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PREFACE

Preparing a project of this nature is an arduous task and I was

fortunate enough to get support from a large number o persons. I wishto express my deep sense of gratitude to all those who generously

helped in successful completion of this report by sharing their

invaluable time and knowledge.

It is my proud and previledge to express my deep regards to

Respected HOD Dr.Pramesh Gautam, Head of Department of

Business Management , SWAMI VIVEKANAND INSTITUTE OF

TECHNOLOGY, SAGAR for allowing me to undertake this project.

I feel extremely exhilarated to have completed this project under

the able and inspiring guidance of Mr. Ankur Gautam she rendered

me all possible help me guidance while reviewing the manuscript in

finalising the report.

I also extend my deep regards to my teachers , family members ,

friends and all those whose encouragement has infused courage in me

to complete to work successfully.

PRATHAM SINGH DANGI

B.B.A. III SEM.


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ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I was fortunate

enough to get support from a large number o persons. I wish to express my deepsense of gratitude to all those who generously helped in successful completion

of this report by sharing their invaluable time and knowledge.

It is my proud and previledge to express my deep regards to Respected ,

Head of Department Dr.Pramesh Gautam, Department of Business

Management , SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY

SAGAR for allowing me to undertake this project.

I feel extremely exhilarated to have completed this project under the able

and inspiring guidance of He rendered me all possible help me guidance while

reviewing the manuscript in finalising the report.

I also extend my deep regards to my teachers , family members , friends

and all those whose encouragement has infused courage in me to complete to

work successfully.

PRATHAM SINGH DANGI

B.B.A. III SEM.

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DELCLARATION BY THE CANDIDATE

Date :

I declare that the project report titled " A STUDY ON MARKET SHARE OF

ICICI PRUDENTIAL " on Market Segmentation is nay own work conducted under the

supervision of Mr. Ankur Gautam Department of Business Management ,SWAMI

VIVEKANAND INSTITUTE OF TECHNOLOGY SAGAR To the best of my

knowledge the report does not contain any work , which has been submitted for the award of

any degree , anywhere.

PRATHAM SINGH DANGI

B.B.A. III SEM.

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CERTIFICATE

The project report titled " A STUDY ON MARKET SHARE OF

ICICIPRUDENTIAL " been prepared by PRATHAM SINGH DANGI B.B.A. III

SEMBBA III Semester, under the guidance and supervision of MR. ANKUR

GAUTAMfor the partial fulfillment of the Degree of B.B.A.

Signature of the Signature of the Signature of the

Supervisor Head of the Department Examiner

INDEX

Sr. No. Particulars Pageno.

1. Introduction

2. Industry profile

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3. Company Profile

4. Research Methodology

5. Data Collection & Interpretation

6. Suggestions & Recommendations7. Summary

8. Bibliography

9. Appendix

INTRODUCTION

Since the evolution of mankind, the need for biological and physical fulfillmenthas emerged. Over the long span of development of mankind there is a very highadvancement in technological and industrial growth. In the beginning of 20 th century, Worldhas faced two major revolutionary wars World War I and World War II. These have changedthe world into global village gradually.

Due to advancement and growth in population has simultaneously increased thedemand for physical need. Availability of options has increased competition among people.These have led to need of proper financial planning. Emergence of investment option ismainly driven by peoples social and demographic variables as described below.

Needs are generally classified into protection needs and investment needs.Protection needs refers to the needs that have to be primarily taken care of, to protect the

living standard , current requirements and survival requirements of investors. Need for regularincomes, need for retirement income and need for insurance cover are protection need.Investment needs are additional financial needs that have to be served through saving and

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2investment. These are needs for childrens education, hosing and childrens professionalgrowth.

In Indian insurance sector was totally reserved for public sector companies likeLIC, GIC etc. with the opening up of the economy, a score of MNCs have come in the market

with Indian business houses resulting in client friendly, healthy competition and rivalry in theinsurance sector. Good old days have gone, where only LIC agents were seen knocking doorsof potential clients.

The policies floated by the government insurance companies where primarilymeant to cover risk but in todays market, the policies are having predominantly a major partof investment option with high rate of return.

One of the major challenge for all private companies is to develop a strong salesteam, since LIC who enjoyed a monopoly in this sector before it was opened for private

players has a network of 2,50,000 agents.

