, a life insurance policy in effect brings about compulsory savings. Easy Settlement and Protection against Creditor A life insurance policy is the only financial instrument the proceeds of which can be protected against the claims of a creditor of the assured by effecting a valid assignment of the policy. Administering the Legacy for Beneficiaries Speculative or unwise expenses can quickly cause the proceeds to be squandered. Several policies have foreseen this possibility and provide for payments over a period of years or in a combination of installments and lump sum amounts. 25
  26. 26. Ready Marketability and Suitability for Quick Borrowing A life insurance policy can, after a certain time period (generally three years), be surrendered for a cash value. The policy is also acceptable as a security for a commercial loan, for example, a student loan. It is particularly advisable for housing loans when an acceptable LIC policy may also cause the lending institution to give loan at lower interest rates. Disability Benefits Death is not the only hazard that is insured; many polices also include disability benefits. Typically, these provide for waiver of future premiums and payment of monthly installments spread over certain time period. Accidental Death Benefits Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if death occurs as a result of accident. Tax Relief Under the Indian Income Tax Act, the following tax relief is available a) 20 % of the premium paid can be deducted from your total income tax liability. b) 100 % of the premium paid is deductible from your total taxable income. When these benefits are factored in, it is found that most polices offer returns that are comparable or even better than other saving modes such as PPF, NSC etc. Moreover, the cost of insurance is a very negligible. 26
  27. 27. 1.6 Life insurance V/S other investments  Most investment options make your money work harder, but there are no substitutes to life insurance. Because only a life insurance policy gives you both - risk cover against your life, as well as returns on your money invested.  Life insurance allows long tem savings to be made in a relatively painless manner because of the low and convenient investments made through premiums. Moreover, it encourages 'forced thrift' which means the insured is made to pay premiums and save money, which he/she may not do in the regular course of life.  Should you require loans, say for building a house, it can be easily obtained against a life insurance policy. Amongst the most known benefits of Life Insurance is the savings on your income taxes.  Life insurance cannot be compared with any other form of investment as life insurance gives you a life long benefit and returns on your money when it is most required.  Insurance premiums are linked to age of the life insured and the earlier you buy, the lower are the premium requirements. Besides, the money stays invested for a longer time and thereby maximizing your returns through the power of rupee compounding. So, a life insurance policy is an ideal tool to gain security and ensure savings.  Most importantly it provides you with that unique sense of security and peace of mind that no other form of investment provides. 27
  28. 28. 1.7 ROLE OF LIFE INSURANCE  Security and Stability  Investment  Preservation of Health  Increase Efficiency  Self Reliance  Mental Peace  Planning of future  Safe guard against statutory liability  Capitalization of earning capacity  Exemption from Tax Liability  Safety to Investment Mode. 28
  29. 29. 1.8 INTRODUCTION TO THE COMPANY ICICI (Industrial Credit and Investment Corporation of India): The World Bank, the Government of India and the Indian Industry, to promote industrial development of India by providing project and corporate finance to Indian industry, established ICICI LTD., in 1955. Since inception, ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI has thus far financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects. As of March 31, 2000, ICICI had disbursed a total of Rs. 1, 13,070 crores, since inception. Organizational structure of ICICI 29
  30. 30. ICICI PRUDENTIAL LIFE INSURANCE COMPANY 1. COMPANY Under this topic, the major headings that will be covered are as under:  Historical Background  Mission & Vision  Promoters  Holdings  Equity structure  Organization structure  Departmentation  Details of division heads  Financial performance of the company 30
  31. 31. • HISTORICAL BACKGROUND ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, and Prudential Plc, a leading international financial services group which has its headquarters in U.K.ICICI Prudential was amongst the first private sector companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential’s total equity is 11.75 Bn with ICICI Bank & Prudential Plc. In the end of year 2006-07, ICICI Prudential had issued over 17.8 lacs policies, for a total sum assured of over 29000 crores and premium collection is over 2351 crores. The company has a network of about 53000 advisors: as well as 12 bankassurance tie-ups. Today the company stands first in private life insurance in India with a market share of nearly 40%. 31
  32. 32. • VISION The company’s vision is “to make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service.” They hope to achieve this by:  Understanding the needs of customers and offering them superior products and service.  Leveraging technology to device customers quickly, efficiently and conveniently.  Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to their policyholders.  Providing an enabling environment to foster growth and learning for their employees.  And above all, building transparency in all their dealings. The success of the company is due to its unflinching commitment to 5 core values- • Integrity, • Customer First, • Boundaryless, • Ownership, • Passion. Each of the core values describe what the company stands for, the qualities of their people and the way they work. 32
