A project report on stress management at icici prudential


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A project report on stress management at icici prudential

  1. 1. STRESS MANAGEMENT AT ICICI-PRUDENTIAL TABLE OF CONTENTS PARTICULARS PAGE NUMBERS 1. Executive Summary 01-02 2. Introduction 03-14 3. Need for Insurance 15-22 4. Company Profile 23-32 5. Vision-Mission 33-36 6. Products 37-43 7. Stress Management 44-61 8. Stress Management at work place 62-82 9. Findings & Analysis 83-95 10. Suggestions 96-98 11. Limitations of the study 99-100 12. Conclusion 101-102 13. Annexure 103-106 14. Bibliography 107-108BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 1
  3. 3. STRESS MANAGEMENT AT 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 PROJEC TREPORT ON HUMAN RESOURCE Page 3
  5. 5. STRESS MANAGEMENT AT ICICI-PRUDENTIAL INTRODUCTIONLIFE INSURANCE Life insurance is a contract providing for a payment of a sum of money to theperson assured or failing him to the person entitled to receive the same on the happeningof certain event. Uncertainty of death is inherent in human life. Ii is this risk, whichgives rise to the necessity for some form of protection against the financial loss arisingfrom death. Insurance substitutes this uncertainty by certainty. The objective ofinsurance is normally to provide: A Family Protection. B Provision for old age. INSURANCE INDUSTRYORIGIN OF INSURANCE The origin of insurance dates back to the 12th century, the origin of insuranceappeared first in marine and land fields. The ideas of insurance were made in Babyloniaand India at quite an early period; the courts of Hammurabi and Mano recognized theprovision for sharing the future losses. However there is no evidence that insurance in itspresent form was practiced prior to 12th century. Tracing the history of insurance to thepresent day, one can easily gauge the performance of industry both collectively as anindustry as well as individually by the companies. In earlier times, travelers by sea and land were very much exposed to risk oflosing their vessels and merchandise because piracy on the open seas and highwayrobbery of caravan were common. References to similar practices are also found inManab Dharma Shastra which contained rules for sea from contracts which wasobserved by traders. Insurance conceived as method of sharing of the losses embodyingthe principal of co-operation existed in the early civilization.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 5
  6. 6. STRESS MANAGEMENT AT ICICI-PRUDENTIAL Many may not be aware that the life insurance industry of India is as old as it is inany other part of the world. The first Indian life insurance company was the Oriental LifeInsurance Company, which was started in India in 1818 at Kolkata1. A number of players(over 250 in life and about 100 in non-life) mainly with regional focus flourished all across the country.However, the Government of India, concerned by the unethical standards adopted bysome players against the consumers, nationalized the industry in two phases in 1956 (life)and in 1972 (non-life). The insurance business of the country was then brought under twopublic sector companies, Life Insurance Corporation of India (LIC) and GeneralInsurance Corporation of India (GIC). Reforms were initiated with the passage of Insurance Regulatory andDevelopment Authority (IRDA) Bill in 1999. IRDA was set up as an independentregulatory authority, which has put in place regulations in line with global norms. So farin the private sector, 12 life insurance companies and 9 general insurance companies havebeen registered.INSURANCE 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 protectthe interest of holders of insurance policies, to regulate, to promote and ensure orderlygrowth of insurance industries. Insurance Regulatory and Development Authority(IRDA) has sought the comments of industry participants to finalize the guidelines foronline agents training institutes. These proposed guidelines are in addition to its standard instructions andguidelines applicable for approval/renewal of agents training institutes. The guidelineswould be applicable to all the online training institutes including in-house traininginstitutes of the insurers. As per the draft guidelines, the applicant should undergo at least 120 hourspractical training in life or general insurance business. The composite training should befor at least 180 hours, where the applicant is seeking license for the first time to act as aninsurance agent.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 6
  7. 7. STRESS MANAGEMENT AT ICICI-PRUDENTIAL The duration should be minimum of 24 days for 120 hours training and 36 daysfor 180 hours training with a maximum five hours per day. Stating that no producttraining/market survey should be included into this 120/180 hours training, the regulatorsaid revision examination could form part of the training.DUTIES, 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. THE FUNDAMENTAL / PRINCIPALS OF LAW OF INSURANCE.UTMOST GOOD FAITH:BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 7
  8. 8. STRESS MANAGEMENT AT ICICI-PRUDENTIAL The parties to the commercial contract, according to the law are required to observe good faith. The seller cannot mislead the buyer in respect of transactions, but he 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 insurance on theproperty if he is likely to suffer financially when property is lost or damaged.This legal right to insure is called insurable interest, without insurable interest thecontract of insurance will be void. Because of this legal requirement of insurableinterest the insurance contracts are not gambling transactions.INDEMNITY: The principal of indemnity arises under common law and requires that an insurance control should be a contract of indemnity only and nothing more. The object of principals to place the insured after a loss in the same financial position as far as possible, as he is occupied immediately before the loss. The effect of this principal is to prevent the insured from making the profit out of his loss or gaining any advantage or benefit. The object of a contract of insurance 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 who has indemnified the insured in respect of the loss. If the insured has any rights of action to be recovered the loss from any third party, who is primary responsible for the loss, the insurer having paid the loss is entitled to avail himself of these rights to recover the loss from the third party. The effect is that the insured does not receive more than actual amount of his loss and any recovery affected from the third party goes to the benefit of the insurer to reduce the amount of his loss INSURANCE MARKET IN INDIABABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 8
  9. 9. STRESS MANAGEMENT AT ICICI-PRUDENTIAL By any yardstick, India, with about 200 million middle class households, presentsa huge untapped potential for players in the insurance industry. Saturation of markets inmany developed economies has made the Indian market even more attractive for globalinsurance majors. Life insurance is mainly considered as a saving instrument rather thanan investment avenue as it promotes compulsory savings besides reducing tax burden onthe policyholder and protect the family of the policyholder in the event of unforeseenhappening. It is the only saving instrument, which covers the life risk besides giving taxconcession both at entry (premium paid) and at exitHISTORY AND PRESENT STATUS OF INSURANCE MARKET ININDIA The insurance sector in India has come a full circle from being an opencompetitive market to nationalization and back to a liberalized market again. Tracing thedevelopments in the Indian insurance sector reviles the 360-degree turn witnessed over aperiod 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 inthe 1818 with the establishment of Oriental Life Insurance Company in Calcutta. Someof the important milestones in the Life Insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statue toregulate the life insurance business. 1928: The Insurance Companies Act enacted to enable the government tocollect statistical information about both life and non-insurance business. 1938: Earlier legislation consolidated and amended to by the Insurance Actwith the objective of protecting the interest of the insuring public.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 9
