Amity Business School

Amity Business SchoolINDIAN INSURANCE INDUSTRY

• US$ 41billion industry in India.• Fifth largest life insurance market• Growth of 32-34% p.a.• 26% FDI allowed by IRDA since 2000.• 1 govt. company i.e. LIC, 12 private life insurance

company and 9 general insurance company

Amity Business SchoolICICI Prudentialv/s

ICICI Lombard

• Prudential is a Life Insurance company covering Life Insurance, Retirement Plans and Health Insurance

• Lombard is a General Insurance Company covering health, car, home, travel etc.

Amity Business SchoolICICI PRUDENTIAL

•ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank & Prudential PLC.

• ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000.

•Largest private life insurance company

• The company has a network of about 56,000 advisors; as well as 150 corporate agent tie-ups.

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

•Most trusted private life insurer: 3years in a row

•More than four million policies sold.

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Amity Business SchoolSUSTAINED PRIVATE MARKET LEADERSHIP

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

1 ICICI Prudential

ICICI Prudential

ICICI Prudential

ICICI Prudential

ICICI Prudential

2 Birla Sun Life Birla Sun Life

Birla Sun Life

Bajaj Allianz

Bajaj Allianz

3 HDFC Standard Life

Bajaj Allianz Bajaj Allianz HDFC Standard Life

SBI Life Insurance

4 Max New York Life

HDFC Standard Life

HDFC Standard Life

Birla Sun Life

Reliance

5 Bajaj Allianz Max New York Life

ING Vysya Life

Max New York Life

HDFC Standard Life

Amity Business SchoolReasons for Growth

• Lucrative offers• High standard service• Customer-centric products• Good communication

techniques • Use of customer feedback

in improvement of offers.

Amity Business SchoolSTRATEGIES

Marketing Strategies:-• Aggressive advertising• TELEVISION ADVERTISING: Targeting through news channels,

specially through business news channel.• Tax Savings

Creative Strategies:-• Building of trust• Using “Sindoor” in the advertisement• Campaigns like “Saat phere” • “Chintamani” retirement plans.• Punch lines like, “Jeete Raho.”

Amity Business SchoolCONSUMER SURVEY

• ICICI Prudential customers

• Sample Size: 40 people

• Source: Personally, telephone or e-mail

• Sex Ratio: 30:10

• Age Group: 21-63

Amity Business SchoolQ. Which policydo you have?

Amity Business SchoolQ. Are you satisfied

with pricing policy of the company?

    ObservationA Yes 26B No 14

Amity Business SchoolQ. Do you know any other company which gives similar policy at

a lesser price?

    ObservationA Yes 28B No 12

YesNo

Amity Business SchoolQ. If given a chance to change the company, will you do so?

Yes No16

17

18

19

20

21

22

Amity Business SchoolQ. Rank these companies:-

Companies Ranking(Approx.)

A ICICI Prudential 2

B LIC 1C HDFC Standard Life 4D Max New York 3E Religare 5

Amity Business SchoolPRICING

Life Protection:-

Age:30Duration: 30 yearsSum assured: Rs. 10LakhsPremium: Rs. 2230

Retirement Plans:-

Estimated Return: 10%Age:30Duration: 20 yearsPremium: Rs. 10121Estimated Total Amount at Maturity: Rs. 483590Estimated Pension(p.a.): Rs. 39919

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Health:-

Age: 30Sum Assured: Rs. 10lakhsPremium: Rs. 7099

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V/S

Amity Business School

Amity Business School

Amity Business SchoolPRICING STRATEGY

PRICING• FOLLOW THE LEADER PRICING

• LEADER PRICING

• PREMIUM PRICING

DISCOUNTS• CORPORATE DISCOUNTS

• FAMILY DISCOUNTS

• EXISTING CUSTOMER

Amity Business SchoolSWOT

STRENGTH �• No. 1 private life player in India.

• Innovative insurance policies �• One of the largest financial Institution of India’s. �• Training provided to all people associating with ICICI prudential. �• Highest paid up capital deposited in IRDA

• Assets base of ICICI is more than Rs. 1,08,000 Crores.

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WEAKNESS

• Very huge premiums of policies. • Target upper class people only.

• Policy charges are very high.

• Restricted to Urban India

• Tag of “Private Player”

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OPPORTUNITIES �• Tie up with more corporate companies �• Tie up with broker also. �• Scope in Rural India and small cities. �• Strong Brand of Company Helps to boost sales in market

• Providing customer centric products.

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THREATS �• Threat from existing life insurance players �• Threat from new entrance. �• Threat from substitute products �• Change in the policy of IRDA

• People aware don’t aware of different distribution channel.

Amity Business SchoolCONCLUSION

• Market Leader as well as Market Follower

• ICICI and Prudential PLC meeting its goals

• Tough Competition

• Excellent Future

• IRDA dependent

• Rural Development

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THANK YOU