SUMMER TRAINING REPORT SALES,MARKETING & DISTRIBUTION

OF ICICI PRUDENTIAL LIFE INSURANCE

In partial fulfillment of the requirements for the award of the Degree of MASTERS OF BUSINESS ADMINISTRATION( Retail) (2010-2012)

Submitted by: Name of Student: SONALI NAGPAL Roll No. : 13038

UNIVERSITY INSTITUTE OF APPLIED MANAGEMENT SCIENCES

PANJAB UNIVERSITY , CHANDIGARH

PREFACE

Theoretical knowledge without practical knowledge is PF little value. In order to achieve the concrete and positive result practical knowledge must be there. To fulfill these needs, the management course has a provision for the practical training program. I am thankful to the university to provide such opportunity so that the students can have the actual feeling of industrial life.

I have done my Project Report on SALES,MARKETING & DISTRIBUTION INSURANCE. OF ICICI PRUDENTIAL LIFE

In the coming pages an attempt has been made to present a comprehensive report concerning these aspects.

ACKNOWLEDGEMENT

It was delightful learning experience to be associated with ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED. The 6 weeks spend at ICICI PRUDENTIAL LIFE INNSURANCE COMPANY LIMITED, Chandigarh, taught me many things which will be with me throughout my life. First of all I would like to thank my faculty for the help and guidance rendered for the completion of the project. It is beyond words to express my immense gratitude to my project guide MR.SATISH SHARMA(agency manager) for the guidance and inspiration throughout this work. I am also very much thankful to the employees of marketing department for their co-operation . Last but not the least I thank my family members & friends for their encouragement and support.

INSURANCE AN INTRODUCTIO N

Insurance may be described as a social device to ensure protection of economic value of life and other assets. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. The term RISK" is used to describe the possibility of adverse results flowing from any occurrence or the accidental happenings, which produce a monetary loss. Insurance is a pool in which a large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. The sharing of risk

among large groups of people is the basis of insurance. The losses of an individual are distributed over a group of individuals.

DEFINITIONS

GENERAL DEFINITION:

In the words of John Magee, Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals.

FUNDAMENTAL DEFINITION: In the words of D.S. Hansell, Insurance accumulated contributions of all parties participating in the scheme.

CONTRACTUAL DEFINITION:

In the words of justice Tindall, Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a given contingency. CHARACTERISTICS OF INSURANCE:

Sharing of risks Cooperative device Payment on happening of a special event The amount of payment depends on the nature of losses incurred.

The success of insurance business depends on the large number of people insured against similar risk.

Insurance is a plan, which spreads the risk and losses of few people among a large number of people.

The insurance is a plan in which the insured transfers his risk on the insurer.

Insurance is a legal contract which is based upon certain principles of insurance which includes utmost good faith, insurable interest, contribution, indemnity, causes proxima, subrogation, etc.

FUNCTIONS OF INSURANCE:

PRIMARY FUNCTIONS-

Provide protection - Insurance cannot check the happening of the risk, but can provide for the losses of risk.

Collective bearing of risk - Insurance is a device to share the financial losses of few among many others.

Assessment of risk - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk.

Provide certainty - Insurance is a device, which helps to change from uncertainty to certainty.

SECONDARY FUNCTIONS -

Prevention of losses- Insurance cautions businessman and individuals to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions.

Small capital to cover large risks - Insurance relives the businessman from security investment, by paying small amount of insurance against larger risks and uncertainty.

FUNDAMENTALS OF INSURANCE

The fundamental Principles of the Insurance are as follows:

INSURABLE INTEREST: Insurable interest means the legal right to insure. Insurable Interest is a must and only then the insurance contract is enforceable at law. This principle differentiates a Contract of insurance from wager. Lack of insurable interest renders the contract null and void. For Insurable Interest to exist there must be Property, Rights, Interest, Life or Liability; this must be insured and the Insured should have a legally recognizable relationship thereto. The Insured should be benefited by the safety of the property or is

prejudiced by its loss. Insurable Interest may arise in the following manner:

1.

OWNERSHIP: Absolute ownership entitles the owner to insure the property. This is the commonest method whereby

Insurable Interest arises.