  10. 10. STRESS MANAGEMENT AT ICICI-PRUDENTIAL 1956: 245 Indian and foreign insurers and provident societies are taken overby the central 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 ofIndia.INSURANCE SECTOR REFORMS In 1993, Malhotra Committee, headed by former Finance Secretary and RBIGovernor R.N. Malhotra, was formed to evaluate the Indian insurance industry andrecommend its future direction. The Malhotra committee setup with the objective ofcomplimenting the reforms initiated in the financial sector. The reforms where aimed at"creating a more efficient and competitive financial system suitable for the requirementsof the economy keeping in mind the structural changes currently underway andrecognizing that insurance is an important part of the overall financial system where itwas necessary to address the need for similar reforms.."In 1994, the Committee submitted the report and some of the key recommendationsincluded: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 to enter the industry. b. No company should deal both the life insurance and general insurance through a single entity.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 10
  11. 11. STRESS MANAGEMENT AT ICICI-PRUDENTIAL 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 Billin the Parliament in December 1999. The IRDA since its incorporation as statutory bodyin April 2000 has fastidiously stuck to its schedule of framing regulations and registeringthe private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to theinsurance sector and in particular the life insurance companies was the launch of theIRDAs online 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 tosell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in aframework of globally compatible regulations. In the private sector 12 life insurance and6 general insurance companies have been registered. Insurance is an Rs 400 billion business in India, and together with bankingservices adds about 7% to Indias GDP. Gross premium collection is about 2% of GDPand has been growing by 15 to 20% per annum. India also has the highest number of lifeinsurance policies in force in the world, and total investable funds with the LIC arealmost 8% of GDP. Yet more than three fourth of Indias insurable population has no lifeinsurance or pension cover. Health insurance of any kind is negligible and other formsof non life insurance are much below international standards.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 11
  12. 12. STRESS MANAGEMENT AT ICICI-PRUDENTIAL To tap the vast insurance potential and to mobilize long term savings we needreforms which include revitalizing and restructuring of the public sector companies, andopening up the sector to private players. A statutory body needs to be made to regulatethe market and to promote a Healthy market structure. Insurance Regulatory Authority(IRA) is one such body, which checks on these tendencies. IRA role comprises offollowing 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. An insurance policy protects the buyer at some cost against the financial lossarising from a specified risk. Different situations and different people require a differentmix of risk-cost combinations. Insurance companies provide these by offering schemes ofdifferent kinds. Unfortunately, the concept of insurance is not possible in our country. As per thelatest estimates, the total premium income generated by life and general insurance inIndia is estimated at around 1.95% of GDP. How ever Indias share of world insurancemarket 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 business showed a real growth of 11% there byoutperforming global average of 7.7%. Non life insurance business grew by 3.1% againstglobal average of 0.20%. In India insurance pending per capita was among the last in theworld at $7.6 compared to $7 in the previous year . Amongst the emerging economies,India is one of the least insured countries but the potential for growth is phenomenal, as asignificant portion of its population is in services and the life expectancy also increasedover the years. The nationalized insurance industry has not offered consumers a variety ofproducts. Opening of the sector to private firms will foster competition, innovation andvariety of products. It would also generate greater awareness on the need for buyinginsurance as a service and not merely for tax exemption, which is currently done on thedemand side, a strong correlation between demand for insurance and per capita incomelevel suggests that high economic growth can spur growth in demand for insurance. AlsoBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 12
  13. 13. STRESS MANAGEMENT AT ICICI-PRUDENTIALthere exists a strong correlation between insurance density and social indicators such asliteracy. With social development, insurance demand will grow.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 13
  14. 14. STRESS MANAGEMENT AT ICICI-PRUDENTIAL 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%NCAER estimate is Insurance Population 240 mnEstimated market 2010 950 mn India has an enormous middle class that can afford to buy life, health, anddisability and pension plan products. The low level of penetration of life insurance inIndia compared to other developed nations can be judged by a comparison of per capitalife premium.Country Life Premium per capita US $ in 1994Japan 3817UK 1280USA 964India 4 Clearly, there is considerable scope to raise per capita life premium in the marketis effectively tapped. India has traditionally been a high savings oriented country oftendescribed as being on par with thrifty Japan. Insurance sector in the US is a big in the sizeas the banking industry there. This gives us an idea of how important is the sector is.Insurance sector canalizes the saving of the people to long-term investments. In Indiawhere infrastructure is said to be critical importance, this sector will bring the nationsown money for the nation. In the three years time we would expect 10% of the population to be under somesort of an insurance cover. Thus assuming a premium of Rs 5000 on an average, 100million Rs 5000 = Rs 500 billion. This has made the sector the hottest one in India after IT. With social security andsecurity to public at large being the agenda for opening the sector, the role of theregulator becomes all the more serious and one would be carefully watched at every step.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 14
  15. 15. STRESS MANAGEMENT AT ICICI-PRUDENTIAL The Insurance Regulator and Development bill is now an Act. With this India isnow the cynosure of all the global insurance players. Numerous player, both Indian andforeign have announced their intention to start their insurance shops in India. IRDA,under chairman ship of Mr. RANGACHARI, opened the window for applying license inIndia. One of the main difference between the developed economies and the emergingeconomies is that insurance products are bought in the former while these are sold inlater. Focus if insurance industry is changing towards providing a mix of bothprotection/risk cover and long-term investment opportunities.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 15
  16. 16. STRESS MANAGEMENT AT 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.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 16