India at a glance

Population : 1.3 Billion

Economy : 5th largest in the world in terms of purchasing power parity (PPP)

Premium as a percentage of GDP :1.77 %

GDP growth rate : Over 7.5% per year on an average for the last decade

Saving rate : Around 30% of GDP

Estimated middle class population : 300 Million

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Insured population : 70 million only

Estimated business (2008) : $6.6 Billion

REASONS FOR SELECTING AN INSURANCE SECTOR

FOR RESEARCH

Life Insurance Sector acts as a backbone of any economy. This sector

polls large funds from masses and then invests in the infrastructure projects as well as other

long term projects, which will generate a regular income flow in the coming years.

Traditionally life insurance was taken just as a security product but now it is gaining

importance as an investment product. Hence, now if you want to sell life insurance product to

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2anyone, you have to analyze his/her life stage, risk preference, priorities and then suggest the

appropriate product to that investor.

The insurance sector needs a great deal of financial planning, knowledge,

as well as knowledge about other financial products and their current markets so that we can

compare those products with the insurance product and convince the client. Insurance

companies also have to manage their investment in such a way that the principal amount

should not erode, and the investor should get assured returns which the company has

promised. This involves a great deal of knowledge about portfolio management and hedging

of risk. Thus this would give us great exposure to financial markets as well as the intricacies

of different financial institutions, how they work and what difficulties they face.

What Is Insurance ?

Being a social animal and risk averse, man always tries to reduce risk. Anage-old method of sharing of risk through economic cooperation led to the development ofthe concept of insurance.

Insurance is not necessarily an investment from which one expects to getone's money back. Nor is it gambling. A gambler takes risks, while insurance offers

protection against risks that already exist. Insurance is a way to share risk with others. Sinceancient times, communities have pooled some of their resources to help individuals whosuffer loss.

Insurance is a contract between two parties whereby one party calledinsurer undertakes in exchange for a fixed sum called premiums, to pay the other party

called insured a fixed amount of money on the happening of a certain event.

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Insurance is a protection against financial loss arising on the happeningof an unexpected event. Insurance companies collect premiums to provide for this

protection. A loss is paid out of the premiums collected from the insuring public and the

Insurance Companies act as trustees to the amount collected.

For example, in a Life Policy, by paying a premium to the Insurer, the family ofthe insured person receives a fixed compensation on the death of the insured.

Similarly, in a car insurance, in the event of the car meeting with an accident,the insured receives the compensation to the extent of damage. It is a system by which thelosses suffered by a few are spread over many, exposed to similar risks. Insurance is desiredto safeguard oneself and one's family against possible losses on account of risks and perils. It

provides financial compensation for the losses suffered due to the happening of any

unforeseen events.

By taking life insurance a person can have peace of mind and need not worryabout the financial consequences in case of any untimely death.Certain Insurance contracts are also made compulsory by legislation. For example, MotorVehicles Act 1988, stipulates that a person driving a vehicle in a public place should hold avalid insurance policy covering Act risks. Another example of compulsory insurance

pertains to the Environmental Protection Act, wherein a person using or carrying hazardoussubstances (as defined in the Act) must hold a valid Public Liability (Act) Policy.

Principles of Insurance

Insurance is a 'risk transfer mechanism' - it transfers the financial risks ofeveryday life from you to an insurance company. But only in terms of the financialconsequences of risk. Without insurance, if you car was damaged, it would cost you a lot ofmoney to fix it or to buy another one. It could cost you even more to pay for compensation tosomeone else involved in an accident. Insurance protects your financial interests. It cannotlighten the emotional, humanitarian and sentimental consequences of an accident. But

properly used, it will protect your financial investment in your car and your legal obligationsshould you have an accident.

Insurable InterestBefore you can insure anything, you must have a legally recognized financial

interest in what you are insuring. For motor insurance, you can't take out an insurance policy

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2on the car driven by the latest film star in the hope that it will crash and you can claim. That isnothing more than gambling. But you can insure the car you own, or drive. You would sufferfinancially if it is damaged or stolen and benefit from its continued existence.

IndemnityThis word is used to describe the type of payment you would receive. A

motor policy and a household policy are both a contract of indemnity. It means, subject to theterms of the contract, you are entitled to be put back in the same financial position after a lossas you were in before the loss. A refusal to indemnify is a refusal to pay the claim.

ContributionIf there is more than one policy in force that you could claim on, you can't

get payment from them both that would exceed the value of your loss. So each policy wouldcontribute a portion of the loss. You would receive the full value of the loss but no more andthe two policies would only bear part of it each.

