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    SUMMARY, CONCLUSION & A SCHEME OF

    RECOMMENDATION

    Major Research Findings

    A Scheme of Recommendation

    Conclusion

    Directions for further research

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    MAJOR RESEARCH FINDINGS :

    m 80% of the respondents have bought a life insurance policy from ICICI Prudential

    Life Insurance Company Ltd.

    m ICICI Prudentials LifeTime, Retirement Solutions and SmartKid are the most

    preferred policies among all types of policies of the company

    m 63% of the respondents have a High level of satisfaction for the policy service and

    all of the respondents are satisfied with the existing features of their life insurance

    policy

    m Life Risk cover is the main criterion for buying a Life Insurance policy followed by

    benefit of income tax rebate

    m Majority of the respondents have implicit faith in Private Life Insurance companies

    as they believe they are trustworthy

    m 90% of the policy holders opined that the prices of policies of Private Life Insurance

    companies are affordable

    m The most important guidance/service expected from a Life Insurance advisor is the

    thorough and detailed explanation of policy features

    m All the respondents (100%) are aware of ICICI Prudential their main source of

    awareness being Life Insurance advisors and advertisements

    m 90% of the respondents who hold ICICI Prudentials Life Insurance policy would

    prefer to go in for another policy only from ICICI Prudential. The most important

    reasons for this are brand name, wide varieties of policies to choose from and good

    servicing of policies

    m The most important value added features in ICICI Prudentials policies are wide

    range of options within the same policy, multiple benefits packed in a single policy,

    flexibility and good returns

    m The important ideas associated with Life Insurance policy of ICICI Prudential are

    profitable mode of investment, maximum risk cover provided and pre-sales/during-

    sales/after-sales service

    m The manifestations of value of ICICI Prudential in the order of ranking are

    maximum risk cover, profitable mode of investment, multiple benefits, premium

    payable, pre-sales/during-sales/after-sales service and benefit of tax rebate

    m 84% of the respondents felt that the premium charged by ICICI Prudential is

    affordable and 70% of them felt that the Quality of the company in terms of its value

    is high 51

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    m 18% of the respondents stated that ICICI Prudential could increase the frequency of

    its advertisements, 12% of them felt that the contents of advertisements can be made

    simpler. A few of them also feel that the reach of advertisements is to a limited

    sector/audience

    m Majority of the respondents stated that ICICI Prudentials popularity is growing day

    by day. The main reasons for this are marketing and sales strategies adopted,

    aggressive promotion, wide network of advisors, good service provide and superior

    product features

    m The reasons recommended for heavy dose of personnel selling for ICICI Prudential

    are to give customers a more personal touch, to stay ahead of competition, to

    penetrate deep in the private life insurance market and to increase the sales and

    profitability

    m

    The behavior pattern of front line employees of ICICI Prudential is Good accordingto 63% of the respondents. The other comments about their behavior are They are

    very patient, friendly and co-operative

    m Only one policy holder of ICICI Prudential has a complaint against the company, the

    complaint being that the settlement of policy amount was delayed

    m All the respondents stated that the image of ICICI Prudential is Positive. None of

    them feel that the companys image is Negative

    m Only a few respondents (32%) recommended a Policy Holders Club for ICICI

    Prudential

    m The role prescriptions suggested for Policy Holders Club include providing status

    of their policy, function as a grievance redressal cell, obtain feedback from

    customers, address changing needs of customers and to provide regular information

    about the companys performance

    m Some of the recommendations to enhance the value of ICICI Prudential are The

    company needs to be customer-centric and introduce new policies according to

    changing needs of customer, allow switching between various options more than

    once in a year, provide guaranteed returns, handle complaints effectively, reduce the

    premium amount of certain policies and maintain good service throughout the term

    of the policy

    m The future outlook visualised by 40% of the respondents for ICICI Prudential is

    Very Good and 32% of them stated that the companys fut ure is Quite Bright

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    A SCHEME OF RECOMMENDATION :

    Since most of the respondents are from age group 20 to 30 which is a proper

    insurable age group, the company should target this segment

    From the findings, it is observed that policies, which are much in demand, areLifeTime, Retirement Solutions and SmartKid. Hence the company should focus on

    popularising the other types of policies also

    The company should strive much harder to gain the trust of customers since it is still

    perceived by a few that Life Insurance Corporation of India is more trustworthy as it

    is Government backed

    The company should provide guidance through their advisors to customers regarding

    the availability of different policies and also to advise on the policy best suited to

    individual customers. Additionally, advisors should be asked to provide customer

    service by way of total guidance such as income tax benefits and other special

    benefits that may be available for a policy

    A few of the policy holders of ICICI Prudential are not aware of the extra value-

    added features in their policy which proves that the entire details may not be

    highlighted to customers. Hence the positive features already existing in policies