  17. 17. STRESS MANAGEMENT AT ICICI-PRUDENTIALNEED FOR INSURANCE The need for life insurance comes from the need to safeguard our family. If youcare for your familys needs you will definitely consider insurance. Today insurance has become even more important due to the disintegration of theprevalent joint family system, a system in which a number of generations co-existed inharmony, a system in which a sense of financial security was always there as there weremore earning members. Times have changed and the nuclear family has emerged. Apart from the otherpitfalls of a nuclear family, a high sense of insecurity is observed in it today besides, thefamily has shrunk. Needs are increasing with time and fulfillment of these need is a bigquestion mark. How will you be able to satisfy all those needs? Better lifestyle, good education,and your long desired house. But again you just cannot fritter away all your earnings.You need to save a part of it for the future too a wise decision. This is where insurancehelps you. Factors such as fewer numbers of earnings members, stress, pollution increasedcompetition, higher ambitions etc are some of the reasons why insurance has gainedimportance and 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 GeneralInsurers. No composites are permitted as per law. The business of Insurance essentiallyBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 17
  18. 18. STRESS MANAGEMENT AT ICICI-PRUDENTIALmeans defraying risks attached to any activity over time (including life) and sharing therisks between various entities, both persons and organizations. Insurance companies (ICs)are important players in financial Markets as they collect and invest large amounts of premium. Insurance productsare multi purpose and offer the following benefits: 1. Protection to the investors 2. Accumulate savings 3. Canalize savings into sectors needing huge long term investments. ICs receive, without much default, a steady cash stream of premium orcontributions to pension plans. Various actuary studies and models enable them topredict, relatively accurately, their expected cash outflows. Liabilities of ICs being long-term or contingent in nature, liquidity is excellent and their investments are also long-term in nature. Since they offer more than the return on savings in the shape of life-coverto the investors, the rate of return guaranteed in their insurance policies is relatively low.Consequently, the need to seek high rates of returns on their investments is also low. Therisk-return trade off is heavily tilted in favour of risk. As a combined result 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 dependsupon the laws of mortality and there lies the difference between life and generalinsurance businesses. Life has to extinguish sooner or later and the claim in respect of lifeis certain. In case of general insurance, however, there may never be a claim and theamount can never be ascertained in advance. Hence, Life Insurance includes, besidescovering the risk of early happening of an event, an element of savings also for thebeneficiaries. Pension business also derives from life insurance in as much as the pensionoutgo again depends upon the laws of mortality. The forays made by insurancecompanies in this area are, therefore, natural corollary of their business.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 18
  19. 19. STRESS MANAGEMENT AT ICICI-PRUDENTIALTYPES OF INSURANCE POLICIES Broadly there are 3 types of life insurance policies: a. Term Insurance Plans b. Whole Life Insurance c. Endowment Insurance PlansTerm Insurance Plans: Pure life covers where you pay for risk cover and do not expect to receiveanything else in return is now available in India. Opting for such policy will improve theefficiency of policy premium and enable you for a bigger risk cover for the same cost.These are term insurance plans with maturity benefits; some term plans give yourBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 19
  20. 20. STRESS MANAGEMENT AT ICICI-PRUDENTIALpremium amounts back with interest. This is a marketing policy to suit the generalpsychology and should normally involve higher premium cost.Whole life insurance plans: Whole life policies require you to pay premium through out your life and coverrisk for whole 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 policiesinvolve paying highest premium. They give you maturity benefits (normally sum assured)and additional profit by way of bonus, guaranteed additions; loyalty bonus etc. moneypolicies also provide partial payment back to you at pre-set time periods.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 20
  21. 21. STRESS MANAGEMENT AT ICICI-PRUDENTIAL DEFINITION OF SOME TYPES OF POLICIES1. ANNUITY An annuity is a steady stream of equal payments that one receives every year, orevery month either for life or a fixed number of years, as return after making aninvestment either as a lump sum or through installments paid over a certain number ofyears, a specific sum. Upon the death of the annuitant, or at the expiry of the period fixedfor annuity payments, the invested annuity fund is refunded usually along with a smallbonus. Annuities differ from all other forms of life insurance in one fundamental way-they do not provide any insurance cover but offer a guaranteed income for a certainperiod or for life. Typically annuities are bought to generate income during ones retired life, whichis why they are also called pension plans. An annuity provides a solution to the biggestfinancial insecurity of old age retires and the income from salary ceases.2. ENDOWMENT Endowment policies cover the risk for a specified period at the end of which thesum assured is paid back to the policyholder along with the entire bonus accumulatedduring the term of the policy. It is this feature the payment of the endowment to thepolicyholder upon the completion of the policys term, which rightly accounts for thepopularity of endowment policies. Typically, ones responsibility for the financial protection of the family reducessignificantly once the children are grown up and independently settled. The focus thenshifts to managing a smaller family perhaps only oneself and ones spouse afterretirement/ this is where the endowment the original sum assured and the accumulatedbonus received back comes handy. You can either use the endowment amount for buyingan annuity policy to generate a monthly pension for the whole life, or put it in any othersuitable investment of your choice. This is the major benefit of an endowment policyover a whole life.3. MONEY BACKBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 21
  22. 22. STRESS MANAGEMENT AT ICICI-PRUDENTIAL Unlike endowment plans, in money back policies the policyholder gets periodic"survivance payments" during the term of the policy and a lump sum amount onsurviving its term. In the event of the death during the term of the policy, the beneficiarygets full sum assured without any deductions for the amount paid till date, and no furtherpremiums are required to be paid. These types of policies are very popular, since they canbe tailored to get large amount at a specific periods 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 railaccident victims, only very few had life insurance cover. In fact LIC did attempt toevaluate the size of the market and look at broad homogeneous segments of the marketbased on the data provided by Decennial Census Report relating to worker populationcategorized into groups based on occupations. However LICs major segmentations werethe urban, rural, male, female, medical and non-medical segments. The census ofoccupation data was used more as a framework for formulating the business plans. But,now with the entry of new player, very conscious of their market shares, the evaluation ofthe size of the market for life insurance assumes importance. The market size with itsviable segments is to be identified and suitable products to meet the needs of thesesegments developed. Life insurance market covers the entire age range of the population of 1000mn in India. However taking into account their economic conditions and theirability to pay the premium for some sort life insurance cover or an annuity, thenumber of eligible prospects for life insurance may be put around 30% of the totalpopulation viz, 300 mn. LIC has on its books as on date 125 mn policies. Researchhad shown, that each of these holders of the policies have on an average, 1.6 (asmany 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% ofBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 22