SubrogationThis is the right that your insurer has to recover from someone else where

you are entitled to do so. For example, if another driver causes damage to your car, and yourinsurers pay for it, subrogation gives them the legal right to 'stand in your shoes' and reclaimtheir outlay from the responsible driver.

Proximate CauseWhen you seek to claim from your insurers for a property or financial loss

you must show that the loss was caused as a result of a peril covered by the policy. There

must be a direct relationship of cause and effect; the cause must be proximate in efficiencybut not necessarily in point of time. There might for example, be a chain of causes in whicheach cause is the natural result of the preceding cause. It is the immediate and not the remotecause which must be considered. The full and classic definition of this principle is given incase law called 'Pawsey V Scottish Union and National Insurance Co (1908)'

History of Insurance

Insurance has been around since ancient times. The Babylonians andPhoenicians had ocean marine insurance to protect a merchant against losses incurred when aship did not reach its intended destination with its load of goods or did not return with

payment. This form of insurance, called Respondentia, evolved because the goods on boardoften were used as collateral for a loan. The lender charged the borrower interest on the loanand levied an additional sum, the premium, to cover the cost of the respondentia contract. Ifthe ship reached its destination and returned, the merchant received payment for the goodsand in turn paid the moneylender. If the ship failed to return, the debt was cancelled. Thissystem was profitable to lenders because many respondentia contracts were sold, and debtswere paid more often than cancelled.

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2In ancient Rome, associations had a form of insurance for their members.

Each member made regular payments to the association in return for coverage of funeralexpenses or for assistance to family members who were injured or ill.

Insurance also existed in 17th-century England, which was then one of the

world's principal maritime powers. Those seeking marine insurance would post a list of theircargo and voyages in a London coffee house owned by Edward Lloyd. Private investorswould examine the list and sign their name by the entries they were willing to guarantee for afee. These private investors were the first insurance underwriters, and the coffee house

became the world center of marine insurance. Today the organization is known as Lloyds ofLondon, and it brings together individuals, most often working in syndicates, who write alltypes of insurance.

Insurance in the modern form originated in the Mediterranean during 14thcentury. The earliest references to insurance have been found in Babylonia, the Greeks andthe Romans. The use of insurance appeared in the account of North Italian merchant banks

who then dominated the international trade in Europe at that time. Marine insurance is theoldest form of insurance followed by life insurance and fire insurance. The patterns that have

been used in England followed in other countries also in these kinds of insurance

The oldest and the earliest records of marine policy relates to a Mediterranean

voyage in 1347. In the year 1400, a book written by a merchant of Florence, indicatespremium rates charged for the shipments by sea from London to Pisa. Marine Insurancespread from Italy to trading routes in other countries of Europe.

Fire insurance has its origin in Germany where it was introduced in

municipalities for providing compensation to owners of the property, in return for an annualcontribution, based on the rent of those premises. The fire insurance in its present form startedafter the most disastrous fire in human history known as the 'Great Fire' in London, which haddestroyed several buildings. It drew the attention of the public and the first fire insurancecommercially transacted in 1667. The Industrial Revolution (1720-1850) gave much impetusto fire insurance. The Nineteenth century marked the development of fire insurance.

Due to the increasing demands of the time, different forms of insurance havebeen developed. Industrial Revolution of 19th century had facilitated the development ofaccidental insurance, theft and dacoity, fidelity insurance, etc. In 20th century, many types ofsocial insurance started operating, viz., unemployment insurance, crop insurance, cattleinsurance, etc. This way the business of insurance developed simultaneously with human andsocial development. Today, the use of computers in the field of insurance is frequentlyincreasing. Insurance becomes an inseparable part of human development.

The early developments of life insurance were closely linked with that ofmarine insurance. The first insurers of life were the marine insurance underwriters whostarted issuing life insurance policies on the life of master and crew of the ship, and themerchants. The early insurance contracts took the nature of policies for a short period only.The underwriters issued annuities and pension for a fixed period or for life to provide relief towidows on the death of their husbands. The first life insurance policy was issued on 18th

June 1583, on the life of William Gibbons for a period of 12 months.