2.

PARTIAL INTEREST: It is also insurable e.g. a mortgagee. A creditor can also insure the life of his debtor but only to the extent of his loan.

3.

ADMINISTRATORS & EXECUTORS i.e. officials appointed by a court of law to take care of a property may also insure the property.

4.

RELATIONSHIP does not automatically constitute insurable interest. The only relationship recognized by law for this purpose is the one between a husband and wife.

5.

An employer can insure his employee under a Personal Accident Policy as he has insurable interest in them.

PROXIMATE CAUSE:

Generally, the claims are payable under insurance policies if they arise out of events which are proximately caused by the insured perils. In other words, the proximate cause of the event has to be peril covered by the policy, so as to constitute a valid claim.

CONTRIBUTION:

An insured may have several insurance on the same subject matter. If he recovers his loss under all these insurance, he will obviously make a profit out of loss. This will be an infringement of the principle of indemnity. Common Law has, therefore, evolved the doctrine of contribution whereby the insured is prevented from recovering more than his loss, despite his having several insurance on the subject matter.

SUBROGATION:

The principle of indemnity seeks to prevent the insured from making profit out of loss. However, it may so happen that that the insured may recover his loss under his policy and he may also have rights against third parties. If, after the insurance claim is settled, the insured is allowed to enforce his rights against third parties and to retain whatever damages he receives from them, he will certainly make a profit and the principle of indemnity will be infringed.

UTMOST GOOD FAITH:

In all General Insurance contracts we know that a property or interest or liability or life is offered for insurance and the insured has to take decisions on the acceptance of the proposal. If he decides to accept the proposal a premium commensurate with the risk has to be charged. To enable him to take necessary decision in this regard, the insurer must have certain facts about the risk offered. These facts influence the judgment of the insurer in deciding about the acceptance or otherwise of the risk and the rate of premium to be charged, if accepted. Such facts are known as material facts.

CLASSIFICATION OF INSURANCE

Life is full of uncertainty. Trials and tribulations abound in each and every aspect of life .No one can truly predict or even estimate what the future has in store for him. Life offers no guarantee by itself; expect the incidences of death and taxation. The lack of security present throughout life can be overcome partially through insurance. Insurance can never replace or repair a loss. But the monetary value offered by insurance helps in adjusting to new circumstances. Despite offering the innumerable options and immense scope insurance can be classified into four major categories.
I. II.

Insurance of a person Insurance of property of interest Insurance of liability

III. Insurance IV.

Under the preview of this class of insurance the risk associated with human life in general can be covered up to the limit specified. The person can insure his or her life and his health against any unplanned contingencies.

The event of his death his dependents will be reimbursed with the full amount that he was insured for. Or if the insured person meets with the accident or suffers from any illness that cripples him forever he will be compensated with complete sum assured. Any way he may not be able to lead a normal life again.

I .INSURANCE OF PROPERTY

Everyone posses material value in the form of tangible assets. Assets can be in the form of the landed estate or a vehicle, share holdings or plane old paper money. Since tangible property has a physical shape or consistency it is subject to many risk ranging from fire allied perils to theft and property. An individuals lifetime of hard work can be wiped out in a blink of an eye. But if a person judiciously invest in insurance for his property prior to any unexpected contingency the he will be suitably compensated for his loss as soon as the extend of damage is ascertained.

II.INSURANCE OF INTEREST

Every individual has to discharge certain specific duties. Everyone is expected to maintain a standard of conduct but then it is an intrinsic part of human nature to err. None is infallible and no one will ever be. Owing to an occasional error or omission committed by us, our clients or customers might suffer a loss. In turn we might have to pay those damages for compensation out of our own personal resources. However, if our chosen professional qualifies for insurance of interest. Then our insurance policy will be more than sufficient in arranging the funds and court formalities that might ensue aftermath of legal libel.

III. INSURANCE OF LIABILITY

Every person has to regulate his actions and behavior so as not to cause injury or damage to other people and their property. Everyone is personally liable for his or her action. If due to lack of control over his actions or prejudice behavior, a person incurs any liability then has to provide compensation out of his personnel resources. Liabilities, Legal, Civil or Criminal can have severe repercussions on social standing and prestige besides the financial status.