  23. 23. STRESS MANAGEMENT AT ICICI-PRUDENTIALthe potential market has so far covered, leaving the remaining 75%- a vast market of 225mn persons- to be covered.Market size ever expanding…This market size is dynamic and ever expanding. The growth is dictated by severalfactors such as: 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 forlife insurance in India is enormous. Assuming the number of persons who can be sold aninsurance policy to be 250 mn, in terms of number of policies, this works out to 400 mnpolicies. In financial terms, taking the average size of the policy as Rs 1 lakh, the sumassured works out to Rs 40000 bn or $ 800 bn. The first years premium income can beassume as Rs 6250 per annum per policy. The figures would keep increasing year by yeardue to the improvement in the economic conditions leading to increase in the number ofpotential prospects .BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 23
  25. 25. STRESS MANAGEMENT AT ICICI-PRUDENTIAL COMPANY PROFILEICICI GROUP EMBED Word.Picture.8 EMBED Word.Picture.8OVERVIEW OF ICICI BANK ICICI Bank is Indias second-largest bank with total assets of about Rs.146,214crore at December 31, 2004 and profit after tax of Rs. 1,391 crore in the nine monthsended December 31, 2004 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network ofabout 530 branches and extension counters and over 1,880 ATMs. ICICI Bank offers awide range of banking products and financial services to corporate and retail customersthrough a variety of delivery channels and through its specialized subsidiaries andaffiliates in the areas of investment banking, life and non-life insurance, venture capitaland asset management. ICICI Bank set up its international banking group in fiscal 2002to cater to the cross-border needs of clients and leverage on its domestic bankingstrengths to offer products internationally. ICICI Bank currently has subsidiaries in theUnited Kingdom and Canada, branches in Singapore and Bahrain and representativeoffices in the United States, China, United Arab Emirates, Bangladesh and South Africa ICICI Banks equity shares are listed in India on the Stock Exchange, Mumbaiand the National Stock Exchange of India Limited and its American Depositary Receipts(ADRs) are listed on the New York Stock Exchange (NYSE).BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 25
  26. 26. STRESS MANAGEMENT AT ICICI-PRUDENTIAL As required by the stock exchanges, ICICI Bank has formulated a Code ofBusiness Conduct and Ethics 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 theIndian stock exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indianfinancial institution, and was its wholly-owned subsidiary. ICICIs shareholding in ICICIBank was reduced to 46% through a public offering of shares in India in fiscal 1998, anequity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Banksacquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, andsecondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002.ICICI was formed in 1955 at the initiative of the World Bank, the Government of Indiaand representatives of Indian industry. The principal objective was to create adevelopment financial institution for providing medium-term and long-term projectfinancing to Indian businesses. In the 1990s, ICICI transformed its business from adevelopment financial institution offering only project finance to a diversified financialservices group offering a wide variety of products and services, both directly and througha number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the firstIndian company and the first bank or financial institution from non-Japan Asia to belisted on the NY After consideration of various corporate structuring alternatives in thecontext of the emerging competitive scenario in the Indian banking industry, and themove towards universal banking, the managements of ICICI and ICICI Bank formed theview that the merger of ICICI with ICICI Bank would be the optimal strategic alternativefor both entities, and would create the optimal legal structure for the ICICI groupsuniversal banking strategy. The merger would enhance value for ICICI shareholdersthrough the merged entitys access to low-cost deposits, greater opportunities for earningfee-based income and the ability to participate in the payments system and providetransaction-banking services. The merger would enhance value for ICICI Bankshareholders through a large capital base and scale of operations, seamless access toICICIs strong corporate relationships built up over five decades, entry into new businesssegments, higher market share in various business segments, particularly fee-basedBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 26
  27. 27. STRESS MANAGEMENT AT ICICI-PRUDENTIALservices, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001,the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and twoof its wholly-owned retail finance subsidiaries, ICICI Personal Financial ServicesLimited and ICICI Capital Services Limited, with ICICI Bank. The merger was approvedby shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujaratat Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and theReserve Bank of India in April 2002. ICICI Bank is Indias second largest bank wit an asset base of Rs. 106812 crores.ICICI bank provides a broad spectrum of financial services to individuals and companies.This includes mortgages, car and personal loans, credit and debit cards and corporate andagricultural finance. The bank services a growing customer base of more than 7 mncustomer accounts and five mn bondholders accounts through a multi channel accessnetwork. The includes about 450 branches and extension counters, 1675 ATMs, callcenters and Internet banking. ICICI bank posted a net profit of Rs 1206 Crore for the yearended March 31, 2003. ICICI bank is the only Indian company to be rated above thecountry rating by the international rating agency Moodys and only the Indian company tobe awarded an investment grade international credit rating. The enjoys the highest ratingfrom all Indian leading rating agencies.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 27
  28. 28. STRESS MANAGEMENT AT ICICI-PRUDENTIALOVERVIEW OF ICICI VENTURE WINGICICI Venture, incorporated in 1988, is the most experienced and largest private equityand venture fund management company in India with funds currently under managementin excess of Rs.20 billion (USD 400 million). Over the last 15 years, ICICI Venture has been successful in identifying trendswell ahead of the curve; be it retail, media and entertainment, information technology,real estate or pharmaceuticals and biotechnology. During this period ICICI Venturelaunched and managed 8 funds with a corpus exceeding Rs. 20billion (USD 400 million).Each fund had a distinct investment theme and ICICI Venture today has some of the bestknown and managed companies in India in its portfolio. Herein ICICI Venture hasfollowed the philosophy of being a multi-sector player ensuring an optimum balance ofrisk and return to its investors. ICICI Venture has the distinction of managing a large number of exits in thecountry. With over 100 liquidity events, the organization has reaped rich experience andis well positioned to handle IPOs, strategic sale and/or mergers. ICICI Venture has a wide network of third party investors, which includedomestic investors such as public sector banks, financial institutions and insurancecompanies. A significant portion of the funds corpus is also from internationaldevelopment financial institutions and international funds. The company has over 25 qualified professionals with experience across sectorsand functions. The capabilities of the team, structure of the organization, emphasis onvalue creation and performance evaluation matrices enable ICICI Venture to extractsuperior returns from its investments. ICICI Venture has now launched the India Advantage Fund, with a corpus ofRs.10 Billion (USD 225 million). The Fund will invest in mid-sized growth companiesfor funding through expansions, acquisitions and restructuring. The Fund will also focuson mezzanine funding and buyouts.ICICI PRUDENTIALBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 28