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2The history of life insurance in India dates back to 1818 when it was conceived

as a means to provide for English Widows. Interestingly in those days a higher premium wascharged for Indian lives than the non-Indian lives as Indian lives were considered more riskierfor coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It wasthe first company to charge same premium for both Indian and non-Indian lives. The Oriental

Assurance Company was established in 1880. The first general insurance company- TitalInsurance Company Limited, was established in 1850. Till the end of nineteenth centuryinsurance business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the LifeInsurance Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during20's and 30's sullied insurance business in India. By 1938 there were 176 insurancecompanies. The first comprehensive legislation was introduced with the Insurance Act of1938 that provided strict State Control over insurance business. The insurance business grewat a faster pace after independence. Indian companies strengthened their hold on this business

but despite the growth that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240private lifeinsurers and provident societies under one nationalized monopoly corporation and LIC was

born. Nationalization was justified on the grounds that it would create much needed funds forrapid industrialization. This was in conformity with the Government's chosen path of State-led planning and development.

DEVELOPMENTS IN INSURANCE SECTOR

While Direct foreign investment is permitted in several areas of business in India,the insurance industry has been fraught with trouble from the beginning.

Insurance has been and continues to be a government monopoly. For instance,section 30 of the Life Insurance Corporation Act 1956 expressly provides that the LifeInsurance Corporation of India shall have the exclusive privilege of carrying on life insurance

business. This monopoly situation also applies to general insurance, although the position isdifferent as regards risk management and reinsurance

The previous government (The Indian National Congress) appointed the

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2Malhotra Committee which presented its Report in 1994, making recommendations foropening up the insurance sector. It recommended infer alia that the private sector be calledupon to take some portion of the rural and non-traditional insurance market. It alsorecommended that private foreign companies should enter into Joint ventures, the promoterequity being 40 per cent and the balance held by the public.

When the present coalition government, the United Front, came to power, as theCentral Government, it introduced its promised Common Minimum Programme. One of theattractions of this programme was the desire to introduce wide ranging changes affecting theinsurance sector, on lines similar to the banking sector

Based on this manifesto, the following developments took place in 1996 -

A Bill on the Insurance Regulatory Authority was proposed. It is presently uncertainwhether the Authority will be empowered to invite domestic and foreign investment inthe insurance sector. Of course, the insurance industry cannot be opened up until the

necessary amendments have been made to the LIC Act 1956 and the GeneralInsurance Business Act 1972. It was expected that this Bill would be debated inDecember 1996. However, considering the strength of opposition to the Bill, and thetime needed to draft new guidelines and issue licences, it is likely to be at least 18months before any changes are implemented. something which foreign insurers havealready taken into account

The Reserve Bank of India (RBI, the central regulatory bank in India) has in themeantime granted approval to four foreign insurance companies to open liaisonoffices in India. These will act only as channels of communication between parties inIndia and their head offices abroad and are not permitted to undertake any insurance

business in India.

As was expected, the existing insurance companies, both at the managerial andemployee level, have strongly opposed and criticized any move to privatize insurance.A lot of criticism has also come from the coalition partners of the United Frontgovernment. There seems to be little support for the move to privatize.

Informally, and in the belief that change will finally come about, several Indian andforeign insurance companies have been neeotiatinc possible tie-ups in life and generalinsurance business. So far, nearly 18 global insurance majors have signedmemoranda of understanding. It is rumoured in insurance circles that thegovernment is likely to give licences in the initial years only to a handful ofcompaniespossibly only sixThree in life and Three in general insurance business.A considerable amount of market research and product blue print has already beendone.

The following proposals were included in the 1997 Finance Bill (announced on 28 February1997) -

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2 The Life Insurance Corporation of India (LIC) and the General Insurance Corporation

of India (GIC) should enjoy substantial autonomy, including the power to make non-scheduled, non-consortium investments.

LIC should be permitted to promote joint ventures in pensions fund business.

GIC should be permitted to promote joint ventures in health insurance business.

Selected Indian companies with majority Indian ownership should be allowed toundertake business in the health insurance sector.

LIC should continue to enjoy a monopoly in life insurance business and GIC shouldretain a monopoly in non-life, non-health insurance business.

Comprehensive regulations relating to prudential, investment and social norms shouldbe made and enforced by the Insurance Regulatory Authority for all service providersin the insurance industry.

Hence, it was decided to allow competition in a limited way by stipulatingthe minimum capital requirement of Rs.100 crores. The committee felt the need to providegreater autonomy to insurance companies in order to improve their performance and enablethem to act as independent companies with economic motives. For this purpose, it had

proposed setting up an independent regulatory body.

