A project report on recruitment and channel developmentat icici prudential


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A project report on recruitment and channel developmentat icici prudential

  1. 1. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL "A study on Recruitment and Channel Development at ICICI-Prudential" The information given by you will be used only for the academic purpose, will be ofimmense value and would assist me in this endeavor. Thus kindly co-operate.1. Name :2. Age :3. Gender : Male Female4. Marital Status : Married Unmarried5. Address :6. Telephone/Mobile :7. E-mail :8. Qualification :9. Occupation :10. How did the company approach you for recruitment? Telecalling Advertisements Personal Contact & Reference Self-Interest Others11. What made you join the company as a Financial Advisor? Money Career Rewards & Recognition Brand Culture Profile Others12. How is the market for Life Insurance? Excellent Good Fair Average Poor13. Approximate Monthly income? Less than 5000 5000-10000 10000-15000 15000 and aboveBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 1
  2. 2. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL14. Are you satisfied with the recruitment process followed by the Company? Highly satisfied Satisfied Some what Satisfied Not Satisfied Not at all satisfied15. Are you satisfied with the work environment of the company? Highly satisfied Satisfied Some what Satisfied Not Satisfied Not at all satisfied16. Do you feel proud to be an advisor of ICICI-Prudential? Yes No17. Is there any time constraint regarding the working hours? Yes No18. What is your opinion about the rules & regulations of the company? Good Neutral Bad19. Have you been rewarded anytime? Yes No20. Is there any growth opportunity in the company? Yes No21. Your opinion about the companyBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 2
  4. 4. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL BIBLIOGRAPHY 1. Personnel Management : Mamoria 2. Human Resource Management : Subba Rao 3. Managing Human Resources : Wayne .F. Cascio 4. Web-Site : iciciprulife.com , google.com 5. Journals : Company journals and magazines.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 4
  5. 5. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL TABLE OF CONTENTS 1. Executive Summary 2. Introduction 3. Need for Insurance 4. Company Profile 5. Products 6. Recruitment and Channel DevelopmentBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 5
  6. 6. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL FINDINGS Summary of FindingsThe findings of the project:• It is been found that most of the people in ICICI Pru are being recruited through the personal contacts or reference.• Most of the advisors have chosen this profession to make money and carrer.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 6
  7. 7. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL• Most of the advisors feel that there is a good market for the life insurance.• Most of the advisors have monthly income more than 10000.• Most of the advisors are satisfied with the recruitment process in the company as it a very simple and understandable process.• Most of the advisors are satisfied with the friendly work environment at ICICI Pru.• Most of the advisors feel proud to be an advisor at ICICI Pru• Most of the advisors are happy because there is no time constraint being imposed on them.• By the above analysis it is found that the advisors feel that the rules and regulations should be maintained and are very much happy with the present rules of the company.• The top advisors are being rewarded for their excellent performance.• By the analysis it is found that there is definitely a growth opportunity for the advisors through the programs like Pinnacle Mobile Tiger Agency ChampionBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 7
  8. 8. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL SUGGESTIONS Summary of Suggestions• As most of the advisors are being recruited through personal contacts or reference, the company should also concentrate on advertisements and telecalling in order to attract people.• Most of the Market for Life Insurance is Untapped in India. So the company should penetrate these areas and make people aware of it.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 8
  9. 9. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL• Some people are not satisfied with the recruitment process because a fee of Rs 1200 is being collected from them in order to enroll their name. So the can try reducing the amount so that more no of people can afford for it. There is also a training period of 21 days in order to become an advisor. Some people who have taken up this job as a part time may not be having sufficient time for it. So the company can come up with alternate solution.• As most of the advisors are proud be associated with ICICI Pru the company should materialize this feeling and keep continuing a great job. And thus, motivate the people.• Since there is no time constraint for the advisors on the working hours the company should impose time constraint so that the advisors can keep themselves abreast and it will also not hinder the companys performance• Since there is a growth opportunity at ICICI Pru the advisors should grab the opportunity and make career and money to lead a happy life.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 9
  10. 10. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL CONCLUSION Conclusion As ICICI Prudential is a leader in the private Life Insurance sector, the recruitmentprocess in the company is well outlined and systematically followed. My study at ICICIPrudential indicates that most of the recruitment is done through personal contacts and telecallingby the Unit managers.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 10
  11. 11. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL As far as the advisors feeling is concerned, they are very much satisfied with therecruitment process, commission earned, rewards and recognition programs in the company. To conclude, I would like to say that working with ICICI Prudential for 2 months was agreat experience. And I feel proud be an advisor of an esteemed company as ICICI Prudential isknown for its leadership in the private life insurance sector. EXECUTIVE SUMMARYBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 11
  12. 12. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL EXECUTIVE SUMMARY Insurance is the pooling of fortuitous losses by transfer of such risk to insurers, whoagreed to provide the pecuniary benefit on their occurance, or to render service connected withrisk. It is the transfer of financial responsibility for the risk at the point of occurance andconventionally involves the insurer in a commitment to pay. The insurance service lead toefficient and productive allocation of capital resources, facilitate growth of trade and commerce.Globalization will certainly increase insurance penetration and all professionals shall equipthemselves to exploit opportunities offered by this sector. ICICI PRUDENTIAL has maintained its lead amongst the private players of lifeinsurance with a market share of about 39%. The biggest achievement is in pension segment,where company introduced a slew of products and captured around 23% of the total pensionmarket. ICICI Prudential have a customer centric growth strategy and has taken a number ofstrategies against this. The consumers are the largest economic group in any country and the present daybusiness activities are because of consumers only. Thus, consumers are the pillars of theeconomy. The consumers are not only the heart of marketing system, but also the controller ofmarketing functions. But if the modern marketing system consumers sovereignty has become amyth on account of the variety of problems in the process of merchandising. The study ofconsumer behavior enables marketers to understand and predict consumer behavior in themarket place; It also promotes understanding of the role that consumption plays in the lives ofthe individual. This gives me an opportunity to work on with this endeavor focusing on the study ofconsumer behavior towards the insurance products with special reference to ICICIPRUDENTIAL. The primary objective of the study is to understand the attitude and perceptionof the respondents towards insurance products. The study gives an insight to the insurance industry. It briefly explains about the historyof life insurance sector. It also contains the organizational profile of ICICI PRUDENTIAL,stating about its mile stones, vision, products, protection, solutions, advertising effectiveness andfinally about its marketing strategies and challenges. The study ends up with the suggestions inorder to modify the current system for a higher growth and progress.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 12
  14. 14. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL INTRODUCTION LIFE INSURANCE Life insurance is a contract providing for a payment of a sum of money to the person assured or failing him to the person entitled to receive the same on the happening of certain event. Uncertainty of death is inherent in human life. Ii is this risk, which gives rise to the necessity for some form of protection against the financial loss arising from death. Insurance substitutes this uncertainty by certainty. The objective of insurance is normally to provide: A Family Protection. B Provision for old age. INSURANCE INDUSTRYORIGIN OF INSURANCE The origin of insurance dates back to the 12 th century, the origin of insurance appeared first in marine and land fields. The ideas of insurance were made in Babylonia and India at quite an early period; the courts of Hammurabi and Mano recognized the provision for sharing the future losses. However there is no evidence that insurance in its present form was practiced prior to 12 th century. Tracing the history of insurance to the present day, one can easily gauge the performance of industry both collectively as an industry as well as individually by the companies. In earlier times, travelers by sea and land were very much exposed to risk of losing their vesselsand merchandise because piracy on the open seas and highway robbery of caravan were common.References to similar practices are also found in Manab Dharma Shastra which contained rulesfor sea from contracts which was observed by traders. Insurance conceived as method of sharingof the losses embodying the principal of co-operation existed in the early civilization.Many may not be aware that the life insurance industry of India is as old as it is in any other partof the world. The first Indian life insurance company was the Oriental Life Insurance Company,which was started in India in 1818 at Kolkata1. A number of players (over 250 in life and about100 in non-life) mainly with regional focus flourished all across the country. However, theGovernment of India, concerned by the unethical standards adopted by some players against theconsumers, nationalized the industry in two phases in 1956 (life) and in 1972 (non-life). Theinsurance business of the country was then brought under two public sector companies, LifeInsurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).Reforms were initiated with the passage of Insurance Regulatory and Development Authority(IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put inplace regulations in line with global norms. So far in the private sector, 12 life insurancecompanies and 9 general insurance companies have been registered.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 14