  29. 29. STRESS MANAGEMENT AT ICICI-PRUDENTIAL ICICI PRUDENTIAL Life Insurance was established in 2000 with a commitmentto expand and reshape the life insurance industry in India. The company was amongst thefirst private sector insurance company to begin operations after receiving approval fromInsurance Regulatory Development Authority (IRDA), and in the same time since, hastaken several steps towards realizing its goal.THE COMPANY ICICI PRUDENTIAL Life Insurance Company is a joint venture between ICIC, apremier financial powerhouse and prudential plc; a leading international financialservices group headquarters in the United Kingdom. ICICI Prudential was amongst thefirst private sector insurance company to begin operations in December 2000 afterreceiving approval from Insurance 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 inIndia. The two companies bring together two of the strongest financial service brands inAsia, known for their professionalism, excellent quality of service and long termcommitment to customers. Riding on the success of this relationship, the two companiesjoined hands once more in 2000, to form ICICI PRUDENTIAL LIFE INSURANCE, witha commitment to provide leading -edge life insurance 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 byworld-class people and service.This we hope to achieve by:BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 29
  30. 30. STRESS MANAGEMENT AT ICICI-PRUDENTIAL • 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 5core values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each ofthe 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 exciting new opportunity, wherewe can play a significant role in redefining and reshaping the sector. Given the quality ofour parentage and the commitment of our team, there are no limits to our growth.PRUDENTIAL PLC Established in 1848, Prudential Plc is a leading international financial servicescompany in UK with around US $ 250 bn funds under management, and more than 16million customers worldwide. Prudential has brought to market an integrated range offinancial services products that now includes:• life assurance• pensions• mutual funds• banking• investment management• general insurance In Asia Prudential is UKs largest life insurance company with a vast network of22 life and mutual fund operations in 12 countries: China, Hong Kong, India, Indonesia,BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 30
  31. 31. STRESS MANAGEMENT AT ICICI-PRUDENTIALJapan, Korea, Malayasia, Philippines, Singapore, Taiwan, Thailand, Vietnam. Since1923, prudential has championed customer centric products and services, supported byover 60000 staff and agents across the region.DISTRIBUTION ICICI PRUDENTIAL has one of the largest distribution networks amongstprivate life insurance in India, having commenced operations in 28 cities and towns inIndia. 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, having agreementwith ICICI Bank, Citi Bank, Allahabad bank, Federal bank, South Indian Bank, Bank ofIndia, 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 ofSalaam Zindagi, a policy for the socially and economically under privilege sections ofsociety.SERVICE ICICI PRUDENTIAL has recruited and trained over 18000 insurance agents tointerface with and advice customers, and has the highest number amongst private lifeinsurers on the renowned Million Dollar Round table (MDRT). Further, it leverages itsstate-of-the-art IT infrastructure to provide superior quality of service to customers.MILESTONES ICICI PRUDENTIAL life insurance has crossed Rs 500 crore premium incomemark on March 31, 2003 having issued nearly 350000 policies for a sum assured of Rs8700 crore since its inception. The last fiscal had been significant growth for ICICI PRUDENTIAL across allsegments, with 246827 policies issued in the period April 2002-March 2003, and Rs 348Crore premium from new business in the same period, a 200 per cent growth over theprevious fiscal (April 2001-March 2002).BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 31
  32. 32. STRESS MANAGEMENT AT ICICI-PRUDENTIAL The company had also met all its rural and social sector obligations, said a pressrelease. The growth been driven by pensions and unit linked products. It has garnered23% of pensions premium amongst all players for the period April 2002-February 2003and 34% in Feb alone. Today the company has established itself the number one privatelife insurer in the country.HISTORY: Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI andPrudential plc of U.K. in November 2000, ICICI Prudential Life Insurance was grantedCertification of Registration for carrying out Life Insurance business by the insuranceRegulatory & Development Authority of India. The company issued its first policy onDecember 12, 2000.Year of review 2002-2003: ICICI Prudential has consolidated its position as the leading private life insurer inIndia. ICICI Prudentials annualized premium grew more than three fold over theprevious year. Continuing with its Customer First philosophy, ICICI Prudential hassignificantly expanded its presence to 29 operational Branches (2001-2002: 16), with theAdvisor Force growing to over 18000. It has also strengthened its Alternate Distributionchannels, i.e. Bancassurance, Corporate Agents and Direct Marketing, making purchaseof insurance more accessible. Bancassurance and Direct Marketing channels havecontributed to over 18% of the Annualized Premium. ICICI Prudential was amongst the first to identify the emerging opportunity in thePension segment and launched two linked pension products Life time Pension and LifeLink Pension, which have been well received in the market. MANAGEMENTBOARD OF DIRECTORSBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 32
  33. 33. STRESS MANAGEMENT AT ICICI-PRUDENTIAL ICICI Prudential Life Insurance Company Limited Board comprises reputed peoplefrom the finance 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 NaryananMs 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 PROJEC TREPORT ON HUMAN RESOURCE Page 33
  34. 34. STRESS MANAGEMENT AT ICICI-PRUDENTIAL VISION-MISSIONVISION To make ICICI Prudential the dominant Life and Pensions player built on trustby world class people and service.This we hope to achieve by:BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 34
  35. 35. STRESS MANAGEMENT AT ICICI-PRUDENTIAL• 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 corevalues:• Integrity• Customer First• Boundaryless• Ownership• Passion Each of the values describe what the company stands for, the qualities of ourpeople and the way we work. We do believe that we are on the threshold of an existingnew opportunity, where we can play a significant role in redefining and reshaping thesector. Given the quality of our parentage and the commitment of our team, there are nolimits to our growth.VISION-MISSION To be dominant life and pension players built on trust by world class peopleand service.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 35