REASONS FOR SELECTION OF ICICI PRUDENTIAL FOR

THE RESEARCH

ICICI Prudential ranks as number one amongst the private life insurance

players. There is vast potential for this company in Indian market. ICICI Prudential is movingreally fast to capture untapped market and it is expanding its operations in different regionsin India. The company not only stands No. 1 but also treats its employees as No.1. No other

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2company provides rewards and recognition to their employees and advisors as done by ICICIPrudential. The culture of ICICI Prudential is like a Hindu Undivided Family. It worked onthe fundamental of building relations. As we look as current performance and future targetslaid down by ICICI Prudential, it brings in our mind the words of the great poet :

ROBERT FROST

THE WOODS ARE LOVELY

DARK AND DEEPAND MILES TO GO BEFORE I SLEEP

Hence we firmly believe we could not get better exposure to life insurance if

we would not have joined ICICI Prudential.

ICICI Prudential life insurance company limited is one of the leadinginsurance companies in the private sector. Also it was the private sector company in India toenter the business of insurance.

KEY PLAYERS IN THE MARKET

Here below who are the key players in the insurance market are shownwith their Market share.

PLAYERS MARKET SHARE

LIC 80%

ICICI Prudential 6.7%

Birla Sun Life 3.3%

Bajaj Allianz 2.8%

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SBI Life 2.2%

Tata AIG 1.3%

Max NYL 0.9%

Met Life 0.2%

Aviva 0.8%

Om Kotak 0.6%

ING Vysya 0.4%

AMP Sanmar 0.3%

TOTAL 100%

0%

10%

20%

30%

40%50%

60%

70%

80%

Percenta

ge

Market share of life insuranceplayers

LICICICI PrudentialBirla Sun LifeBajaj AllianzSBI LifeTata AIGMax - NYLMet LifeAvivaOm KotakING VysyaAMP Sanmar

ANALYSIS

The main players in the insurance sector are given in the table with their market share.I should say that before privatization only LIC is there so a kind of monopoly so that there is

80% market share and the rest 20% are divided in other private insurance companies.

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2I should say that after LIC the next rank goes to ICICI Prudential life insurance and it

is 6.7% and it is increasing day by day. So as the present situation now LIC day by dayloosing their market share because of the private players in the market.

Life insurance in India

20%

80%

Insured

uninsured

ANALYSIS

In India the whole population we consider at a 100% then from the above chartwe can say that there are 80% People which do not have any kind of insurance.

So we can conclude that there is a wide scope for the insurance in the developingcountry like India. At present Insurance industry is growing like leaps and bounds.

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ICICI Prudential Life Insurance Company Limited

ICICI Prudential Life Insurance Company Limited was incorporated on July 20,

2000. The authorized capital of the company is Rs.2300 Million and the paid up capital is Rs.1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK (26%).

The Company was granted Certificate of Registration for carrying out LifeInsurance business, by the Insurance Regulatory and Development Authority on November24, 2000. It commenced commercial operations on December 19, 2000, becoming one of thefirst few private sector players to enter the liberalized arena.Till March 31,2002 the Company has issued 100,000 polices translating into a PremiumIncome of around Rs. 1,200 Million and a sum assured of over Rs.15,000 Million.

The Company recognizes that the driving force for gaining sustainablecompetitive advantage in this business is superior customer experience and investment behindthe brand. The Company aims to achieve this by striving to provide world class service levelsthrough constant innovation in products, distribution channels and technology based delivery.The Company has already taken significant steps to achieve this goal.ICICI Ltd

ICICI Ltd was established in 1955 by the World Bank, the Government ofIndia and the Indian Industry, to promote industrial development of India by providing projectand corporate finance to Indian industry.

Since inception, ICICI has grown from a development bank to a financialconglomerate and has become one of the largest public financial institutions in India. ICICIhas financed all major sectors of the economy, covering 6,848 companies and 16,851 projects.In the fiscal year 2000-2001, ICICI had disbursed a total of Rs 319.65 billion.

ICICI Bank is Indias second largest bankand largest private sector bank withover 50 years of financial experience and with assets of Rs. 1812.27 billion as on 30thJune, 2005. ICICI Bank offers a wide range of banking products and financial services tocorporate and retail customers through a variety of delivery channels and through its

specialized subsidiaries and affiliates in the areas of investment banking, life and non-lifeinsurance, venture capital and asset management. ICICI Bank is a leading player in the retail

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2banking market and has over13 million retail customer accounts. The Bank has a networkof over570 branches and extension counters, and 2,000 ATMs.

