Download - Project on Brand Awareness of ICICI Prudential by Sajad

SUMMER TRAINING REPORT

Undertaken at

ICICI Prudential Life Insurance Co. Ltd.

On

“Brand Awareness of ICICI Prudential”

Submitted in Partial Fulfilment

Of the Requirement for the

Award of the Degree of

Master of Business AdministrationBy

Sajadul Ashraf

MBA-G

Roll No. 148

Under the Supervision of

Ms. Anuradha Yesugade

BHARATI VIDYAPEETH UNIVERSITY

INSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT

PUNE

BHARTI VIDYAPEETH UNIVERSITY, PUNE

INSTITUTE OF MANAGEMENT AND ENTREPRENUERSHIP DEVELOPMENT, PAUD ROAD, ERANDWANE,

PUNE-38

CERTIFICATE OF COMPLETION

This is to certify that Mr. SAJADUL ASHRAF is a

bonafide student of MBA program of the university in this institute for the year

2009-2011 . As a part of the University curriculum, the student has

completed the project report titled

“Summer Training Programme with reference to Brand Awareness of ICICI

Prudential at ICICI Prudential”.

The project report is prepared by the student under the guidance of

Prof. Ms. Anuradha Yesugade

(Teacher Guide) Program Co-ordinator Director

Date: 13/10/2010

Place: Pune


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Certificate

This is to certify that Mr. Sajadul Ashraf has completed his Summer

Training Project under my direct supervision. He underwent the Summer

Training on and from 12 th of May 2010 to 2 nd of July 2010 , during which he was

assigned the task of ‘Brand Awareness of ICICI Prudential’, which he has

successfully completed and the same is presented in the form of the present

Project Report.

It is further certified that the project report submitted by Sajadul Ashraf

reflects his original work and on the work assigned to him for the Summer

Training and that the present project report has not been submitted elsewhere for

award of any degree, diploma or fellowship.

Mr. Yasir Ahmad

Agency Manager


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Declaration

I, Sajadul Ashraf, a bonafide student of MBA-G Programme at the IMED, (INSTITUTE

OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT), Bharati Vidyapeeth

University, Pune, hereby declare that I have undergone the Summer Training at ICICI

Prudential Life Insurance Co. Ltd. under the supervision of Mr. Yasir Ahmad on and from 12 th

May to 2nd July.

I also declare that the present project report is based on the above summer training and

is my original work. The content of this project report has not been submitted to any other

university or institute either in part or in full for the award of any degree, diploma or

fellowship.

Further, I assign the right to the university, subject to the permission from the

organisation concerned, use the information and contents of this project to develop cases, case-

lets, case leads, and papers for publication and/or for use in teaching.

Place: Pune Sajadul Ashraf

Date: 21-07-2010 MBA-G


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ACKNOWLEDGEMENT

It is with immense satisfaction that, I am completing my Summer Project Report, I

therefore, would like to wait for few moments and thank IMED, BVU, for encouraging me to

take up my Summer Project in Marketing Sector. I am also very thankful to all my faculty

members for their extensive support by imparting in us the practical approach of corporate

sector, and their valuable backing of getting ourselves involved with the functioning of the

company rather than just involve us in our projects.

I would also wish to acknowledge my profound gratitude to ICICI Prudential Life

Insurance Co. Ltd. who allowed me to do Summer Training and helped me in the completion of

this project. I am extremely grateful to all the concerned employees for their full support and

guidance despite their tight and busy schedules.

I would like to express my special and sincere thanks to Mr. Yasir Ahmad (Agency

Manager) who happened to be my industry guide for rendering valuable guidance and

necessary suggestions in bringing out this project report.

Last but not the least; I shall fail in my duty, if I don’t thank all those concerned people

who have directly or indirectly contributed in the completion of this entire Summer Internship

Project.

Sajadul Ashraf


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PREFACE

Recognizing that investment comprises an important part of our lives today, we all invest

our money one or the other way of our secure future. Most of the common type of investment

which mostly follows is that to invest in an insurance policy. So insurance is a vital part of the

overall financial system where it was necessary to address the need for financial reforms.

Government appointed a Committee on Reforms in the Insurance sector in April 1993 better

known as Malhotra Committee. The committee was asked to look into the structure of and the

need for change in the Insurance sector. The Committee submitted its report in January

1994.The salient recommendations of the committee were the following:

1. That the Insurance sector should be gradually for participation by private sector

insurance companies both in life and non-life. The committee did not favours composite

offices.

2. Foreign companies are allowed through joint ventures established in India with Indian

partners. The minimum paid up capital of the new Insurance Companies should not be

less that Rs.100crore, i.e., approximately US$ 25 million capital adequacy should be

backed by much defined solvency standards.

3. Broker may be allowed to operate for direct business subject to adequate controls &

safeguards.

4. An Independent Insurance regulatory mechanism should be set up before private

companies are licensed.

5. The promoters share holdings should not exceed 40 percent of the paid up capital.


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In keeping with the recommendations of the Malhotra Committee, the government

established the interim Insurance Regulatory Authority by an executive order in January 1996.

The authority was given some of the powers of the controller of Insurance so as to have an

effective control over monitoring & functioning of existing insurers.

An estimated 300 million people in India can afford Life Insurance. Only 70 million of

them have it. The government’s own estimates show that the insurance market in India will

grow tenfold to $80 billion by the end of 2010. Swiss Re forecasts an average of 14% annual

growth in the life insurance market for the next 5 years. Insurance companies and pension

funds play a pivotal role in financial markets and the economy in general the world over. They

have a decisive impact on the development of the economic infrastructure as well as the

stability developing countries. Today there are 13 Life Insurance companies in India and an

equal number of Life Insurers, many more move will start business as the market matures. As

the insurance sector blossoms in India, it would require as committed talent pool. It is the talent

pool of employees and agents that will make the difference.

In my report I have given much thrust on ULIP investments as they are the most

preferred type of investments made by masses in present times, I also have taken to justify the

way we should invest, also considering the nearest alternatives of ULIPs.