  15. 15. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALINSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT - 1999.(I.R.D.A)The object of this act is to provide for the establishment of an authority to protect the interest ofholders of insurance policies, to regulate, to promote and ensure orderly growth of insuranceindustries. Insurance Regulatory and Development Authority (IRDA) has sought the comments ofindustry participants to finalize the guidelines for online agents training institutes. These proposed guidelines are in addition to its standard instructions and guidelines applicablefor approval/renewal of agents training institutes. The guidelines would be applicable to all theonline training institutes including in-house training institutes of the insurers.As per the draft guidelines, the applicant should undergo at least 120 hours practical training inlife or general insurance business. The composite training should be for at least 180 hours, wherethe applicant is seeking license for the first time to act as an insurance agent.The duration should be minimum of 24 days for 120 hours training and 36 days for 180 hourstraining with a maximum five hours per day. Stating that no product training/market surveyshould be included into this 120/180 hours training, the regulator said revision examination couldform part of the training.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 15
  16. 16. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALDuties, Powers and functions of Authority:• The powers and functions of the authority include registration of insurers, intermediaries and agents regulations of terms and conditions of contract of insurance, promoting and regulating professional organizations connected with the insurance, monitoring investment of funds and solvency margin of insurance companies.• The authority is to be advised by a committee to be known as the insurance advisory committee, which shall consists of not more than 25 members including ex-officio members in the insurance sector. The insurance advisory committee is expected to advice the authority on matters relating to making of the regulations• An Indian insurance company has been defined as a company incorporated under the Companies Act - 1956 and the paid capital of General Insurance business will have to be not less than Rs 100/- Crores and in case of companies wanting to transact reinsurance business the paid capital will have to not less than Rs 200/- Crores.• It has also been notified that every insurance company will have to appoint an Actuary to be approved by I.R.D.A. The duty of the Actuary is to insure that The assets are valued in appropriate manner The liabilities are evaluated as required The prescribed margin for maintaining solvency is complied with.• The I.R.D.A also issued regulations with regards to advertisement so as to include almost any public communication for a sale of insurance policy.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 16
  17. 17. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL THE FUNDAMENTAL / PRINCIPALS OF LAW OF INSURANCE.UTMOST GOOD FAITH: The parties to the commercial contract, according to the law arerequired to observe good faith. The seller cannot mislead the buyer in respect of transactions, buthe has no subject of the contract, it is the buyer’s duty to be careful while entering into a contract.LET THE BUYER BE AWARE is a legal rule.INSURABLE INTEREST: The owner of the property has a right under law to effect insuranceon the property if he is likely to suffer financially when property is lost or damaged. This legalright to insure is called insurable interest, without insurable interest the contract of insurance willbe void. Because of this legal requirement of insurable interest the insurance contracts are notgambling transactions.INDEMNITY: The principal of indemnity arises under common law and requires that aninsurance control should be a contract of indemnity only and nothing more. The object ofprincipal is to place the insured after a loss in the same financial position as far as possible, as heis occupied immediately before the loss. The effect of this principal is to prevent the insured frommaking the profit out of his loss or gaining any advantage or benefit. The object of a contract ofinsurance is to protect the financial interest of the insured in the subject matter of insurance.SUBROGATION: The principal of subrogation arises from the principal of indemnity.Subrogation may be defined as transfer of rights and remedies of the insured to the insurer whohas indemnified the insured in respect of the loss. If the insured has any rights of action to berecovered the loss from any third party, who is primary responsible for the loss, the insurerhaving paid the loss is entitled to avail himself of these rights to recover the loss from the thirdparty. The effect is that the insured does not receive more than actual amount of his loss and anyrecovery affected from the third party goes to the benefit of the insurer to reduce the amount ofhis loss Insurance market in India By any yardstick, India, with about 200 million middle class households, presents a hugeuntapped potential for players in the insurance industry. Saturation of markets in many developedeconomies has made the Indian market even more attractive for global insurance majors. Lifeinsurance is mainly considered as a saving instrument rather than an investment avenue as itpromotes compulsory savings besides reducing tax burden on the policyholder and protect thefamily of the policyholder in the event of unforeseen happening. It is the only saving instrument,which covers the life risk besides giving tax concession both at entry (premium paid) and at exit HISTORY AND PRESENT STATUS OF INSURANCE MARKET IN INDIABABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 17
  18. 18. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL The insurance sector in India has come a full circle from being an open competitivemarket to nationalization and back to a liberalized market again. Tracing the developments in theIndian insurance sector reviles the 360-degree turn witnessed over a period of almost twocenturies.A brief history of the insurance sector The business of life insurance in India in its existing form started in India in the 1818with the establishment of Oriental Life Insurance Company in Calcutta. Some of the importantmilestones in the Life Insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statue to regulatethe life insurance business. 1928: The Insurance Companies Act enacted to enable the government to collectstatistical information about both life and non-insurance business. 1938: Earlier legislation consolidated and amended to by the Insurance Act with theobjective of protecting the interest of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by thecentral government and nationalized. LIC found by an Act of Parliament, viz. LIC Act 1956,with a capital contribution of rupees Five Crores from the Government of India.Insurance sector reforms In 1993, Malhotra Committee, headed by former Finance Secretary and RBI GovernorR.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its futuredirection. The Malhotra committee setup with the objective of complimenting the reformsinitiated in the financial sector. The reforms where aimed at "creating a more efficient andcompetitive financial system suitable for the requirements of the economy keeping in mind thestructural changes currently underway and recognizing that insurance is an important part of theoverall 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 a. Government stake in the insurance companies to be brought down to 50%. b. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. c. All the insurance company should be given greater freedom to operate.Competition a. Private companies with a minimum paid up capital of Rs. 1bn should be allowed toBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 18
  19. 19. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL enter the industry. b. No company should deal both the life insurance and general insurance through a single entity. c. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. c. Postal Life Insurance should be allowed to operate in the rural market. d. Only one state level Life Insurance Company should be allowed to operated in each state.Regulatory body a. The Insurance Act should be changed. b. An Insurance regulatory body should be setup. Reforms in the insurance sector were initiated with the passage of the IRDA Bill inthe Parliament in December 1999. The IRDA since its incorporation as statutory body in April2000 has fastidiously stuck to its schedule of framing regulations and registering the privatesector insurance companies. The other decisions taken simultaneously to provide the supporting systems to theinsurance sector and in particular the life insurance companies was the launch of the IRDAsonline service for issue and renewal of license to agents. The approval of institutions for imparting training to agents has also ensured thatthe insurance companies would have trained work force of insurance agents in place to sell theirproducts, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in aframework of globally compatible regulations. In the private sector 12 life insurance and 6general insurance companies have been registered. Insurance is an Rs 400 billion business in India, and together with banking services adds about 7% to Indias GDP. Gross premium collection is about 2% of GDP and has been growing by 15 to 20% per annum. India also has the highest number of life insurance policies in force in the world, and total investable funds with the LIC are almost 8% of GDP. Yet more than three fourth of Indias insurable population has no life insurance or pension cover. Health insurance of any kind is negligible and other forms of non life insurance are much below international standards. To tap the vast insurance potential and to mobilize long term savings we need reforms which include revitalizing and restructuring of the public sector companies, and opening up the sector to private players. A statutory body needs to be made to regulate the market and to promote a healthy market structure. Insurance Regulatory Authority (IRA) is one such body, which checks on these tendencies. IRA role comprises of following three functions: a. Protection of consumers interest b. To ensure financial soundness and solvency of the insurance industry, c. To ensure healthy growth of insurance market.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 19