    should be highlighted. Thus the customer will find extra value in their policies

    The promotional policy of the company can be improved in terms of frequency,

    contents and reach

    The company should go in for a heavy dose of personnel selling in order to give

    customers a more personal touch

    The frontline employees should be more customer focussed in order to enhance the

    customer value

    The settlement of claims should be expedited and never unduly delayed so that the

    customer is not handicapped. This will also help the company to avoid migration of

    its customers

    It is recommended that a Policy Holders Club for ICICI Prudential may be

    established

    The role prescriptions for the club would be to function as a grievance redress cell, to

    provide regular information about companys performance, to obtain the suggestions

    and feedback from club members so that their views are incorporated while framing

    benefits for the customers (policyholders) 53

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    The value of ICICI Prudential in the eyes of customers can be enhanced by being

    customer-centric, increasing awareness about the company among customers,

    introduce new policies according to changing needs of customers, to provide

    switching between various options more than once a year, give guaranteed returns,

    handle complaints effectively, to put across facts related to policy in a more simpler

    way to customers, reduce the premium amount on certain policies, maintain good

    service throughout the term of the policy and providing value for money for their

    policies

    The two new policies that can be introduced by the Company are an exclusive

    health policy and also a policy that provides life insurance cover to the whole family

    It is highly desirable to explore the possibility of the company and policyholders to

    co-create the value. This co ncept of co-creation rests on the key foundations of

    dialogue, access, risk assessment and transparency. The personalised co-creationexperiences are the source of unique value for the company and the customers alike

    Value migration is quite prevalent in life insurance industry. Value migration arise

    from a companys inability to understand business designs i.e. activities in which

    businesses engage and the relationships they cultivate in order to deliver utility to

    customers and earn profits to the company. Customers move from those companies

    to other companies that are better designed to maximise customer utility. How can a

    company ward off value migration? The strategy is simple; companies must be

    customer creating and customer satisfying organisation s i.e. they must do the

    things that induce customers to do business with them. We recommend this strategy

    to ICICI Prudential.

    CONCLUSION

    To conclude, the aforesaid recommendations, if they are not put in cold storage, they can

    go a long way to nourish the growth and development of ICICI Prudential. Our analysis

    calls for nothing less than an effective Customer Value Management.

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    DIRECTIONS FOR FURTHER RESEARCH

    The following are the Green Pastures for further research:

    Quantitative measurement of customer value both at the macro-level and at the

    micro-level in the Insurance industry

    The determination of Customer Life Time Value in Insurance industry

    Customer Retention through Customer Value Management in Insurance industry

    Interface between Customer Equity and Customer Value Management in Insurance

    industry

    Benchmarking the Customer Value Management practices in Insurance industry

    55

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    ANNEXURESelect Bibliography

    Questionnaire

    Research instrument used

    Data incidental to research

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    SELECT BIBLIOGRAPHY

    BOOKS

    Services Marketing

    Valarie A. Zeithaml

    Tata McGraw-Hill Publishing Company Ltd.,

    II Edition, 2003

    Page Nos. 522, 523, 494, 162, 163, 164

    Services Marketing 2e - Operation Management & Strategy

    Kenneth E. Clow & David L. Kurtz

    Biztantra Publication, New Delhi

    II Edition, 2003

    Chapter 12

    Page Nos. 313 to 317

    Services Marketing

    Christopher Lovelock

    Prentice Hall Inc., New Jercy

    III Edition

    Page Nos. 460 to 488, 337 to 359

    The Marketing Whitebook

    Published by Business World

    A text book on :

    Customer Value Management

    MAGAZINES

    Smart Manager

    Harvard Business ReviewBusiness India

    Business Today

    56

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    INSURANCE RELATED

    IRDA Journals

    Quarterly Report

    ICICI Prudential Life Insurance Company Ltd.

    January 1st 2004 to March 31st 2004

    WEBSITES VISITED

    www.irdaindia.org

    www.iciciprulife.com

    www.mamma.com

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    QUESTIONNAIRE :

    Kindly tick your option and fill up the blanks wherever required.

    1. Name :

    2. Age :

    3. Residence Area/ Location in Bangalore :

    4. Do you have a Life Insurance policy at present?

    a) Yes b) No

    5. If Yes to Question 4, then

    a) Name of the Life Insurance Company :

    b) Policy Type Please specify :

    c) Your level of satisfaction for the expected policy service (i) High (ii) Medium

    (iii) Low

    6. If No to Question 4, what are the reasons ?

    7. Are you satisfied with the existing features of your Life Insurance Policy ?

    a) Yes b) No

    8. If No to Question 7, what additional features would you like to have incorporated in

    your Life Insurance policy?

    9. What benefits you expect from your Life Insurance policy?

    a) Mainly life risk cover

    b) Benefit of Income Tax rebate

    c) To avail of loan facility against your policy

    d) Appreciation of capital invested

    10. Do you think Private Life Insurance companies are relatively more trustworthy?

    a) Yes b) No

    11. If No to Question 10, what are the reasons ?

    12. What do you feel about the prices of policies of Private Life Insurance companies ?

    a) High b) Low c) Affordable 58

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    13. What guidance/service you expect from a Life Insurance agent/advisor while buying

    a Life Insurance policy Specify.

