A PROJECT ROPORT

ON

AWARNESS REGARDING ULIP s AND CHANGES MADE BY IRDA

(AT ICICIPRUDENTIAL, PUNE)

SUBMITTED TO UNIVERSITY OF PUNE

FOR THE AWARD OF MASTER OF MARKETING MANAMEMENT

(2005-2007)

SUBMITTED BY VASIM AZIZ HURZUK

UNDER THE GUIDENCE OF PROF. YUVRAJ LAHOTI

VISHWAKARMA INSTITUTE OF

MANAGEMENT PUNE

ACKNOWLEDGEMENT

I am grateful to my project guide Mr. Rupesh Ankolekar

(Unit Manger) ICICI PRUDENTIAL, PUNE. Who has provided

me with his able guidance and his excellent support and

constant backing, which helped me to give this shape to my

project.

I also acknowledge the sincere efforts and help provided by the

whole staff of the company.

I am grateful to Prof. Yuvraj Lahoti my project guide of VIM

who has been a source of light to me.

Place :

Date : VASIM HURZUK

DECLARATION

I the undersigned hereby declare that this report entitled

AWARNESS REGARDING ULIP s AND CHANGES MADE

BY IRDA (at ICICIPRUDENTIAL, PUNE) is a genuine work

prepared by me under the guidance of Prof. Yuvraj Lahoti and

is my original work. The empirical finding in the project

report is based on the collected by me. The matter presented in

this project report is not copied from in way.

This work is submitted to PUNE UNIVERSITY for the

award of the degree Masters in Marketing Management

(MMM).

Place :

Date : VASIM HURZUK

INDEX

Sr. No.

CHAPTER Page No.

1 EXECUTIVE SUMMARY 1-3 2 INTRODUCTION 4-12 3 PROFILES 13-34

COMPANY PROFILE

INDUSTRIAL PROFILE

PRODUCT PROFILE

4 ULIP & IRDA 35-49 5 DEALING WITH CLIENTS AND THEIR

DOUBTS 50-55

6 FEATURES OF LIFETIME 56-63 7 RESEARCH METHODOLOGY 64-67 8 RESEARCH ANALYSIS & FINDINGS 68-78 9 CONCLUSION & SUGGESTIONS 79-82

Bibliography

Questionnaire

CHAPTER .1

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

ICICI PRUDENTIAL is one of the leading life insurance companies in India.

It has a wide range of insurance products to meet the individual s needs at various stages

in one s life. It has the following core aims:

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 policyholders

Providing an enabling environment to foster growth and learning for our

employees

And above all, building transparency in all our dealings.

This Project deals with the analysis of the investing pattern of the service

professionals and also tapping of the potential investor. This project also focuses on the

various aspects of the following

(i) Obtain data on their demographics

(ii) Compare individual investors according to their income, risk taking ability

and their perception towards financial companies.

(iii) It also try find out the significant changes in the investment pattern of the

professionals in the recent period

(iv) Investigate the investment decision-making processes used by such investors.

Before any marketing effort can be initiated, the present customer base and any

potential target markets should be clearly identified. It was therefore decided to carry out

a survey of individual investors in the Pune.

ABOUT ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse, and Prudential plc, a leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was amongst the

first private sector insurance companies to begin operations in December 2000 after

receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential s equity base stands at Rs. 1185 crore with ICICI Bank and

Prudential plc holding 74% and 26% stake respectively. For the half year ended

September 30, 2005, the company garnered Rs 820 crore of new business premium for a

total sum assured of Rs 7,131 crore and wrote 283,818 policies. For the past four years,

ICICI Prudential has retained its position as the No. 1 private life insurer in the country,

with a wide range of flexible products that meet the needs of the Indian customer at every

step in life. To know more about the company, please visit www.iciciprulife.com.

The logo in the combination of ICICI Bank s I man and Prudential s lady

prudence.. The I-man signifies the dynamic individual with drive and conviction, while

prudence epitomizes wise conduct. Every three minutes ICICI PRUDENTIAL protects

one more Indian life. ICICI PRUDENTIAL is the life insurance company to implement

six-sigma quality programme. Of the company s 2000 plus employees, less than 5% have

prior experience in insurance industry. The average age of its employees is 29 years

CHAPTER .2

INTRODUCTION

INTRODUCTION

INSURANCE

The business of insurance is related to the protection of the economic values of

assets. Every asset has some value. The assets are created through the efforts of the

owner. The asset is valuable to owner, because he expects to get some benefit out of it.

The benefit may be income or mental satisfaction or something else. It is benefit because

it meets some of his needs.

PURPOSE AND NEED OF INSURANCE

Assets are insured because they are likely to be destroyed; through accidental

occurrences. Such possible occurrences are called perils. Fire, floods, breakdowns,

lightening, earthquakes are perils. If such perils can cause damage to the asset, we say the

asset is exposed to that risk. Perils are the events. Risk is the consequential losses or

damages.

The risk only means that possibility of loss or damage. The damage may or

may not happen. There has to be uncertainty about the risk. Insurance is relevant only if

there are uncertainties. If there is no uncertainty about the occurrence of an event, it

cannot be insured against. For example, In case of human being, death is certain, but the

time of death is uncertain. In the case of the person who is terminally ill, the time of death

is not uncertain, though not exactly known. He cannot be insured.

Insurance dose not protect the asset. Insurance only tries to reduce the impact

of the risk on the owner of the asset and those who depend on the asset. It only

compensates the losses .

Only economic consequences can be insured. If the loss is not financial,

insurance may not be possible.

TAPPING OF POTENTIAL INVESTORS

The six steps for the sale of product

The following six guidelines for effective selling every salesperson has to

follow for getting good results

Prospecting and

Qualifying

Pre-approach

Approach

Presentation and

demonstration

Overcoming objections

Closing

Follow-up and

maintenance

PROSPECTIVE AND QUALIFYING

The first step in selling is to identify and qualify prospects. More companies are

taking responsibility for finding and qualifying leads so that salespeople can use their

expensive time doing what they can do best: selling.

Company can qualify the leads by contacting them by mail or phone to assess their

level of interest and financial capacity. The leads can be categorized, with hot prospects

turned over to the field sales force and warm prospect turned over to the telemarketing

unit for follow-up.

PREAPPROACH

The salesperson needs to learn as much as possible about the prospect company

(what it needs, who is involved in the purchase decision) and its buyers (personal

characteristics and buying sales). The salesperson should set call objectives: to qualify

the prospect, gather information. He can make personal visit, a phone call.