  33. 33. • PROMOTERS ICICI Ltd., was established in 1955 by the World Bank, the Government of India and the Indian Industry, to promote industrial development of India by providing project and corporate finance to Indian industry. Since inception, ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI has thus far financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects. As of March 31, 2000, ICICI had disbursed The promoters of ICICI Prudential Life Insurance Company are: ICICI Bank and Prudential Plc .ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company, which has today emerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to THEIR CUSTOMERS. ICICI Bank has 74% stake in the company, and Prudential Plc has 26%. ICICI BANK The Bank ’s net customer assets in reased 47%to Rs.163,785 crore (US$ 35.7 billion)at September 30,2006 compared to Rs.111,514 crore (US$ 24.3 billion)at September 30,2005.The Bank maintained its growth momentum and market leadership in the retail segment.In H1-2007,the Bank ’ s total retail disbursements were about Rs.33,500 crore (US$7.3 billion)including home loan disbursements of about Rs.13,400 crore (US$2.9 billion).Retail assets constituted 69%of advances and 66%of customer assets.The Bank is focusing on non-fund based products and servi es,as well as capitalising on opportunities presented by the domestic and international expansion of Indian ompanies.The Bank is  also extending its reach in the small and medium enterprises segment.ICICI Bank has a network of about 540 branches and extension counters and over 1800 ATMs.  ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.  ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross-border needs of clients and leverage on its domestic banking strengths to offer products internationally. 33
  34. 34.  ICICI Bank currently has subsidiaries in United Kingdom and Canada, branches in Singapore and Bahrain and representative offices in the United States,China,United Arab Emirates and Bangladesh.  ICICI Bank’s equity shares are listed in India on the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depository Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). PRUDENTIAL PLC  Established in London in 1848, Prudential Plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services , products and services to more than 16 million customers, policyholders and unit holders worldwide.  As of December 2003, the company had over US $300 billion in funds under management.  Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance.  In Asia, Prudential is UK’s largest life insurance company with a vast network of 23 life and mutual fund operations in twelve countries-China, HongKong, India, Indonesia, Japan, Korea, Malaysia, thePhilippines, Singapore, Taiwan, Thailand and Vietnam.  Solid reputation built over 150 years.  Insurance and investment funds under management exceed Rs 11,00,000 crores.  Already established as one of the biggest private sector mutual fund companies in India. (Prudential ICICI AMC.)  A truly global brand. Prudential is the largest life insurance company in the United Kingdom (Source : S&P's UK Life Financial Digest, 1998). Asia has always been an important region for Prudential and it has had a presence in Asia for over 75 years. In fact Prudential's first overseas operation was in India, way back in 1923 to establish Life and General Branch agencies. 34
  35. 35. THE PRIVATE LINE UP 13.5 15.2 5.5 7.8 3.1 7.4 1.8 37.1 0.6 0.5 1.3 6.1 Birla Sun Life Allianz Bajaj Om Kotak SBI Life ING Vysya Met Life AMP Sanmar Tata AIG AVIVA Life ICICI Pru Max NYL HDFC Stand. TODAY IN THE LIFE INSURANCE MARKET THERE ARE 13 PLAYERS AND TOTAL 149 VARIOUS PLANS AVAILABLE. 35
  36. 36. Total Premium U/W Total No. of PoliciesAverage Premium Per Insurer Issued Policy Feb-07 Apr-Feb 07 Feb-07 Apr-Feb 07 Feb-07 Apr-Feb 07 1 ICICI 13900 59714 83752 360511 16922 19949 2 TATA AIG 3754 16287 18368 138990 17826 12429 3 OM KOTAK 1174 7961 5789 41925 22328 19882 4 BIRLA SUNLIFE 6248 25752 21792 114254 29514 22050 5 MAX NEW YORK 1720 10818 18437 119351 8030 9163 6 ING VYSYA 982 4717 8815 59725 8702 7827 7 HDFC 2818 17002 20958 170769 11939 9242 8 MET LIFE 469 2028 3112 21497 11225 10377 9 ALLIANZ BAJAJ 3118 13397 18168 162536 13694 9996 SBI 2237 11817 12125 62121 22315 21323 36
  37. 37. 10 11 AVIVA 1144 6135 7758 58478 14492 12509 12 AMP SANMAR 464 2300 3405 39843 8506 5700 SUB TOTAL 38028 177928 222479 1350000 14549 16044 13 LIC 189078 1197127 2610814 19551707 6888 6279 GRAND TOTAL 227106 1375055 2833293 20901707 10719 11162 37
  38. 38. Market Share of Private Players in Terms of Premium Upto Feb'04 4% 1% 9% 7% 4% 15% 34% 6% 3% 9% 7% 1% ICICI PRUDENTIAL SBI AVIVA AMP SANMAR ALLIANZ BAJAJ OM KOTAK BIRLA SUNLIFE MAX NEW YORK ING VYSYA HDFC STANDARD MET LIFE TATA AIG 38
  39. 39. Market Share of Private Players in Terms of No.Of Policies upto Feb ' 04 4% 3% 5% 11% 25% 3% 9% 9% 11% 2% 13% 5% ICICI PRUDENTIAL SBI AVIVA AMP SANMAR ALLIANZ BAJAJ OM KOTAK BIRLA SUNLIFE MAX NEW YORK ING VYSYA HDFC STANDARD MET LIFE TATA AIG 39
  40. 40. • HOLDINGS ICICI Bank and Prudential plc came together in 1993 and formed Prudential ICICI Asset Management Company. ICICI Bank has 74% stake in the company, and Prudential plc has 26%. • EQUITY STRUCTURE Capital adequacy The Bank ’s capital adequacy at September 30,2006 was 14.3%(including Tier 1 apital adequacy of 9.4%),well above RBI ’ s requirement of total capital adequacy of 9.0%.The Bank ’ s unaudited capital adequacy estimated based on RBI ’s draft guidelines issued in February 2005 on implementation of the revised capital adequacy framework (Basel II),was about 14.9%(including Tier 1 apital adequacy of about 10.5%)at September 30,2006. Asset quality At September 30,2006,the Bank ’ s net non-performing assets onstituted 0.9%of customer assets against 1.0%at September 30,2005.The Bank ’s net restructured loans at September 30,2006 were Rs.4,942 crore (US$ 1.1 billion),down from Rs.5,713 crore (US$1.2 billion)at September 30, 2005. 40