    14. Are you aware of ICICI Prudential Life Insurance Company?

    a) Yes b) No

    15. If Yes to Question 14, from which source did you become aware of?

    a) Friends b) Life Insurance Advisor c) Colleagues d) Advertisement e) Neighbor

    f) Others

    16. If you are aware of life insurance policies of ICICI Prudential and also life insurance

    companies, which one you prefer?

    a) ICICI Prudential b) Other private companies

    17. Please state the reasons for your preference as mentioned above in Question 16.

    18. What additional features (extra value added features) do you find in ICICI Prudential

    Life Insurance policy?

    19. What meanings/ideas do you associate with the Life Insurance policy of ICICI

    Prudential?

    a) Maximum risk cover b) Profitable mode of investment

    c) Tax rebate d) Multiple benefits

    e) Premium f) Pre-sales/during-sales/after-sales service

    20. Please rank the above manifestations of value in descending order of merit.

    21. What do you feel about the premium policy of ICICI Prudential?

    a) High b) Low c) Affordable

    22. Please rate the quality of ICICI Prudential Life Insurance policies in terms of its

    Value.a) High b) Medium c) Low

    23. Are you satisfied with ICICI Prudential company in servicing of policies?

    a) Yes b) No

    24. If No to Question 23, please state reasons

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    25. Please comment on the promotional policy of ICICI Prudential in terms of its theme,

    logo, content, reach, frequency and impact.

    26. The Life Insurance policy of ICICI Prudential is becoming popular day by day. Do

    you agree to this statement?

    a) Yes b) No

    27. If Yes to Question 26, what may be the reasons for its popularity?

    28. Do you recommend heavy dose of personnel selling for ICICI Prudential?

    a) Yes b) No

    29. If Yes to Question 28, please state reasons.

    30. Have you visited ICICI Prudential company anytime for any transaction?

    a) Yes b) NO

    31. If Yes to Question 30, please give your comments on the behavior of key

    personnel/frontline employees of this company.

    32. How does ICICI Prudential handle forfeiture of policy?

    33. Do you have any complaints regarding the services provided by this company?

    a) Yes b) No

    34. If Yes to Question 32, please specify the complaints

    35. If Yes to Question 32, please suggest the remedial measures.

    36. What do you feel about the image of ICICI Prudential life insurance company?a) Good b) Bad c) Ugly

    37. If bad, please suggest how best we can enhance the Insurance Products in the minds

    of policyholders?

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    38. Do you recommend a Policy Holders Club for ICICI Prudential?

    a) Yes b) No

    39. If Yes to Question 36, what are the activities or role prescriptions you suggest for it?

    40. Please give your recommendations for enhancing the value of life insurance policy of

    ICICI Prudential life insurance company?

    41. What is the Future Outlook you visualise for ICICI Prudential Life Insurance

    Company?

    THANK YOU

    61

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    EXPLANATION OF THE RESEARCH INSTRUMENT USED

    Research Instruments used to test the Hypotheses :

    Nonparametric Test Chi-Square Test

    Since the measurement scale is nominal it is possible to use the chi-square one sample

    test. It is the most widely used non-parametric test of significance. Typical cases are

    when persons or events are classified into two or more nominal categories.

    Using this technique we test for significant differences between the observed distribution

    of data and expected distribution based on null hypothesis.

    We establish a null hypothesis based on the expected frequency of objects in each

    category. The deviations of actual frequencies in each category are compared with

    hypothesised frequency. The value of chi-square is the measure that expresses the extent

    of this difference.

    Formula for chi-square is :

    Chi- -Eij)/Eij where Oij is the observed frequency in the i,jth cell and Eij

    is the expected frequency in the i,jth cell.

    Calculate the value of chi-square

    Calculate the degrees of freedom as d.f. = (r-1)(c-1)

    Critical test value : Enter the table of critical values of chi-square with the d.f. and the

    significance level

    If the calculated value is greater than the critical value, then reject the null hypothesis.

    Z Test

    The formula for z-test is as follows :

    Z = p1 p2

    sizes n1 and n2

    P = n1p1 +n2p2

    n1 +n2

    Q = 1 P

    Critical Test Value : Enter the table value of critical values of Z at the desired

    significance level

    If the calculated value is greater than the critical value, then reject the null hypothesis.

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    DATA INCIDENTAL TO RESEARCH

    IEPA ATTRIBUTE MODEL FOR ICICI PRUDENTIAL

    The IEPA model offers a simple framework for thinking about the kinds of attributes that

    might matter to consumers and the relationship among these attributes. Life Insurance

    has many different attributes. So it is necessary to identify the attribute benefit

    associations that have the greatest potential within a particular customer segment.