As a salesperson of ICICI Prudential one should understand the above prospects very

well.

In my case I made list of contacts I had to visit and then I called people and took

their appointment for explaining the product. Some places I made directly visit and then

took their appointment at specific time.

PRESENTATION AND DEMONSTRATION

The salesperson now tells the product story to the buyer, following AIDA formula of

gaining attention, holding interest, arousing desire and obtaining action. The salesperson

uses a features, advantages, benefits, and value approach.

To get the good result salesperson should stress on benefit and value i.e. a customer

orientation not more on future of the product, i.e. product orientation.

As a salesperson I made presentation in the understandable language and make person

feel comfortable, holding his interest in product and adding some emotional factors as the

product was life insurance policy. Explained how this product will be helpful for him and

his family in terms of investment as well as in gaining life cover.

OVERCOMING OBJECTIONS

Customers typically pose objections during presentations, these objections may

because neurotic attitude towards money.

To handle these objections the salesperson should maintain positive approach, asks

the buyer to clarify the objections. And turns the objections in to reasons for buying.

CLOSING

Salespeople need to know how to recognize closing signs from the buyer, including

physical actions, statements or comments and questions.

Salesperson of ICICI Prudential should use techniques like asking for directly

premium or started filling forms or asking for their documents.

FOLLOW- UP AND MAINTAINANCE

Follow-up and maintenance are necessary if the salesperson wants to ensure

customer satisfaction and repeat business

The salesperson should ensure that whether policy logins has been reached to the

customer and he should call the customer whether he is happy with the purchasing and

any objection if he has, salesperson should clarify that to grow the business because one

satisfied customer will provide more customers

Methodology adopted

1. First made the list of contacts I had to visit.

2. Took their appointment at their convenience time.

3. First found about their income, risk appetite etc.

4. According to that explained the life time product in a way to attract the customer

HOW INSURANCE WORKS?

1. The mechanism of the insurance is very simple. People who are exposed to the

risks come together and agree that, if any one of them suffers loss, the others will

share loss and make good to the person who lost.

2. All people are exposed to the same risk .The heavy loss is divided into bearable

Small losses by all. .In other words, the risk is spread among the community and the

likely big impact on one is reduced to smaller manageable impacts on al.

3. There are certain principles, which make it possible for insurance to remain a fair

arrangement. The first is that it is difficult for any one individual to bear the

consequences of the risks that he is exposed to.

It will become bearable when he community shares the burden. The second is that

the peril should occur in an accidental manner. Nobody should be in a position to

make the risk happen. In other words, none in the group should set fire to his assets

and ask others to share his cost of damage.

4. A human being is an income is an income generating asset. One s manual labour,

professional skills and business acumen are the assets. This asset also can be lost

through unexpectedly early death or through sickness and disabilities caused by

accidents.

5. Accident may or may not happen. Death will happen, but the timing is uncertain. If it

happens around the time of one s retirement, when it could be expected that the

income will normally cease, the person concerned could have made some other

arrangements to meet the continuing needs. But if it happens much earlier when the

alternate arrangement not in place, there can be losses to the person and dependents.

Insurance is necessary to help those dependent on the income.

6. A person, who may have made arrangements for his needs after his retirement, also

would need insurance. This is because the arrangements would have been made on

the bases of some expectations like, likely to live for another 15 years or that

children will look after him. If any of these expectations do not become true, the

original arrangement would become inadequate and there could be difficulties. Living

too long can be as much a problem as dying too young . Both are risk, which need

to be safeguarded against. Insurance takes care.

BENEFITS OF THE LIFE INSURANCE:

1. Life insurance is not only the best possible way for family protection. There is

No other way.

2. Insurance is the only way to safeguard against the unpredictable risks of the

Future. It is unavoidable.

3. The terms of life are hard. The terms of insurance are easy.

4. The value of human life is far greater than the value of the property. Only

insurance can preserve it.

5. Life insurance is not surpassed by many other savings or investment instrument

, in terms of security, marketability, stability of value or liquidity.

6. Life insurance enhances the existing standards of living.

7. Life insurance helps people live financially solvent lives.

8. Life insurance perpetuates life, liberty and the pursuit of happiness.

9. Life insurance is a way of life.

CHAPTER .3

PROFILES

COMPANY PROFILE

INDUSTRY PROFILE

PRODUCT PROFILE

INDUSTRY PROFILE

INDIAN LIFE INSURANCE COMPANIES

The following graph shows the weighted new business premium income collected by

private life insurers during the period April to September 2005, as per the statistics

released by the Insurance Regulatory and Development Authority ( IRDA ). Private life

insurers increased their market share to 34.3% in this period, up from 22.8% in the

corresponding period last year.

The private non-life insurers achieved 60.9% growth in gross new business premium

income in the period April to September 2005 over the corresponding period last year. A

breakdown by company is shown below.

ROLE OF INSURANCE INDUSTRY IN INDIA

Insurance would ensure less volatility and risk of failure in businesses and thus

provide for greater financial and societal stability

Government plans disaster management, arrangement of funds and provides for

social security programs, NGOs and public institutions assist with fund raising

and relief assistance. There is considerable impact upon government in these

respects. Insurance substantially steps in to provide these services. The effect

would be to reduce the strain on the taxpayer and assist in efficient allocation of

societal resources.

Facilitates trade, business and commerce by flexible adaptation to changing risk

needs particularly of the burgeoning Services sector.

Insurance sector generates savings and directs the same to deserving investments.

A sector with potential for business as is the case with Indian insurance provides

incentive to develop it all the more faster

It enables risk to be managed more efficiently through risk pricing and risk

transfers and this is an area, which provides unlimited opportunities in the Indian

context for consulting, broking and education in the post-privatization phase with

newer employment opportunities.

The basis interest of an insurance industry being loss minimization, its expertise

in understanding losses assists it to share the experience across the economy.

Thus enabling better loss control and preservation of national assets.

In its risk pricing and investment decisions the insurance industry sets the tone for

investment by others in the economy. Informed assessment by the insurance companies

thus signals allocation of resources by others contributing to efficiency in allocation.

In India visibility of LIC and GIC have been dwarfed by actions of government and other

high profile institutions like ICICI, IDBI and UTI. Of late AIG is visible in the media and

institutional investors in India are following its investment announcements keenly. ING

Savings Trust and Zurich are active in asset management and are being keenly followed

by retail investors. India has reasonably well developed accounting, legal and supervisory

institutions. These support the requirements of the insurance market very well. Other

support services are expected to readily adapt to the new conditions of the emerging

market.