  20. 20. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALAn insurance policy protects the buyer at some cost against the financial loss arising from aspecified risk. Different situations and different people require a different mix of risk-costcombinations. Insurance companies provide these by offering schemes of different kinds.Unfortunately, the concept of insurance is not possible in our country. As per the latest estimates,the total premium income generated by life and general insurance in India is estimated at around1.95% of GDP. How ever Indias share of world insurance market has shown an increase of 10%from 0.31% in 1996-97 to 0.34% in 1997-98. Indias market share in the life insurance businessshowed a real growth of 11% there by outperforming global average of 7.7%. Non life insurancebusiness grew by 3.1% against global average of 0.20%. In India insurance pending per capitawas among the last in the world at $7.6 compared to $7 in the previous year . Amongst theemerging economies, India is one of the least insured countries but the potential for growth isphenomenal, as a significant portion of its population is in services and the life expectancy alsoincreased over the years.The nationalized insurance industry has not offered consumers a variety of products. Opening ofthe sector to private firms will foster competition, innovation and variety of products. It wouldalso generate greater awareness on the need for buying insurance as a service and not merely fortax exemption, which is currently done on the demand side, a strong correlation between demandfor insurance and per capita income level suggests that high economic growth can spur growth indemand for insurance. Also there exists a strong correlation between insurance density and socialindicators such as literacy. With social development, insurance demand will grow. LIFE INSURANCE MARKET IN INDIA Life Insurance StatisticsIndian Population I bnGDP as on 2000 ( Rs bn) 50000 bnGross Domestic Saving as a % of GDP 32%BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 20
  21. 21. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALNCAER estimate is Insurance 240 mnPopulationEstimated market 2010 950 mnIndia has an enormous middle class that can afford to buy life, health, and disability and pensionplan products. The low level of penetration of life insurance in India compared to other developednations can be judged by a comparison of per capita life premium.Country Life Premium per capita US $ in 1994Japan 3817UK 1280USA 964India 4Clearly, there is considerable scope to raise per capita life premium in the market is effectivelytapped. India has traditionally been a high savings oriented country often described as being onpar with thrifty Japan. Insurance sector in the US is a big in the size as the banking industry there.This gives us an idea of how important is the sector is. Insurance sector canalizes the saving ofthe people to long-term investments. In India where infrastructure is said to be criticalimportance, this sector will bring the nations own money for the nation.In the three years time we would expect 10% of the population to be under some sort of aninsurance cover. Thus assuming a premium of Rs 5000 on an average, 100 million Rs 5000 = Rs500 billion.This has made the sector the hottest one in India after IT. With social security and security topublic at large being the agenda for opening the sector, the role of the regulator becomes all themore serious and one would be carefully watched at every step.The Insurance Regulator and Development bill is now an Act. With this India is now thecynosure of all the global insurance players. Numerous player, both Indian and foreign haveannounced their intention to start their insurance shops in India. IRDA, under chairman ship ofMr. RANGACHARI, opened the window for applying license in India.One of the main difference between the developed economies and the emerging economies is thatinsurance products are bought in the former while these are sold in later. Focus if insuranceindustry is changing towards providing a mix of both protection/risk cover and long-terminvestment opportunities.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 21
  22. 22. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL WHY LIFE INSURANCE?WHY LIFE INSURANCE? Life insurance cover is essential for it provides the following benefits:a. A lump sum payment to the nominees at the time of the death of the policyholder;b. A regular payment to the nominees in the event of the death of the policyholder;c. Tax benefits, as premium paid to reduce the liability of tax;d. Relieves economic hardships in the family on the uneventful death of the sole income holder;e. Inculcates the habit of saving.NEED FOR INSURANCEBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 22
  23. 23. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL The need for life insurance comes from the need to safeguard our family. If you care foryour familys needs you will definitely consider insurance. Today insurance has become even more important due to the disintegration of the prevalentjoint family system, a system in which a number of generations co-existed in harmony, a systemin which a sense of financial security was always there as there were more earning members. Times have changed and the nuclear family has emerged. Apart from the other pitfalls of anuclear family, a high sense of insecurity is observed in it today besides, the family has shrunk.Needs are increasing with time and fulfillment of these need is a big question mark. How will you be able to satisfy all those needs? Better lifestyle, good education, and yourlong desired house. But again you just cannot fritter away all your earnings. You need to save apart of it for the future too a wise decision. This is where insurance helps you. Factors such as fewer numbers of earnings members, stress, pollution increasedcompetition, higher ambitions etc are some of the reasons why insurance has gained importanceand where insurance plays a successful role.An OverviewInsurance business is divided into four classes:1) Life Insurance business2) Fire3) Marine4) Miscellaneous Insurance.Life Insurers transact life insurance business; the rest is transacted by General Insurers. Nocomposites are permitted as per law. The business of Insurance essentially means defraying risksattached to any activity over time (including life) and sharing the risks between various entities,both persons and organizations. Insurance companies (ICs) are important players in financialmarkets as they collect and invest large amounts of premium. Insurance products are multipurpose and offer the following benefits:1. Protection to the investors2. Accumulate savings3. Canalize savings into sectors needing huge long term investments.ICs receive, without much default, a steady cash stream of premium or contributions to pensionplans. Various actuary studies and models enable them to predict, relatively accurately, theirexpected cash outflows. Liabilities of ICs being long-term or contingent in nature, liquidity isexcellent and their investments are also long-term in nature. Since they offer more than the returnon savings in the shape of life-cover to the investors, the rate of return guaranteed in theirinsurance policies is relatively low. Consequently, the need to seek high rates of returns on theirinvestments is also low. The risk-return trade off is heavily tilted in favour of risk. As a combinedresult of all this, investments of insurance companies have been largely in bonds floated by GOI,PSUs, state governments, local bodies, corporate bodies and mortgages of long term nature. Thelast place where Insurance companies are expected to be over-active is bourses.Lately ICs have ventured into pension schemes and mutual funds also. However, life insurance,constitutes the major share of insurance business. Life Insurance depends upon the laws ofBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 23
  24. 24. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALmortality and there lies the difference between life and general insurance businesses. Life has toextinguish sooner or later and the claim in respect of life is certain. In case of general insurance,however, there may never be a claim and the amount can never be ascertained in advance. Hence,Life Insurance includes, besides covering the risk of early happening of an event, an element ofsavings also for the beneficiaries. Pension business also derives from life insurance in as much asthe pension outgo again depends upon the laws of mortality. The forays made by insurancecompanies in this area are, therefore, natural corollary of their business.TYPES OF INSURANCE POLICIES Broadly there are 3 types of life insurance policies: a. Term Insurance Plans b. Whole Life Insurance c. Endowment Insurance Plans Term Insurance Plans: Pure life covers where you pay for risk cover and do not expect to receive anythingelse in return is now available in India. Opting for such policy will improve the efficiency ofpolicy premium and enable you for a bigger risk cover for the same cost. These are terminsurance plans with maturity benefits; some term plans give your premium amounts back withinterest. This is a marketing policy to suit the general psychology and should normally involvehigher premium cost.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 24