Insurance Regulatory and Development Authority (IRDA) ACT, 1999 Composition of Authority under IRDA Act, 1999 As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specify the composition of Authority The Authority is a ten member team consisting of (a) a Chairman;

(b) five whole-time members; (c) four part-time members, (all appointed by the Government of India)

Duties, Powers and Functions of IRDA Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA:

(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include (a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; (b) protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;

(c) Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance diaries and agents; (d) Specifying the code of conduct for surveyors and loss assessors; (e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organizations connected with the insurance and re-insurance business; (g) Levying fees and other charges for carrying out the purposes of this Act; (h) Calling for information , undertaking inspection ,conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business; ( i ) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); (j) Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries; (k) Regulating investment of funds by insurance companies; (l) Adjudication of disputes between insurers and intermediaries or insurance intermediaries; (m) Supervising the functioning of the Tariff Advisory Committee;

(n) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f)

INDIAN INSURANCE INDUSTRY INSURERS:

Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers: LIFE INSURERS:

Life Insurance Corporation of India (LIC)

GENERAL INSURERS:

General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsure)

GIC had four subsidiary companies, namely (with effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies.

The Oriental Insurance Company Limited The New India Assurance Company Limited, National Insurance Company Limited

Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001) Insurance Industry in the year 2000-2001 had some new entrants in Life insurance as well as in General insurance, namely:

LIFE INSURERS:

ICICI Prudential Life Insurance Max New York Life Insurance HDFC Standard Life Birla Sun Life SBI Life Insurance Kotak Old Mutual Life Insurance Aviva Life Insurance Reliance Life Insurance Tata AIG Life Met Life India Insurance Bajaj Allianz Life Insurance ING Vysya Life Insurance Sahara Life Insurance

GENERAL INSURERS:

Royal Sundaram Alliance Insurance Company Limited Reliance General Insurance Company Limited. IFFCO Tokyo General Insurance Co. Ltd

TATA AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited. Cholamandalam General Insurance Company Ltd. Export Credit Guarantee Corporation Ltd. Export Credit Guarantee Corporation Ltd.

INSURANCE BUSINESS: Insurance business is divided into four classes: 1) Life Insurance 2) Fire Insurance 3) Marine Insurance and 4) Miscellaneous Insurance. Life Insurers transact life insurance business; General insurers transact the rest. No composites are permitted as per law.

LEGISLATION (as on 1.4.2000): Insurance is a federal subject in India. The primary legislation that deals with insurance business in India is: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999.

INSURANCE PRODUCTS :

Life Insurance: Popular Products: Endowment Assurance (Participating) and Money Back (Participating). More than 80% of the life insurance business is from these products. General Insurance:

Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory.

Tariff Advisory Committee (TAC) lays down tariff rates of some of the general insurance products New products have been launched by life insurers. These include linked-products.

TYPE- Private limited company

INDUSTRY- Insurance

HEADQUARTERS- Mumbai

PRODUCTS -Individual and Group Insurance Plans

ICICI PRUDETIAL LIFE INSURANCE COMPANY is a joint venture between ICICI Bank, one of the foremost financial services companies of India and Prudential plc, one of the leading international financial services group headquartered in the United Kingdom.

While ICICI retains 74% stake in the joint venture, Prudential plc has the

remaining 26% stake. ICICI Prudential was amongst the first private sector life insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of September 30, 2010) . For the period April 1, 2010 to September 30, 2010, the company garnered Rs 7,267 crores of total premiums and has underwritten over 10 million policies since inception. The company has a network of over 1,500 offices and over 1,60,000 advisors, as on September 30, 2010. The company has assets held over Rs. 65,000 crores as on September 30, 2010. Today, this company has over 1,900 branches (inclusive of 1,074 micro-offices), over

210,000 advisors and 6 branch assurance partners. ICICI Prudential Life Insurance Company is the first life insurer in India that received a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been voted as India's Most Trusted Private Life Insurer for three consecutive years. This company provides various insurance plans that have been designed for different individuals, as every individual has different insurance needs.