COMPANY PROFILE

ABOUT ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank, a premier financial powerhouse, and prudential plc, a leading international

financial services group headquartered in the United Kingdom. ICICI Prudential

was amongst the first private sector insurance companies to begin operations in

December 2000 after receiving approval from Insurance Regulatory Development

Authority (IRDA).

ICICI Prudential s equity base stands at Rs. 1185 crore with ICICI Bank and

Prudential plc holding 74% and 26% stake respectively. For the half year ended

September 30, 2005, the company garnered Rs 820 crore of new business

premiums for a total sum assured of Rs 7,131 crores and wrote 283,818 policies.

For the past four years, ICICI Prudential has retained its position as the No. 1

private life insurer in the country, with a wide range of flexible products that meet

the needs of the Indian customer at every step in life. To know more about the

company, please visit www.iciciprulife.com.

The logo in the combination of ICICI Bank s I man and Prudential s lady

prudence.. The I-man signifies the dynamic individual with drive and conviction,

while prudence epitomizes wise conduct. Every three minutes ICICI

PRUDENTIAL protects one more Indian life.ICICI PRUDENTIAL is the life

insurance company to implement six sigma quality programs of the company s

2000 plus employees, less than 5% have prior experience in insurance industry.

The average age of its employees is 29 years.

AGENCY DEVELOPMENT

What does it take to be an ICICI Prudential advisor?

At ICICI Prudential, we believe that our Advisors are our ambassadors to the customers.

They are a key source of business for the organization, and are the continuing link with

our clients. That is why; we take a lot of care in recruiting and developing our advisor

force, so that we continue to set higher standards of quality in service and salesmanship.

To cater to the needs of the knowledge-oriented marketplace, we look for graduates who

are service-oriented, good communicators and enjoy meeting new people. Prior sales

experience is an added benefit.

Some of the qualities we seek are:

Self-motivation

A master communicator

A go-getter

A graduate

TRAINING

At ICICI Prudential, we understand the importance of training in a dynamic business

environment. Our advisors go through both generic and specific, professional programs

that help them remain well-informed and knowledgeable about the company s products

in the market. There is a further focus on soft skills such as communication, managing

long-ter77m relationships and selling skills, which are very relevant in a service-driven

industry like life insurance.

State of the art infrastructure training facilities coupled with an excellent faculty,

guarantee an exceptional learning environment. For advisors who might be occupied with

their daily business/professional routines, ICICI Prudential also offers convenient training

options such as online and self-learning are also provided by the organization.

A 17-day training schedule covers the mandatory IRDA training requirements and ICICI

Prudential product-training module. Revision session ensure that the candidates

thoroughly understand the course contents and are well prepared for the licensing

examination. Theoretical training is interspersed with practical appointment settings with

potential customers, giving advisors a feel of how their business will work from the very

first day. All through, the Unit Manager and the management provide continuous support

to the advisors in achieving independence towards garnering business.

Notes and Instructions

1. An individual can apply for only one licence which will entitle him to solicit or

procure insurance business of any class and to act as an insurance agent for one life

insurer, one general insurer, or both.

2. The application should be filled in, as far as possible, in Hindi language or English

language.

3. Any correction or alteration made in any answer to the questions in the application

should be initialled by the applicant.

4. An applicant must be at least 18 years of age on the date of the application. If

required the applicant shall furnish proof of age.

5. An applicant shall furnish the proof of educational qualification; pass in the pre-

recruitment test conducted by the Insurance Institute of India, Mumbai or an

examination body approved by the Insurance Regulatory and Development Authority,

and completion of practical training from a training institution approved by the

Insurance Regulatory and Development Authority, along with the application. This is

not applicable where the applicant is an absorbed agent.

6. The fees payable by an applicant is rupees two hundred and fifty.

7. The name and the licence No. given in the application are identical with those shown

in the last licence held. If there is any subsequent change in the name, the reasons for

the same should be stated furnishing documentary evidence for the same.

8. The application should reach the designated person before the expiry of licence held

by the applicant but not more than three months before such expiry. If the application

does not reach the designated person at least 30 days before the date on which the last

licence ceases to be in force, an additional fee of one hundred rupees should be

payable. In this connection please also refer to the provisions of sub-sections (3) and

(3A) of section 42 of the Insurance Act, 1938.

If the applicant desires to work for a life insurer or a general insurer or both, as the case

may be, he should enclose the documentary evidence of the relevant pass in the pre-

recruitment test and the completion of the relevant practical training.

VISION OF COMPANY

To make ICICI Prudential the dominant Life and Pensions player built on trust by

world-class people and service by:

Understanding the needs of customers and offering them superior products and

services.

Leveraging technology to service customers immediately, 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.

ABOUT THE PROMOTERS

ICICI Bank (NYSE:IBN) is India's second largest bank and largest private

sector bank with assets of Rs. 1892.18 billion as on September 30, 2005. 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 of more than 14 million customers through a multi-channel access network

which includes over 590 branches and extension counters, 2,030 ATMs, call

centers and Internet banking (www.icicibank.com).

Established in London in 1848, Prudential plc, through its businesses in the

UK and Europe, the US and Asia, provides retail financial services products and

services to more than 16 million customers, policyholder and unit holders

worldwide. As of June 30, 2004, the company had over US$300 billion in funds

under management. Prudential has brought to market an integrated range of

financial services products that now includes life assurance, pensions, mutual

funds, banking, investment management and general insurance. In Asia,

Prudential is the leading European life insurance company with a vast network of

24 life and mutual fund operations in twelve countries - China, Hong Kong, India,

Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand

and Vietnam.

ICICI Prudential has one of the largest distribution networks amongst

private life insurers in India, having commenced operations in over 110 cities and

towns in India, stretching from Bhuj in the west to Guwahati in the east, and

Amritsar in the north to Trivandrum in the south. The company has seven

bankassurance tie-ups, having agreements with ICICI Bank, Bank of India,

Federal Bank, South Indian Bank, Lord Krishna Bank and some co-operative

banks, as well as about 290 corporate agents and brokers. It has also tied up with

NGOs, MFIs and corporate for the distribution of rural policies and organizations

like Dhan for distribution of Salaam Zindagi, a policy for the socially and

economically underprivileged sections of society.