    Life Insurance Attributes

    For most of the people buying a Life Insurance policy is not an easy decision as it is

    rather difficult for them to directly evaluate its worth. Hence some people respond to this

    uncertainty by postponing the decision to purchase a life insurance policy while some

    others would try to know more about the policy attributes. Some of the attributes for life

    insurance are as listed below :a) Intrinsic Attributes : These attributes involve the physical composition of a product

    like form, materials and manufacturing. Since Life Insurance is a service product

    there are no intrinsic attributes to it.

    b) Extrinsic Attributes : This includes brand, price, packaging and support services

    i. Brand Attributes : This includes name of the product (Life Insurance), brand name

    (ICICI), name of the company (ICICI Prudential) and the brand logo. The

    customers purchase decision can be influenced by as many as brands among the

    private life insurance companies.

    ii. Packaging Attributes : This is a perfect illustration that attributes can hve attributes.

    Packaging attributes in this case refer to the glossy art paper used for the companys

    brochure and also the multi-colour printing on the brochures.

    iii. Augmented Product Attributes : These attributes denote services the company

    provides to enhance a customers product use or their usage experience like product

    delivery, guidance of advisors, customer assistance, after-sales service, security and

    authenticity.

    iv. Price Attributes : Buyer behavior is not influenced by only the price of the basic

    product. It is also influenced by the price of premium, customer assistance and

    pre/during/after-sales service.

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    c) Performance Attributes : These describe the way in which a Life Insurance product

    performs its functions. This can be evaluated only after using the product. These

    attributes are product features, policy service and the benefits provided by the

    policies.

    d) Abstract Attributes : These attributes condense the information contained in several

    attributes into a single attribute.

    i. Weighted Multiattribute Evaluations : These weighted evaluations are quality,

    brand image, authenticity, satisfaction and transparency. There are several

    dimensions of product quality like product performance, policy features,

    trustworthiness and serviceability.

    ii. User Imagery Attributes : For a brand like ICICI and a product like life insurance

    consumers have an idea about the kind of person/customer who uses that product.

    For ICICI Prudential these attributes are A wide range of products, productstailored to fit a familys unique needs, products to cover the customer at every step

    of life, insurance coverage throughout ones life, for a childs education and a

    regular stream of income from investment.

    iii. Use Situation Attributes : Customers carry ideas about when a product/service

    should be used. Life Insurance is considered as a unique asset. It acts as an asset in

    case of eventuality like death or disability. This in turn ensures that the goals are

    met for an individual or for the dependants in his/he absence.

    Attribute-Benefit matrix for Life Insurance

    Sl. No. Attributes Benefits

    1 Brand (ICICI)

    Quality

    Credible, Preferred by consumers

    Attracts potential life insurance

    buyers

    2 Price Helps to save money

    3 Authenticity

    Reliability

    Credible

    Hassle free investment

    4 Wide range of products Easy to choose from

    5 Satisfaction Increased customer loyalty

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    THE IEPA MODEL FIG 1

    a Materials b Form

    c Manufacturing d Support Service

    e Brand f Package and Price

    g Objective h Subjectivei Weighted Multiattributes j User Imagery

    k Use Situation

    Relationships among life insurance attributes

    Sl. No. Attributes Relationship

    1 Life Insurance Financial Security

    2 Brand (ICICI) / Quality Financial Service

    3 Multi-colour print Attractiveness

    4 Guidance (Advisors) Satisfactory Service

    5 Customer Assistance Satisfactory Service

    6 Security Life Insurance Policy

    7 Authenticity / Brand Image Trustworthiness

    8 ICICI Prudential Range of life insurance products

    9 Price Affordability

    10 Product Features Benefits consumers

    65

    Attributes

    Intrinsic Extrinsic Performance Abstract

    a b c d e f g

    h

    i

    k

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    TASK ASSIGNED BY THE COMPANY - PRODUCT COMPARISON

    TABLE 1

    Life Insurance

    Companies

    Riders Tata AIG SBI Life ICICI Prudential Birla Sun

    Life

    LIC HDFC

    Standard

    Payor Benefit Yes

    Crirtical Illness -

    Accelerated

    Yes Yes

    Critical Illness - Lumpsum Yes

    Term Assurance Yes Yes Yes Yes Yes

    Accident & Disability

    Benefit

    Yes Yes Yes Yes Yes

    Accident Benefit Yes Yes Yes

    Triple Accidental Cover Yes

    Waiver of Premium Yes Yes Yes Yes Yes

    Income Benefit Yes

    Critical Illness Yes Yes Yes Yes

    Major Surgical Assistance Yes

    Critical Illness - Plus Yes

    Accelerated Sum

    Assurance

    Yes

    Note : ICICI Prudential is the only company that provides Income Benefit Rider.