Prudential plc:

Prudential plc was founded in 1848. Since then it has grown to become one ofthe largest providers of a wide range of savings products for the individual including lifeinsurance, pensions, annuities, unit trusts and personal banking. It has a presence in over 15countries, and caters to the financial needs of over 10 million customers. It manages assets ofover US$ 259 billion (Rupees 11,39,600 crores approx.) as of December 31, 1999. Prudential

plc. has had its presence in Asia for the past 75 years catering to over 1 million customersacross 11 Asian countries.

Established in London in 1848, Prudential plc, through its businesses in the UKand 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 overUS$300 billion in funds under management. Prudential has brought tomarket an integrated range of financial services products that now includes life assurance,pensions, mutual funds, banking, investment management and general insurance. InAsia, Prudential is the leading European life insurance company with a vast network of24 lifeand mutual fund operations in 12 countries - China, Hong Kong, India, Indonesia, Japan,Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

Corporate Office:

ICCI Prulife Towers,1089, Appasahab Marathe Marg,Prabhadevi,Mumbai 400 025.Telephone Number: 022-462 1600

Website : http://www.iciciprulife.com/

MANAGEMENT

Board of DirectorsThe ICICI Prudential Life Insurance Company Limited Board

comprises reputed people from the finance industry both from India and abroad.

Mr. K.V. Kamath, ChairmanMr. Mark NorbomMrs. Lalita D. GupteMrs. Kalpana MorpariaMrs. Chanda KochharMr. HT Phong

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2Mr. M.P. ModiMr. R NarayananMs. Shikha Sharma, Managing DirectorMr. N.S. Kannan, Executive Director

Management Team

Ms. Shikha Sharma, Managing Director & CEOMr. N.S. Kannan, Executive DirectorMr. V. Rajagopalan, Chief - ActuaryMr. Sandeep Batra, Chief Financial Officer & Company Secretary

PRODUCTS

Insurance Solutions for Individuals.

ICICI Prudential Life Insurance offers a range of innovative, customer-centricproducts that meet the needs of customers at every life stage. Its products can be enhancedwith up to 5 riders, to create a customized solution for each policyholder.

Savings Solutions

SecurePlus :

SecurePlus is a transparent and feature-packed savings plan that offers 3levels of protection.

CashPlus :

CashPlus is a transparent, feature-packed savings plan that offers 3 levels ofprotection as well as liquidity options.

SavenProtect :

SavenProtect is a traditional endowment savings plan that offers lifeprotection along with adequate returns.

CashBak

CashBak is an anticipated endowment policy ideal for meeting milestoneexpenses like a childs marriage, expenses for a childs higher education or purchaseof an asset.

LifeTime & LifeTimeII

LifeTime & LIfeTimeII offer customers the flexibility and control tocustomize the policy to meet the changing needs at different life stages. Each offer 4fund options ? Preserver, Protector, Balancer and Maximiser.

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2 LifeLink II

LifeLink II is a single premium Market Linked Insurance Plan whichcombines life insurance cover with the opportunity to stay invested in the stockmarket.

Premier Life :

Premier Life is a limited premium paying plan that offers customers lifeinsurance cover till the age of 75.

InvestShield Life :

InvestShield Life is a Market Linked plan that provides capital guaranteeon the invested premiums and declared bonus interest.

InvestShield Cash :

InvestShield Cash is a Market Linked plan that provides capital guaranteeon the invested premiums and declared bonus interest along with flexible liquidityoptions.

InvestShield Gold :

InvestShield Gold is a Market Linked plan that provides capital guaranteeon the invested premiums and declared bonus interest along with limited premium

payment terms.

SWOT ANALYSIS

Strength

1. ICICI Prudential is the 1st life insurance company to introduce UNITLINKED, PENSION PRODUCTS AND LIFE TIME it can get the pioneer advantage.

2. Prudential is the 156 year old company founded in 1848 so it has full fledgeexperience in this industries.

3. ICICI enjoys a rating with the Moodys which is higher than the severingrating.

4. Large distribution channel with 30 branches and more than 30,000 financialadvisors.

5. ICICI Prudential has the best incentives which motivate and encourage theadvisors to work and fulfill the commitment.

6. The financial condition of both companies is very sound.7. Good customer has service.

8. Company has created a brand name.

Weaknesses

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1. It has to do operation within the boundary of IRDA.2. Up till one no more option of product for middle class offered by ICICI Prudential.3. No option in rural area.4. Yet to build a strong distribution network in the market.