ICICI Prudential has recruited and trained about 60,000 insurance

advisors to interface with and advise customers. Further, it leverages its state-of-

the-art IT infrastructure to provide superior quality of service to customers.

Distribution Channels

Tied Agency Channel

The Tied Agency Channel, as the name suggests, is driven by agents (advisors) of the

company. For insurance distribution, this is the most popular channel. This channel

sourced 73% of ICICI Prudential s business in FY 2004.

Bank assurance

Bank assurance is a setup whereby a tie up is made with a Bank. This distribution

model works on referral basis. The Insurance Company is benefited by the customer

base of the bank that is made available to it. 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

sources the business through walk-ins that happen at the bank. His domain of

prospective customers is the banks customers. Such agents put up at banks are

called as Financial Service Consultant (FSC). Banc assurance, as an arrangement for

distribution, has been proved successful because of the extended reach that the

insurance company gets through the bank branch network.

Corporate Agents

Corporate Agents (CAs) are corporate entities that source policies for the

Insurance Company with whom they have a tie-up. They are authorized to source

policies for one insurance company only. The difference between CA &

Bancassurance arrangement is that the former trains its own employees to sell the

policies while in case of Bancassurance arrangement, the employees of the insurance

company (FSCs) source the business.

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 channels of distribution. Inter alia, it includes call

center, internet and other mass media channels. All leads that come through this

channel are then attended and closed by our branches.

Advisor

An Advisor is the agent of the Company who sources or sells the policy for the

company. They are called as FOS - Feet on Street.

The Alliances

In our endeavor to reshape the Life Insurance market of India, ICICI Prudential is

reaching out to premier organizations in order to offer their consumer's, innovative

and customized value-added offers. We believe, if both organizations creatively

contribute valuable insights, it will lead to a tangible and successful business solution

ensuring a sustained competitive edge for both the alliance partners.

The exclusive offer to the Alliance partner

In partnering with ICICI Prudential, alliance partner's benefit from an innovative and

customized value-add offers for the customers, resulting into increased loyalty.

Implementation Strategy

The first and probably the most crucial step, is identifying opportunities in the

alliance partners' consumer base, in order to ensure that our product proposition is

targeted towards the appropriate target segment.

The mode of communicating the product proposition is through co-branded

e-mailers, direct mailers or independent mailers.

The nature of our product demands the direct mailing campaign to be followed up

by a telemarketing exercise to reinforce the product proposition and increase the

effectiveness and efficiency of the leads generated.

The leads generated are then serviced through our mobile team.

PRODUCT PROFILE

PRODUCTS

Product Segments

1) Linked Products

As the name suggests, the premium received on these products post mortality charges

& admin charges is invested in Funds .These products are directly linked to the

performance of underlying fund. E.g.: Lifetime, LifeLink.

2) Pension Products

A Pension Product is one which provides for retirement benefits i.e., pensions,

annuities.

3) Universal Life Products

Universal Life Products are products wherein the capital amount invested in the

Insurance plan is guaranteed.

E.g.: Secure Plus, Cash Plus etc

4) Participating Products

Participating products are the ones that participate in the profits of the company.

Hence, in a particular period if the company does not do well, the Vested Bonuses

(VB) gets directly affected. E.g.: CashBak, Smartkid RP, Save n Protect RP.

5) Non Participating Products

These are products which do not enjoy participation in the profits of the company

i.e., no Guaranteed additions or Vested Bonuses.

E.g.: Lifeguard

6) Rural Products

Rural Products are customized to the requirements of the rural sector. It s a

regulatory obligation on every insurance company to source a certain percentage of

the business from the rural sector. ICICI Prudential has Mitr, Suraksha as its rural

products.

7) Group Products

A Group Policy as the name suggests is a Policy which covers a group of people

.e.g. a Policy taken by the organization which covers all the Employees.

8) Linked Products

As the name suggests, the premium received on these products post mortality charges &

admin charges is invested in Funds .These products are directly linked to the performance of

underlying fund. E.g.: Lifetime, LifeLink.

9) Pension Products

A Pension Product is one which provides for retirement benefits i.e., pensions,

annuities.

10) Universal Life Products

Universal Life Products are products wherein the capital amount invested in the

Insurance plan is guaranteed.

E.g.: Secure Plus, Cash plus etc

11) Participating Products

Participating Products are the ones that participate in the profits of the company.

Hence, in a particular period if the company does not do well, the Vested Bonuses

(VB) gets directly affected. E.g.: CashBak, Smart kid RP, Save n Protect RP.

12) Non Participating Products

These are products which do not enjoy participation in the profits of the company

i.e., no Guaranteed additions or Vested Bonuses.

E.g.: Lifeguard

13) Rural Products

Rural Products are customized to the requirements of the rural sector. It s a regulatory

obligation on every insurance company to source a certain percentage of the business

from the rural sector. ICICI Prudential has Mitr, Suraksha as its rural products.

14) Group Products

A Group Policy as the name suggests is a Policy which covers a group of people

.e.g. a Policy taken by the organization which covers all the Employees.

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-

centric products that meet the needs of customers at every life stage. Its products can

be enhanced up to 5 riders, to create a customized solution for each policyholder.

Savings Solutions

Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of

protection.

Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of

protection as well as liquidity options.

Save n Protect is a traditional endowment savings plan that offers life protection

along with adequate returns.

Cash Back is an anticipated endowment policy ideal for meeting milestone

expenses like a child s marriage, expenses for a child s higher education or

purchase of an asset.

Lifetime & Lifetime II offer customers the flexibility and control to customize the

policy to meet the changing needs at different life stages. Each offer 4 fund

options Preserver, Protector, Balancer and Maximiser.

Life Link II is a single premium Market Linked Insurance Plan which combines

life insurance cover with the opportunity to stay invested in the stock market.

Premier Life is a limited premium paying plan that offers customers life insurance

cover till the age of 75.

Invest Shield Life is a Market Linked plan that provides capital guarantee on the

invested premiums and declared bonus interest.

Invest Shield Cash is a Market Linked plan that provides capital guarantee on the

invested premiums and declared bonus interest along with flexible liquidity

options.

Invest Shield Gold is a Market Linked plan that provides capital guarantee on the

invested premiums and declared bonus interest along with limited premium

payment terms.

Protection Solutions

Lifeguard is a protection plan, which offers life cover at very low cost. It is

available in 3 options

level term assurance, level term assurance with return of

premium and single premium.