  36. 36. STRESS MANAGEMENT AT ICICI-PRUDENTIALINTEGRITY • Stand up honestly and fearlessly for what they truly care about. • Always act in a consistent and equitable manner. • 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 performancePASSIONBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 36
  37. 37. STRESS MANAGEMENT AT ICICI-PRUDENTIAL • 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 PROJEC TREPORT ON HUMAN RESOURCE Page 37
  39. 39. STRESS MANAGEMENT AT ICICI-PRUDENTIAL ICICI PRUDENTIAL Life Insurance offers a range of innovative, customer centricproducts that meet the needs of customer at every life stage. Its 13 products can be enhanced withup to four riders, to create a customized solution for each policyholder.Saving Solutions ICICI PRUDENTIAL Save and Protect is a traditional endowment savings planthat offers life protection along with adequate returns. ICICI PRUDENTIAl CashBank is an anticipated endowment policy ideal formeeting milestone expenses like a childs marriage, expenses for childs education orpurchase of an asset.Protection Solutions ICICI PRUDENTIAL Life Guard is a protection plan, which offers life covers atvery low cost. It is available in three options - level term assurance, level assurance withreturn of premium and single premium.Child Solutions ICICI PRUDENTIAL Smart Kid provides guaranteed educational benefits to achild along with life insurance cover for the parent who purchases the policy. The policyis designed to provide money at important milestones in childs life.Market Linked Solutions ICICI PRUDENTIAL LifeLink is a single premium Market Linked InsurancePlan, which combines life insurance cover with the opportunity to stay, invested in thestock market. ICICI PRUDENTIAL LifeTime offers customers the flexibility and control tocustomize the policy to meet the changing needs at different life stages. It offers threeinvestment options• Growth Plan• Income PlanBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 39
  40. 40. STRESS MANAGEMENT AT ICICI-PRUDENTIAL• 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 Solutions ICICI PRUDENTIAL also offers Group Insurance Solutions for companiesseeking to enhance benefits to their employees. ICICI PRUDENTIAL Group Gratuity Plan: ICICI Prus Group Gratuity Planhelps employers fund their statutory gratuity obligation in a scientific manner. The plancan also be customized to structure schemes that can provide benefits beyond thestatutory obligations.ICICI PRUDENTIAL GROUP SUPERANNUATION PLAN: ICICI Pru offers a flexible defined contribution superannuation scheme to providea retirement kitty for each member of the group. Employees have the option of choosingfrom various annuity options or opting for a partial commutation of the annuity at thetime of retirement.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 40
  41. 41. STRESS MANAGEMENT AT ICICI-PRUDENTIALICICI PRUDENTIAL GROUP TERM PLAN: ICICI Prus flexible group term solution helps to provide affordable cover tomembers of a group. The cover could be uniform or based designation or rank or amultiple of salary. The benefit the policy is paid to the beneficiary nominated by themember on his/her death.FLEXIBLE RIDER OPTIONS; ICICI PRUDENTIAL life offers for flexible riders, which can be added to thebasic policy at a marginal 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 lifescommunication strategies have been very successful in building the brand and drivingawareness of the company and the category. ORG-Margs Brand track survey undertakenlast year indicate that though awareness of LIC stands at 100%, ICICI Pru life stands notfar behind in the second place at 70%. Further the awareness scores for ICICI Pru lifedouble between February 2001 and September 2001.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 41
  42. 42. STRESS MANAGEMENT AT ICICI-PRUDENTIAL ORG Marg research also showed that the communication not only createdsaliency and awareness, but also succeeded in influencing the buying decision. ICICI Prulife emerged far ahead of other private players as far as share of wallet went, with 52% ofthe respondents saying that they intended to buy policy from ICICI Pru life.ADVERTISING EFFECTIVENESS… 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 consumerwas nothing 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 ofthe games and emerged a leader in the process.BACKGROUND When the insurance sector was liberalized in 2000, the private players contendwith a few issues. Ratio of premium to GDP was low: 1.3% of GDP was invested ininsurance. Insurance penetration was at an abysmal 22% of insurable population. Besidesthe above the private players were faced with attitudinal barriers, perception of insurancehas a tax saving tool and lack of a consumer centric approach in service and productofferings.THE MARKETING CHALLENGES FACING ICICI Pru: The challenge therefore was to change established category drivers (deathpayment and Tax saving) and to get the consumer to evaluated insurance on a moreemotional plat form rather 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.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 42
  43. 43. STRESS MANAGEMENT AT ICICI-PRUDENTIAL• Build credibility and trust.CREATIVE STRATEGY: The essence of the creative strategy is to get the consumer to re look at insuranceas a means to lead a worry free life and not as a necessary evil. To this effect the corebrand insight highlighted was "As head of the family, it is my responsibility to take careof my loved ones and protect them from the uncertainties of life", summed up in theadvertising idea: we cover you at every step in lifeMARKET STRATEGY: 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 toenhance the emotional link with the brand. Strategic use of 15 sec. Edits facilitated highfrequency levels. In print, the cost per response rather than the cost per thousand asresponses were measured in form of call-ins. Radio FM, Cinema, Internet were used tocreate 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 amongall insurance players including LIC, on image parameters like safety, modernity, service,good returnsEtc. 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 ofpolicies both in volume and value.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 43
  46. 46. STRESS MANAGEMENT AT ICICI-PRUDENTIALANALYSIS OF THE QUESTIONNARIE OF THE EMPLOYEES1. Do you have various other interests (social, religious), which remain neglected because you do not get time to attend to these Never 8% Occasionally 4% Sometimes 52% Frequently 36% Very 0%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 46
  47. 47. STRESS MANAGEMENT AT ICICI-PRUDENTIAL SOCIAL ASPECTS 0% 8% 4% 36% Never Occasionally Sometimes Frequently Very frequently 52%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 47
  48. 48. STRESS MANAGEMENT AT ICICI-PRUDENTIAL2. Do you feel stagnant in your role Never 4% Occasionally 12% Sometimes 32% Frequently 52% Very 0% ROLE STAGNATION 0% 4% 12% Never Occasionally 52% Sometimes Frequently 32% Very frequentlyBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 48
  49. 49. STRESS MANAGEMENT AT ICICI-PRUDENTIAL3. Are you able to satisfy the conflicting demands of the various peer level people Never 12% Occasionally 24% Sometimes 24% Frequently 36% Very 4%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 49
  50. 50. STRESS MANAGEMENT AT ICICI-PRUDENTIAL Role Expectation Conflict 4% 12% Never 36% Occasionally 24% Sometimes Frequently Very frequently 24%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 50
  51. 51. STRESS MANAGEMENT AT ICICI-PRUDENTIAL4. Would you like to take more responsibility than at present Never 8% Occasionally 24% Sometimes 16% Frequently 36% Very 16% Role Erosion 8% 16% Never 24% Occasionally Sometimes Frequently 36% Very frequently 16%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 51