ICICI Prudential Life has maintained a wide range of Life Insurance products that meet the needs of the Indian customer at every step in life.

ICICI Prudential Life recently completed 10 years on the Indian Insurance scape on 12th December 2010.

VISION OF THE COMPANY: Their vision is to make ICICI Prudential Life Insurance Company the dominant new insurer in the life insurance industry. This they hope to achieve through their commitment to excellence, focus on service, speed and innovation, and leveraging our technological expertise. The success of the organization will be founded on its strong focus on values and clarity of purpose. These include: Understanding the needs of customers and offering them superior products and service building long lasting relationships with their partners providing an enabling environment to foster growth and learning for their employees and above all building transparency in all our dealings. They believe that they can play a significant role in redefining and reshaping the sector. Given the quality

of their parentage and the commitment of their team, they feel that there will be no limits to their growth.

VALUES:

Every member of ICICI Prudential team is committed to 5 core values: - Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all they do, and have become the keystones of their success

PROMOTERS:

ICICI BANK:

ICICI Bank is Indias second largest bank and largest private sector bank with assets of Rs.2823.72 billion as on

September 30, 2006. ICICI Bank provides a broad spectrum of financial services to individuals and companies. This includes mortgages, car and personal loans, credit and debit cards, corporate and agricultural finance. The bank services a growing customer base through a multi-channel access network which includes over 635 branches and extension counters, 2325 ATMs, call centers and internet banking.

PRUDENTIAL Plc:

Established in London 1848, Prudential Plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 21 million customers, policyholder and unitholders worldwide. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. IN Asia, Prudential is the leading European life insurance company with a vast network of 23 life and mutual fund operations in 12 countries- China, Hong Kong, India, Indonesia, Japan,

Korea, Malaysia, The Philippines, Singapore, Taiwan, Thailand and Vietnam.

THE AREA UNDER STUDY: SALES , MARKETNG AND DISTRIBUTION OF ICICI PRUDENTIAL

LIFE INSURANCE

SALES: It means supplying goods to the consumer.Sales take place in the mind of the buyer after the products are made known to them through marketing. Hence, sales and marketing are interrelated.

MARKETING: It means movement of goods through distribution channels. Through marketing consumers are made to understand the quality and usefulness of the products. Marketing is a comprehensive activity, as quantam of sales depends upon marketing. Marketing is an assessment, ascertainment, and fulfillment of consumer needs and desire into products and services through planning and creating demand for

companies products, serving the consumer demand through planned physical distribution with the for help of marketing channels expanding the marketing even in the face of keen competition. As a corporate state of mind which insists integration and co-ordination of all marketing functions in welded with all co-operative functions, with a basic objective of maximizing long range corporate profits and satisfy the customer needs and wants. The Creation of customer implies three things:Development of product through technical and market research on which afford sales opportunities
2)

1)

Persuading the customer to buy through advertisement and sales promotion. Making the product available in a form at a price, time and place the customer want.

3)

Marketing research is the function, which links the consumer / customer and public to the marketer through information used to identify and define marketing opportunities and problems. Objective of marketing research

may be primary to gather information from different customer attitudes and opinions.

The insurance sector in India has come a full circle form being an open competitivemarket to nationalization and back to a liberalized market again. Tracing the developments in theIndian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

SALES AND MARKETING IN ICICI PRUDENTAL INSURANCE AGENTS: As Life insurance is a personalized service, personal selling plays an important role in promoting the same. Place and promotion are being highlighted here since the agents and development officer who form the pillars of Life Insurance market structure discharge these two important functions. Agents are PR men of insurance companies at the grassroots level. The role in building up good customer relation is

crucial. They work under the guidance and direct supervision of development officers. They together sell the right type of policies suitable to the needs of clients for the right amount at the right time (age). The agents render various other services and also play a vital role in policy servicing. The Development Officers under each Branch office beside guiding and supervising activities of the agents are also responsible for their recruitment and training so as to develop a stable agency force. They activate the existing agents and motivate the new ones. Also they render all such services to the policyholders as will produce better policies. Agents and development officers, as the intermediaries in the distribution system of the whole, develop and increase the Life Insurance business in a planned way. For promoting Life Insurance business, sales promotion activities are also carried out by the agents. Calendars, bags, diaries, etc. are also given to the policyholders as a token of gifts. The insurance companies also trains their agents, as they do not tend to increase or update their knowledge regularly so as to serve better to their customers. Special training programs are held for them.