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TABLE OF CONTENTS

S. No. CONTENTS Page No.

1. INTRODUCTION 12

1.1 Executive Summary 16

1.2 Insurance Industry 17

1.3 Reason for Insurance 17

1.4 Importance of Insurance 18

1.5 Introduction of Life Insurance in India 19

1.6 Important Milestones in the Insurance business in India 19

1.7 Liberalisation of Indian Insurance 21

1.8 Indian Insurance in 21st Century 21

2. RESEARCH METHODOLOGY 22

2.1 Marketing research 23

2.2 Research Design 23

2.3 Types of Research Design 24

2.4 Project Design 25

2.5 Problem Statement 26

2.6 Objectives of the Study 26

2.7 Limitations 27

2.8 Questionnaire design 28

2.9 Questionnaire 30

3. COMPANY PROFILE 33

3.1 ICICI Prudential 33

3.2 ICICI Prudential Edge 36

3.3 Entry of Private Players 37

3.4 Promoters of the Company 38


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3.4.1 ICICI Bank 38

3.4.2 Prudential Plc 40

3.5 Achievements 41

3.6 Promotion 42

3.7 Brand Values 42

3.8 Fact Sheet 43

3.9 Vision of ICICI Prulife 43

3.10 Values of ICICI Prulife 43

3.11 History of ICIC Prudential 44

3.12 Products of ICICI Prulife 47

3.13 Awards 52

4 WORKING ENVIRONMENT 56

4.1 Introduction 57

4.2 Human resource Department 58

4.3 Marketing and Sales Department 60

4.4 Relationship Marketing in Insurance 61

4.5 Finance and Accounts Department 62

5 DATA INTERPRETATION AND ANALYSIS 63

6 FINDINGS OF THE STUDY 77

7 CONCLUSION 79

8 SUGGESTIONS 82

9 BIBLIOGRAPHY 84


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LIST OF TABLES

S. No. Name of Tables Page No.

1 Name of the Private Players 37

2 Profile of ICICI Bank 39

3 Profile of Prudential plc 40

4 Data Interpretation and Analysis 63

4.1 Table-1 64

4.2 Table-2 65

4.3 Table-3 66

4.4 Table-4 67

4.5 Table-5 68

4.6 Table-6 69

4.7 Table-7 70

4.8 Table-8 71

4.9 Table-9 72

4.10 Table-10 73

4.11 Table-11 74

4.12 Table-12 75

4.13 Table-13 76


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LIST OF GRAPHS/CHARTS/PICTURES

S. No. Name of Graph/Chart /Picture Page No.

1 12th Asia Insurance Industry Award 2008. 52

2 Award for Brand Excellence in the Banking and Financial services

53

3 ICICI Group Marketing Excellence Award 53

4 Bronze Effy trophy 54

5 Outlook Money Awards 2003 & 2004 IMM Award for Excellence

55

6 Working Environment 56

6.1 Structure of HR Department 58

6.2 Structure of marketing Department 60

6.3 Structure of Finance Department 62

7 Data Interpretation and Analysis 63

7.1 Chart-1 64

7.2 Chart-2 65

7.3 Chart-3 66

7.4 Chart-4 67

7.5 Chart-5 68

7.6 Chart-6 69

7.7 Chart-7 70

7.8 Chart-8 71

7.9 Chart-9 72

7.10 Chart-10 73

7.11 Chart-11 747.12 Chart-12 75

7.13 Chart-13 76


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CHAPTER 1

INTRODUCTION


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1. INTRODUCTION:

Life insurance is a form of insurance that pays monetary proceeds upon the death of the

insured covered in the policy. Essentially, a life insurance policy is a contract between the

named insured and the insurance company wherein the insurance company agrees to pay an

agreed upon sum of money to the insured's named beneficiary so long as the insured's

premiums are current.

With a large population and the untapped market area of this population insurance

happens to be a very big opportunity in India. Today it stands as a business growing at the rate

of 15-20% annually. Together with banking services, it adds about 7 % to the country’s GDP.

In spite of all this growth statistics of the penetration of the insurance in the country is very

poor. Nearly 80% of Indian populations are without life insurance cover and the health

insurance. This is an indicator that growth potential for the insurance sector is immense in

India.

It was due to this immense growth that the regulations were introduced in the insurance

sector and in continuation “Malhotra Committee” was constituted by the government in 1993 to

examine the various aspects of the industry. The key element of the reform process was

participation of overseas insurance companies with 26% capital. Creating a more competitive

financial system suitable for the requirements of the economy was the main idea behind this

reform.

Since then the insurance industry has gone through many changes. The liberalization of

the industry the insurance industry has never looked back and today stand as one of the most

competitive and exploring industry in India. The entry of the private players and the increased

use of the new distribution are in the limelight today. The use of new distribution techniques

and the IT tools has increased the scope of the industry in the longer run.

Insurance is the business of providing protection against financial aspects of risk, such

as those to property, life health and legal liability. It is one method of a greater concept known

as risk management –which is the need to manage uncertainty on account of exposure to loss,

injury, disadvantage or destruction.

Insurance is the method of spreading and transfer of risk. The fortunate many who are


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exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the

assets but only compensates the economic or financial loss.

In insurance the insured makes payment called “premiums” to an insurer, and in return

is able to claim a payment from the insurer if the insured suffers a defined type of loss. This

relationship is usually drawn up in a formal legal contract.

Insurance companies also earn investment profits, because they have the use of the

premium money from the time they receive it until the time they need it to pay claims. This

money is called the float. When the investments of float are successful they may earn large

profits, even if the insurance company pays out in claims every penny received as premiums. In

fact, most insurance companies pay out more money than they receive in premiums. The excess

amount that they pay to policyholders is the cost of float. An insurance company will profit if

they invest the money at a greater return than their cost of float.

An insurance contract or policy will set out in detail the exact circumstances under

which a benefit payment will be made and the amount of the premiums.

Classification of insurance

The insurance industry in India can broadly classified in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:

Life insurance can be defined as “life insurance provides a sum of money if the person

who is insured dies while the policy is in effect”.

In 1818 British introduced to India, with the establishment of the oriental life insurance

company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life

assurance society was set up in 1870.the life insurance act, 1912 was the first statuary measure

to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated

and amended by the insurance act, 1938, with comprehensive provisions for detailed effective

control over insurance. The union government had opened the insurance sector for private

participation in 1999, also allowing the private companies to have foreign equity up to 26%.

Following the opening up of the insurance sector, 12 private sector companies have entered the


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life insurance business.

Benefits of life insurance

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

Thus insurance is found to be very useful in the lives of the person both in short term and long

term.

Fundamental principles of life insurance contract;

1) Principle of almost good faith:

“A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk being

proposed whether requested or not”.

2) Principle of insurable interest:

“Relationships with the subject matter (a person) which is recognized in law and gives legal

right to insure that person”.

2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be established in

India in 1850, whose shares were mainly held by the British. The first general insurance

company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was

stabilized in 1907. There emerged many a player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of General

Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance

business.


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1.1 EXECUTIVE SUMMARY:

The Insurance sector, after the opening up, provides greater opportunities. Several

global players have emerged and the market has changed significantly. In the changed scenario,

the expectation is that the low Insurance premium as a percentage of GDP prevailing in India

will improve and will offer better opportunities to the insurance players.

Life Insurance sector is one of the key areas where enormous business potential exists.

In India currently the life insurance premium as a percentage of GDP is 1.3 per cent against 5.2

per cent in the US, but in the liberalized scenario, the life insurance

premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99 to Rs

592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life

premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 2009-10 and

personal line non-life from Rs 4 billion to Rs 51 billion.

In the life Insurance segment the Life Insurance Corporation of India (LIC) is the major

player. The LIC has 2050 branches. It is constituted in to seven Zones. Currently there are 5,

60,000 LIC agents in India. General Insurance is another segment, which has been growing at a

faster pace.

ICICI PruLife works to generate revenue and make profits so that the organisation is

able to sustain and compete in the market. The revenue comes from the sales of its products, so

as a summer trainee my job profile was the study and sales of ULIP plan. I had to study the

ULIP plan to understand it and have the complete knowledge of the product and do sales so as

to generate revenue for my organization.


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1.2. INSURANCE INDUSTRY:

Historians believe that insurance first developed in Sumer & Babylonia. The merchants

& traders of these societies transferred & pooled their money to protect themselves from

pirates.

