The document provides a strategic analysis and SWOT examination of ICICI Prudential Life Insurance, detailing the life insurance industry's context, historical growth, regulatory environment, and competitive landscape in India. It outlines various aspects of ICICI Prudential's insurance processes, products, and market positioning compared to competitors while highlighting the company's strengths, weaknesses, opportunities, and threats. The conclusion discusses strategies for corporate growth and market expansion for ICICI Prudential within the insurance sector.

1. Strategic Analysis and Analyzing
SWOT of
“ICICI Prudential Life Insurance”
PREPARE BY:- GAURAV BHUT

2. Objective1:
What the Life Insurance Industry is
all about

3. What Insurance is?
 Insurance is concerned with the protection of
economic value of an asset.
Advantages of Insurance:
 Financial security for the family.
 Facility of nomination and assignment on death.
 Compulsory savings.
 Tax benefits
 Loans against policy.

4. Life Insurance Industry in India
 The first Indian Insurance company was the
Bombay Mutual Assurance Society Ltd., formed
in 1870.
 In 1956, Life Insurance business was
nationalized and LIC of India came into
existence.
 Right now, there are 18 private sector and 1
public sector Life Insurance companies in India.
 Life Insurance sector is growing at 10.48%
 LIC of India has a dominating market share of
87% of total market covered.
 The private sector companies has the growth of
153%

5. Objective 2:
What is the Environmental Scenario
of Insurance Business

6. Legal Scenario
 Indian government Act in 1912
 Insurance Act 1938
 Insurance act 1950
 IRDA Act 1999
 Duties, Power and Function of IRDA
 Tax Benefits from Life Insurance Policies

7. Economic Scenario
 Increasing Mobilization through Public
Savings through Life Insurance Premium
 Increasing Foreign Joint Venture in Life
Insurance Business
 Increasing Regulation and Supervision
 The move towards importance of safety
with good returns

8. Social Scenario
 Life Insurance is a social security tool
 Safety of investment in India
 Increasing education of People about Life
Insurance
 Ageing population
 Special schemes for weaker section of the
society

9. Technological Scenario
 Insurance companies have been in the
forefront to adopt the latest advances of
Technology
 Internet and Intranet
 Kiosks
 Benefits to the customers and insurer

10. Industry Rivalry - High
Factors High Moderate Low
# of Firms
Market Growth
Fixed cost
Switching cost
Product Difference
Exit barriers
Industry Shakeout

11. Threat of Substitute – Moderate
Factors High Moderate Low
Switching cost
Product Difference
Substitutes
Access to Products

12. Bargaining Power of Buyer- High
Factors High Moderate Low
Switching cost
# of Customers
Awareness of Products

13. Bargaining Power of Supplier - High
Factors High Moderate Low
# of Suppliers
Suppliers Concentration
Collaborations

14. Barriers to Entry - High
Factors High Moderate Low
Legal Barriers
Investment Cost
Access to Distribution

15. Objective 3:
Various Processes of ICICI
Prudential Life Insurance

16. Principles
 Life Insurance Contracts
 Utmost Good Faith
'A positive duty to disclose, accurately and fully, all
the facts material to the risk being proposed. whether
asked for or not'.
 Insurable interest
 Principle of indemnity
Insurance cannot be used as a means to make profit
out of it
 Different risks

17. Premium
 Definition
Premium is the amount, which is paid by the insured to the insurer
for an insurance contract. In other words, premium is the price
for a policy.
 Basic elements of Premium
Mortality, Interest yield , Expenses , Contingency Factor
 Tabular premiums
Risk Premium , Net/pure annual premium , Office premium ,
Tabular premium

18. Conti…
 Factors affecting Premium to be paid
 Type of policy
 Age of insured person
 Term of policy
 Sum Assured
 Mode of payment
 State of health, occupation and hazards.
 Additional benefit
 Extra Premium – Rider Premium

19. Basic Products
 Popular plans
 Term Assurance Plans
 Endowment Plans
 Convertible Plans
 With-profit & Without Profit Plans
 Children's Plans
 Industrial Assurance Plans
 Salary Savings Scheme policies
 Unit link plans

20. Documents
 Proposal Form
 Other important documents
 Personal statement
 Agent’s report
 Medical report
 Proof of age
 First Premium Receipt
 Renewal Premium Receipt
 Policy bond
 Endorsements
 Bonus Notices
 Prospectus issued by the Insurer

21. Policy Conditions
 Age
 Days Of Grace
 Lapse And Non-Forfeiture
 Paid-up Value
 Nomination
 Surrenders and Loans

22. Claims
 Intimations
 Claim Documents
 Maturity claims
 Death claims
 The conditions applicable to accidental cases
 Settlement procedure
 Survival Benefits
 Unusual situations
 Life assured missing
 Miscellaneous

23. Chairman
Training Actuarial Investment
IT Marketing Client services
RM corporate agent
SM
RM (east) RM (west) RM (south) RM (north)
SM SM SM
agents agents agents

24. Marketing Department
 Marketing for Intangibles
 Distribution Channel
 Customers Relationship
 Strengthening Relationships
 Advertisements
 Marketing Mix
 Promotion Strategy
 Product Strategy
 Product Pricing

25. Functions of An Agent
Before sale
 Contact prospects
 Study their insurance
needs Completion of
formalities for proposal of
new insurance viz, Filling
of form
 Arranging for Medical
Examination
 Collection proofs of age
and income
 Any other information
required by the
underwriters..
After sale
 Ensure payment of renewal
premiums.
 Assist policyholder for
nomination / or change
thereof.
 Assist the policyholder in
case he wants to get loan
against the policy
assignment.
 Assist the policyholder or
the claimant to comply
with the requirement for
getting timely settlement
of claims.