    TABLE 2

    Life Insurance

    Companies

    Products Offered Tata AIG SBI Life ICICI Pru Birla Sun

    Life

    LIC HDFC

    Term Assurance Plan Yes Yes Yes Yes Yes

    Child Plan Yes Yes Yes Yes Yes

    Endowment Plan Yes Yes Yes Yes Yes

    Annuity Plan (Retirement) Yes Yes Yes Yes Yes Yes

    Money Back Plan Yes Yes Yes Yes Yes YesMarket Linked Plan Yes Yes Yes

    Unit Linked Child Plan Yes

    Premium Back Term Plan Yes Yes

    Health Insurance Plan Yes Yes

    Triple Cover Plan Yes

    Whole Life Plan Yes Yes

    Loan Cover TA Plan Yes

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    TABLE 3

    Company Products Offered Product Type

    TATA

    AIG

    ICU, Health First, Nirvana, Assure

    Golden Years Plan, Assure Career

    Builder, MahaLife Gold

    Critical illness, prolonged

    hospitalisation, flexible pension

    policy, Regular Deferred Pension

    Plan, child plan, whole life plan

    Birla Sun

    LifeFlexi Secure Life, Premium BackTerm Plan, Term Plan, Flexi SavePlus, Flexi Cash Flow

    Retirement plan, Premium Back

    Plan, Term Plan, Endowment Plan,

    Money Back Plan

    SBI Life Life Long Pension, Sanjeevan

    Supreme, Setubandhan, Scholar,

    Sudarshan, Swadhan

    Retirement Plan, Money back

    plan, LI for NRIs, Child Plan,

    Endowment, Level term assurance

    HDFC

    Standard

    Childs Plan, Personal Pension

    Plan, Endowment Assurance Plan,

    Unit Linked Endowment Plan,Money Back Plan, Single premium

    Whole Life Plan, Term Assurance,

    Loan Cover TA, Unit Linked

    Pension Plan

    Child Plan, Savings Plan, Life

    Insurance with savings, Unit

    Linked Plan, Money Back Plan,Investment Plan, Term Plan, Term

    Plan with Loan, Unit Linked Plan

    LIC Anmol Jeevan, Bima Plus, Asha

    Deep (II), Jeevan Chaya, Komal

    Jeevan, Pension Plans, Pension

    Plus, Varishtha Pension Bima

    Yojana, Jeevan Samriddhi, Money

    Back Policy, Jeevan Anand, JeevanRekha, Endowment Assurance

    Policy, Jeevan Mitra

    Pure term assurance, unit linked

    plan, health plan, Child plans,

    Pension Plans, Money Back Plans,

    Security & Savings, Triple Cover

    Plan

    ICICI

    Prudential

    Retirement Solutions, Smart Kid

    Child Plans, Cash Plus, LifeGuard,

    Save n Protect, Secure Plus,

    LifeTime, Smart Kid

    Annuity Plan, UL Child Plan,

    Endowment, Term Policy,

    Endowment, Endowment, Unit

    Linked, Child Plan

    TABLE 4

    Limitations As compared to ICICI Prudential

    1. TATA AIG :

    - Limited no. of critical illnesses covered under the health plans, no cover against

    major surgery.

    - No exit option provided in case of Retirement plan

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    - Child plan of TATA AIG does not provide options on investment plans and top ups

    unlike the Smart Kid Policy.

    - Whole Life Plan doesnt provide investment options and there is no flexibility of

    increasing or decreasing the death benefit unlike LifeTime policy

    - Savings, required liquidity, additional protection & multiple options are not provided

    by one single policy

    2. Birla Sun Life Insurance :

    - This plan does not provide something similar to Regular Deferred Pension Plan.

    - Does not have a policy exclusively for children. The Flexi Cash Flow plan provides

    lumpsum tax free payment at regular intervals to meet the financial obligations of a

    child

    - No major surgical rider provided

    - Savings, required liquidity, additional protection & multiple options are not provided

    by one single policy

    3. SBI Life Insurance :

    - Unlike ICICIS Retirement solutions no options are provided for in this plan. Also

    there are no riders provided for the retirement plan.

    - Only premium waiver rider provided for the child plan. No options provided for the

    plan as in Smart Kid Child Plans.

    - Benefits can be availed from the time of 18 yrs. and not during different age of the

    child unlike the Smart Kid Child Plan.

    - No major surgical rider provided in any of the policies

    4. HDFC Standard Life Insurance :

    - Childrens Plan does not provide the option of availing benefit at different critical

    educational milestones of the child.

    - Pension plan is a savings contract and not exactly an annuity plan like that provided

    by ICICI Pru. Also no loan can be taken against the pension policy

    - Savings, required liquidity, additional protection & multiple options are not provided

    by one single policy

    5. LIC :

    - No maturity benefit provided by the Term Assurance Plan

    - No loan facilities available against some of the policies 68

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    - Health Insurance policy covers only a limited no. of ailments

    - Childrens plan does not provide the option of availing benefit at different critical

    educational milestones of the child. No options provided for the child plan as in

    Smart Kid Child Plans.