  41. 41. • ORGANIZATION STRUCTURE, DEPARTMENTATION AND DETAILS OF DIVISION HEAD The CEO and Managing Director of ICICI Bank, Mr. K.V. Kamath is the Chairman of ICICI Prudential Life Insurance Company. The structure is as follows: Organization Chart – Head Of Management Team: Ms. Shikha Sharma - MD Mr. M.S.Khanan Mr. Bhargav Ms.Anita Pal Executive Dir. Dasgupta, EVP. Executive Director Mr. V.Rajagopalan Mr.Azim Mithani Mr.Puneet Nanda Appointed Actury Chief Actuary Chief Inv.Officer Ms.Binayak Dutta Chief sales&dis. 41
  42. 42. The ICICI Prudential Life Insurance Company Limited Board comprises of reputed people from the finance industry both from India and abroad.  Mr. K. V. Kamath, Chairman  Mr. Barry Stowe  Mrs. Lalita D. Gupte  Mrs. Kalpana Morparia  Mr. HT Phong  Mrs. Chandana Kochhar  Mr. Kevin Holmgren  Mr. M. P. Modi  Mr. R. Narayanan  Mr. N. S. Kannan, Executive Director  Mr. Bhargav Dasgupta, Executive Director  Ms. Shikha Sharma, Managing Director Ms. Shikha Sharma, Managing Director, is responsible for all the operations of the company. She started her career in ICICI in 1980 and has worked in various divisions of ICICI like Project Finance, Corporate Planning and Resource Raising. From 1992-1997,she was involved in setting up of ICICI Securities, a Joint venture between ICICI & JP Morgan. In April 1997, she became the General Manager, Strategic Planning and Policy department and Information Technology.In August 1998, she was appointed the Senior General Manager of ICICI Personal Financial Services Ltd., and was responsible for all the retail asset products of the company. Ms. Shikha Sharma, has done her B.A. (Hons.), Master of Business Administration from the Indian Institute of Management,Ahmedabad and a Post Graduate Diploma in Software Technology, from the National centre for Software Technology, Mumbai. 42
  43. 43. The various departments in the organization are: 1. The Human Resource Department 2. Investment Department 3. Customer Service and Operations Department 4. Information Technology Department 5. Strategy Department 6. Marketing Department. 43
  44. 44. • FINANCIAL PERFORMANCE OF THE COMPANY Prudential ICICI Asset Management Company continues to be among the top two asset management companies in India with assets under management of over Rs.30,000 rore (US$6.5 billion)at September 30, 2006. Summary Profit and Loss Statement Rs.crore Q2-2006 Q2-2007 Growth over H1-2006 H1-20 FY2006 Q2-2006 07 Net interest income 1 1,070 1,577 47% 2,039 3,052 4,709 Non-interest income 871 1,283 47% 1,779 2,473 4,056 (excluding treasury) -Fee income 704 1,138 62% 1,363 2,123 3,259 -Lease &other 167 145 (13%) 416 350 797 income Less: Operating expense 816 1,157 42% 1,587 2,237 3,547 Expenses on direct 257 327 27% 511 718 1,177 market agents (DMAs)1 Lease depre iation 64 51 (20%) 128 102 277 Core operating profit 804 1,325 65% 1,592 2,468 3,763 Treasury income 240 287 20% 423 375 928 44
  45. 45. Operating profit 1,044 1,612 54% 2,015 2,843 4,691 Less:Provisions 2,3 304 709 133% 602 1,192 1,594 Profit before tax 740 903 22% 1,413 1,651 3,097 Less:Tax 303 160 148 (8%) 276 557 Profit after tax 580 755 30% 1,110 1,375 2,540 1.Includes perpetual debt allable with regulatory approval at the end of 10 years from issue,qualifying as Tier-1 apital,aggregating Rs.2,271 crore. Ex ept for the historical information ontained herein,statements in this Release which contain words or phrases such as 'will','would',‘indicating ’,‘expe ted to ’ et ., and similar expressions or variations of such expressions may onstitute 'forward- looking statements'.These forward-looking statements involve a number of risks, uncertainties and other factors that ould ause a tual results to differ materially from those suggested by the forward-looking statements.These risks and uncertainties include,but are not limited to our ability to suc essfully implement our strategy,future levels of non-performing loans,our growth and expansion in business,the impact of any a quisitions,the adequacy of our allowance for credit losses,technological implementation and hanges,the actual growth in demand for banking products and services,investment income,ash flow proje tions,our exposure to market risks as well as other risks detailed in the reports filed by us with the United States Se urities and Exchange Commission.ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. 45
  46. 46. 1.9 PRODUCTS AND SERVICES The topics covered under this are:  Product Mix  Product Life Cycle  Pricing  Promotion Strategies  Segmentation and positioning strategies  Communication strategies and media analysis  Distribution and channel management  Technology 46