In the 18th century BC, Babylonian king Hammurabi developed a code of law known as

the code of specific rules governing the practices of early risk-sharing activities.

Insurance developed during the 1700’s in the North American colonies. In 1730,

Benjamin Frank contributed for the Insurance of Houses from Loss by Fire. The company

collected contributions & this money went into an investment fund. Interest on this fund went

towards paying claims dividends to those who contributed money.

1.3. Reason for Insurance:

No one knows in advance when a loss will occur or how serious that loss will be. The

uncertainty surrounding potential losses is known as Risk. Insurance offers a way for people to

replace risk with known costs- the costs of buying & maintaining insurance policies.

Insurance pools risks shared by many people, thereby, reducing the risks faced by a

group. People pay to buy insurance coverage (protection from risk). In exchange, all policy

holders (people who own insurance policies) receive a promise that the group of policyholders

as represented by the insurance organization will pay when any policyholder experience any

kind of loss.


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1.4. Importance of Insurance:

Insurance industries in India have a long history. Life Insurance in existing form came

in India from UK in 1818 with Oriental Life Insurance Company. The Indian Life Assurance

companies Act, 1912 was the first measure to regulate Life Insurance business. Later in 1928

the Indian Insurance Companies act was enacted, which was amended in 1938. Finally

Government of India in 1950 again amended this act. Life Insurance Corporation of India was

formed in September 1956 by passing LIC Act, 1956 in Indian parliament.

The first general insurance company- Sun Insurance Office Ltd. was established in Calcutta

in the year 1710. General Insurance business in India was nationalized with effect from 1.1.73

by the General Insurance Business Act. from 1973, The General Insurance Company (GIC) as a

holding company divided in four subsidiaries as:

- National Insurance Company Ltd.,

- The New India Assurance Company Ltd.

- The Oriental Insurance Company Ltd.

- The United India Insurance Company Ltd.


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1.5. INTRODUCTION OF LIFE INSURANCE IN INDIA:

India at a glance:

Population: 1.1 Billion

Economy: 4th largest in the world in terms of Purchasing Power Parity (PPP)

GDP growth Rate: Over 6% per year on an average for the last decade

Estimated middle class population: 300 Million

Insured population: 70 million only

Insurance is an Rs 450 billion industry in India. The value of the market is determined

by gross premium incomes. The life insurance segment writes about 80% of the overall market

value. Indian Insurance market was at its all-time high in 2003 with a growth of about 17.4%

over the previous year. Since 2001 Insurance is growing at the rate of 15-20 % annually. The

growth in the insurance industry is affected by volatility in real estate rates, GDP rates and long

term interest rates. Fluctuations in exchange rates also affect the growth in this sector. The

gross premium as a percentage of the GDP has gone up from 2.3 in the year 2000 to 4.8 in

2006. Together with banking services, it adds about 7% to the country’s GDP.

1.6. Some of the important milestones in the life insurance business in India are:

British-India Period:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started

functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started

its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.


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1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Life Insurance in its modern form

came to India from England in the year 1818. Oriental Life Insurance Company started by

Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance

companies established during that period were brought up with the purpose of looking after the

needs of European community and Indian natives were not being insured by these companies.

However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life

insurance companies started insuring Indian lives. But Indian lives were being treated as sub-

standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life

Assurance Society heralded the birth of first Indian life insurance company in the year 1870,

and covered Indian lives at normal rates.

Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a

capital contribution of Rs. 5 crores from the Government of India.


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1.7. Liberalization of Indian Insurance:

1994: Insurance sector invited private participation to induce a spirit of competition amongst

the various insurers and to provide a choice to the consumers.

1997: Insurance regulator IRDA was set up as there felt the need:

To set up an independent regulatory body, that provides greater autonomy to insurance

companies in order to improve their performance, In the first year of insurance market

liberalization (2001) as much as 16 private sector companies including joint ventures with

leading foreign insurance companies have entered the Indian insurance sector. Of this, 10 were

under the life insurance category and six under general insurance. Thus in all there are 25

players (12-life insurance and 13-general insurance) in the Indian insurance industry till date.

1.8. Indian Insurance in 21st Century:

2000: IRDA starts giving licenses to private insurers: ICICI prudential and HDFC Standard

Life insurance first private insurers to sell a policy

2002: Banks allowed selling insurance plans. As TPAs enter the scene, insurers start setting

non-life claims in the cashless mode

2007: First Online Insurance portal, www.insurancemall.in set up by an Indian Insurance

Broker, Bonsai Insurance Broking Pvt Ltd.


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CHAPTER 2

RESEARCH METHDOLOGY


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2.1. Marketing Research:

Research simply means search for knowledge. Research is a systematic design

collection, analysis and reporting of data and finding relevant to a specific marketing situation

facing the company. In today’s competitive business scenario every decision could be critical

and might have an immense effect on the future of business. Thus the Research is of prime

importance of modern business.

Marketing Research is the process of systematic gathering, recording and analyzing of

data about customers, competitors and the market. Market research can help create a business

plan, launch a new product or service, fine tune existing products and services, expand into new

markets etc. It can be used to determine which portion of the population will purchase the

product/service, based on variables like age, gender, location and income level. It can be found

out what market characteristics your target market has. With market research, companies can

learn more about current and potential customers.

The purpose of market research is to help companies make better business decisions

about the development and marketing of new products. Market research represents the voice of

the consumer in a company.

A list of questions that can be answered through market research:

How to get a new customer and retain older?

What is happening in the market? What are the trends? Who are the competitors?

How do consumers talk about the products in the market?

Which needs are important? Are the needs being met by current products?

2.2 Research Design:

The project was carried out, keeping in mind the main objectives. The research design is

the conceptual framework within which the research is conducted. It contains the blueprint for

the collection, measurement and analysis of data. Our project demanded the knowledge of

portion of population, so we decided to go for random sample survey instead of census survey.

The population in this case we had to deal with comprised of every kind of person, an illiterate

and an educated one, a young and an old one, so we designed a questionnaire that would be


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easy to comprehend and that would be easy for us to make people understand. However, it is

worth mentioning that the questionnaire dealt with every possible problem and solution, which

was usually followed by an unstructured interview/ question conditioned to cooperation of

respondent and many inferences were made on the bases of these interactions.

2.3. Types of research design:

There are three types of research design:

Exploratory research design

Descriptive research design

Causal research design.

Exploratory research is method of collecting information in an unstructured and informal

way. Exploratory research helps determine the best research design, data collection method and

selection of subjects. Exploratory research often relies on secondary research such as reviewing

available literature and/or data, or qualitative approaches such as informal discussions with

consumers, employees, management or competitors, and more formal approaches through in-

depth interviews, focus groups, projective methods, case studies or pilot studies. The Internet

allows for research methods that are more interactive in nature.

For example if the owners of a new restaurant often eat out at competitor’s restaurants

in order to gather information about menu selections, prices and service quality.

Descriptive research refers to a set of methods and procedures that describe marketing

variables. Descriptive studies portray these variables by answering who, what, why and how

questions. These types of research studies may describe such things as consumers’ attitudes,

intentions, and behaviour, or the number of competitors and their strategies.