Home Assure is a mortgage reducing term assurance plan designed specifically to

help customers cover their home loans in a simple and cost-effective manner.

Child Plans

Smart Kid education plans provide guaranteed educational benefits to a

child along with life insurance cover for the parent who purchases the

policy. The policy is designed to provide money at important milestones in

the child s life. SmartKid plans are also available in unit-linked form

both single premium and regular premium.

Retirement Solutions

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

Secure Plus Pension is a flexible pension plan that allows one to select between 3

levels of cover.

Market-linked retirement products

Lifetime Pension II is a regular premium market-linked pension plan

Life Link Pension II is a single premium market-linked pension plan.

Invest Shield Pension is a regular premium pension plan with a capital guarantee

on the investing premium and declared bonuses.

Golden Years: is a limited premium paying retirement solution that offers tax

benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and

payout stages.

ICICI Prudential also launched Salaam Zindagi , a social sector group insurance

policy targeted at the economically underprivileged sections of the society.

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking to

enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru s group gratuity plan helps employers

fund their statutory gratuity obligation in a scientific manner. The plan can also be

customized to structure schemes that can provide benefits beyond the statutory

obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined

contribution superannuation scheme to provide a retirement kitty for each member

of the group. Employees have the option of choosing from various annuity

options or opting for a partial commutation of the annuity at the time of

retirement.

ICICI Pru Group Term Plan: ICICI Pru s flexible group term solution helps

provide affordable cover to members of a group. The cover could be uniform or

based on designation/rank or a multiple of salary. The benefit under the policy is

paid to the beneficiary nominated by the member on his/her death.

OBJECTIVES

To find out investment pattern of ICICI prudential

customers in Pune city.

To find out the investment potential of existing customers of ICICI

PRUDENTILAL LIFE INSURANCE CO.

To recruit the insurance advisors for ICICI Prudential.

CHAPTER .4

ULIP & IRDA

( UNIT LINKED INSURANCE PLAN )

( INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY )

ULIP

(UNIT LINKED INSURANCE PLAN)

1. Over the last two years, insurance companies have been hard selling unit-

Linked life insurance plans promising the invester over15% per annum in

return, compared to the 6percent or so that an endowment policy yield.

ULIPs have become the policies to push in the Indian life insurance market.

2. ULIPs are the life insurance plans that like endowment schemes pay a specific

amount (sum assured.) upon the death of insured. But unlike the endowment

plan, here the premium paid is treated somewhat like an investment in a

mutual fund.

3. Some of it is deducted as cost of insurance and servicing a ULIP while the

investor is issued units for the rest. Of the first year s premium, at least 73 %

goes into units. The proportion keeps increasing in the following years.

4. The investor can choose the investment option he wants. Most companies offer

3-5 options ranging from full debt to large dollops of equity. And premium need

not be paid over the life of the policy.

5. The entire amount can be paid in the first year itself. On maturity endowment

plan gives the insured the sum assured and a bonus-more than amount

invested. In an ULIP like mutual fund, he could get more or less than what he

invested depending on the net asset value (NAV) of the scheme.

NEED TO CHANGE THE ULIP GUIDELINES

Unit Linked Insurance Policies (ULIPs) are gaining popularity because of the

versatile benefits it offers. Besides, the stock market is also booming. Nearly all insurers

have unit linked plans in the market today. In fact a new unit linked plan, Jeevan Plus is

soon to be launched by LIC.

ULIPs not only provide insurance protection against death but also provide

provision for long-term savings depending on its structure. Most investors in these plans

are however unaware or not totally informed about the pros and cons of these policies.

On the other hand there are several who are exploiting the loopholes to earn a quick buck.

In an attempt to prevent investors from making short-term tax-free gains in the

stock market with ULIPs, IRDA is setting up certain guidelines. According to these

guidelines the sum assured will be a fixed percentage of the premium collected. These

guidelines will enhance the insurance content in ULIPs.

Under this new strategy a relatively larger proportion of premium will have to be

allocated for pure risk cover but this will leave a small amount for investment in the

units. Liquidity is an important feature investment, the reason for which people buy

ULIPs.

According to an industry analyst, ULIPs are sold more as investment product than

an insurance product. The new set of guidelines will regulate the way in which these

ULIPs are sold. It s left to see how these proposed changes will affect the functioning of

the ULIPs in the market.

ULIP AND INSURANCE COMPANIES

REASONS BEHIND SELLING ULIPs:

1. Over the last three years, the Indian equity markets have posted

handsome gains.

2. Insurer have been pushing equity based ULIPs.In 2004-05, the share of

Unit linked premium for private sector players was 71 per cent.

3. It is investment in equity that offers tax-free accumulation of wealth.

4. For insurer, equity ULIP makes sense as the capital they have to invest

the third to a quarter of what they would have to put up for a non-ULIP

policy with similar sum assured.

5. ULIP do not offer any guarantee on the capital invested or the returns.

6. Out of the investment risk and the risk that the insured will die, the

Insurer will bear only the later. So, the capital it needs to protect this risk is

correspondingly lower.

7. The insurance company makes the money as the cost of insurance,

brokerage and processing is charged up front.

8. Margins in the life insurance have not been stabilized and overheads for

most of firms are running ahead of plan, forcing them to push sales of

less capital intensive products.

9. Unlike traditional policies , in unit linked policy, pricing and expense

assumptions have to be fairly accurate as there is a much lower

chance of recouping the loss later. Once the charges are set for a policy

they cannot be revised without IRDA approval.

10. Competition also putting pressure on the margins. Average margins on

ULIP are around 10-percentage point lower than those on conventional

insurance policies.

11. Most ULIP had allowed full premium holiday after three years and

Large tax-free withdrawals of the accumulated corpus as early as a year

after the policy is issued. This left the insurer with little time to recover

the high upfront costs and make a profit.

12 . ULIPs are facing competition from Mutual funds.