  47. 47. • PRODUCT MIX ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its 19 products are combined with up to 6 riders, to create a customized solution for each policyholder. The company provides insurance solutions for both individuals as well as groups. The insurance solutions for the individuals are: Savings Solutions 1. Secure Plus is a Transparent and feature-packed savings plan that offers 3 levels of protection. 2. Cash Plus is a transparent and feature-packed savings plan that offers 3 levels of protection as well as liquidity options. 3. Save “n” protect is a traditional endowment savings plan that offers life protection along with the adequate returns. This policy falls under the category of endowment policy. The policy-holder gets the sum assured and bonuses on survival. Unlike the cash back policy, there are no guaranteed bonuses here. The novel feature of the policy is that the policy holder is covered for life for 50 per cent of the sum assured for five years beyond the maturity date. 4. Cash Back is the policy which is ideal for meeting milestone expenses like children’s marriage, their higher education or to purchase any other asset.ICICI Prudential’s cash back policy is structured on the lines of the money back policies offered by LIC and others in the field. Simply put, the policyholder gets regular returns at pre-determined intervals and the sum assured and bonus at the end of the period. ICICI Prudential’s cash back policy has an interesting feature, in that, the company offers a guaranteed bonus .LIC is regarded as an exception of sorts because the entity’s track record of bonus gives one a fair idea of what can be expected. ICICI Prudential claims to be the only one offering a guaranteed bonus in addition to another bonus that is contingent on the returns the company generates on investment. 47
  48. 48. Protection Solutions LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options- level term assurance, level term assurance with return of premium and single premium. The company offers two pure life insurance products that have an umbrella name, Life Guard. One of them involves a one-time premium for which there are no maturity benefits. The other requires regular premium payments that are returned at the end of the policy. Life Guard offers absolutely no investment-related return and is suitable for individuals looking for an unadulterated insurance package. 48
  49. 49. Child Plans SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy 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 and regular premium. Market-linked Solutions 1. Life Link II is a single premium Market Linked Insurance Plan that combines life insurance cover with the opportunity to stay invested in the stock market. 2. Life Time II offers customers the flexibility and control to customize the policy to meet the changing needs at different life stages. It offers 4-fund options-Preserver, Protector, Balancer and Maximiser. 3. Premier Life is a limited premium-paying plan that offers customers life insurance cover till the age of 75. 49
  50. 50. Retirement Solutions 1. Forever Life is a retirement product targeted at individuals in their thirties. 2. SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover. 3. LifeTime Pension II is a regular premium market-linked pension plan. 4. LifeLink Pension II is a single premium market-linked pension plan. ICICI Prudential also launched “Salaam Zindagi”, a social sector group insurance policy targeted at the economically underprivileged sections of the society. The policies for groups are: ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. They are: 1. ICICI Pru Group Gratuity Plan: ICICI Prudential’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner .The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. 2. ICICI Pru Group Superannuation Plan: ICICI Prudential offers a flexible defined contribution superannuation scheme to provide a retirement solution for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. 3. ICICI Pru Group Term Plan: ICICI Prudential’s flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on 50
  51. 51. designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. Flexible Rider Options 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. Most of the riders come with the traditional money back and endowment policies and the flexibility here may well be the USP of the latest generation of insurance products. ICICI Prudential’s riders are meant to cover accidents, critical illness, assistance for major surgeries and a desire to double the insurance cover during the life of the policy. The concepts underlying the riders offered by different companies are similar. Therefore, any interested person will have to take a close look at the fine print; a difference here could make all the difference. The major advantage of the riders offered by ICICI Prudential, as well as its competitors, is that a policyholder has the flexibility to mix and match the rider according to requirements, and thereby avoid paying for benefits one does not need. 1. Accident and 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 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. 2. Accident Benefit: This rider option pays the sum assured under the rider on death due to accident. 3. Critical Illness Benefit: This protects the insured against financial loss in the event of 9 specified critical illness. Benefits are payable to the insured for medical expense prior to death. 51
  52. 52. 4. Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on Smartkid, SecurePlus and CashPlus. 5. Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are waived till maturity. This rider is available with SecurePlus and CashPlus. • PRODUCT LIFE CYCLE The Insurance industry is just in the introduction stage. So the company’s product stands in the introduction stage. It will still take two three years to reach break-even point for the company. 52