DISTRIBUTION CHANNELS

Tied Agency Channel : Agents of the company, as the name suggests, drive the tied agency channel. For insurance distribution, this is the most popular channel. This channel sourced 73% of ICICI Prudentials business in FY 2005.

Bancassurance : Bancassurance is a setup whereby a tie up is made with a Bank. This distribution model works on referral basis .Bancassurance is the distribution of insurance products through the bank's distribution channel. It is a phenomenon wherein insurance products are offered

through the distribution channels of the banking services along with a complete range of banking and investment products and services. To put it simply, Bancassurance, tries to exploit synergies between both the insurance companies and banks. Bancassurance if taken in right spirit and implemented properly can be win-win situation for the all the participants' viz., banks, insurers and the customers.The customer base of the bank that is made available to it benefits the insurance company. The bank in return earns referral commission for every policy issued to the bank customer. In this arrangement, typically an employee of the ICICI Prudential is stationed at the bank branch and he resources the business through walk-ins that happened at the bank. Such agents are called Financial Service Consultant (FSC) Corporate Agents : Corporate Agents are Corporate entities that source policies for the Insurance company with whom they have a tie up. They are authorized to the source policies for one insurance company only.

Brokers : A variant of CAs, Brokers are not tied to a [particular company and are allowed to source business for more than one insurance company.

Direct Marketing : Direct Marketing, as a channel of distribution, is relatively a new one. It basically encompasses all unconventional channel of distribution. Inter alia, it includes call center, internet and other mass media channels

Corporate Houses and Financial Institutions:

This is a distribution network that has shot into prominence after the opening up of theInsurance sector.Large corporate houses and financial institutions have now entered into the business of selling life insurance. These institutions have employed special employees who are trained to sellinsurance. These employees are told to then tell to target the existing customers of the corporatehouses or financial institutions. They also have a help desk / promotion desk at the places wherethe customer comes into contact with the company. These centers are the effective centers wherethe sales pitch is made to the prospective customers. Also sometimes the company may usemarketing tactics like sending direct mailers to the various clients or telemarketing. This form of distribution is slowly but surely gaining prominence.

OBJECTIVES OF STUDY

The study is on the profile of the company. To know the awareness of people towards life insurance. To identify the need of insurance. To know about selling and marketing of insurance. To analyze the distribution of the insurance. To enhance the selling and marketing of insurance in the company. To study the consumer preference for life insurance in general. To better know how consumers profile affects the investment decision in insurance. To understand the positioning of life insurance products.

RESEARCH METHODOLOGY

Research is common refers to search for knowledge. It is the pursuit of truth with the help of study, observation, composition and experiment. Research methodology is a systematic way to solve the research problems. It helps in studying the various steps that are adopted by the researcher to study the research problems along with the logic behind the It describe mail what must be done, how will be done. What data will be needed and how the data will be analyzed. In this research the type of data collection is: PRIMARY DATA:

1)

Primary data are collected by the investigator conducting the research. SECONDARY DATA:

2)

Secondary data is data collected by someone other than the user. Common sources of secondary data include:

Censuses Surveys Organizational records Books Websites

MARKET RESEARCH DESIGN

Research Type: Descriptive research Sources of data: Primary Data Research method: Survey Method Research instrument: Questionnaire SAMPLINGPROCEDURE

The process employed for the sample was Random sampling. Random sampling is the sampling in which every unit in the population has an equal opportunity of being selected in the sample. The method is more representative of the population as there are no personal biases.

METHODOLOGY The survey is conducted among 50 respondents. The methodology is quite simple. The primary data collected through survey. The people are personally interviewed. Then their responses are analyzed and interpreted and the final report is prepared.