  25. 25. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALWhole life insurance plans: Whole life policies require you to pay premium through out your life and cover risk forwhole life. The policies without profit are cheaper.Endowment Insurance plans (with or without money back): Endowment policies are costliest and among this group, money back policies involvepaying highest premium. They give you maturity benefits (normally sum assured) and additionalprofit by way of bonus, guaranteed additions; loyalty bonus etc. money policies also providepartial payment back to you at pre-set time periods. DEFINITION OF SOME TYPES OF POLICIES1. ANNUITY An annuity is a steady stream of equal payments that one receives every year, or every montheither for life or a fixed number of years, as return after making an investment either as a lumpsum or through installments paid over a certain number of years, a specific sum. Upon the deathof the annuitant, or at the expiry of the period fixed for annuity payments, the invested annuityfund is refunded usually along with a small bonus. Annuities differ from all other forms of lifeinsurance in one fundamental way-they do not provide any insurance cover but offer a guaranteedincome for a certain period or for life. Typically annuities are bought to generate income during ones retired life, which is why they arealso called pension plans. An annuity provides a solution to the biggest financial insecurity of oldage retires and the income from salary ceases.2. ENDOWMENT Endowment policies cover the risk for a specified period at the end of which the sum assured ispaid back to the policyholder along with the entire bonus accumulated during the term of thepolicy. It is this feature the payment of the endowment to the policyholder upon the completion ofthe policys term, which rightly accounts for the popularity of endowment policies. Typically, ones responsibility for the financial protection of the family reduces significantlyonce the children are grown up and independently settled. The focus then shifts to managing asmaller family perhaps only oneself and ones spouse after retirement/ this is where theendowment the original sum assured and the accumulated bonus received back comes handy. Youcan either use the endowment amount for buying an annuity policy to generate a monthly pensionfor the whole life, or put it in any other suitable investment of your choice. This is the majorbenefit of an endowment policy over a whole life.3. MONEY BACKBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 25
  26. 26. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL Unlike endowment plans, in money back policies the policyholder gets periodic "survivancepayments" during the term of the policy and a lump sum amount on surviving its term. In theevent of the death during the term of the policy, the beneficiary gets full sum assured without anydeductions for the amount paid till date, and no further premiums are required to be paid. Thesetypes of policies are very popular, since they can be tailored to get large amount at a specificperiods as per the needs of the policyholder.FUTURE OF LIFE INSURANCE MARKET Even at modest estimates the size of life insurance market in India could bearound Rs. 40000 billion covering just 250 mn people… LIC had enjoyed the monopoly of the big life insurance market since 1956. LICwas in for a surprise now an then when it found that, among air crash casualties or rail accidentvictims, only very few had life insurance cover. In fact LIC did attempt to evaluate the size of themarket and look at broad homogeneous segments of the market based on the data provided byDecennial Census Report relating to worker population categorized into groups based onoccupations. However LICs major segmentations were the urban, rural, male, female, medicaland non-medical segments. The census of occupation data was used more as a framework forformulating the business plans. But, now with the entry of new player, very conscious of theirmarket shares, the evaluation of the size of the market for life insurance assumes importance. Themarket size with its viable segments is to be identified and suitable products to meet the needs ofthese segments developed. Life insurance market covers the entire age range of the population of 1000 mn inIndia. However taking into account their economic conditions and their ability to pay thepremium for some sort life insurance cover or an annuity, the number of eligible prospects for lifeinsurance may be put around 30% of the total population viz, 300 mn. LIC has on its books as ondate 125 mn policies. Research had shown, that each of these holders of the policies have on anaverage, 1.6 (as many policy holders have more than one policy). Thus the no of persons holdinglife insurance policies with LIC good work out to 75 mn. This means only 25% of thepotential market has so far covered, leaving the remaining 75%- a vast market of 225 mn persons-to be covered.Market size ever expanding…This market size is dynamic and ever expanding. The growth is dictated by several factors suchas: 1. An addition of around 20 mn of new population each year. 2. More and more persons due to improvements in economic conditions move continuously into the zone of people with ability to pay premium for a life insurance policy. 3. Many among the existing policyholders are grossly under insured. They need and can afford additional insurance. These can be made to join the market as potential prospects for additional insurance. These form the creamy layers market capable of being very good source of high volume of business.Taking all these factors into account it can be seen that the size of the market for life insurance inIndia is enormous. Assuming the number of persons who can be sold an insurance policy to be250 mn, in terms of number of policies, this works out to 400 mn policies. In financial terms,BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 26
  27. 27. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALtaking the average size of the policy as Rs 1 lakh, the sum assured works out to Rs 40000 bn or $800 bn. The first years premium income can be assume as Rs 6250 per annum per policy. Thefigures would keep increasing year by year due to the improvement in the economic conditionsleading to increase in the number of potential prospects .BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 27
  29. 29. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL EMBED Word.Picture.8 EMBED Word.Picture.8OVERVIEW OF ICICI BANKICICI Bank is Indias second-largest bank with total assets of about Rs.146,214 crore atDecember 31, 2004 and profit after tax of Rs. 1,391 crore in the nine months ended December 31,2004 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about 530 branches andextension counters and over 1,880 ATMs. ICICI Bank offers a wide range of banking productsand financial services to corporate and retail customers through a variety of delivery channels andthrough its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international bankinggroup in fiscal 2002 to cater to the cross-border needs of clients and leverage on its domesticbanking strengths to offer products internationally. ICICI Bank currently has subsidiaries in theUnited Kingdom and Canada, branches in Singapore and Bahrain and representative offices in theUnited States, China, United Arab Emirates, Bangladesh and South AfricaICICI Banks equity shares are listed in India on the Stock Exchange, Mumbai and the NationalStock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on theNew York Stock Exchange (NYSE).As required by the stock exchanges, ICICI Bank has formulated a Code of Business Conduct andEthics for its directors and employees.At April 4, 2005, ICICI Bank, with free float market capitalization* of about Rs. 308.00 billion(US$ 7.00 billion) ranked third amongst all the companies listed on the Indian stock exchanges.ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,and was its wholly-owned subsidiary. ICICIs shareholding in ICICI Bank was reduced to 46%through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRslisted on the NYSE in fiscal 2000, ICICI Banks acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investorsin fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, theGovernment of India and representatives of Indian industry. The principal objective was to createa development financial institution for providing medium-term and long-term project financing toIndian businesses. In the 1990s, ICICI transformed its business from a development financialinstitution offering only project finance to a diversified financial services group offering a wideBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 29
  30. 30. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALvariety of products and services, both directly and through a number of subsidiaries and affiliateslike ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financialinstitution from non-Japan Asia to be listed on the NY After consideration of various corporatestructuring alternatives in the context of the emerging competitive scenario in the Indian bankingindustry, and the move towards universal banking, the managements of ICICI and ICICI Bankformed the view that the merger of ICICI with ICICI Bank would be the optimal strategicalternative for both entities, and would create the optimal legal structure for the ICICI groupsuniversal banking strategy. The merger would enhance value for ICICI shareholders through themerged entitys access to low-cost deposits, greater opportunities for earning fee-based incomeand the ability to participate in the payments system and provide transaction-banking services.The merger would enhance value for ICICI Bank shareholders through a large capital base andscale of operations, seamless access to ICICIs strong corporate relationships built up over fivedecades, entry into new business segments, higher market share in various business segments,particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. InOctober 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICIand two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial ServicesLimited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved byshareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat atAhmedabad in March 2002, and by the High Court of Judicature at Mumbai and the ReserveBank of India in April 2002.ICICI Bank is Indias second largest bank wit an asset base of Rs. 106812 crores. ICICI bankprovides a broad spectrum of financial services to individuals and companies. This includesmortgages, car and personal loans, credit and debit cards and corporate and agricultural finance.The bank services a growing customer base of more than 7 mn customer accounts and five mnbondholders accounts through a multi channel access network. The includes about 450 branchesand extension counters, 1675 ATMs, call centers and Internet banking. ICICI bank posted a netprofit of Rs 1206 Crore for the year ended March 31, 2003. ICICI bank is the only Indiancompany to be rated above the country rating by the international rating agency Moodys and onlythe Indian company to be awarded an investment grade international credit rating. The enjoys thehighest rating from all Indian leading rating agencies.OVERVIEW OF ICICI VENTURE WINGBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 30