PROBLEMS FACED BY PRIVATE INSURANCECOMPANIES

1. Capital Availability

2. High expense ratio:

a. One major is the high commission paid out to agents. At 40% of first-year

premium, it leaves the insurance company with only Rs. 60 for every Rs

100 it receives from the customers.

b. Cost incurred in training insurance agent

c. High attrition of agents.

d. Network of offices

e. Infrastructure

3. Competition with behemoth Life Insurance Corporation of India in product

pricing and returns:

IRDA

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)

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, and 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 intermediaries 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 from, undertaking inspection of, 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

insurers and other insurance intermediaries shall render statement of accounts;

(k) Regulating investment of funds by insurance companies;

(l) Regulating maintenance of margin of solvency;

(m) Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

(n) Supervising the functioning of the Tariff Advisory Committee;

(o) Specifying the percentage of premium income of the insurer to finance schemes

for promoting and regulating professional organizations referred to in clause (f);

(p) Specifying the percentage of life insurance business and general insurance

business to be undertaken by the insurer in the rural or social sector; and

(q) Exercising such other powers as may be prescribed

CHANGES IN ULIP MADE BY IRDA

1. In LifeTime one had to pay premium for three years and they one could take

premium holiday.

2. In LifeTime Super one has to pay premium for at least 5 years and then he can

draw amount after 3 years systematically.

3. In Life Time Plus, it includes one more benefit of settlement option. In this

Option, one can opt to get payments yearly, halfyearly, quarterly or monthly

through ECS way for a period of 1, 2,3,4,5 yearly, and post maturity.

4. Surrender values after 3,4,5,6,7 years are different for LifeTime Plus and Life

Time Super.

NEWS ABOUT ULIP

1 .Insurance companies have not shield away from investing in unit linked

insurance policies even after the recent stock market meltdown.

2. ICIC Prudential continues to invest in ULIPs that constitute nearly 50%

of the funds under its management.

3. Nearly 85% of the new business premium of the company went towards

equity.

4 During recent volatility in the stock market, customers took advantage of

the switch option.

5. ICICI already had policies with the mandated 3-year lock-in period even

before the regulator stipulated the lock-in.

COMPETITION FACED BY ULIP PRODUCTS.

1. Competition has forced some companies to offer a guaranteed return on their

policies, or to at least guaranteed return on their policies, or to at least

guarantee the amount invested. That makes ULIPs similar to endowment

schemes.

2. But unlike traditional policy where the insurer gets to keep part of the

returns it earns beyond the guaranteed returns(if any), for ULIP the upside is

limited to annual charges of 1-3 per cent of the NAV.

3. Insurance companies are also facing the heat from mutual funds (MFs),

which are offering similar products. One ULIP like product charges 5 per

cent entry load compared to the 10-15 per cent on ULIP policies, which

place limits on free switches between schemes(equity, balanced or debt),

fund houses allow investors to switch freely between schemes whenever

they want without any penalty.

4. With MFs offering similar products at lower entry load , the pressure on

ULIPs to further reduce charges will intensify.

5. Investor who get insurance cover merely by signing a declaration of good

health in a MF scheme face 3-4 times the risk of their claim being denied as

compared to those who have bought insurance cover after undergoing a medical

check-up, as mandated by most insurers directly.

SWOT ANALYSIS OF UNIT LINKED PRODUCT

STRENGTHS

1. Strength of ULIPs is that the customer gets the advantages ob both

insurance and mutual fund investment in a single contract.

2. They are simple, clear and easy to understand.

3. They provide opportunity for higher returns.

4. They provide wide fund options to choose from depending on the

policyholder s risk profile that include equity, debt, gilt and money

market.

5. These life insurance plans come with a 15-day free look, which allows you

to return the policy if you believe it does not meet your needs or

expectations.

6. They offer flexibility to the policyholder to enter, exit or withdraw at their

convenience.

7. The sum assured in ULIPs is guaranteed, irrespective of market swings.

8. They offer tax rebate under section 88 with a tax free dividend.

WEAKNESSES

1. ULIP does not offer any life as well as accident cover to minors.

2. ULIP costs are bit higher than mutual funds.

3. The returns announced by most companies on ULIPs are on net premium

(i.e. gross minus all expenses) and not the actual premium paid by an

investor.

4. Customer has to wait for liquid the amount as lock in period is 3years

5. The premium required to pay is high

6. Traditional approach that money get to the insurers nominee not himself.

7. For taking decision of switching in ULIP the person requires conceptual

knowledge about financial market.

8. ULIP takes very high charges in first year.

OPPORTUNITIES

1. The product could have sectorial investment option like mutual fund.

2. There is a very large untapped market in rural area.

3. They can make foray into booming investment options like Realty sector,

. gold

. 4. They can have large customer base

THREATS 1. Tax saving mutual fund schemes

2. IRDA levies strict norms.

3. Volatility of the Sensex, which changes the mindset of the people

CHAPTER .5

DEALING WITH CLIENTS AND THEIR

DOUBTS

DEALING WITH CLIENTS AND THEIR DOUBTS

1. The client has some apprehensions , doubts , questions in his mind

before he wants to invest his money with us

2. It is important for one to be sure before investing his money.

3 These questions have to be encountered in a way that the client develops

full faith and belief in ICICI Prulife.

TYPES OF OBJECTIONS

1. Pre approach: Before advisor talks about the product.

2. Sales Interview: During the selling process to convince the client.

3. Closing

4. When any one talks about the concept of the product, it is Pre-approach.

5 When we talk about Product, price and company, it comes under sales

interview.

6. When we talk about personal issues and service it comes under closing.

DOUBTS RAISED BY CLIENTS

1. The client does not want to deal with this subject insurance.

2. Clients did not like the product either because they already have insurance

policy.

3. Some clients found charges higher than others.

4. The client did not want to the deal with this company because it is a

private insurance company.

5. The customers were doubtful about good after sales service.

How can an advisor convince a client to buy a policy?

By telling them features of insurance policy and its importance in life.

1. Regular saving

2. Assurance of good education of child

3. Provision for important events in life.

Some people said that they do not need it.

My job was to create need for life insurance in their mind by telling them that

life insurance is bought for future benefit.

Some people were having insurance policies.

Here I did not explain what is policy and its importance. All I had to do is to find

the whether insurance cover is enough or not.

Some people said that returns are less compared to other financial

instruments.

A customer is able to structure his policy because of its flexibility. A customer

can choose his investment plan in market related policies. The returns, which are

earned are tax free under section 80 c. Any amount paid to you in form of

withdrawals or other benefits will be eligible for tax benefits under section

10(10D).

Some people wanted to have guaranteed returns as endowment

scheme.

No player is offering guaranteed returns in market related policy. If any one looks

for that then he will lose flexibility offered by them.

Clients asked whether they can choose companies to invest their

money.

ICICI Prudential has fund managers who work with professional team and all

research is done by the research team.

Some companies do not have charges.