Sources of Seconday Data: The secondary data I used for my research was from :

Offical reports of the financial performance of the company

Websites: www.iciciprulife.com www.irdaindia.org

DATA ANALYSIS

Questions in survey 1)How much amount of money do you invest annually? 10000-20000 20000-30000 30000-40000 More than 40000 S.n 1 2 3 4 Total Amount Invested 10000-20000 20000-30000 30000-40000 More Than 40000 Total Respondents 24 13 09 04 50

a) b) c) d)

2)Do you need a life insurance protection? a)YES: 41 b)No: 09

Life insurance is very necessary because there is no certainty of life,any mishap can occur at any time.in this situation if the guardian of the family,who supports the family,dies untimely,the remaining members of the family may be compelled to face lot of problems. To compensate the monetary loss,life insurance may provide fruitful to the family in order to maintain a stability. But there are still some people who feel that life insurance is not necessary and its better to enjoy the present.

3)

Are you using any product of ICICI PRUDENTIAL LIFE INSURANCE?

In the survey conducted, out of 50, 33 people were using one of the products of ICICI PRUDENTIAL while the rest 17 were not the customers of the company.

4)

If yes, then what is the purpose for using it?

This question is directly related to the above one. S.NO PUPOSE PERCENTAGE NUMBER OF PEOPLE(%) 1 Tax-Saving Purpose 2 Investment Purpose 3 Business 08 04 18 09 08 04 OF PEOPLE

Purpose

High Investment Return Purpose

34

17

Life Insurance Purpose

32

16

TOTAL

50

5)

Which Life Insurance Company, do you believe in the most?

In this question , the options for the people were

SECTOR

PERCENTAGE OF PEOPLE (%)

NUMBER OF PEOPLE 32

GOVERNMENT

64

PRIVATE

36

18

TOTAL

50

6)

WHAT ARE THE CRITICAL SUCCESS FACTORS OF ICICI PRUDENTIAL ACCORDING TO YOU, FOR ACHIEVING ITS GOAL AND BECOMING A BRAND ?

S.NO.

SUCCESS

PERCENTAGE NUMBER

FACTORS

OF PEOPLE (%)

OF PEOPLE 14

CUSTOMER SATISFACTION

28

PRODUCT BENEFIT

22

11

HIGH INVESTMENT RETURN

18

09

BRAND NAME OF ICICI

26

13

LONG CHANNEL OF DISTRIBUTION

03

TOTAL

50

7)

WHICH PLAN DO YOU WANT THE MOST?

After conducting the survey I found out that people want to invest in life insurance plan as they want maximum returns of their money. Apart from security ,growth of money is also equally important.

S.NO.

TYPE OF PLAN

PERCENTAGE NUMBER OF PEOPLE (%) OF PEOPLE 26

ULIP

52

CHILD PLAN

20

10

RETIREMENT 16 PLAN

08

HEALTH PLAN

12

06

TOTAL

50

SECONDARY DATA

Retail highlights

Continued market leadership in retail with market share of about 30%

ULIP growth continues to be robust Regular premium increased by 100% during Q2- 2007 12% year-on-year increase in single premium ULIP at September 30, 2006

Progress of rural rollout

PRODUCTS

CHANNELS

CONCLUSION AND RECOMMENDATION S

CONCLUSIONS:

SWOT ANALYSIS

STRENGTHS

Money power, which makes them ignorant about the gestation period. Motivation factors provided by the Company. Service quality, which is the crux of their mission. A huge data base of corporate clients, retail customer, and bank customers of ICICI. Highest paid up capital deposited in IRDA, in comparison to all players. Training provided to all people associating with ICICI Prudential.

WEAKNESS:

High targets for financial advisors and for the sales departments.

Many competitors in the market offer same product by the title difference in the premium and offerings . Very huge premium of policies. Problematic to advisors also. Sustainable to risk associated with investments in money market.

OPPORTUNITIES:

Health insurance and pension schemes, an estimated market potential of approximately $15 billion. Tie up with more corporate agents all over India. And Tie up with broker (agent) also. Strong brand of company helps to boost sales in market. Attract more people of providing customer centric products. THREATS: Players like Bajaj and Birla Sun life with low premium for the similar plans.