  31. 31. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALICICI Venture, incorporated in 1988, is the most experienced and largest private equity andventure fund management company in India with funds currently under management in excess ofRs.20 billion (USD 400 million).Over the last 15 years, ICICI Venture has been successful in identifying trends well ahead of thecurve; be it retail, media and entertainment, information technology, real estate orpharmaceuticals and biotechnology. During this period ICICI Venture launched and managed 8funds with a corpus exceeding Rs. 20billion (USD 400 million). Each fund had a distinctinvestment theme and ICICI Venture today has some of the best known and managed companiesin India in its portfolio. Herein ICICI Venture has followed the philosophy of being a multi-sectorplayer ensuring an optimum balance of risk and return to its investors.ICICI Venture has the distinction of managing a large number of exits in the country. With over100 liquidity events, the organization has reaped rich experience and is well positioned to handleIPOs, strategic sale and/or mergers.ICICI Venture has a wide network of third party investors, which include domestic investors suchas public sector banks, financial institutions and insurance companies. A significant portion of thefunds corpus is also from international development financial institutions and international funds.The company has over 25 qualified professionals with experience across sectors and functions.The capabilities of the team, structure of the organization, emphasis on value creation andperformance evaluation matrices enable ICICI Venture to extract superior returns from itsinvestments.ICICI Venture has now launched the India Advantage Fund, with a corpus of Rs.10 Billion (USD225 million). The Fund will invest in mid-sized growth companies for funding throughexpansions, acquisitions and restructuring. The Fund will also focus on mezzanine funding andbuyouts.ICICI PRUDENTIALBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 31
  32. 32. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALICICI PRUDENTIAL Life Insurance was established in 2000 with a commitment to expand andreshape the life insurance industry in India. The company was amongst the first private sectorinsurance company to begin operations after receiving approval from Insurance RegulatoryDevelopment Authority (IRDA), and in the same time since, has taken several steps towardsrealizing its goal.THE COMPANY ICICI PRUDENTIAL Life Insurance Company is a joint venture between ICIC,a premier financial powerhouse and prudential plc; a leading international financial servicesgroup headquarters in the United Kingdom. ICICI Prudential was amongst the first private sectorinsurance company to begin operations in December 2000 after receiving approval fromInsurance Regulatory Development Authority (IRDA). ICICI and PRUDENTIAL came together in 1993 to form prudential ICICI AssetManagement 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, knownfor their professionalism, excellent quality of service and long term commitment to customers.Riding on the success of this relationship, the two companies joined hands once more in 2000, toform ICICI PRUDENTIAL LIFE INSURANCE, with a commitment to provide leading -edge lifeinsurance solutions. ICICI Bank has 74% stake in the company, and Prudential plc has 26%.To make ICICI Prudential the dominant Life and Pensions player built on trust by world-classpeople and service.This we hope to achieve by: • Understanding the needs of customers and offering them superior products and service • Leveraging technology to service customers quickly, efficiently and conveniently • Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders • Providing an enabling environment to foster growth and learning for our employees • And above all, building transparency in all our dealings.The success of the company will be founded in its unflinching commitment to 5 core values --Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describewhat the company stands for, the qualities of our people and the way we workWe do believe that we are on the threshold of an exciting new opportunity, where we can play asignificant role in redefining and reshaping the sector. Given the quality of our parentage and thecommitment of our team, there are no limits to our growth.PRUDENTIAL PLCEstablished in 1848, Prudential Plc is a leading international financial services company in UKwith around US $ 250 bn funds under management, and more than 16 million customersworldwide. Prudential has brought to market an integrated range of financial services productsthat now includes:• life assuranceBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 32
  33. 33. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL• pensions• mutual funds• banking• investment management• general insuranceIn Asia Prudential is UKs largest life insurance company with a vast network of 22 life andmutual fund operations in 12 countries: China, Hong Kong, India, Indonesia, Japan, Korea,Malayasia, Philippines, Singapore, Taiwan, Thailand, Vietnam. Since 1923, prudential haschampioned customer centric products and services, supported by over 60000 staff and agentsacross the region.DISTRIBUTIONICICI PRUDENTIAL has one of the largest distribution networks amongst private life insurancein India, having commenced operations in 28 cities and towns in India. These are: Ahmedabad,Bangalore, Chandigarh, Chennai, Coimbatore, Gurgaon, Hyderabad, Indore, Jaipur, Jalandhar,Kanpur, Cochin, Kolkotta, Kottaym, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Nagpore,Nasik, Nodia, New Delhi, Pune, Thane, Vododara, Vashi. The company has a largest number of banc assurance tie-ups, havingagreement with ICICI Bank, Citi Bank, Allahabad bank, Federal bank, South Indian Bank, Bankof India, Lord Krishna Bank, Punjab and Maharashtra co-operative Bank, as well as somecorporate agents. It has also tied-up with organizations like Dahn for distribution of SalaamZindagi, a policy for the socially and economically under privilege sections of society.SERVICEICICI PRUDENTIAL has recruited and trained over 18000 insurance agents to interface withand advice customers, and has the highest number amongst private life insurers on the renownedMillion Dollar Round table (MDRT). Further, it leverages its state-of-the-art IT infrastructure toprovide superior quality of service to customers.MILESTONESICICI PRUDENTIAL life insurance has crossed Rs 500 crore premium income mark on March31, 2003 having issued nearly 350000 policies for a sum assured of Rs 8700 crore since itsinception.The last fiscal had been significant growth for ICICI PRUDENTIAL across all segments, with246827 policies issued in the period April 2002-March 2003, and Rs 348 Crore premium fromnew business in the same period, a 200 per cent growth over the previous fiscal (April 2001-March 2002).The company had also met all its rural and social sector obligations, said a press release. Thegrowth been driven by pensions and unit linked products. It has garnered 23% of pensionsBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 33
  34. 34. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALpremium amongst all players for the period April 2002-February 2003 and 34% in Feb alone.Today the company has established itself the number one private life insurer in the country.HISTORY: Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI and Prudentialplc of U.K. in November 2000, ICICI Prudential Life Insurance was granted Certification ofRegistration for carrying out Life Insurance business by the insurance Regulatory &Development Authority of India. The company issued its first policy on December 12, 2000.Year of review 2002-2003: ICICI Prudential has consolidated its position as the leading private life insurer in India. ICICIPrudentials annualized premium grew more than three fold over the previous year. Continuingwith its Customer First philosophy, ICICI Prudential has significantly expanded its presence to29 operational Branches (2001-2002: 16), with the Advisor Force growing to over 18000. It hasalso strengthened its Alternate Distribution channels, i.e. Bancassurance, Corporate Agents andDirect Marketing, making purchase of insurance more accessible. Bancassurance andDirect Marketing channels have contributed to over 18% of the Annualized Premium. ICICI Prudential was amongst the first to identify the emerging opportunity in the Pensionsegment and launched two linked pension products Life time Pension and Life Link Pension,which have been well received in the market. MANAGEMENTBOARD OF DIRECTORS ICICI Prudential Life Insurance Company Limited Board comprises reputed people from thefinance industry both from India and abroad.Mr. K.V. Kamath, ChaimanMr. Mark NorbonMrs. Lalita D. GupteMrs. Kalpana MorpariaMrs. Chanda KochharMr. Kevin HolmgrenMr. M.P.ModiMr. R NaryananBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 34
  35. 35. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALMs Shikha SharmaMANAGEMENT TEAMMs Shikha Sharma, Managing DirectorMr. Sandeep Batra, Chief Financial Officer & Company SecretaryMr. Shubhro J. Mitra, Chief - Human ResourcesMr. Puneet Nanda, Head - InvestmentsMs. Anita Pai, Chief - Operations & UnderwritingMr. V. Rajagopalan, Appointed ActuaryMr. Shridhar Sethuram, Chief - Sales & MarketingMr. Anil Tikoo, Head - Information Technology.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 35
  36. 36. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL VISION-MISSIONVISION To make ICICI Prudential the dominant Life and Pensions player built on trust by worldclass people and service.This we hope to achieve by:• Understanding the needs of customers and offering them superior products and service• Leveraging technology to service customers quickly, efficiently and conveniently.• Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 36
  37. 37. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL• Providing an enabling environment to foster growth and learning for our employees.• And above all, building transparency in all our dealings.The success of the company will be founded in its unflinching commitment to 5 core values:• Integrity• Customer First• Boundaryless• Ownership• PassionEach of the values describe what the company stands for, the qualities of our people and the waywe work. We do believe that we are on the threshold of an existing new opportunity, where wecan play a significant role in redefining and reshaping the sector. Given the quality of ourparentage and the commitment of our team, there are no limits to our growth.VISION-MISSION To be dominant life and pension players built on trust by world class people andservice.INTEGRITY • Stand up honestly and fearlessly for what they truly care about. • Always act in a consistent and equitable manner.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 37
  38. 38. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL • Don’t compromise the future to pay for the present.CUSTOMER FIRST • Own the customer: Deliver the promise. • Listen actively, stretch continually to add value to customers and channel partnersBOUNDARYLESS • Never say "its not my job" go beyond the call of duty. • Experiment- believe anything is possible • Seek new ideas regardless of source • Share ideas and thoughts freely across levels and functionsOWNERSHIP • If it is to be, it is up to me • Bias for action • Own mistakes. Learn from failures • Confront hard facts, pursue goals relentlessly • Accountable for team performanceBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 38