    - Unlike ICICIS Retirement Solutions no options are provided for in this plan. No

    riders are available with this plan

    Product Description ICICI Prudential

    1. ICICI Pru Life Guard : Policy to insure your life and also provide total security to

    your family. Choices of 3 level term products Level term assurance, Level term

    assurance with returns of premium and Single premium. Applicants can be aged b/n

    18 and 50 yrs. Riders are given only for level term assurance and level term

    assurance with return of premium Accident & Disability benefit rider. No maturity

    benefits available for Level term assurance & Single premium. This is a Term Policy.

    2. Smart Kid : This is a child plan that provides flexibility to structure the benefits

    according to your needs. Term of plan & maturity age of child can also be chosen.

    Child receives policy benefits in two different structures. In case of death of parent

    the child continues to receive policy benefits. Riders are Income benefit, Accident &

    Disability benefit & Accident benefit. Parents aged between 20 & 60 yrs with

    children in age group of 0-12 yrs can apply.

    3. Save n Protect : Policy for savings with life cover. On maturity of this policy at the

    end of term insured gets the full sum assured plus guaranteed additions. In event of

    death of assured after 7 yrs. of commencement similar benefits are made available to

    beneficiary. If the death occurs before 7 yrs. only basic premium paid is returned to

    nominee without interest. Extended Life cover available with this policy. Riders are

    critical illness, major surgical, Accident & Disability benefit & Accident benefit.

    Anybody upto 60 yrs. can apply.

    4. Secure Plus : Gives added protection savings and multiple options. 3 levels of cover

    offered are standard, basic and enhanced. Offers flexibility of shifting between the

    level of covers. Additional riders are income benefit rider and Waiver of premium

    rider. Anyone upto 60 yrs. of age can apply. If value of investment is more then the

    accumulated value of the policy them that too will be paid at maturity. Maturity

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    proceeds in lumpsum or in equal annual installments. For first year guaranteed bonus

    is payable.

    5. Cash Plus: This plan gives savings, required liquidity, additional protection and

    multiple options. If value of investment is more then the accumulated value of the

    policy them that too will be paid at maturity. Maturity proceeds in lumpsum or in

    equal annual installments. 3 levels of cover are standard, basic and enhanced. Offers

    flexibility of shifting between the level of covers. Additional riders are income

    benefit rider and Waiver of premium rider. Anyone upto 60 yrs. of age can apply.

    Option of withdrawing from accumulated value every year after the first 5 yrs, hence

    provides liquidity. For first year guaranteed bonus is payable.

    6. ICICI Retirement Solutions : ICICI provides 3 different options for retirement

    solutions i.e. (i) LifeTime Pension (ii) Life Link pension which are Linked deferredpension plans and (iii) Forever Life which is a regular deferred pension plan & (iv)

    Secure Plus. In linked deferred pension plan the money is invested in market linked

    funds to generate higher returns. In regular deferred pension plan there is no question

    of fixing the return to the market linked investment. Provides flexibility of choosing

    retirement age, annuity provider, annuity options. Entry age 18 yrs. to 72 yrs.

    Riders are Accident and disability, Critical illness & Major surgical assistance

    rider.

    7. Smart Kid Child Plans : This plan is for the childs future liability like education,

    marriage or career establishment. Products offered are Unit linked regular

    premium, unit linked single premium, regular premium smart kid. Unit linked regular

    premium is for parents aged b/n 20 and 60 yrs. with child in the age group of 0-15

    yrs. Age of child at maturity is 22-25 yrs. Premium holiday available. Unit linked

    single premium is for parents aged b/n 20 and 50 yrs. with the child in the age group

    of 0-15 yrs. Age of child at maturity is 22-25 yrs. This plan is for a lumpsum

    investment for the childs future. Regular premium is for parents aged b/n 20 and 60

    yrs. with child in the age grp of 0 12 yrs. This plan ha two options (i) To avail of

    benefits during the first 5 consecutive yrs of the policy upto 22 yrs of age and (ii) To

    avail of benefits at critical educational milestones of child four times during different

    age of the child. Same riders available. Four investment options are Income, growth,

    balancer and preserver. Flexibility of choosing these investment plans provided. 70

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    8. LifeTime : Plan for savings, life protection and investment needs over a lifetime.

    Helps to choose a specified level of protection based on need. Part of premium is

    invested for obtaining returns. Benefits are death benefit and liquidity. Choice of

    investments is growth, income, balanced, preserver. Switching b/n various plans is

    allowed four times in a year. Top up investment at any time when you have surplus

    funds. Flexibility of increasing or decreasing death benefits and premium holiday.

    Same riders provided. Age limit Anybody from the age of 0 to 60 yrs. Death,

    liquidity and withdrawal benefits available.