People are not aware of different distribution channels. Threat from new entrant Changes in the policy of IRDA.

AFTER SURVEY IT IS KNOWN THAT:

People want to invest in ULIPs than in other policies. The main reason is that it gives high returns. People still lack in the knowledge of insurance and its importance. There is still less trust on the private players in the industry.

Competition will surely cause the market to grow beyond current rates, create a bigger "pie," and offer additional consumer choices through the introduction of new products, services, and price options. Yet, at the same time, public and private sector companies will be working together to ensure

healthy growth and development of the sector. Challenges such as developing a common industry code of conduct, contributing to a common catastrophe reserve fund, and chalking out agreements between insurers to settle claims to the benefit of the consumer will require concerted effort from both sectors.

BRAND AWARENESS :

Brand value reveals the values people operation, those associate with ICICI Prudential are indeed those the company hopes to project

LIFELONG PROTECTION VALUE FOR MONEY

The core value is protecting your loved ones, through lifes ups and downs.

Brand building in a complex category like life insurance is an uphill and multi-faceted task. The communication task is to build credibility, so as to give the customer the confidence that it is a company that could be trusted to invest funds with. The aim is to encourage people to view insurance not only as a compulsory tax saving instrument, but as a means to lead a worry-free secure life. The brand proposition for all the campaigns is reflected in the line: Suraksha Zindgi Ke Har Kadam Par. The campaign features a significant competitive advantage, the sound financial backing and credentials of ICICI and Prudential, and showcase products from different segments. The advertising idea is contributing extensively to raise brand awareness and creating a distinctive identity for the company.

Distribution Effectiveness: -

Distribution channel of the company is very effective.

CHANGES IN IRDA ACT :

Many changes have taken place in the IRDA ACT .After September,2010 has led to drastic cost-cutting . Charges deducted from the customers have now been reduced sharply. It has also resulted in decrease in the products margin.

FOCUSING ON RETAIL; The company is focusing on a 80:20 Paradox. It means that staff is given training and classes so that 20 STAFF MEMBERS : GIVE PRODUCTIVITY OF 80 MEMBERS

ICICI Prudential is the largest private player in the insurance industry in India. Due to the increasing concern of people towards their health/life the life insurance business has good prospects.

Out of total population of 1 billion of country, only 22% have insurance cover. So we can say that there is still large potential for both the public and private companies.

RECOMMENDATIONS
A)

REGARDING CUSTOMERS:

Most of the people are interested in Sum Assured and Additional benefits and some people are interested in minimum premium, hence company has to formulate those policies which are mostly preferred by customers and prospects. Rural people are not interested and they are not understanding about life insurance. So, if the company concentrates on rural area and to make awareness of them, then they can assure their life of benefit. Company should make their products flexible for the convenience of their customer .

The companies should now try to identify the gap between current level of customer service and customer expectations. People still investing in the bank FD and post. To capture that market ,company should come with more such products, which are safe and have good return capacity. As the trust on the private player is less, the company should work on getting the full trust of its customers.

B)

REGARDING AGENTS OF THE COMPANY:

Agents are the lifeblood of the insurance industrys distribution channel. They are the main forces that bring business to the company. Unless and until the agents are qualified and have the caliber to understand the current market scenario, they cannot remain long in the business. Hence, an optimally selected sales force is the need for the hour, for the industry like insurance.

1.

There should be weekend batches of training for the people who cannot take their full six days of the week from their busy schedule.

2.

Anything can click in this line of work and hence the company should evaluate the candidates subjectively. Advertisements should be given in newspapers so that number of people come for the interview. Various MBA institutes should be targeted to get people with good marketing as well as interpersonal skills. There should be some fixed salary with some fixed targets.

3.

4.

5.

C) BRAND AWARENESS It is a powerful proposition; one, which ICICI Prudential, should be taking into the marketplace.

BIBLIOGRAPHY

Web Pages:

www.iciciresearchcenter.org

www.irdaindia.org

www.iciciprulife.com

ANNEXURE

Abstract