  53. 53. • PROMOTION STRATEGIES Over the last few months, ICICI Prudential has been advertising in outdoor, TV and press. The company launched a corporate television campaign-Saat Phere-which took the emotions and thoughts of initial Sindoor corporate film a few steps further. The film highlights the strength of promises that a husband makes to his wife, through the depiction of everyday situations, and then goes on to emphasize that ICICI Prudential will stand by the husband to help him fulfill all these promises. The TV campaign has also been extended to outdoor. The company has also undertaken press and internet campaigns to inform customers about benefits of some of its products, particularly retirement solutions, through the Chintamani campaign. After the hugely successful Chintamani(retirement) and Saat Phere(corporate) campaigns, ICICI Prudential Life Insurance also introduced some innovations in the category, such as: having a tax planner by the name of Chintamani on radio, who would answer consumer’s queries about the role of insurance in financial planning. Other initiatives included tie-up with the Dabbawala Organization in Mumbai for a direct marketing exercise, to talk to the customer through a non-cluttered route, and thereby have a higher impact. The direct mailer was about ICICI Prudential’s retirement solutions and the tax benefits that one can avail of buy investing in any of these. About 1, 00,000 direct mailers were attached to the ‘dabbas’, in areas such as Churchgate, Bandra and Andheri where there are mostly office-goers. In addition to advertising, the company has also initiated several activities to raise consumer awareness about life insurance and ICICI Prudential. It includes seminars- ICICI Prudential regularly holds consumer awareness meets on ‘the need for retirement planning’ in different cities such as Pune, Aurangabad, Coimbatore, Nagpur, Bangalore and Mangalore. These are very well attended and have contributed significantly towards increasing awareness about the category and the company. Apart from this, they have also entered into alliances with telecom companies, as well as companies like BPCL and Dominos. 53
  54. 54. The company also sets up stalls at various vacation fairs or events. Not only that, last year they had set up a camp where they offered free check-ups for blood pressure and blood tests. 54
  55. 55. • SEGMENTATION AND POSITIONING STRATEGIES At a broad level, ICICI Prudential aims to secure the families of the middle and upper class working people in urban and rural India. Their strategy has always been to focus on delivering value and convenience to the customer, whether they are in the rural or urban areas. Hence, in urban areas they have focused on offering product choice and flexibility and building easy access for the customers; while in rural areas the focus is on partnering with NGO’s and grass-root organizations and offering a simple product that can be understood by the customers. • COMMUNICATION AND MEDIA ANALYSIS ICICI Prudential’s success has been built on its consistent focus on the customer and delivering on his/her needs. This includes several initiatives, such as: • Developing flexible products that are based on consumer needs and insights. • Offering differentiated service to the customer in a manner that is most • Convenient to him/her-be it through the web, call centres, branches, etc. • Scientific risk management. • Investment strategy with a focus on safety, stability and returns are some of the factors that have facilitated their growth. Since its inception, ICICI Prudential has invested in building a meaningful brand in the mind of its customers. These efforts have borne fantastic results, with the company enjoying total brand awareness scores of 92%, the highest among private life insurers. 55
  56. 56. The Marketing function at ICICI Prudential covers many activities- • Brand and media management, • Channel support, • Direct marketing and • Corporate communications. The Brand and Communications team is in charge of advertising, consumer research, media planning & buying and Public Relations; that helps in developing and nurturing ICICI Prudential’s corporate identity while effectively communicating its varied product offerings to the customer. Channel marketing provides support to the sales force by providing streamlining the design and development of collaterals and sales tools across distribution channels. The Direct Marketing team was set up to generate high quality leads for profitable business. The team achieves this through target database acquisition and communicating customized product information through e-mailers, telemarketing and innovative direct mailers. ICICI Prudential Life Insurance has shifted its Rs.200 million media planning and buying account from Initiative Media to Mindshare. Apart from Mindshare and Initiative Media, there were three other agencies in the final round. ICICI Prudential Life Insurance, head-marketing, Abhishek Bhatia had short listed five agencies in a second round, to test their media planning in terms of tools and applications and creativity in terms of their usage before opting for Mindshare. In all, nine agencies were invited in the first round. The new agency will handle the TV, print, cinema, radio and other mass media buying for ICICI Prudential. Lowe continues to work on the creative business while Ogilvy Landscapes handles outdoor advertising. The main aim of the company is that they are looking for agencies, which can go beyond tools and techniques in terms of rigorously using them, and implementing a robust monitoring system (for efficiency in terms of planning and execution of the plan devised). Also, they should have some expertise in handling the banking, financial services and insurance category. The company also looks at the capability to go beyond TV, outdoor and print. 56