  52. 52. STRESS MANAGEMENT AT ICICI-PRUDENTIAL5. The amount of work you have to do interferes with the quality you want tomaintain Never 4% Occasionally 4% Sometimes 48% Frequently 40% Very 4%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 52
  53. 53. STRESS MANAGEMENT AT ICICI-PRUDENTIAL Role Overload 4% 4% 4% Never Occasionally 40% Sometimes Frequently 48% Very frequently6. Is there not enough interaction between your role and other roles Never 8% Occasionally 8% Sometimes 32%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 53
  54. 54. STRESS MANAGEMENT AT ICICI-PRUDENTIAL Frequently 52% Very 0% Role Isolation 0% 8% 8% Never Occasionally 52% Sometimes Frequently 32% Very frequently7. Do you wish to acquire more skills to handle the responsibilities of your roleBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 54
  55. 55. STRESS MANAGEMENT AT ICICI-PRUDENTIAL Never 4% Occasionally 8% Sometimes 20% Frequently 32% Very 36% Personal Inadequacy 4% 8% 36% Never 20% Occasionally Sometimes Frequently Very frequently 32%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 55
  56. 56. STRESS MANAGEMENT AT ICICI-PRUDENTIAL8. If you had full freedom to define your role you would be doing some thingsdifferent from what you do now Never 0% Occasionally 16% Sometimes 44% Frequently 20% Very 20%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 56
  57. 57. STRESS MANAGEMENT AT ICICI-PRUDENTIAL Self-Role Distance 0% 20% 16% Never Occasionally Sometimes 20% Frequently Very frequently 44%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 57
  58. 58. STRESS MANAGEMENT AT ICICI-PRUDENTIAL9. Several aspects of your role are vague and unclear Never 40% Occasionally 16% Sometimes 12% Frequently 32% Very 0% Role Ambiguity 0% 32% Never 40% Occasionally Sometimes Frequently Very frequently 12% 16%BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 58
  59. 59. STRESS MANAGEMENT AT ICICI-PRUDENTIAL10. Do you wish to have more financial resources for the work assigned to you Never 4% Occasionally 4% Sometimes 4% Frequently 28% Very 60% Resource Inadequacy 4% 4% 4% Never Occasionally 28% Sometimes 60% Frequently Very frequentlyBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 59
  61. 61. STRESS MANAGEMENT AT ICICI-PRUDENTIALSUMMARY OF ANALYSISThe analysis of the project: • Most of the employees feel that their other social aspects remain neglected due to workload, which is incompatible with organizational role. • Most of the employees feel that their roles are stagnant • Some of the employees are not able to satisfy the conflicting demands of the various peer level people. • Most of the employees would like to take more responsibility than the present • Most of the employees feel that their work interferes with the quality they want to maintain in their job • Most of the employees feel that there is not enough interaction between their role and other roles because each one of them is working independently.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 61
  62. 62. STRESS MANAGEMENT AT ICICI-PRUDENTIAL • Most of the employees wish to acquire more skills to handle the responsibilities of their role • Some of the employees feel that if they are given full freedom to define their role they will do some things different from what they do now. • Most of the employees feel that they should be provided with more financial resources for the work assigned. •BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 62
  63. 63. STRESS MANAGEMENT AT ICICI-PRUDENTIAL SUGGESTIONSSUMMARY OF SUGGESTIONS • When an individual occupies more than 1 role there are bound to be conflicts between the different roles that he occupies. Such inter-role conflicts are quite frequent in a modern society, where an individual is increasingly occupying multiple roles in various organizations and groups. So the organization should throw a light on their employees social aspects. The organization should improve the facilities for leisure and recreation; fact of people doing things for enjoyment, when they are not working. The organization should arrange programsBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 63
  64. 64. STRESS MANAGEMENT AT ICICI-PRUDENTIAL for entertainment. Also a place for relaxation. Create a place for indoor games like carom, table tennis etc • As the individual grows older, he also grows in the role that he occupies in an organization of the individual that the role changes, and with this change in role, the need for taking up a new role becomes crucial. In order to be promoted the nit managers have to reach certain targets set to them. Reaching these targets sometimes becomes very difficult. This is bound to produce stress. Thus the organization should have a systematic strategy of manpower development. • When there are conflicting expectations or demands by different role senders, the role occupant may experience this stress. But most of the employees are able to satisfy the demands of the various peer level people. But some employees are not able to satisfy the expectations from the boss, subordinates, peers or clients. The organization should provide the employees with full information about the products so that they are able to satisfy the peers or clients. • A role occupant may feel that the functions, which he would like to perform, are being performed by some other role. The stress felt may be called role erosion. Some important role expectations of theBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 64
  65. 65. STRESS MANAGEMENT AT ICICI-PRUDENTIAL employee are shared by other roles within the role set. So the organization should give a chance to employees who are willing to take more responsibilities to enhance their performance. And thus provide training, guidance and assistance to the employees • When the role occupant feels that there are too many expectations from the significant others in his role set, he experiences role overload. Some employees feel that they cannot possibly finish the work within the time limit. The employees should be given sufficient time to complete the work since it is an insurance industry, getting the policies is quite difficult • When a role occupant feels that he is not prepared to undertake the role effectively, he may experience this stress. Almost all the employees wish to acquire more skills because the organization is launching new products in the market for the clients and so the employees should posses enough knowledge, skills, training about theBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 65
  66. 66. STRESS MANAGEMENT AT ICICI-PRUDENTIAL product because without enough preparation or orientation they are likely to experience this type of stress So the organization should prepare the employees for the assigned new role. • This stress arises out of the conflict between the self-concept and the expectations from the role, as perceived by the role occupant. Such conflicts are common, although they may not be so severe. Some employees are willing to do things different from what they do now. So the organization should support such employees so that they can generate good business, which in turn will benefit the employees and also the organization. • Resource Inadequacy stress is experienced when the resources required by the role occupant for performing the role effectively are not available, such as information, people, materials, finance or other facilities. The unit managers have to recruit 25 advisors to generate business from them. For this purpose they have to go for fieldwork and hunt for them. So in this process they have to spend the money in looking out for the efficient people. So the company so provides financial resources and transportation facilities to the employees. This will reduce the stress of the employees and thus they will be able to perform they role effectively with the availability of adequate resources.BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 66