Causal research design is conducted by controlling various factors to determine which

factor is causing the problem. It allows you to isolate causes and effects. By changing one

factor, say price you can monitor its effects on a key consequence such as sales. Although

causal research can give you a high level of understanding of the variable you are studying, the

designs often require experiments that are complex and expensive. INSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT

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http://en.wikipedia.org/wiki/Internet

http://en.wikipedia.org/wiki/Pilot_studies

http://en.wikipedia.org/wiki/Case_studies

http://en.wikipedia.org/wiki/Focus_group

http://en.wikipedia.org/wiki/Secondary_research

http://en.wikipedia.org/wiki/Data_collection

http://en.wikipedia.org/wiki/Research

2.4. Project Design:

Our project demanded a design which would include:

Research nature: An exploratory research design was adopted to conduct

the study in order to know the above mentioned

objectives.

Data collection method: Population being very large, the Data Collection Method

demanded the Sample Survey.

Primary Data Collection: Questionnaire

Phrasing of Queries: Queries were made in such a way that it was easy for us to

make it understand and easy to comprehend.

Order of Queries: Order was most important feature which was kept in

mind.

Optional Data Collection: Unstructured Questions


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2.5. PROBLEM SATATEMENT:

“To study the Brand Awareness of ICICI Prudential with reference to Sopore and

Baramulla areas of Jammu and Kashmir”.

2.6. OBJECTIVES OF THE STUDY:

TO ANALYSE THE BRAND AWARENESS OF ICICI PRUDENTIAL INSURANCE COMPANY IN

SOPORE AND BARAMULLA.

The objective of our study included the following important functions:

a) To check the awareness and interest of Insurance among people in general.

b) To find out the popularity of different insurance providers.

c) To find out the satisfaction level of existing policy holders.

d) To enlighten people with the benefits of Insurance and Investments.

e) To find out the reason behind less impetus of people towards Insurance.

f) To find out a strategy to make people aware and develop their interest in insurance and

Investments.

g) To know about the most threatening substitute of Insurance.


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2.7. Limitations of the Study:

It is said, “Nothing is perfect” and there would be few shortcoming in this project also.

Sincere efforts have been made to eliminate discrepancies as far as possible but few would have

remained due to limitations of the study.

Time seemed to be my most limited resource to conduct a comprehensive research.

Project was scheduled to be completed in 07 week’s period seems to be very difficult.

Some of the respondents were not ready to fill the questionnaires and some of them

were not ready to come out openly.

Due to the current unrest in Kashmir, it was very difficult to get the good no. of

questionnaires filled up.

Most of the people (particularly in rural areas) were unable to fill up the questionnaire

due to the lack of knowledge about the insurance industry.


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2.8. Questionnaire Design:

Based on the varied needs of the information required, the questionnaire was designed

in such a manner that it satisfied our need and it was prepared in consultation with the Sales

Manager of ICICI Prudential Life Insurance Company.

The necessary parameters which were taken care of during this phase were:

The information needs should be completely met.

Ease of understanding of the Queries.

Ease of administering the questionnaire.

Probing nature of the questionnaire.

To make it free from biased Queries.

There should be no implicit responses.

The person responding to the schedule should not be able to make assumptions

about the information collection agency to prevent any intended bias that could

creep in because of that.

During the Interviewer development phase, emphasis was put on the following areas:

1. Question Issues

a. What types of questions can be asked?

b. How complex will the questions be?

c. Will cross check questions be needed?

d. Will lengthy questions be asked?

e. Will open ended questions be asked


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2. Content Issues

a. The information requirement laid down prior to questionnaire

development should be completely met.

b. Can the respondents be expected to know about the issue?

c. Will the responses be conclusive and provide enough information to

make important decisions?

d. Ease of understanding of the questionnaire by the respondent.

e. The language of the questionnaire was kept lucid and easy for better

comprehension by the respondent

f. The sequence of questions was so adjusted as to avoid any

predisposition

3. Bias Issues

a. Can interviewer distortion and subversion be controlled?

b. Can false respondents be avoided?

c. The questionnaire should be anonymous i.e. the respondent should

not be able to know on behalf of which telecom operator the research

was being conducted. This was done to minimize bias.

4. Administrative Issues

a. Costs

b. Facilities

c. Time

d. Personnel

e. Ease of administering the questionnaire.


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Note: This is a Research Project conducted by the student of MBA (Bharati

Vidyapeeth University, IMED, Pune).

QUESTIONNAIRE

Name: -____________________________________________________________________________

Address: -_____________________________________________________________________________

Contact No : __________________________________________________________________________

Q1: DO YOU HAVE KNOWLEDGE ABOUT LIFE INSURANCE?

a) YES b) NO

Q2: HOW HAVE YOU BEEN EXPOSED TO LIFE INSURANCE?

a) ADVERTISEMENT b) INSURANCE AGENT

c) FRIENDS AND RELATIVES

Q3: DO YOU HAVE KNOWLEDGE ABOUT INSURANCE COMPANIES OTHER THAN LIC?

a) METLIFE b) BAJAJ ALLIANZ

c) ICICI PRUDENTIAL d) NONEINSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT

MBA-G 30

Q4: ARE YOU A PRESENT POLICY HOLDER?

a) YES b) NO

Q5: WHAT IS YOUR SATISFACTION LEVEL WITH LIFE INSURANCE POLICY?

a) STRONGLY SATISFIED b) SATISFIED

c) CANT SAY d) NOT SATISFIED

Q6: DO YOU THINK ICICI PRUDENTIAL IS A RELIABLE INSURANCE COMPANY?

a) YES b) NO

Q7: ARE YOU AWARE ABOUT THE PRODUCTS OF ICICI PRUDENTIAL?

a) YES b) NO

Q8: ARE YOU INTERESTED TO KNOW ABOUT ICICI PRUDENTIAL?

a) YES b) NO

Q9: DO YOU THINK INSURANCE POLICIES SHOULD PROVIDE MORE RETURNS BESIDES

RISK COVER?

a) STRONGLY AGREE b) AGREE

c) DOES NOT MATTER d) DISAGREE


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Q10: WHERE DO YOU INVEST YOUR SAVINGS?

a) BANKS b) REAL ESTATE

c) SHARE MARKETS d) OTHERS

Q11: ARE YOU A TAX PAYER?

a) YES b) NO

Q12: LIFE INSURANCE POLICIES TODAY PROVIDE SECURITY AND FINANCIAL SOLUTION

FOR YOUR TOMMOROW?

a) STRONGLY AGREE b) AGREE

c) CAN’T SAY d) DISAGREE

e) STRONGLY DISAGREE

Q13: WHAT COULD BE THE REASONN BEHIND LESS IMPETUS AND INTEREST TOWARDS

INSURANCE?

a) REGION AWARENESS b) MOTIVATION

c) INCOME d) OTHERS.


MBA-G 32

CHAPTER 3

COMPANY

PROFILE


MBA-G 33

COMPANY PROFILE

3.1. ICICI Prudential Life Insurance Co. Ltd.

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

is one of India's foremost financial services companies, and Prudential Plc, which is a leading

international financial services group headquartered in the United Kingdom. ICICI Prudential

began the operations in December 2000. Today, this company has over 2100 branches, which

include 1,116 micro-offices, over 290,000 advisors and 18 banc assurance partners.