These charges take care of administrative expenses, underwriting the policy,

marketing expenses, stamp duties etc. All are approved by IRDA. Others do not

disclose.

Some people said that it is a private company.

Company follows the rules set by IRDA which monitors the business of life

insurance. Investments are done as per IRDA guidelines. ICICI is strong financial

institution.

What about service offered by company.

Company follows strict quality measures. Every process is followed by certain

guidelines.

One has already utilized tax benefits, which is 1 lac.

Only tax benefit cannot be the reason to take life insurance policy.

Some said they do not have enough money to save and invest in policy.

One way to save is to reduce the expenditure to get future benefit.

These reasons help the Client To decide buy Unit linked products:

1. Higher surrender value

2. Less administrative charges

3. Market linked / switch options

4. Potential of higher returns

5. Premium holiday

6. ICICI Brand Power

7. Tax saving

CHAPTER .6

FEATURES OF LIFETIME

Features of Lifetime:

1. It is a unit-linked product which takes care of your wealth creation by providing

insured flexibilities in savings and investments and options for your protection

needs.

2. One can choose a specified level of protection according to his needs.

3. Part of premium paid is adjusted towards mortality and administrative charges

and the rest is invested in the plan of your choice. Entry into the plan will be

based on the unit value of the plan applicable on the date of policy issue.

4. Policy value is based on the value of units allotted to you

Benefits:

Death benefit:

Guaranteed Death benefit ensures that the nominee will receive the higher

of either the death benefit chosen the value of the units.

Liquidity Option:

There is no maturity date. Anytime after 3 years of commencement

(provided one has paid premium of 3 full years) one can make partial or complete

withdrawals, at no penalty, to meet one immediate requirement.

Options:

a. Choice of investment plan

Maximiser (Growth):

If high growth is priority, this is the plan. Investment

is done primarily in equity and equity related securities.

Equity and related security Max: 100%

Debt, Money Market & Cash: Max: 25%

Protector (Income):

If priority is steady returns, one can opt for the protection

Plan . One can accumulate a steady income , at a low risk , across a medium to

long term period from a portfolio , which is primarily invested in fixed income

securities .

Debt investment Max : 100%

Money market and cash Max : 25%

Balancer (Balanced):

If one prefers balance of growth and steady returns ,

he should choose balance plan. Investment will be in equity and

equity linked securities as well as in fixed income securities.

Debt, Money Market & Cash : Min: 60%

Equity & equity related securities : Max: 40%

Preserver:

The objective of the plan is to ensure capital protection by investing in very low risk

investments like cash and money markets investment up to 20 % can be allocated to

this fund.

Debt instruments: Max: 50%

Money Market & cash : Min: 50%

b. choice to switch between investment options

1. 4 Free switches every year

2. Any switch beyond this limit will be charged at Rs. 100 per switch.

c. choice of Top-up

Flexibility:

a. Increase in death benefit:

Life Time lets to increase death benefit without any underwriting during special

events 3 times or every third year up to 3 times. The increase is 25% of original

death benefit of Rs. 1,00,000 whichever is lower, each time. One can increase his

protection at higher levels at any policy anniversary subject to under writing

rules.

b. Decrease in death benefit:

Over time liabilities may decrease, one can decrease death benefit.

c. Premium holiday option: One has to pay premium for at least for 3 years and

then if he miss out on the subsequent payments, policy will continue.

d. Flexible contribution: maximum decrease: 20% of the initial contribution chosen

by you at the time of the inception

However in no circumstances can be reduced to below the minimum premium

allowed under the plan at the time, or 80% the initial chosen contribution, whichever

is higher.

Other benefits

A. Additional allocation of units

B. Surrender Values

C. Loan against the policy

Charges:

a. Premium allocation

b. Annual Administrative and Fund Management charges

c. Mortality charges

d. Top-up charges

e. Switch charges

Limits and conditions applicable:

Age at entry

Minimum age at entry: 0 years

Maximum age at entry: 60 years (completed years)

Premium:

1. minimum 18000 annually

2. minimum 9000 semiannually

3. minimum 1500 monthly

LifeTime Regular Premium

Part of the premium towards the policy

expenses

Allotment of UNITS

Allocated Premium

Insurance Charges

This goes to your Protection A/c to

provide you with the cover against the 3D

effect of Death, Disability and Dreaded

Diseases.

This is your investment A/c. The units that are bought with the premium, which you have paid, first take care of your protection and then the remaining amount is put into your investment account.

Here you have various options of investments as per your choice and priorities. This is the account where your money grows over a long period of time.

Units that build up your investment value.

Various Investment Options, Facility of

withdrawals and investing back in your investment

Asset Creation with LifeTime

How LifeTime is better than traditional insurance?

You create your own value and in the long-run this turns out to be cost-effective

Value for your investment depend upon the bonuses declared by the company

Total control over your investments-with the choice of investments. Also the flexibility

Control over the investments is restricted and the returns are not in your hands

Total flexibility and control on your policy, choose the level of protection as per your lifestage.

No flexibility to adjust Your protection level with

your changing Lifestage needs.

ICICI Pru LifeTime Traditional Insurance Product

CHAPTER.7

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

QUESTIONNAIRE DESIGN

The questionnaire is to be prepared so as to systematically guide the respondent

through the desired path. Questionnaire should be such that respondent finds it interesting

to answer.

Based on the observational study, a questionnaire was designed to cover all aspect of

ones investing pattern.

The questionnaire prepared has the following things:

1. The questions would be understood by the recipients

2. The layout was simple to follow and easy to use.

3. The questionnaire length was not too excessive.

4. The questionnaire was mostly multiple types of questions so that recipient

will not have any problem while filing it.

SAMPLING TECHNIQUE

The basic idea of sampling is that by selecting some of the elements in a population

we may draw conclusions about the entire population. A population element is the subject

on which the measurement is being taken. A population is the total of elements about

which we wish to make inferences. The ultimate test of a sample design is how well it

represents the characteristics of the population it supports to represent. In measurement

terms the sample must be valid. Validity of the sample depends upon two considerations

viz. Accuracy and Precision.

Interview method was used to fill the questionnaire. This is in fact, known as

Schedule technique.

Schedule is the name usually applied to set of questions, which are asked and filled in

by the investigator in face-to-face situation with other person. The replies given were

filled in the questionnaire. Since all the data was available in written form, tabulation of

data and analysis became easy.

The other advantage of schedule is that, it specified the object of inquiry clearly

because questions were asked directly and the subject information was collected about

that alone.