  68. 68. STRESS MANAGEMENT AT ICICI-PRUDENTIAL LIMITATIONS OF THE STUDY • Since private life insurance is the new theory in the Indian market, an in depth study was not possible. • Some of the Unit Managers were engaged in their work and were not able to give their opinion about their working process. • Time ConstraintBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 68
  70. 70. STRESS MANAGEMENT AT ICICI-PRUDENTIAL CONCLUSION To conclude, I would like to say that working with ICICI Prudential for 2 monthswas a great experience. And I feel proud be an advisor of an esteemed company, as ICICIPrudential is known for its leadership in the private life insurance sector. The company should plan ahead and practice good time management. It shouldalso help the employees to develop a sound philosophy of life and maintain a positiveattitude.Stress Management by organization should be designed to reduce the harmful effects ofstress in a way • Help employees modify their perception and understanding of work stress • Help employees cope more effectively with the consequences of stress. • Help the employees to identify and then modify or eliminate work stressorsBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 70
  72. 72. STRESS MANAGEMENT AT ICICI-PRUDENTIAL “A study on Stress Management 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-operateName of employee :Age :Gender : Male FemaleMarital Status : Married UnmarriedOccupation :1.Do you have various other interests (social, religious), which remain neglected because you do not get time to attend to these Never Occasionally Sometimes Frequently Very Frequently (0) (1) (2) (3) (4)2. Do you feel stagnant in your role Never Occasionally Sometimes Frequently Very Frequently (0) (1) (2) (3) (4)BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 72
  73. 73. STRESS MANAGEMENT AT ICICI-PRUDENTIAL3. Are you able to satisfy the conflicting demands of the various peer level people Never Occasionally Sometimes Frequently Very Frequently (0) (1) (2) (3) (4)4. Would you like to take more responsibility than at present Never Occasionally Sometimes Frequently Very Frequently (0) (1) (2) (3) (4)5. The amount of work you have to do interferes with the quality you want to maintain Never Occasionally Sometimes Frequently Very Frequently (0) (1) (2) (3) (4)6. Is there not enough interaction between your role and other roles Never Occasionally Sometimes Frequently Very Frequently (0) (1) (2) (3) (4)7. Do you wish to acquire more skills to handle the responsibilities of your role Never Occasionally Sometimes Frequently Very Frequently (0) (1) (2) (3) (4)BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 73
  74. 74. STRESS MANAGEMENT AT ICICI-PRUDENTIAL8. If you had full freedom to define your role you would be doing some thingsdifferent from what you do now Never Occasionally Sometimes Frequently Very Frequently (0) (1) (2) (3) (4)9. Several aspects of your role are vague and unclear Never Occasionally Sometimes Frequently Very Frequently (0) (1) (2) (3) (4)10. Do you wish to have more financial resources for the work assigned to you Never Occasionally Sometimes Frequently Very Frequently (0) (1) (2) (3) (4)BABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 74
  76. 76. STRESS MANAGEMENT AT ICICI-PRUDENTIAL 1. Organizational behavior : John W. Newstrom Keith Davis 2. Managing Human Resources : Wayne. F. Cascio 3. Making Organizational Roles Effective : Udai Pareek 4. Web-Site : iciciprulife.com , google.com 5. Journals : Company Journals & MagazineBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 76
  78. 78. STRESS MANAGEMENT AT ICICI-PRUDENTIALWhat is Stress Stress is the general term applied to the pressures people feel in life. The presenceof stress at work is almost inevitable in many jobs. However, individual differencesaccount for a wide range of reactions to stress, a task viewed as challenging by oneperson may produce high levels of anxiety in another. When pressure begins to build up,it can cause adverse strain on person’s emotions, thought processes, and physicalcondition. When stress becomes excessive, employees develop various symptoms ofstress that can harm their job performance and health, and even threaten their ability tocope with the environment. Stress also leads to physical disorders, because the internalbody system changes to try to cope with stress. It is important that stress, both on and offthe job, be kept at a level low enough for most people to tolerate without developingeither emotional or physical disorders. Stress can be either temporary or long-term, either mild or severe. The effects onan employee depend mostly on how long its causes continue, how powerful they are,and how strong the employee’s recovery powers are. If stress is temporary and mild, mostpeople can handle it or at least recover from its effects rather quickly. Stress is simply the bodys non-specific response to any demand made on it.Stress is not by definition synonymous with nervous tension or anxiety. Stress providesthe means to express talents and energies and pursue happiness; it can also causeBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 78
  79. 79. STRESS MANAGEMENT AT ICICI-PRUDENTIALexhaustion and illness, either physical or psychological; heart attacks and accidents. Theimportant thing to remember about stress is that certain forms are normal and essential. As the body responds to various forms of physical or psychological stress, certainpredictable changes occur. These include increased heart rate, blood pressure (systolicand diastolic), and secretions of stimulatory hormones. These responses to stress willoccur whether the stress is positive or negative in nature. In lay terms, it is known as the"fight or flight" mechanism. Continual exposure lowers the bodys ability to cope withadditional forms of psychological or physiological stress. The results of continuing stressmay cause disruption in one or more of the following areas of health: physical, emotional,spiritual and/or social. Stress is a process that builds. Its more effective to intervene early in the processrather than later. Try to become aware of the signs that suggest the process has begunStress is the way your body responds to the demands placed on it. Positive or "good"stress can help you concentrate and focus. In some instances, it actually increases yourability to survive. Your bodys response to stress can be hormonal, such as an adrenalinerush. It can also be a rise in blood pressure, blood sugar, or body temperature. Thesephysical reactions can often make you more alert; give you more acute eyesight or greaterstrength. Thats how your body gives you what you need to act. Ideally, your bodyautomatically relaxes after you have handled the situation. Your physical responsesnormalize and you are able to return to a state of rest. This process allows you to gatherphysical and emotional energy which helps you deal with changes and challenges in yourdaily life. Your physical reaction to stress is the same for positive and negative stress; thedifference is that with negative stress your body never returns to the "pre-stress" relaxedstate. You remain tense or anxious, which drains you of emotional and physical energy.The common expression for stress is ‘tension’ One is said to be tense, when there is someanxiety, some fear of whether the desirable things may happen, whether something maygo wrong, etc. It is a state of discomfort felt in the mind and experienced by the body.When there is tension, the body may become weak. In management literature, ‘Stress’ is defined as a response of the human body to afelt need. When one is hungry and there is an urge to eat food, the body is in a state ofBABASAB PATIL PROJEC TREPORT ON HUMAN RESOURCE Page 79