26. Underwriting
 Classification Of Risks
 Financial Underwriting
 Non-Medical Underwriting
 Underwriting By Agents
 Recent Trends In Underwriting

27. Objective 4:
Comparison of ICICI
Prudential Life Insurance with
other Players

28. Endowment Plan:
ICICI prudential has the advantage in the endowment
policy over other companies’ polices in terms of:
Extended maturity period of 5 years Loan against 3
years full premium Facility of cancellation of policy
within 15 days Premium paid will be refundable
Higher returns include policy value, sum assured and
the vested bonuses
The ICICI Prudential has the disadvantage against
OM Kotak and Birla Sunlife Insurance it terms that
both of these companies give benefit of Insurance
cover as well as investment opportunity in
government securities and AAA companies.

29. Money Back Plan:
Advantage of ICICI is that it gives survival benefit at
shorter interval which will be very much helpful in
planning of life cash flow to middle Class people.
ICICI Prudential is at the disadvantage position as
compared to others in terms of: Birla Sunlife
Insurance invests in government securities and
other financial instruments specified by IRDA, which
gives the higher returns to the customers at a
moderate risk Birla Sunlife Insurance and OM Kotak
Life Insurance are giving loans against the policy
The customer can know his repayment amount at
the pre-cancellation stage before maturity

30. Smart Kid Plan:
ICICI Prudential has the advantage against others in
terms of:
It covers the life insurance of the children during
the term
Risk starts at the commencement of the policy,
which is not the case with LIC
ICICI Prudential has the disadvantages also against
others in terms of:
Only concentrates on Educational Benefits
The Policy can be replaced by other persons like
relatives, friends, etc. in the policy of LIC

31. Unit Link Policy:
ICICI Prudential has the advantage of starting the death
benefit from the commencement of the policy. While in
LIC, the particular percentage of amount is to be paid to
the insurer.
In LIC on death after 1st year they are paying sum
assured along with along with the bid value of the fund
units while ICICI pays bid value or sum assured
whichever is higher.
The returns are secured at certain stage and unsecured
at more than that. The insurance companies invest the
money of the person in Equity and debt specified by
IRDA, which may give higher or lower returns to the
customers. But, still, the minimum sum assured is given
to the customers at the end of the maturity period.

32. Product Premium and Market share
Premium (Rs. in Mn) Market Share
2002-
03
2003-
04
% of
growth
2002-
03
2003-
04
Pvt.
players
9581.3 24255 153.15 5.66 12.95
LIC 159768 162847 1.93 94.34 87.05
Total 169349 187102 10.48 100 100

33. Objective 5:
Findings of ICICI Prudential Life
Insurance

34. Opportunities for Life Insurance Companies
 High market growth
 Increasing awareness
 Technological Adoption
 Economies of scale
 Self regulation
 Joint Ventures

35. Threats for Life Insurance Companies
 Increasing Rivalry
 Standardization of products
 Higher commissions to the agents
 Legal frameworks
 Image of Private sectors companies

36. Strengths of ICICI Prudential
 Competing products
 Ability to serve multiple segments
 High market share growth
 Multiple product lines
 Higher premium growth
 Increasing network

37. Weaknesses of ICICI Prudential
 Strong competing brands
 Marketing and promotional efforts from
other players
 Lower believability
 Lower coverage

38. Seven ‘S’ Analysis
Strategy
Shared Value
Structure
Skill
Staff
System
Super ordinate
Goal

39. Findings
 Insurance is concerned with the protection of
economic value of assets.
 IRDA is to regulate, promote and ensure growth
of the Life Insurance business.
 Foreign joint ventures are increasing in Life
Insurance Business.
 Industry is growing at the rate of 10.48% in
terms of premiums collections.
 Advance technology adoption
 ICICI prudential is business oriented, customer
service oriented and support oriented.

40. Conclusion

41. Corporate Growth Strategy
Current Product New Product
Market Penetration
ICICI Prudential
Increase Market Share
Increase product usage
through New application
Product Development
ICICI Prudential
Product Improvements
Product line Extension
Market Development
ICICI Prudential
Expand Market by existing
Products by geographic
expansion and new target
markets
Diversification Strategy
Current
Market
New
Market

42. Market Growth Relative Share Matrix
High
Star
Life Insurance
Corporation
Question Mark
ICICI Prud.
Other Private Insurance
Companies
Cash Cow Dogs
High
Low
Relative Market share Low
Market
Growth
Rate

43. Marketing strategy – Encirclement
 Primary Objective
 Market Characteristics
 Competition
 Firm Characteristics