ICICI Prudential Life Insurance is one of the largest Insurance networks in the country,

and 2nd Life Insurance Company in India. The ICICI Group has been in existence since 1955

when ICICI Ltd., was created. ICICI Prudential started in 2002 as subsidiary of ICICI Ltd.,

Today ICICI Life Insurance has a customer base of 4 million with total assets exceeding Rs.1,

00,000 Cr. making it the 2nd largest life insurance company in the country, next only to LIC.


MBA-G 34

ICICI Prudential Life Insurance Company is the first life insurer in India that received a

National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential

has been voted as India's Most Trusted Private Life Insurer for three consecutive years. ICICI

Prudential Life Insurance Company has various insurance plans that have been designed for

different individuals, as every individual has different insurance needs.

For three years in a row, ICICI Prudential has been voted as India's Most Trusted

Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted

Brands'. As we grow our distribution, product range and customer base, we continue to

tirelessly uphold our commitment to deliver world-class financial solutions to customers all

over India.

Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance has

been one of the earliest private players. Since the time, ICICI Pru Life has been the leader in

terms of market share as indicated by the IRDA (Insurance Regulatory and Development

Authority, the regulator for Indian Insurance Industry) at its website.

Arguably the most innovative Indian Life insurer in terms of customer services and

products, ICICI Prudential has one of the largest distribution and servicing network with

around 2,000 proprietary offices & customer touch points across India. The 30,000 employee

strong organization has one of the largest agency distribution in the industry.

With a growing product range to match the complex needs of the demanding customers

in a growing economy, the organization also has a history of successful.

During 2007-08, the organization's focus on rural business has proved its complex

project execution capability and strong partnerships for customer servicing.

In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK

Healthcare to settle insurance claims of its users.


MBA-G 35

3.2. The ICICI Prudential Edge:

The ICICI Prudential edge comes from our commitment to our customers, in all that we

do - be it product development, distribution, the sales process or servicing. Here's a peek into

what makes us leaders.

1. Our products have been developed after a clear and thorough understanding of customers'

needs. It is this research that helps us develop Education plans that offer the ideal way to truly

guarantee your child's education, Retirement solutions that are a hedge against inflation and yet

promise a fixed income after you retire, or Health insurance that arms you with the funds you

might need to recover from a dreaded disease.

2. Having the right products is the first step, but it's equally important to ensure that our

customers can access them easily and quickly. To this end, ICICI Prudential has an advisor

base across the length and breadth of the country, and also partners with leading banks,

corporate agents and brokers to distribute our products .

3. Robust risk management and underwriting practices form the core of our business. With

clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and

hassle-free claims process.

4. Entrusted with helping our customers meet their long-term goals, we adopt an investment

philosophy that aims to achieve risk adjusted returns over the long-term.

6.Last but definitely not the least, our team is given the opportunity to learn and grow, every

day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they

can deliver on our promise to cover you, at every step in life


MBA-G 36

3.3. Entry of Private Players:

The introduction of private players in the industry has added colors to the dull industry.

The initiatives taken by the private players are very competitive and have given immense

competition to the one time monopoly of the LIC market. Since the advent of the private

players in the market, the industry has seen new and innovative steps, taken by the players in

this sector. The new players have improved the service quality of the insurance.

The following companies are present in the Life Insurance Industry in India.

Name of the player

Bajaj Allianz Life Insurance Company Limited.

Birla Sun Life Insurance Co. Ltd.

HDFC Standard Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Co. Ltd.

ING Vysya Life Insurance Company Pvt. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd.

Life Insurance Corporation of India

Max New York Life Insurance Co. Ltd.

Met Life Indian Insurance Company Pvt. Ltd.

SBI Life Insurance Co. Ltd.

Tata AIG Life Insurance Company Ltd.

Reliance Life Insurance Company Ltd.

Aviva Life Insurance Co. India Pvt. Ltd.

Sahara India Life Insurance Co. Ltd.

Bharti AXA Life Insurance Company Ltd.


MBA-G 37

3.4. Promoters Of The Company:

3.4.1. ICICI Bank:

ICICI Bank (BSE: 532174, NYSE: IBN) (formerly Industrial Credit and Investment

Corporation of India) is a major banking and financial services organization in India. It is the

second-largest bank by revenue, profit and assets (behind State Bank of India) and the largest

private sector bank in India by market capitalization. The bank also has a network of 1,700+

branches (as on 31 March, 2010) and about 4,721 ATMs in India and presence in 18 countries,

as well as some 24 million customers (at the end of July 2007). ICICI Bank offers a wide range

of banking products and financial services to corporate and retail customers through a variety

of delivery channels and specialization subsidiaries and affiliates in the areas of investment

banking, life and non-life insurance, venture capital and asset management. (These data are

dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has got its

equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National

Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance sheet

among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and

representatives offices in 18 countries, including an offshore unit in Mumbai. This includes

wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the HI

SAVE savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory

branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in

Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and

USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular.

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in

total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's

current and savings account (CASA) ratio increased to 30% in 2008 from 25% in 2007.

ICICI Bank is one of the Big Four Banks of India, along with State Bank of India, Axis

Bank and HDFC Bank — its main competitors.


MBA-G 38

Type Public (BSE: 532174, NYSE: IBN)

Industry : Banking Financial services

Founded : 1955

Headquarters: Mumbai, India

Key people: K.V. Kamath (Chairman)

Chanda Kochhar (MD & CEO)

N. S. Kannan (CFO)

Products: Investment Banking

Commercial Banking

Retail Banking

Private Banking

Asset Management

Mortgage

Credit Cards

Revenue ▼ US$ 12.467 billion (2009)

Operating income ▼ US$ 3.236 billion (2009)[

Profit ▼ US$ 664 million (2009)

Total assets ▼ US$ 93.508 billion (2009)

Total equity ▼ US$ 9.376 billion (2009)

Employees 35,000+ (2009)

3.4.2. Prudential plc:


MBA-G 39

Established in London in 1848, Prudential plc is an international retail financial services

group with significant operations in Asia, the US and the UK serving around 25 million

customers, policyholder and unit holders worldwide. The company has £290 billion of assets

under management and it is one of the best-capitalised insurers in the world with an Insurance

Groups Directive (IGD) capital surplus estimated at £3.4 billion (at 31 December 2009).

Prudential is a leading life insurer in Asia with a presence in 12 markets and have the top three

position in seven key locations of Hong Kong, India, Indonesia, Malaysia, Singapore, the

Philippines and Vietnam.

Prudential plc (LSE: PRU, NYSE: PUK) is a British financial services company. The

company has over 21 million customers worldwide. As well as the UK arm of its operations it

has operations in 12 countries in Asia and owns Jackson National Life in the United States. It

founded the Egg internet bank, which it sold to Citigroup in 2007. It is listed on the London

Stock Exchange and is a constituent of the FTSE 100 Index.