  39. 39. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALPASSION • Winning instinct- transmit boundless energy and enthusiasm to drive results • Stand up and make a difference - challenge status quo and drive change • Demonstrate speed for competitive advantage • Passionately nurture and reward excellenceBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 39
  40. 40. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL PRODUCTS PRODUCTSInsurance Solutions For Individuals:ICICI PRUDENTIAL Life Insurance offers a range of innovative, customer centric products thatmeet the needs of customer at every life stage. Its 13 products can be enhanced with up to fourriders, to create a customized solution for each policyholder.Saving SolutionsICICI PRUDENTIAL Save and Protect is a traditional endowment savings plan that offers lifeprotection along with adequate returns.ICICI PRUDENTIAl CashBank is an anticipated endowment policy ideal for meeting milestoneexpenses like a childs marriage, expenses for childs education or purchase of an asset.Protection SolutionsBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 40
  41. 41. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALICICI PRUDENTIAL Life Guard is a protection plan, which offers life covers at very low cost. Itis available in three options - level term assurance, level assurance with return of premium andsingle premium.Child SolutionsICICI PRUDENTIAL Smart Kid provides guaranteed educational benefits to a child along withlife insurance cover for the parent who purchases the policy. The policy is designed to providemoney at important milestones in childs life.Market Linked SolutionsICICI PRUDENTIAL LifeLink is a single premium Market Linked Insurance Plan, whichcombines life insurance cover with the opportunity to stay, invested in the stock market.ICICI PRUDENTIAL LifeTime offers customers the flexibility and control to customize thepolicy to meet the changing needs at different life stages. It offers three investment options• Growth Plan• Income Plan• Balanced PlanRetirement Solutions• ICICI PRUDENTIAL Forever Life is retirement product targeted at individuals in their 30s• ICICI PRUDENTIAL LifeTime Pension is a regular premium market linked pension plan.• ICICI PRUDENTIAL LifeLink Pension is a single premium market linked pension plan.Single Premium Solutions• ICICI PRUDENTIAL Assure Invest is a single premium savings product with life cover for terms of 5, 7 or 10 years.• ICICI PRUDENTIAL Reassure is a retirement product for senior citizens who are on the verge of retirement or have just retired.• ICICI PRUDENTIAL also launched "salaam zindagi", a social sector group insurance policy targeted at the economically under privileged sections of the society.Group Insurance SolutionsICICI PRUDENTIAL also offers Group Insurance Solutions for companies seeking to enhancebenefits to their employees.ICICI PRUDENTIAL Group Gratuity Plan: ICICI Prus Group Gratuity Plan helps employersfund their statutory gratuity obligation in a scientific manner. The plan can also be customized tostructure schemes that can provide benefits beyond the statutory obligations.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 41
  42. 42. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALICICI PRUDENTIAL GROUP SUPERANNUATION PLAN:ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirementkitty for each member of the group. Employees have the option of choosing from various annuityoptions or opting for a partial commutation of the annuity at the time of retirement.ICICI PRUDENTIAL GROUP TERM PLAN:ICICI Prus flexible group term solution helps to provide affordable cover to members of a group.The cover could be uniform or based designation or rank or a multiple of salary. The benefit thepolicy is paid to the beneficiary nominated by the member on his/her death.FLEXIBLE RIDER OPTIONS;ICICI PRUDENTIAL life offers for flexible riders, which can be added to the basic policy at amarginal cost, depending on the specific needs of the customer.• Accident and disability benefit: if the 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• Level Term Cover: This rider provides the option to increase the risk cover. It may be increased for an additional amount upto a maximum of the existing basics sum assured on your policy• Critical Illness Benefit: protects the insured against the financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death.• Major Surgical Assistance Benefit: provides financial support in the event of medical emergencies, ensuring that benefits are payable to the life assured for medical expenses incurred for surgical procedures. Cover is offered against 43 different surgical procedures.AWARENESS… According to Saugata Gupta Chief - Marketing of ICICI Pru lifes communicationstrategies have been very successful in building the brand and driving awareness of the companyand the category. ORG-Margs Brand track survey undertaken last year indicate that thoughawareness of LIC stands at 100%, ICICI Pru life stands not far behind in the second place at 70%.Further the awareness scores for ICICI Pru life double between February 2001 and September2001. ORG Marg research also showed that the communication not only created saliencyand awareness, but also succeeded in influencing the buying decision. ICICI Pru life emerged farahead of other private players as far as share of wallet went, with 52% of the respondents sayingthat they intended to buy policy from ICICI Pru life.ADVERTISING EFFECTIVENESS…BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 42
  43. 43. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL ICICI Pru is a case study in the role of marketing in reshaping an industry. Ithighlights how an industry where "sell" and "push" were often used words and consumer wasnothing more than a file number, has changed to one where "consumer preference" and"consumer pull" rule the roost. Heres a look at how ICICI Pru changed the rules of the games andemerged a leader in the process.BACKGROUND When the insurance sector was liberalized in 2000, the private players contend with afew issues. Ratio of premium to GDP was low: 1.3% of GDP was invested in insurance.Insurance penetration was at an abysmal 22% of insurable population. Besides the above theprivate players were faced with attitudinal barriers, perception of insurance has a tax saving tooland lack of a consumer centric approach in service and product offerings.THE MARKETING CHALLENGES FACING ICICI Pru: The challenge therefore was to change established category drivers (death paymentand Tax saving) and to get the consumer to evaluated insurance on a more emotional plat formrather than a mere rational decision. (tax savings).THE CAMPAIGN OBJECTIVES: • Reposition the category in the consumers mind. Influence the consumer to view it as a protection instrument and not a tax saving product alone.• In the process, create differentiation for the ICICI Pru brand as a provider of social security and family protection.• Achieve leadership status in saliency, image and product parameters.• Build credibility and trust.CREATIVE STRATEGY: The essence of the creative strategy is to get the consumer to re look at insurance as ameans to lead a worry free life and not as a necessary evil. To this effect the core brand insighthighlighted was "As head of the family, it is my responsibility to take care of my loved ones andprotect them from the uncertainties of life", summed up in the advertising idea: we cover you atevery step in lifeMARKET STRATEGY:BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 43
  44. 44. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL In a market likely to be cluttered, we used multiple touch points to reach theconsumer. The role for each medium was envisaged. The TV medium was used to enhance theemotional link with the brand. Strategic use of 15 sec. Edits facilitated high frequency levels. Inprint, the cost per response rather than the cost per thousand as responses were measured in formof call-ins. Radio FM, Cinema, Internet were used to create a media multiplier effect.THE RESULTS OF COMMUNICATION EFFORTS: Being number one in awareness and saliency. Awareness: ICICI Pru showed asignificant jump in awareness between Feb and Sept 2001. Image: highest score among allinsurance players including LIC, on image parameters like safety, modernity, service, goodreturnsEtc. intention to invest: next only to LIC as per researchSUM UP In just over a year ICICI PRUDENTIAL has emerged as Indias # 1 private lifeinsurance company with almost 50% of the private players has sold highest number of policiesboth in volume and value. RECRUITMENTBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 44
  45. 45. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL AND CHANNEL DEVELOPMENT RECRUITMENT Before an organization can fill a job vacancy, it must find people who not only are qualified forthe position but also want the job. Recruitment process is one of the ways that an organizationcan deal with shortages in its human resources needs Recruitment refers to organizational activities that influence the number and types ofapplicants who apply for a job and whether the applicants accept jobs that are offered.eis aprocess of searching for prospective employees and stimulating and encouraging them to applyfor jobs in an organization. Although recruitment can be quite expensive, organizations have not have always treated it as systematically as other HR functions, such as selection. During the coming years, however, the importance of recruitment will probably increase for many organizations.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 45
  46. 46. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL Recruitment process is affected by various factors in the environment. The recruitment process begins with an attempt to find employees with the abilities and attitudes desired by the organization and to match them with the tasks to be performed. Whether potential employees will respond to the recruiting effort depends on the attitudes they have developed toward those tasks and the organization on the basis of their past social and working experiences. Their perception of the task will also be affected by the work climate in the organization. Prerequisites of a good recruitment policy: • It should be in conformity with its general personnel policies. • It should be flexible enough to meet the changing needs of the organization. • It should be so designed as to ensure employment opportunities for its employees on a long term basis so that the goal of the organization should be achievable and it should develop the potentialities of the employees. • It should match the qualities of the employees with the requirements of the work for which they are employed. • It should highlight the necessity of establishing job analysis.THE ORGANIZATIONS VIEW OF RECRUITING Several aspects affect recruiting from the organizations viewpoint • Recruiting Requirements • Organizational Policies and Practices • Organizational ImageRecruiting Requirements: the recruiting process necessarily begins with a detailed jobdescription and job specification. Without these, it is impossible for recruiters to determine howwell any particular applicant fits the job. It should be made clear to the recruiter whichrequirements are absolutely essential and which are merely desirable. This can help theBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 46