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    TASK ASSIGNED BY THE COMPANY - SURVEY

    QUESTIONNAIRE

    Kindly tick your options in the box provided and fill up the blanks wherever required.

    1. Name : ___________

    2. Age : ________

    3. Residence Area/Location in Bangalore : __________________

    4. Contact No. : ________________

    5. Do you have a Life Insurance policy at present?

    Yes

    No

    6. If Yes to Question 5,

    a. Name of the Insurance Company : ______________________

    b. Policy Type (Specify) : ____________________

    c. Your level of satisfaction for existing policy servicing

    High Medium Low

    7. If No to Question 5, what are the reasons?

    ____________________________________________________________________

    ____________________________________________________________________

    8. Are you satisfied with the existing features of your Life Insurance policy?

    Yes

    No

    9. If No to Question 8, what additional features would you like to have incorporated in

    your Life Insurance policy?

    _______________________________________________________________________

    _______________________________________________________________________

    10. What benefits you expect from your Life Insurance Policy?

    Mainly life risk cover

    Benefit of Income Tax rebate

    To avail of loan facility against your policyAppreciation of capital invested

    11. How did you come to know about Life Insurance ?

    Friends Advertisement

    Colleagues Others (Specify)

    Neighbors

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    12. How many Life Insurance companies are you aware of and their names

    ____________________________________________________________________

    ____________________________________________________________________

    ____________________________________________________________________

    13. Do you think private Life Insurance companies are trustworthy?

    Yes

    No

    14. If No to Question 13, what are the reasons?

    _______________________________________________________________________

    _______________________________________________________________________

    15. In case if you were offered the choice of becoming a Life Insurance advisor for any

    Life Insurance company, would you be interested?

    Yes

    No

    THANK YOU

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    TABULATION, ANALYSIS & EVALUATION OF DATA

    Life Insurance business in India has been the exclusive privilege of nationalised LIC

    since 1956. However since the liberalisation process has started this sector has seen the

    entry of a number of private players. Today, about a dozen serious contenders are vying

    for the available share of business. No doubt Life Insurance has growth potential as a

    business opportunity because of the sheer size of our country and the huge population,

    many of whom are still untouched for this business. The need for scientifically evolved

    data about such potential segment of customers is felt by anyone who wants to either tap

    new business or to expand the existing business. Therefore an independent customer

    survey is conducted to find out the customers preferred requirement of Life Insurance.

    NOTE : This customer survey is conducted for ICICI Prudential Life Insurance

    Company Ltd.

    This survey is conducted with the following objectives :

    (a) To find out the satisfaction level of customers with the existing features of their Life

    Insurance policy

    (b) Benefits expected by the customers from their Life Insurance policy

    (c) The number of potential customers for Life Insurance &

    (d) The number of customers who would be willing to become a Life Insurance advisor

    The data is collected from customers of different Life Insurance companies Both

    Private & LIC. The data is collected from 50 respondents with the help of structured

    questionnaire. Each data is then analysed by tabulation method working out percentage.

    Table : 1 Name Profile

    Name Given No. Percentage

    Male 33 66%

    Female 17 34%

    The fact that all the respondents have revealed their names indicates their willingness to

    unconditionally participate in this survey. It is inferred from the table that 66% of the

    respondents are males and 34% of them are females.

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    Table : 2 Age of Respondents

    Age (Between) No. Percentage

    22 & 30 16 32%

    31 & 40 10 20%

    41 & 50 18 36%

    51 & 60 6 12%

    It is seen from the table that majority of the respondents are from potential insurable age

    bracket i.e. from 22 yrs. to 50 yrs.

    Table :3 Area-wise distribution of respondents

    Area No. Percentage

    Bangalore North 26 52%

    Bangalore Central 10 20%

    Bangalore East 5 10%

    Bangalore West 5 10%

    Bangalore South 4 8%

    Here it is seen that 52% of the respondents are from Bangalore-North and 20% of are

    from Bangalore-Central. Low percentage of 10% each are from Bangalore-East & West

    and 8% are from Bangalore-South. Though this does not throw any specific light on

    preferred requirement of customers for Life Insurance, yet the research is mostly

    concentrated in Bangalore North and Central as they are highly populous areas with

    middle income group.

    Table : 4 Do you have a Life Insurance policy at present?

    Policy No. Percentage

    Yes 45 90%

    No 5 10%

    This survey is based on certain objectives as mentioned above and therefore this is to

    find out as to how many respondents have a Life Insurance policy at present. It is

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    confirmed that 90% of the respondents have a Life Insurance policy and the rest 10%

    indicate the potential customers for the Company.

    Table :5(a) If Yes to Qn 4 :Name of the Life Insurance Company

    Name of Company No. Percentage

    LIC 45 100%

    ICICI Prudential 2 4%

    Tata AIG 1 2%

    The data indicates that all the respondents (100%) - who are said to have a Life Insurance

    Policy have purchased it from LIC. Also a very small percentage of them have additional

    policy purchased from private insurers like ICICI Prudential & Tata AIG.