Type: Public (LSE: PRU, NYSE: PUK)

Industry: Financial services

Founded: 1848

Headquarters: London, England, UK

Key people: Harvey McGrath, (Chairman)

Tidjane Thiam, (CEO)

Products: Life insurance

Revenue £20,299 million (2009)

Operating income £1,564 million (2009)

Net income £677 million (2009)

Employees 25,000 (2010)

3.5. Achievements: INSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT

MBA-G 40

Beginning operations in December 2000, ICICI Prudential’s success has been

meteoric, becoming the number one private life insurer within months of launch. Today, it

has one of the largest distribution networks amongst private life insurers in India, with

branches in 54 cities. The total number of policies issued stands at more than 780,000

with a total sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total

received premium income of Rs. 9.9 billion; up 135% last year’s total premium income of

Rs.4.20 billion. New business premium income shows a 106% growth at Rs. 7.5 billion,

driven mainly by the company’s range of unique unit-linked policies and pension plans.

The company’s retail market share amongst private companies stood at 36%, making it

clear leader in the segment. To add to its achievements, in the year 2003/04 it was

adjudged Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand

Survey’ by ACNielsen ORG-MARG). It was also conferred the ‘Outlook Money-Best Life

Insurer’ award for the second year running. The company is also proud to have won Silver

at EFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI Prudential was

also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002.

In Keeping with its belief that a happy customer is the best endorsement, ICICI

Prudential has embraced the ‘SIX SIGMA’ approach to quality, an exercise that begins and

ends with the customer from capturing his voice to measuring and responding to his

experiences. This initiative is currently helping the company improve processes, turnaround

times and customer satisfaction levels. Another Novel introduction is the ICICI Prudential

Lifestyle Rewards Club, India’s first rewards programme for Life Advisors; it allows ICICI

Prudential Advisors to redeem points for items ranging from kitchenware to gold, white goods,

and even international holidays.

3.6. Promotion:INSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT

MBA-G 41

ICICI Prudential is a case study in how advertising and marketing can play a vital role

in re-shaping an industry. It has demonstrated how an industry where the customer was nothing

more than a policy number has changed to one where ‘customer preference’ rules the roost.

Brand-building in a complex category like life insurance is an uphill and multi-faceted

task. At the time of launching operations, the communications task was to build credibility, so

as to give the customer the confidence that it was ‘a company that could be trusted to invest

funds with’. The aim was to encourage people to view insurance not as a compulsory tax saving

instrument, but as a means to lead a worry-free, secure life and in the process, create the

differentiator for brand ICICI Prudential.

The brand proposition for all the campaigns was reflected in the line: ‘Suraksha:

Zindagi ke har kadam par’. The campaign featured a significant competitive advantage, the

sound financial backing and credentials of ICICI Prudential, and showcased products from

different segments. The advertising idea was encapsulated in the symbol of protection –the

‘Sindoor’. This campaign contributed extensively to raising brand awareness and creating a

distinctive identity for the company.

The Company recently tied up with the Forbes Six Sigma rated Dabbawalla

organization in Mumbai for a direct marketing exercise. In a Unique effort to create awareness

about a tax saving product, the company attached a creative of a bitten apple to Mumbai’s

ubiquitous lunchboxes. It worked wonderfully with Mumbai’s office-goers and one that

translated into substantial business for the company.

3.7. Brand Values:

Market Research reveals that the values people associate with ICICI Prudential are,

indeed, those that the company hopes to project: lifelong protection and value for money. The

core value is protecting your loved ones, throughout life’s ups and downs. It is a powerful

proposition; one, which ICICI Prudential, is taking into the market place.

3.8. Fact Sheet:

The Company


MBA-G 42

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

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

group headquartered in the United Kingdom. ICICI Prudential was amongst the first private

sector insurance companies to begin operations in December 2000 after receiving approval

from Insurance Regulatory Development Authority (IRDA).

3.9. Vision of ICICI PruLife:

To be the dominant Life, Health and Pensions player built on trust by world-class

people and service.

This ICICI PruLife hope to achieve by:

Understanding the needs of customers and offering them superior products and service

Leveraging technology to service customers quickly, efficiently and conveniently

Developing and implementing superior risk management and investment strategies to

offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our employees

And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5 core

values:- Integrity, Customer First, Boundary-less, Ownership and Passion. Each of the values

describes what the company stands for, the qualities of our people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, where we

can play a significant role in redefining and reshaping the sector. Given the quality of our

parentage and the commitment of our team, there are no limits to our growth.

3.10. Values of ICICI PruLife:

Every member of the ICICI Prudential team is committed to 5 core values: Integrity,

Customer First, Boundary-less, Ownership, and Passion. These values shine forth in all we do,

and have become the keystones of our success.

3.11. History of ICICI Prudential:


MBA-G 43

Beginning operations in December 2000, ICICI Prudential’s success has been

meteoric, becoming the number one private life insurer within months of launch. Today, it

has one of the largest distribution networks amongst private life insurers in India, with

branches in 54 cities. The total number of policies issued stands at more than 780,000

with a total sum assured in excess of Rs.160 billion.

From its early days, ICICI Prudential seemed to have the wherewithal for a large-scale

business. By March 31, 2002, a little over a year since its launch, the company had issued

100,000 policies translating into premium income of approximately Rs. 1,200 million on a sum

assured of over Rs.23 billion. When the company began its operations, the need was to build a

brand that was relatable to, symbolized trust and was easily recognized and understood. It

launched a corporate campaign ICICI Prudential also made using the theme of ‘Sindoor’ to

epitomize protection, trust, togetherness and all that is Indian; endearing itself to the masses.

The success of the campaign, ‘the calling card of the company’ saw the brand awareness scores

almost at par with its 40 year old competitor. The theme of protection was also extended to

subsequent product and category specific campaigns –from child plans to retirement solutions –

which highlight how the company will be with its customers at every step of life.

From day one, the company has unflinchingly focused on being mass-market player,

developing products, creating a distribution network and deploying resources that would further

its goal. Apart from ramping up thoroughly training its advisors, the company has twelve

‘Bancasurance’ partners –the largest in the country. It swiftly revised and added to its initial

range of products, pioneering market-linked products and pension plans, to offer customers the

most flexible life insurance policies in the country. In February 2004, ICICI Prudential

increased its capital base by Rs. 500 million, its ninth capital hike, bringing the total paid –up

equity capital to Rs. 6,750 million. With the authorized capital of the company standing at Rs.

12 billion, ICICI Prudential continues to have the highest capital base amongst all life insurers

in the country. The challenge ICICI Prudential now faces is to retain its top-notch position and

continue to deliver the finest life insurance and pension solutions to its ever-growing customer

base.

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

plc holding 74% and 26% stake respectively. For the year ended March 31, 2006, the company INSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT

MBA-G 44

garnered Rs.2, 412 crore of weighted new business premium and wrote 837,963 policies. The

sum assured in force stands at Rs.45, 888 crore. The company has a network of over 72,000

advisors; as well as 9 bancasurance partners and over 200 corporate agent and broker tie-ups.

ICICI Prudential is also the only private life insurer in India to receive a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA rating is the

highest credit rating, and is a clear assurance of ICICI Prudential’s ability to meet its

obligations to customers at the time of maturity or claims.

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

insurer in the country, with a wide range of flexible products that meet the needs of the Indian

customer at every step in life.