  47. 47. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALorganization avoid unrealistic expectations for potential employees. Contrasting with theunrealistic approach, the effective organization examines the specifications that are absolutelynecessary for the job. It then uses these as its beginning expectations for recruits.Organizational Policies and Practices: in some organizations, HRM policies and practicesAffect recruiting and who is recruited. One of the most significant of these is promotion fromwithin. For all the practical purposes, this policy means that many organizations recruit fromoutside the organization only at the initial hiring level. Most employees favor this approach. Theyfeel this is fair to present loyal employees and assures them of a secure future and a fair chance atpromotion. Some employees also feel this practice helps protect trade secrets.Organizational Image: the image of the employer generally held by the public can also affectrecruitment. All these being equal, it should be easier for an organization with a positivecorporate image to attract and retain employees that an organization with a negative image.Recruitment should also be somewhat easier for companies that exude a strong communitypresence or positive name recognition.The Potential Employees view of Recruiting The applicant has abilities, attitudes, and preferences based on the past workexperiences and influences of parents, teachers, and others. These factors affect recruits in twoways: how they set their job preferences, and how they go about seeking a job. Understandingthese is vital to effective recruiting.SOURCES OF RECRUITMENT:• INTERNAL RECRUITING• EXTERNAL RECRUITINGINTERNAL RECRUITING: Organizations can make effective use of skills inventories foridentifying internal applicants for job vacancies. It is difficult, however, for HR managers to beaware of all current employees who might be interested in the vacancy. To help with thisproblem, they use an approach called job posting and bidding.In the past, job posting was little more than the use of bulletin boards and company publicationsfor advertising job openings. Today, however, job posting has become one of the more innovativeBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 47
  48. 48. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALrecruiting techniques being used by organizations. Many companies now see job posting as anintegrated component of an effective career management system.A model job posting program was implemented at National Semiconductor. Postings arecomputerized and easily accessible to employees. Computer software allows the employees tomatch an available job with their skills and experience. It then highlights where gaps exist so theemployees know what is necessary if they wish to be competitive for a given job.INSIDE MOONLIGHTING AND EMPLOYEES FRIENDS If there is a short-term short shortage, or if no great amount of additionalwork is necessary, the organization can use inside moonlighting. It could offer to pay bonuses ofvarious types to people not on a time pay-roll to entice workers into wanting to take on a"second" job. Nationally, it is estimated that approximately 6 percent of all employed people haveheld more than one job at the same time. Moonlighting is so common at some organizations thatHR departments consider issuing "moonlighting policies" that include the communication ofperformance expectations, prevention of conflict of interest, and protection of proprietaryinformation. Thus, some persons will clearly be motivated to accept the additional work if theyare fairly compensated. Before going outside to recruit, many organizations ask present employees toencourage friends or relatives to apply. Some organizations even offer "finders fees" in the formof monetary incentives for a successful referral. When used wisely, referrals of this kind can be apowerful recruiting technique. INTERNAL: WITHIN THE ORGANIZATION.Merits of Internal Recruitment are: • It improves morale of employees • It is easier to evaluate the existing employees through a sense of job security and opportunities and advancement • It promotes loyalty among the employees require less training since they already know the company policies and procedure. • It is less costlyBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 48
  49. 49. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALDemerits of Internal Recruitment are: • It may lead to in breeding within the organization. • The possibility of the right candidate being chosen may depend upon the recruiters perception about his employees. • It may not be suitable for jobs requiring some innovative techniques. METHODS OF INTERNAL RECRUITMENT • Promotion • Transfer • DemotionEXTERNAL RECRUITING: When an organization has exhausted its internal supply of applicants, itmust turn to external sources to supplement its workforce. Research indicates that walk-insprovide an important external source of applicants. As labor shortages increase, however,organizations are becoming more proactive in their recruitment efforts. A number of methods are available for external recruiting: mediaadvertising, e-recruiting, employment agencies, executive search firms, special-events recruiting,and summer internships, etc.Media Advertisements: organizations advertise to acquire recruits. Various media are used, themost common being help-wanted ads in daily newspapers. Organizations also advertise forpeople in trade and professional publications. Other media used are billboards, subway and buscards, radio, telephone, and television. Some job seekers do a reverse twist; they advertise for asituation wanted and reward anyone who tips them off about a job.In developing a recruitment advertisement, a good place to begin is with the corporate image.Simply using a corporate logo is not enough, however. Effective recruiting advertising isBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 49
  50. 50. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALconsistent with the overall corporate image; that is, the advertisement is seen as an extension ofthe company. Therefore, it must be representative of the values that the corporation is seeking inits employees.Another innovate way to attract prospective employees with particular skills is the use ofrecorded want ads. Want ads recordings were used by 40 companies recruiting engineers andscientists at New York City convention. At a special recruiting center, job hunters were able topick up a telephone and hear a three-minute taped recruiting message that included a jobdescription and details about how to contact the company.E-Recruiting: perhaps no method has ever had as revolutionary an effect on organizationalrecruitment practices as the Internet. There are many reasons for the popularity of the internet as amethod of recruitment. From the organizations perspective, it is relatively inexpensive way toattract qualified applicants. From the job seekers perspective, the internet allows for searches overbroader array of geographical and company postings than was ever before possible.Organizations are also beginning to see that having their own human resources. Web page on theinternet can be effective addition to their overall recruitment strategy. A typical organizationalhome page will provide background information about the company, its products and services,and employment opportunities and application procedures.Special-events recruiting: when the supply of employees available is not large or when theorganization is new or not well known, some organizations have successfully used special eventsto attract potential employees. One of the most interesting approaches is to provide job fairs.Summer internships: another approach to recruiting and getting specialized work done that hasbeen tried by organizations is to hire students as interns during the summer or part time during theschool year. The use of internships is, in, fact, dramatically increasing. Organizations are usingmore internships is to improve the diversity of their recruitment efforts.College Recruiting: there is a growing gap between the skills that organizations will need overthe next several years and those currently possessed by potential employees. College recruitingcan be extremely difficult, time consuming, and expensive for the organization. Recruitersbelieve that college recruiting is one of the most effective ways of identifying talented employees.All this suggests that college recruiting will continue to play an important role in organizationsover all recruitment strategies, but that organizations will be careful about controlling expenses. EXTERNAL: OUTSIDE THE ORGANIZATION.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 50
  51. 51. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALMERITS OF EXTERNAL RECRUITMENT • It provides larger pool candidates from which recruitment can be done. • If the appropriate candidate is chosen, he may require less trainingDEMERITS OF EXTERNAL RECRUITMENT • It needs proper preparation and hence consumes a lot of time of the recruiter • It is a costly affair.Recruitment and Information Processing: Data processing is costly. Processing applications and dealing with applicants involvesa lot of work. It is no wonder that busy line managers need a recruitment service section to co-ordinate the burden for them. The interview becomes a "mutually beneficial discussion". In other situations atelephone contact may be the appropriate initial interview e.g. when advertising for a telesalesperson. Poor applicants can be tested immediately. However for most jobs an initial meeting withthe candidate is essential at which spoken, presentational and practical skills can be tested.A Recruitment Information System: Processing applications involves data capture, storage, processing, outputting resultsinto the next processing stage and communicating results to various system users and back tocandidates.A JOB FILE:Creating a job file containing all job information. Copies of some of the contents to be sent to thecandidates in an applicants pack. This file will contain the job analysis documents, details ofanticipated terms and conditions of employment etc. copies of job advertisements etc.Information may be stored relating to numbers of applications from different sources and othercosts associated with filling the vacancy. We may use such data to evaluate the effectiveness ofthe recruitment campaign • An applicant file and the life history of an applicant to store the details of applicants.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 51