  57. 57. • DISTRIBUTION AND CHANNEL MANAGEMENT The company has the highest distribution network having 75 branches across 45 locations. It is the only company to do 1 million policies. In keeping with its philosophy of giving the customers choice in how they want to approach the company, ICICI Prudential was the first life insurer to launch operations with a multi-channel distribution strategy that included: • Advisors • Bankassurance • Corporate agents • Direct marketing • And most recently, its online application system-Insta Insure. Also this is the only company to have a tie-up with Indian Post Office. The company has a network of about 40,000 advisors and 53,000 agents, which contribute the greatest percentage of business. Alternate channels such as corporate agents and bank relationships contributed nearly 30% of business in 2006. ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 62 cities and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore, Bareilly, Bhatinda, Bhopal, Bhubaneshwar, Chandigarh, Chennai, Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vashi, Vijaywada and Vizag. 57
  58. 58. The company has 11 bankassurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, as well as some co-operative banks like Punjab and Maharashtra Co.- operative Bank, Goa State Co. – operative Bank. Indoor Parraspar Sahakari Bank, Manipal State co. operative Bank, Shamrao Vithal Co-operative Bank and Jalgaon Peoples co. operative Bank and corporate agents. Allahabad Bank was having agreement with ICICI PRUDENTIAL till May 2004. Now it has joined to SBI Life Insurance. It has also tied up with organizations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society. Bankassurance: Bankassurance in its simplest form is the distribution of insurance products through a bank's distribution channels. In concrete terms bankassurance, which is also known as Allfinanz - describes a package of financial services that can fulfill both banking and insurance needs at the same time. The motives behind bankassurance also vary. For banks, it is a means of product diversification and a source of additional fee income. Insurance companies see bankassurance as a tool for increasing their market penetration and premium turnover. The customer sees bankassurance as a bonanza in terms of reduced price, high quality product and delivery at doorsteps. Actually, everybody is a winner here. Brief Detail of some Bankassurance tie-ups With Company: (1) Allahabad Bank : Allahabad Bank is the oldest public sector Bank in India having branches all over India serving the customers since 1865. They entered into and insurance tie up with us in September last year and have never looked back since then. Dr. B.Samal, ex-Chairman and M. D, Allahabad Bank, on the tie up with ICICI Prudential: 58
  59. 59. “This strategic alliance with the ICICI Prudential Life is an extension of our philosophy to provide a complete range of financial solution to our customers. By trying-up with India’s leading private life insurer, we can assured our customers of not only a complete innovatively designed product range, but also excellent services.” Allahabad Bank has recently joined up with LIC. (2) Bank Of India : One of the large public sector Banks entered into bankassurance tie up with us a year a halfback. Since last year we have expanded three folds. But “this is just a beginning” in the words of Executive Director, Mr. O. N. Singh. He said we have started earning. The income form these areas may not be substantial, but it is a net addition. We are making it without incurring even a single penny of additional expenditure. Developing capabilities is as important as making profits. The profits from these areas may be 20 Crores this year. Once our staff learns to sell insurance and mutual fund products, we should be able to earn many times more than that amount.” (3) Federal Bank: Fed-ICICI Pru is an enviable partnership for any bank or an insurance company. According to Chairman Shri K. P. Padmakumar, the bank foray into bankassurance is logical extension of their desire to convert themselves into a complete financial service provider and hence their tide up with the No. 1 insurance company. Going forward federal has ambition to transform itself into one of the largest distributors of life insurance and pension products. 59
  60. 60. According to Federal Bank chairman Shri. K. P. Padmakumar, “The bankassurance arrangement between to leading organizations presents several mutually beneficial advantages. While ICICI Prudential gets the benefit of a larger distribution network, Federal Bank is able to improve the range of financial products and services that it can offer to its customers. Insurance company also benefit from strong personal trust and bondage that branch managers have built with their customer base over the years. (4) ICICI Bank : ICICI Bank is our oldest and largest partner and the pioneer bankassurance in India. With a multichannel distribution approach where insurance is woven into delivery channel of the bank, this is India’s most advanced bankassurance model. M. S. Chanda Kochhar, Executive Director ICICI Bank, in recent interview with prudential corporation, discussed the ICICI Bank experience with bankassurance. M. S. Chanda identified the portfolio of innovative products, a multi channel distribution network and the ability to do pioneer paradigm initiatives as some of the strengths of ICICI Prudential. She mentioned specifically the “salary account” and the “private banking” channels where we have been doing business together and have a good business potential in future as well M. S. Chanda dwelt on the strengths, especially the vast multichannel distribution network and the consumer franchise that ICICI Bank enjoys in India, and how it is supplemented by the knowledge and expertise of prudential life insurance business. 60