Opportunity

1. Today ICICI Prudential covers 40% Market so yet there is a great potentiality toincrease market share.

2. Insurance plan like pension plan, child plan and investment plan of ICICI Prudential gogood response from the market. So in future company can take benefit for it.

3. The brand name that creates ICICI Prudential and awareness level of it is comparativelyquite higher than competition. So it will be helpful in future while lunching new

innovation products.4. Untapped market of India.

Threats

1. It is private company so there is a doubt about solvency and liquidity among the generalpeople.

2. Change in the environmental factors many affects the company.3. The government policies and the annual budget may the insurance market.4. Large distribution network of LIC and trust of people in LIC.

RESEARCH OBJECTIVES

The word objective means purpose behind doing anything.

Every research study has its own specific research objective. Without

objective no one is doing any work. To do anything there is a purpose behind it.

Here in ICICI Prudential my research objectives are as follows

To know Investment Pattern of ICICI Prudential Life Insurance company.

To know the Investors approach towards the return provided by the ICICI PrudentialLife Insurance.

To know the Satisfaction of the investors towards the return offered by the ICICI

Prudential Life Insurance.

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Here above are the very important research objective that I want to study andcarry out the optimum solution for it.

SCOPE OF STUDY

Scope of study means the study whichever is carried out where it will helpful infuture.

In the same way Investment Pattern of ICICI Prudential Life Insurance Companyis helpful in the following ways

It will be helpful to the company to know where it is lacking behind.

The study will helpful to know the investors satisfaction towards return providedby ICICI Prudential Life Insurance Company.

On the basis of the study company can take the corrective actions.

The study will be helpful to know the investment pattern in comparison to LIC.

LIMITATION OF THE STUDY

There are many limitation are there while conducting my study which are asfollows.

Time constraint : As the Project training is of 2 month we cant get the proper datawithin a limited time period.

Confidential information is not shared due to business secrecy and the lack of trust.

They are not at all ready to give any financial information to the trainees for theirstudy of project.

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Due to time constraints the executives of the company are not able to allot time to thetrainees

Sample size is also one of the limitations as it is not represent the whole population.Because of this we can not or not give the proper results.

Sampling design may also be one limitation in the study. As sampling design may notrepresent the whole population.

QUESTION 1

Occupation of the Persons which is the Focus group for my study ?

Corporate Employees 11Businessmen 39

Total 50

Occupation of the People

78%

22%Corporate

employee

Businessman

ANALYSIS

Here I have studied the Focus Group as my topic is selected. There are 11 corporate

employees and 39 Business men.

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2My main focus group is the ICICI Prudential financial advisor and and employee of

ICICI Prudential Life Insurance Company Ltd.

QUESTION 2

Annual income of the Persons of the focus group?

Less than 100,000 12100,000 to 299,999 33

300,000 to 499,999 03

More than 500,000 02

Annual Income

24%

66%

6%4%

Less than100,000

100,000 to299,999

300,000 to499,999

More than500,000

ANALYSIS

From the above chart we can see that there are 66% persons are fall under theincome group of 100,000 to 299,999. So majority persons monthly income fall under the

8000 to 25,000. Chart shows that there are 24% persons income is less than 100,000.There are 6% and 4% people are of the income300,000 to 499,999 and More than 500,000respectively.

As per the general research we can say that middle class people are always moreas compared to the upper class. The same thing is also we can see through the chart.

QUESTION 3

How the persons are making their investment portfolio ?

Bank F.D. 18

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2Stock Market 2

Government Security 13

Mutual Fund 1

Post office 7

PPF 5

Others 4

Investment avenues

36%

4%

26%

2%

14%

10%

8%Bank F.D.

Stock Market

Government

SecurityMutual Fund

Post office

PPF

Others

ANALYSIS

From the above chart we can see that people are more believing in the bankfixed deposit, and then they come to the Government security and then Post office. Here asmy research is on insurance all persons are investing in insurance more or less.

From the above chart we can easily say that investors are risk averse they donot want to go for risky things. Here in the above chart in others I included the Gold, Landand building etc. so people are also believe to invest in gold and others assets.

QUESTION 4

People having policy of which policy ?LIC & ICICI Prudential 36

ICICI Prudential & HDFC

std. life 14

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2

Insurance policy

72%

28%

LIC & ICICI

Prudential

ICICIPrudential &

HDFC std. life

ANALYSIS

Here form the above chart we can see that people having the combination of theICICI Prudential and LIC. People are more believing in LIC as LIC is the government body.They are always having the doubt about the private companies but now they are becoming

broad minded and purchasing the policies of private companies. Here the combination LICand ICICI is 72% and combination of ICICI and HDFC is 28%.