  52. 52. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL • Invited for interview. • Withdraw at any stage.All applicants are "Work in Progress" whose details need to be up-dated from time to time. Wecan see the value in a large firm or recruitment agency from having a computerized recruitmentinformation system. Once the details of a job vacancy are recorded, applicants can be linked tothe job. Personal details of applicants are available to be merged with any letters that are sent toapplicants as they progress through each stage of recruitment.Form letters are needed. These may include:• Acknowledgement of application.• Invitation to e.g. interview with travel and accommodation details etc.• Letters/ questionnaires requesting a reference. DEVELOPING A RECRUITMENT PLANBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 52
  53. 53. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALDeveloping a recruitment plan A large part of successful hiring involves a commitment to plan and create the bestpossible conditions to attract qualified candidates. Recruitment planning affects all areas of thehiring process: performing a job analysis; preparing the job requisition; recruitment, screeningand interviewing applicants; and selecting the best-qualified candidate. To fulfill thiscommitment individual recruitment processes will require advanced planning.A Recruitment Plan should include the following:1. Updated Position Description • Review the recruitment, interviewing and selection guide • Review current position description on file. • Include any changes on the updated position description2. Written Review of Diversity • Review affirmative action statistics for the classification by department and control unit. • Provide a statement regarding any existing underutilization and plans to recruit a diverse pool of qualified candidates.3. Well Prepared Employee Requisition • Essential functions should include the fundamental job duties of the position. • Minimum requirements should reflect skills, knowledge and abilities required to perform the essential functions of the position. • Determine if an external or internal recruitment will be requested.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 53
  54. 54. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL4. Advertising Plan • Review previous advertising response rates with Human Resources. • List publications, including any recruitment web sites, in which advertisements will be placed and rationale.5. Interviewing and Selection Process • List of committee members • List of interview questions • Screening Techniques • Methods of rating and /or rankingAN OVER VIEW OF RECRUITMENT AND CHANNEL DEVELOPMENT ATICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD. Recruitment refers to the process of finding possible candidates for a job or function. It may be undertaken by an employment agency or a member of staff at the business or organization looking for recruits. Either way it may involve advertising, commonly in the recruitment section of a newspaper or in a newspaper dedicated to job adverts. Employment agencies will often advertise jobs in their windows.A program designed to attract candidates for employment, to provide them with informationregarding employment opportunities and to assist them in applying for employment.ADVISOR AS A PROFESSIONLife Insurance is just of the many avenues for financial outlays. When an Advisor approaches aprospect with the proposal for life Insurance, the chances are that the prospect will not knowmuch about the benefits under various plans. He may be vaguely familiar with the alternativeavailable, but it is unlikely to sure of the details of all of them. He would need expert advice. Inother words a Life Insurance Advisor while dealing with the prospect should be thinking of hisinterest and requirements and the best financial arrangements that would be appropriate in hissituation.As an advisor of the prospect, he is expected to look after the interests of the prospects. Even thepeople who are generally expects in financial matters may not be aware of the implication ofInsurance, in relation to term and conditions , warranties , exclusions, tax provisions , rights ofBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 54
  55. 55. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALparties. Advisors have the dual responsibilities of being true to the interest of both the parties inthe interest. He obliged to reveal to the prospects all the important terms and conditions of thepolicies even if they are restrictive and unpleasant. He is also obliged to report to the insurer allthe true facts about the prospects and the subjects of insurance. He should not mislead either.This process initially starts with collection of data base from all the segments such as students,business, house wives, self employed, VRS with all having minimum qualification 10 plus 2 as itis a basic requirement. The next stage is that we either approach them to do tele calling fix anappointment at their convenient time which is feasible to the candidate and the manger.Presentation such as BOP is given to the client and the procedure and documentation isexplained. Lastly by fulfilling these requirements an advisor is being recruited.TIED AGENCY:Insurance is another name for risk transfer. The Insurer accepts the risk transfer by the insuredpools them and spreads them geographically, functionally and chronologically, thus reducing oreven eliminating the risk to the insured. The cost of this risk management is the premium, whichis paid by the insured to the insurers. In order for insurance as a business to be successful, itnecessary that the Insurance companies have business in large volumes, both in term of numbersas well as value. This is due to the law of large numbers, which operates and helps to reduce therisk to the insurance company its self.The business model of insurance company is actually of great benefit to the insured as well as theinsures. The Indian population is greatly exposed to risk due to naturally calamities, disasters,social disturbances, diseases, accidents, etc. given the above insurance helps to maintain a healthystandard of living both for the insured and his/her dependents in the case of any unfortunateeventuality. Despite the same however a large percentage of the Indian population is not insured.The lack of insurance happens due to both the lack of awareness about insurance and its benefits,as well as due to a general feeling of complacency in the general public. Insurance in India issomething that is still is purchased after lot of hard selling and persuasion. Insurance continues tobe a “PUSH” product and is not yet a “PULL” product like it is in other developed countries.It is at this juncture that the sales and distributions channels for insurance products steps in.distribution channels of all types are needed to create awareness about insurance and also make aconcerted effort to sell the same. Distribution channels do this through various means likepersonnel contacts, direct mails, etc.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 55
  56. 56. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALThe primary factor for the success of insurance companies in a country like India is the sales, anddistribution. The basic principle of insurance the law of large numbers operates successfully in avast market like India only when more and more people become policy holders: and hence theimportance of sales and distribution.BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 56
  57. 57. RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIALBancassurance and AlliancesThe term bancassurance calls for little bit of explanation ,as this is a pretty new phenomenon inthe country . In a very simple manner this process can be defined as selling of insurance productsby banks. Banks are the deposit taking and leading institutions and include thrifts, savinsa , loans,building socialises and other financial activities . Banks entry into the insurance business is gathering momentum around the world and so fast isthe pace of this momentum that it is impossible to keep track of this industry world wide. Few ofthe major countries, which have gone this way , are France, UK, Canada, Australia, Denmark,Germany, Spain, the Netherlands, Japan. USA etc. there is no reason, which we could think ofwhy India should not be a witness to this change, in fact this will further strengthen the financialbase of the country and will help in mobilizing and channeling the much needed saving andinvestments into the proper use.Entry of banks, into the insurance market by controversies and acceptance throughout the world.Many people say that this is the invasion of insurance market by banks , which should be theexclusive domain of insurance companies .according to them bank have different market( customers having excess/ less funds)and different product portfolio (that is various forma ofinvesting and leading products ) similarly insurance companies are suppose to sell insurancepolicies . however , we feel that this is very narrow concept of banking , which has beingpropagated this situation is typical to what is being referred as marketing myopia by T. levitt inhis celebrated HBR article , in which the firms are products oriented and not market oriented . Ifbanks and insurance companies were to stick to this model they would soon fid themselves goingdown the way the mighty US railway companies have gone. So we seek the best for them tosurvive is to come together.Having established the need for relationship between the banks and insurance companies the nextquestion, which arises. Is that what is the like, which joins them. For banks the core guidingphilosophy is money management, on the other hand, guiding philosophy of insurance firms isrisk management. However both have a common market definition of being a provider offinancial services. Once this market is accepted it becomes imperative for insurance and bankingcompanies not to compete amongst each other rather the same pie. Once this view is accepted anydebate about the before mentioned threats should not sound very impressive. Here one shouldremember that the partnership is of equalier, any one trying to gain an upper hand will do so atBABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 57