  61. 61. (5) Lord Krishna Bank: Lord Krishna Bank is another one of our partners based in Kerala. Starting with 7 branches in Kerala, the tie up has now extended to 50 plus branches in the last 8 months. Mr. S. R. Sinha, Senior Vise- President, Lord Krishna Bank on the tie up with ICICI prudential. “The concept of bankassurance is an excellent fit with Lord Krishna Bank’s strategy to become a new- age bank that imbibes the spirit of change and innovation. As a new avenue of growth, it enables the bank to expand its service range to its valued customers and provides an additional revenue stream to the bank. The goodwill and strong client base of Lord Krishna Bank and ICICI Pru. Life’s expertise in the life insurance business is sure to make tie up a success story.” (6) South Indian Bank: One of our oldest relationships, going for ward wishes to make insurance as one of the key contributor towards bank‘s fee based income. After having established the referralm, odlin, Kerala, SIB now has plan to step up business by including regions outside Kerala under its focus and provide the require inputs. Shri. A. Sethum A.Dhavan, Chairman & CEO of The South Indian Bank Ltd says “Bankassurance is the most preferred distribution channel for life insurance products the world over. Indian banks are replicating this model with great expectations to augment their income stream. SIB considers this more as an alternative product that can be offered to its customers as a part of its plan to offer variety of financial products and service all under one roof. We have successfully completed a full year of fruitful relationship ICICI Prudential in marketing its life insurance products under a referral arrangement.” 61
  62. 62. CORPORATE AGENTS ICICI Prudential has tie up with Corporate Agents. Some them are as under : (1) Access Hospitality Services : The top performing corporate agents from Punjab have been with us for one and a half years. AHS started by husband and wife couple of Sanjeev Sharma and Sangeeta Sharma a nine years ago, entered in to a partnership with ICICI Prudential in Dec. 2001, with help of their excellent sales practiced and execution they have done very well since then. Today they are one of the leading corporate agents of ICICI Prudential. (2) Advance Financial Services : AFS has been our partner for over a year now. Advance Financial Services is part of the Karvy Group, one of the India’s leading financial services companies. Karvy’s strong work ethic and professional background, leveraged with information technology enable it to deliver quality to individual customers. This synchronizes with ICICI Prudential mission of offering the best advise to Indian consumers for life insurance and retirement solutions. (3) Bajaj Capital Services: Bajaj Capital are one of India’s fore most merchant bankers, investment advisors and financial planners for the last 37 years and have had the honor of helping millions of investors achieve their life’s goals. Bajaj Capital Services is a one stop financial supermarket and today provides ICICI Prudential solution through specially trained consultants at its outlets across the country. 62
  63. 63. (4) Bluechip Online: Bluechip and ICICI Prudential shared a mutually rewarding journey with their strong presence in Mumbai and long lasting customer relationships, bluechip has shared synergies with the distribution philosophy of ICICI Prudential. Bluechip have now taken the success of the insurance partnership in Mumbai to its other branch location in India. (5) India Infoline: Mr. Atul Rastogi, Director India Infoline, say about their journey with ICICI Prudential: “India Infoline was the first corporate agent for ICICI Prudential and the relationship has gone from strength to strength in the last two and half years. ICICI Prudential has been the industry leader in innovative products, marketing campaigns and promotion, rewards and recognitions, which adds notches to their productivity. Going forward they are confident that ICICI Pru’s vision of being the leading player in pension and insurance industry will be met and India Infoline will be significant contributor in the same. (6) Way 2 Wealth: Way2weath is a premier investment consultancy firm that has been launched with aim of making investing simpler, more understandable and profitable for the investors. In line with way2wealth’s mission “ to be the pre-eminent destination for personalized financial solutions helping individuals create wealth”, it has partnered with ICICI Prudential to offer life insurance and retirement solutions through over 40 easily accessible investment outlets spread across 20 major towns and cities in the country. 63
  64. 64. Direct Marketing ICICI Prudential also markets for its products though different ways like telecalling, mail etc. As mentioned about branch network of ICICI Prudential above, they all are having their staff that is involved in direct marketing for its product. Distribution Strategy of ICICI Prudential Bankassurance & Alliances Tied Agency Bankassurance 20 % Corporate Agency & 10 Brokers Direct Marketing 70 Agency Force 64
  65. 65. Tied Agency In life insurance business wide distribution network and tied agency is biggest source of getting more business for any company so developing them is key to increase share in the life insurance market. LIC has 14,02,149 agents and 2248 branch offices as on 31st march 2007. Tied agency is a substantial business channel for ICICI Prudential because 70% of business of company comes from this channel. Company provides agency to individual whose age is between 25 to 40 years and, minimum qualification is 12th pass. As we have seen, company’s major business comes from this channel. ICICI Prudential is immensely concentrating on developing this channel. It has 53,000 advisors and it is planning to extend this number to 74000 by the end of the year 2006 – 2007. For that, ICICI Prudential does many activity like they do direct marketing, they recruit management trainees on fulltime project, they hold seminars, they also keep stall in