1. Sample size: 70

2. Target group:ICICI Prudential Customers like salaried and self employed people

3. Location: Pune

METHODS OF DATA COLLECTION

Interview method

The interview method of collecting data involves presentation of oral verbal stimuli and

reply in terms of oral verbal responses. This method can be used thought personal

interviews and if possible through telephonic interview.

Personal interview First the interview of the person took for collecting the data; the area covered is all over

Pune, through urban to sub urban area, then standard questionnaire filled.

Telephonic interview

This method I used for persons to whom I know generally friends. As questionnaire

contains mainly multiple choice questions so this method found very time efficient.

Mailed questionnaire

The mail questionnaire is the best way to reach people who would not give personal

interview. The people whose email ids were available were send e-mail and request was

made to fill at convenience time.

CHAPTER .8

RESEARCH ANALYSIS AND FINDING

RESEARCH ANALYSIS AND FINDING

METHODOLOGY OF THE ANALYSIS

(i) Obtain data on their demographics

(ii) Compare individual investors according to their income, sum assured,

premium paid and their investment interest.

(iii) It also try find out the significant changes in the investment pattern of the

professionals in the recent period

(iv)Investigate the investment decision making processes used by such investors.

Occupation of the customers

67%

29%

4%

Service

Business

Other

Above graph shows that out of total customers surveyed 67% are serviceman, 29% are

serviceman and 4% are from other field.

Income Range of the customers

12

39

15

4

0

5

10

15

20

25

30

35

40

45

100000-200000 200000 -300000 300000-400000 400000 n above

INCOME RANGE

NO.

OF CUSTOMERS

In above graph income range of the ICICI customers are shown. Most of the customers

income is in the range of 200000-300000(39 nos).

Insurance Status of the customers

57%

43%

Yes No

Out of total surveyed customers 57% of the customers are already have their investment

in insurance before buying ICICI Prudential s product. While 43% of the customers have

insured by ICICI Prudential only.

Sum assured of the customers

Sum Assured

39

22

8

1

0

5

10

15

20

25

30

35

40

45

100000-300000 300000-600000 900000-1200000 1200000 n above

Range

No. of

customers

Most of the customers have their sum assured in the range of 100000-300000(39 Nos.)

While 22 Nos. of customers have their sum assured in the range of 300000-600000, 8

customers in range of 900000-1200000 and one customer have 1200000 and above.

Range Of Premium paid by the customers

Premium Range

15

18

32

5

0

5

10

15

20

25

30

35

1500-3000 3000-5000 5000-9000

9000-18000

Range of Premium

NO. of Customer

From above graph it is clear that 32 nos. of customers pay their premium in the range of

5000-9000.While 18 nos of customers pay in the range of 3000-5000, 15 customers pay

in the range of 1500-3000 and 5 customers pay in the range of 9000-180000.

Mode of Payment

Mode of payment

24%

30%

33%

13%

Monthly

Quarterly

Half Yearly

Yearly

From the above graph, it is clear that most of the customers prefer half yearly(33%) mode

of premium payment.30% of customers prefer quarterly payment of premium.

Year of Maturity

Year Of Maturity

2

21

24

17

6

0

5

10

15

20

25

30

0-5 yrs

5-10 yrs

10-15 yrs

15-20 yrs

20-above

Year Range

No. Of customers

Above graph shows, most of customer (24nos.) prefer10-15 year of maturity.

Product of the Customers

Type of Products

11

14

18

23

4

0

5

10

15

20

25

Smart Kid Retirement Solution Pension Plan

Lifetime Policy

Other

Products

No. of customers

Above graph shows that most of the customers have LIFETIME policy. While Pension

plan and retirement solution is the other product of the company which customers prefer

to buy.

Customer Satisfaction

79%

21%

Yes No

Above graph shows customer satisfaction level.79% of the customers are satisfied with

the service provided by the ICICI.

Interest in buying new Policy

17%

83%

Yes

No

Out of total surveyed customers 17% of the customers show interest in buying ICICI

Prudential s product once again.

Investment Interest of the Customers

Investment Interest of customers

mutual 35%

insuranc17%

share 19%

fixed 23%

cant 6%

mutual fund insurance share market

fixed deposit

cant say

Investment interest of the customers is shown in above graph. Graph shows that 17% of

the existing customers are ready to invest again in insurance while 35% in mutual

fund,19% in share market and 23% in fixed deposit.

CHAPTER .9

CONCLUSION AND SUGGESTIONS

CONCLUSION AND SUGGESTIONS

Selling which is one of the most important jobs in any company. As intangible

product like life insurance policy one has to give tangibility to them. Adding emotional

value to the product can create trick.

It is also pointed out that company should have product line, which can match the

person s needs effectively.

As relationship marketing is the major source of the getting income in the life

insurance sector, so it is very necessary to satisfy the present customers by giving them

good service in all aspects.

LIMITATION

Time period allotted to study to the Investment pattern of customers was only one

month.

Some of the Customers are least interested to give the response.

Persons below the age of 25 were not allowed to be an advisor of ICICI

Prudential.

Competition with behemoth Life Insurance Corporation of India in product

Pricing and agency development.

Most of the persons find it difficult to devote time for Insurance adviser business.

BIBLIOGRAPHY

Websites visited:

www.iciciprulife.com

www.irda.com

www.investopedia.com

www.insuranceonline.com

Book referred:

Intelligent investors

Philip Kotler- Marketing Management

QUESTIONNAIRE

Name:

Occupation:

Phone No.:

Address:

1. What is your Annual income?

100000-200000

200000-300000

300000-400000

400000 and above

2. Have you invested your money in insurance before?

Yes

No

3. What is the range of your Sum Assured?

100000-300000-

300000-600000

600000-900000

900000-1200000

1200000 and above

4. What amount of premium are you paying?

1500-3000

3000-5000

5000-9000

9000-18000

5. What is your Mode of payment?

Monthly

Quarterly

Half Yearly

Yearly

6. Mention your maturity period?

0-5

5-10

10-15

15-20

20 and above

7. What is your Product?

Smart Kid

Retirement Solution

Pension Plan

Lifetime Policy

Other

8. Are you satisfied with the benefits& services provided by ICICI Prudential?

Yes

No

9. Are you planning to buy any new policy?

Yes

No

10. Where do you want to invest?

Mutual Fund

Insurance

Share Market

Fixed Deposit

Cant Say

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