ICICI Prudential closed the financial year ended march 31, 2004 with a total

received premium income of Rs. 9.9 billion; up 135% last year’s total premium income of

Rs.4.20 billion. New business premium income shows a 106% growth at Rs. 7.5 billion,

driven mainly by the company’s range of unique unit-linked policies and pension plans.

The company’s retail market share amongst private companies stood at 36%, making it

clear leader in the segment. To add to its achievements, in the year 2003/04 it was

adjudged Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand

Survey’ by AC Nielsen ORG-MARG). It was also conferred the ‘Outlook Money-Best Life

Insurer’ award for the second year running. The company is also proud to have won Silver

at EFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI Prudential was

also short-listed to the final round for its ‘Sindoor campaign in EFFIES 2002.

ICICI Prudential’s success is rooted in its philosophy to always offer the customer a

choice. This has been the driving force behind its multi-channel distribution strategy, which

includes advisors, banks, direct marketing and corporate agents. In fact, ICICI Prudential was

the first life insurer to invest in multiple channels and offer the customer choice and access;

thus reducing dependency on any one channel, great strides in the retirement solutions and

pensions market.


MBA-G 45

The Company’s penetration of the retirement market was driven by the focused

approach towards creating awareness through sustained campaign; ‘Retire from work, not life’.

Within six months, the campaign rewarded ICICI Prudential with an increased share of 23% of

the total pensions market and 78% amongst private players. ICICI Prudential has one of the

largest distribution networks amongst private life insurers in India, having commenced

operations in 132 cities and towns in India, stretching from Bhuj in the west to Guwahati in the

east, and Jammu in the north to Trivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements with ICICI

Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-

operative banks, as well as over 200 corporate agents and brokers, it has also tied up with

NGOs, MFIs and corporates for the distribution of rural policies.

ICICI Prudential has recruited and trained more than 72,000 insurance advisors to

interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to

provide superior quality of service to customers.


MBA-G 46

3.12. Products of ICICI PruLife

Insurance Solutions for Individuals

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

that meet the needs of customers at every life stage. Its products can be enhanced with up to 4

riders, to create a customized solution for each policyholder.

Savings & Wealth Creation Solutions

ICICI Pru Save 'n' Protect is an ideal plan for those who want to accumulate funds on a

regular basis while enjoying insurance protection.

ICICI Pru CashBak is a single policy that combines the triple benefit of protection, savings &

periodic liquidity.

ICICI Pru Lifetime Maxima is a unit-linked plan which offers potentially higher returns over

the long term with flexible investment options to help you achieve your goals. It also offers you

a unique strategy that allows you to protect gains made through your funds invested in the

equity markets from any future equity market volatility.

ICICI Pru Assure Wealth is a whole life insurance and savings unit linked plan that rewards

you with a guaranteed addition and also provides you an insurance cover, with the additional

advantage of a lifecycle based portfolio strategy that allocates the investor’s money across

various asset classes based on his age and risk appetite.

ICICI Pru Premier Wealth is a unit-linked plan which offers potentially higher returns over

the long term with flexible investment options to help you achieve your goals. It also offers you

a unique strategy that allows you to protect gains made through your funds invested in the

equity markets from any future equity market volatility.

ICICI Pru ACE is a unit-linked plan which has no premium allocation charge for any regular


MBA-G 47

premiums, which means 100% of your money is invested in Funds on premium payment. It

also offers you a unique strategy that allows you to protect gains made through your funds

invested in the equity markets from any future equity market volatility.

Protection Solutions

ICICI Pru Pure Protect is a flexible and affordable term product, with which you can ensure

your life and provide total security for your family in case of an unfortunate event.

ICICI Pru LifeGuard is a protection plan, which offers life cover at low cost. It is available in

2 options –level term assurance with return of premium & single premium.

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

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

Child Plans

ICICI Pru SmartKid Maxima is a policy that is designed to provide money at key

educational milestones in your child's life.

ICICI Pru SmartKid Assure is a policy that not only provides money at key educational

milestones in your child's life but also rewards you with a guaranteed addition.

SmartKid plans are also available in traditional form.


MBA-G 48

Retirement Solutions

ICICI Pru ForeverLife is a traditional retirement product that offers guaranteed returns for the

first 4 years.

ICICI Pru LifeTime Pension Maxima is a regular premium unit linked pension plan that

helps you accumulate money for your retirement and offers 5 ways of receiving pension. It also

offers you a unique strategy that allows you to protect gains made through your funds invested

in the equity markets from any future equity market volatility.

ICICI Pru LifeStage Pension Advantage is a regular premium unit linked pension plan which

has no premium allocation charge for any regular premiums, which means 100% of your

money is invested in Funds on premium payment.

ICICI Pru Immediate Annuity is a single premium annuity product that guarantees income

for life at the time of retirement. It offers the benefit of 5 payout options.

ICICI Pru Assure Pension is a unique pension plan that assures guaranteed additions of up to

170% of the first year premium, giving investors an unmatched start towards accumulating for

their retirement kitty.

ICICI Pru Elite Pension II is a unit linked pension plan that provides flexibility to the

customer to pay for a limited term and lets him build a kitty for his retirement to provide an

annuity for life.

Health Solutions

ICICI Pru Hospital Care is a fixed benefit inpatient hospitalisation plan, covering various

stages of treatment with a daily allowance, ICU, procedures & recuperating allowance. It


MBA-G 49

covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage

upto 20 years.

ICICI Pru Crisis Cover is a 360-degree product that will provide long-term coverage against

35 critical illnesses, total and permanent disability, and death.

ICICI Pru MediAssure is a reimbursement inpatient hospitalization health insurance policy

that provides guaranteed insurability till age 75 years.

ICICI Pru Health Saver is a comprehensive health plan which provides a reimbursement

inpatient hospitalization cover along with building a health savings fund to cover any other

day-to-day medical expenses.

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance

benefits to their employees.

Group Gratuity Plan: ICICI Prudential Life's group gratuity plan helps employers fund their

statutory gratuity obligation in a scientific manner and also avail of tax benefits as applicable to

approved gratuity funds.

Group Leave encashment Plan: ICICI Prudential Life’s Group offers a market linked and

traditional leave encashment plan designed to aid the employer to build a fund to meet their

future leave encashment liability. The contributions made will be invested as per the chosen

investment plans and will be available for payment of the benefit when it falls due.

Additionally, the product also provides for term cover for all the employees covered under the

policy.

Group Superannuation Plan: ICICI Prudential Life offers a flexible market linked and

traditional schemes that provide substantial benefits to both employers and employees. Both


MBA-G 50

defined contribution (DC) and defined benefit (DB) schemes are offered to optimise returns for

members of the trust and rationalise cost. Members have the option of choosing from various

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

Group Immediate Annuities: ICICI Prudential Life realises the importance of prudent

retirement planning. With this in mind, it has developed a suite of life and joint life annuities

which guarantee periodic payment to annuitants upto death. Further there are options which

return the purchase price on death of annuitants. These annuity options are offered to our

existing superannuation customers, and also to superannuation funds not managed by us.

Group Term Plan: ICICI Prudential Life's flexible group term solution helps provide an

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

designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary

nominated by the member on his/her death.

Flexible Rider Options

ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a

marginal cost, depending on the specific needs of the customer.