QUESTION 5

Approximately How much return the investors having ICICI Prudential

policy are getting?

4 to 6 1

6 to 8 19

8 to 10 23

More than 10 7

Percentage of return from ICICI

Prudential to investor

2%

38%

46%

14%4 to 6

6 to 8

8 to 10

More than

10

ANALYSIS

From the above chart we can see that there are the average returns getting by theinvestors from the ICICI Prudential life insurance is between 6 to 8 percentage and 8 to 10

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2percentage. Higher return is also given by the ICICI is about 14% of people is getting. Thereare also 2% people whichever getting very low return as 4 to 6%.

So the return given by the ICICI Prudential life insurance is between 6 to 10%.Which we can consider as the average return.

FINDINGS

Generally people more believe in the LIC.

Investors believe LIC as one of the safest investment option.

Investors have strong faith in banks and in post office schemes and governmentsecurity.

Investors expect high safety, handsome returns and the full guarantee of theirinvestment.

By investing in the insurance sector people are generally moderately satisfied with theprovided returns.

Generally People are paying Rs. 15000 Rs per year as a premium.

People also believe that returns of ICICI are more than other insurance companies.

One of the important finding of the survey is that people expect ICICI Prudential tocome up with a plan with principal amount of Rs. 10,000/- . So that they can affordthe premium to be paid.

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SUGGESTIONS

There are some of the things that I feel during my training period that ICICIPrudential should improve.

1. There should be the transparency when you are explaining to the customer about thepolicy. Many persons are not explaining the truth or hide the thing which should bediscussed.

2. There are many other ways of marketing the products but according to my point of viewthey are more concentrating on the telephonic talk. Every time persons are talking ontelephones.

3. When there is a presentation they should serve the people and offer them a glass of water.So that the people who came they feel free.

4. ICICI Prudential should give more advertise on the Television or through any othermedia.

So above are the Important suggestions which I have observed during my trainingperiod.

BIBLIOGRAPHY

BOOKS

1. Pathak Bharati V., Indian Financial Systema,Published by Pearson

Education(Singapore) Pte. Ltd., Indian Branch, 482 F.I.E. Patparganj, Delhi.2. Kothari C. R., Research Methodology, New Age international publishers,New

Delhi, Second edition

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2

WEBSITES

www.iciciprulife.com

www.irda.com

www.insuranceindia.com

www.assureindia.com

www.knowledgedigest.com

www.icicionline.com

www.irdaindia.com

www.bimaonline.com

www.indiainfoline.com

www.moneycontrol.com

QUESTIONNAIRE

SURVEY ON INVESTORS APPROACH TOWARDS RETURN OF ICICI

PRUDENTIAL LIFE INSURANCE COMPANY

Personal Details :

Name :____________________________________________________

Address :__________________________________________________

__________________________________________________

Phone number :_____________________________________________

Education :________________________________________________

Occupation : Corporate Employees ____________________

Business men___________________________

Age :_____________________________________________________

Annual Income : Less than 100,000 ____________

100,000 to 299,999 ____________

300,000 to 499,999 ____________

30
http://www.iciciprulife.com/http://www.irda.com/http://www.insuranceindia.com/http://www.assureindia.com/http://www.knowledgedigest.com/http://www.icicionline.com/http://www.irdaindia.com/http://www.bimaonline.com/http://www.indiainfoline.com/http://www.moneycontrol.com/http://www.iciciprulife.com/http://www.irda.com/http://www.insuranceindia.com/http://www.assureindia.com/http://www.knowledgedigest.com/http://www.icicionline.com/http://www.irdaindia.com/http://www.bimaonline.com/http://www.indiainfoline.com/http://www.moneycontrol.com/


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2More than 500,000 ____________

No. of Children :_____________________________________________

No. of Dependence :__________________________________________

1. Are you Investing?

Yes ___________No_____________

2. If Yes, Where are you investing the money?

Bank Fixed deposit ______________

Stock Market ______________

Post Office ______________

Government Security _____________

Mutual Fund _____________

PPF _____________

Others Like Gold, Land and building _____________

3. Do you have any insurance cover?

Yes______________No____________

4. If Yes, of which Company?

LIC & ICICI Prudential ______________

ICICI & HDFC std. life ______________

5. How much premium are you paying annually?

Rs._______________

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