    Note : Some of the respondents have more than one Life Insurance policy in their name.

    Table : 5(b) If Yes to Qn 4 : Policy Type (Specify)

    Policy Type No. Percentage

    LIC Endowment 17 38%

    LIC Money Back 13 29%

    LIC Bima Plus 1 2%

    LIC Whole Life 1 2%

    LIC Jeevan Samriddhi 1 2%

    LIC Jeevan Shri 1 2%

    LIC Jeevan Mitra 1 2%

    ICICI Pru LifeTime 1 2%

    Tata AIG Nirvana 1 2%

    Dont Know 11 24%

    The table indicates that LICs Endowment policy is preferred the most among all types

    of policies of LIC followed by Money Back Policy. Amongst Pvt. Insurers, ICICI

    Prudentials LifeTime & Tata AIGs Nirvana policies seem to be preferred. Nearly a

    quarter percent of the people do not know the type of policy they own.

    Note : Some of the respondents have more than one Life Insurance policy in their name.

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    Table :6 If No to Qn 4 : What are the reasons?

    Reasons No. Percentage

    Not thought about it 2 40%

    Cant afford the premium 2 40%

    Dont feel the need for it 1 20%

    This data helps to know the reasons for not having a Life Insurance policy. From the

    table it is observed that 40% of the respondent have not thought about buying a Life

    Insurance policy and an equal percentage of them feel that they cannot afford payment of

    the premium from their income. Another 20% feel no need for a Life Insurance policy.

    Table :7 Are you satisfied with the existing features of your Life Insurance Policy?

    Particulars No. Percentage

    Satisfied 45 100%

    Not Satisfied Nil Nil

    This data indicates that all respondents who have a Life Insurance policy are satisfied

    with their policy features. This infers that the existing policies are properly laid out.

    Table : 8 What benefits you expect from your Life Insurance policy?

    Benefits No. Percentage

    Life Risk Cover 31 69%

    Income Tax rebate 29 64%

    Avail loan facility 14 31%

    The table shows that life risk cover is the main criteria with majority of respondents

    (69%) while buying a Life Insurance policy. However at the same time these same

    respondents (64%) look for additional financial benefits by way of income tax rebates

    while buying a policy. Also almost one-third of the respondents i.e. 31% think of

    availing the additional benefit of loan against their policies.

    Note : The respondents expect multiple benefits from their Life Insurance policy.

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    Table : 9 In case you were offered the choice of becoming a Life Insurance Advisor,

    would you be interested?

    Interested No. Percentage

    Yes 13 26%

    No 37 74%

    This is to know the interest of respondents to enter the Life Insurance field as an advisor.

    Almost three-fourths (74%) of them do not feel interested. Only 26% of the respondents

    showed willingness to act as insurance advisor.

    Table : 10 At the moment are you truly interested in buying any Life Insurance

    Policy?

    Truly Interested No. Percentage

    Yes 5 13%

    No 35 87%

    The data indicates that a majority of the respondents 87% are not interested in buying a

    Life Insurance policy at the moment. Only 13% of them showed true interest in buying a

    Life Insurance policy. This number also includes those who do not have any Life

    Insurance policy at present.

    Note : This question was asked only to 40 respondents out of the total number of

    respondents.

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    FINDINGS

    Majority of the respondents are from potential insurable age bracket

    10% of the respondents are likely to constitute potential customers for the Life

    Insurance company

    A very small percentage of the respondents have purchased additional policy

    from private insurers

    The most preferred policies appear to be LICs Endowment, ICICI Prudentials

    LifeTime & Tata AIGs Nirvana

    Reasons for not buying a Life Insurance policy are seen as not thought about it so

    far & not being able to afford the premium

    All the present policy holders appear to be satisfied with the features as being

    offered now in their policy

    The benefit expected from a Life Insurance policy for the majority is mainly liferisk cover with income tax benefit also being kept in view

    Majority of the respondents have not shown any interest to enter the Life

    Insurance field as an advisor

    Majority of the respondents are not interested in buying additional Life Insurance

    policy at present

    CONCLUSION & SUGGESTIONS

    The majority of present policyholders being with LIC the respondents generally tend to

    compare the features and benefits and the affordability of premium by comparing it with

    LICs existing policies. Unless policies designed with comparatively innovative and new

    features are offered by private insurers the respondents may tend to be not interested in

    going in for their policies. Also many respondents are seen to be not aware of different

    types of policies now being offered by private insurer which may actually benefit the

    insured. Hence a lot of responsibility rests on the Company to locate and also to educate

    and brief them about suitable policies so that a potential customer for insurance policy

    actually turns into a policyholder. The private insurer should target the prospective

    additional policy buyer more consistently since such customers are already aware of the

    benefits accrued to them by owning a Life Insurance policy.

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