big events for developing that channel. Unit managers provide major support in developing this channel. Unit manager’s target is to recruit 30 advisors in 5 – 6 months time. Unit managers have around 25-30 advisors, who are recruited by them. ICICI Prudential provides lots of benefits to the advisors like flexibility in timing, different motivation factors like money, foreign trips, career building programs permission to access office etc. Company called its offer to business opportunity for individual. People who accept companies business offer and complete 100 hours training of IRDA for getting license to do business of life insurance, they call them advisors of ICICI Prudential. The project given to the management trainess involves developing business channels called Tied Agency. I did this task for sixteen weeks. I adopted various techniques for Data Collection which are discussed later in the methodology section .Apart from this, we were also given an opportunity to present new and develop some creative ideas in order to target HNIs. We came out with some creative ideas like distributing scratch cards at departmental stores, petrol pumps etc. and we also fixed up the limit of money spent by the people so targeted only the higher segment. ICICI Prudential has recruited and trained over 53,000 insurance agents to interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers. The company also realized that backward areas like Andhra Pradesh are not aware of insurance and insurance companies have a limited reach. So, ICICI Prudential has also started providing services here to ITC e-Choupals. Sanchalak is the referral agent and each sanchalak has sold almost 1-27 policies in the 65
  66. 66. pilot phase. There are 90 kiosks in the pilot phase and 1500 kiosks have been proposed. Also ICICI Prudential along with ICICI Lombard has launched n-Logue kiosks in Madurai. Kiosk operator is the referral agent. The following table shows the way the company has grown from 2001 to 2004: Financial Year Cities Branches 2004 54 70 2006 84 97 2004 115 109 • TECHNOLOGY To see how successful the company is in reaching out to its customers, it is necessary to see the technology initiatives of the company. It is a kind of communication channel, but it is put in this head as it deals exclusively with technology. With over 26 branches spread across the country, Prudential ICICI found it imperative to have a system in place to connect each branch with the main office in Mumbai. Previously the company used to rely on a Fox Pro database. But the system was not flexible enough to serve the needs of a rapidly growing organization. Bureaus across the country used to photocopy the applications received by customers and then courier it to the Mumbai office. The applications were scanned and then entered into the database. The quality audit took place 2-3 days after the application was received. The final account statement was created after the quality audit. There was a 7-10 day gap because of this process leading to a longer turnaround time per application. Customers who wanted redemption within a week faced a problem with this system. Also, if a particular office received more than the usual number of applications it used to increase the load on the system as well as the personnel, which in turn led to delays in transactions. Another area that required smoothening out involved the dispatch of statements to the customer. Earlier around 60-100 statements were printed everyday and were then faxed to the customers. This was not only time consuming but expensive as well, as each statement ran into minimum of three pages. Also, valuable 66
  67. 67. human resources were occupied in non-productive work like redialing the fax number in case the receiver was busy at the other end. The solution to this issue The priority was to implement a centralized database. Data is entered through the front-end tool PowerBuilder, which is now getting phased out and replaced by a client/ server based system. Prudential ICICI now uses Oracle for taking care of its backend needs. With the centralized database, if there is an overload of applications received in any particular branch, then the central pool of people in Mumbai distributes the load. The extra load is diverted to the area where the resources are relatively free. 20 of the 26 branches have been connected via a leased line. The backbone supporting the network is that of parent company, ICICI Bank. Hence, each Prudential ICICI Branch is connected to the local ICICI Bank’s LAN network. The centralized database has helped the company in providing better customer service. Now, a customer is not attached to any particular branch. They can get their queries answered from any branch in the country. The branches no longer courier the applications to the Mumbai office. The details are entered into the system on the same day using Hummingbird, which has been customized to suit the company’s needs. The advantage of the system is that along with the data even the image is now available for viewing and verification. Hummingbird has made it possible for the company to capture and index paper-based documents and manage them in tandem with the electronic content. Digitisation of the content has made it possible for users to enjoy immediate access to critical resources. Document metadata and text-based image content is captured and indexed to support user queries, and the way images are shared and revised have been fine-tuned with flexible security controls. Due to the immediate availability of details in the application, the quality audit now happens on the same day. This has reduced the turnaround time to 24 hours. Cost cutting and operational efficiency 67

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