1. Accident & disability benefit: If death occurs as the result of an accident during the

term of the policy, the beneficiary receives an additional amount equal to the rider sum

assured under the policy. If an accident results in total and permanent disability, 10% of

rider sum assured will be paid each year, from the end of the 1st year after the disability

date for the remainder of the base policy term or 10 years, whichever is lesser.

2. Critical illness benefit: Critical Illness Benefit Rider provides protection against 9

critical illnesses to the policyholder when attached to the basic plan


MBA-G 51

3.13. AWARDS:

ICICI Prudential Life was awarded the Life Insurance Company of the Year at the 12th Asia

Insurance Industry Award 2008.


MBA-G 52

.

ICICI Prudential Life won the Award for Brand Excellence in the Banking and Financial

services category at the Asia Brand Congress 2008.

.

ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008 in three key

categories for its marketing initiative


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ICICI Prudential Life‟s, retirement solutions campaign for the year 2006-07 was awarded

the Bronze Effy trophy in the services category. It also won the Brand Equity Bravery

Award 2007, instituted by Ad club.


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Best Life Insurer 2003. Outlook Money Awards 2003 & 2004 IMM Award for Excellence.

Institute of Marketing & Management Organization with Innovative HR Practices Indira

Group of Institutes.


MBA-G 55

CHAPTER 4

WORKING

ENVIRONMENT


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4.1 Introduction:

Firstly, I am very thankful to IMED, who has given me the opportunity to grasp the new

ideas and information through summer training. Being a resident of Jammu and Kashmir,

I prefer to do the summer training in J&K.

So, I choose to do it in ICICI Prudential, located in Sopore town of Jammu and Kashmir. I

met with the Branch Manager of ICICI Prudential on my first visit to the company. I give

him the detailed information about the summer training and he allowed me to do the

training here. After that I met with Agency Manager, Mr. Yasir Ahmad, under whom I was

supposed to do summer training.

I joined the organisation next day and Mr. Yasir used to conduct the classes to give the

information about Insurance Industry. We were asked to choose a particular topic to

conduct the summer training. I thought marketing related topic will suit best. So I choose

“Brand Awareness of ICICI Prudential”.

The survey was conducted in Sopore and Baramulla areas. The research was done

through questionnaire.


MBA-G 57

4.2. HUMAN RESOURCE DEPARTMENT:

ICICI Prudential is having two types of employees direct and indirect. They are

recruited from employment exchanges. Except PF there is no other fringe benefit for

temporary employees. There are different types of fringe benefit for permanent

employees.

All the service matters of the organization are under the control of this department. HR

Department is working under leadership.

STRUCTURE OF HR DEPARTMENT:


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GENERAL MANAGER

MANAGER (HR)

ASSISTANT MANAGER

JUNIOR SUPERINTENDENT

SENIOR ASSISTANT

JUNIOR ASSISTANT

STAFF

58

Working period is from 10 am to 5 pm. Working days are from Monday to Saturday.

Production department and Quality control department work for 24 hours.

The important functions performed by the department are:

Induction and Orientation

Training

Performance Appraisal

Promotion

Recruitment

Welfare Measures


MBA-G 59

4.3. MARKETING AND SALES DEPARTMENT:

A product is anything that can be offered to satisfy a need or want. So, a social and

managerial process by which individuals and groups obtain what they need and want through

creating, offering and exchanging products of value with others – that is called marketing.

Marketing starts with human needs, wants, demands and human satisfaction. People satisfy

their needs and wants with products. Actually, selling is preoccupied with the seller’s need to

convert his product into cash, but marketing is the idea of satisfying the needs of the customer

by means of the product and the whole cluster of things associated with creating, delivering and

finally consuming it.

STRUCTURE OF MARKETING DEPARTMENT:


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GENERAL MANAGER

MANAGER (MARKETING)

ASSISTANT MANAGER

MARKETING OFFICER

ASSISTANT MARKETING OFFICER

MARKETING ASSISTANTS

MARKETING ORGANIZERS

60

4.3.4 Relationship Marketing in Insurance:

It is five times more expensive to acquire a new customer then to retain an old one.

Relationship Marketing is the practice of building long term satisfying relationship with

key parties, customers and suppliers. They accomplish this by promoting and delivering

high quality goods services and fair prices to other parties. Relationship marketing results

in strong economic, technical and social ties among the parties.

The important objectives of relationship marketing is to acquire new

customers, maintain and enhance relationship with existing customers, re-activities of ex-

customers and handling of customers terminations. The key objective of relationship

marketing is to establish one to one relationship with all customers.

How to add value through relationship Marketing

Identify loyal customers

Recognize their special needs

Provide special reward for loyalty

Establish continuing relationship

Ensure increase in customer value

Relationship marketing is one of the hottest trends in the present marketing scenario.

Satisfied customers not only stay with a company but they are also walking talking

advertisement for the company’s product


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4.5. FINANCE AND ACCOUNTS DEPARTMENT:

An organization communicates its financial information to the users through

financial statements and reports. Financial statements contain summarized information of the

organization’s financial affairs, organized systematically. These statements comprise the

income statements or profit and loss account and the position statement or the balance sheet.

To give a full view of the financial affairs of the undertaking it

is also necessary to include a statement of retained earnings, a

statement of changes in the financial position and a few schedules

such as schedule of fixed assets and schedule of debtors.

STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT:


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SENIOR ASSISTANT

JUNIOR ASSISTANT

GENERAL MANAGER

MANAGER (FINANCE)

ASSISTANT MANAGER

JUNIOR SUPERINTENDENT

62

CHAPTER 5

DATA INTERPRETATION

AND ANALYSIS


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Data Interpretation and Analysis

Q1. Do you have knowledge about Life Insurance?

Ans: Responses were (Out of 80)

Yes No Total

Responses 74 6 80

%age 92 8 100

Table 1

92

8

YesNo

Chart 1

The graphs show that approximately 92% of the respondents were having

knowledge of Life Insurance.

Inference

This shows that there is a great market potential for Life Insurance and

people are ready to invest if guided properly.


MBA-G 64

Q2. How have you been exposed to Life Insurance?


Advertisemen

t

Insurance

Agent

Friends and

Relatives

Max 80 80 80

Observe

d

24 20 36

%age 30 25 45

Table 2

0102030405060708090

80 80 80

24 20

36 MaxObserved

Chart 2The graphs show that approximately 25% of the respondents were exposed to

Life Insurance through Insurance Agents.

Inference

This shows that the Company should recruit more and more Insurance

Agents to be successful in this competitive scenario. Advertisements and other

media should not be neglected as they too comprise a considerable

percentage.INSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT

MBA-G 65

Q3. Do you have knowledge about Insurance Companies other than LIC?


MetLife Bajaj

Allianz

ICICI

Pru.

None

Max 80 80 80 80

Observed 30 23 20 7

%age 38 28 25 9

Table 3

Metlife Bajaj Allianz ICICI Pru. None0

102030405060708090 80 80 80 80

3023 20

7

MaxObserved

Chart 3

The graphs show that Bajaj Allianz and MetLife have considerable number of

followers other than LIC.

Inference

This shows that the ICICI Prudential should make strategies keeping in view the

strategies of Bajaj Allianz and MetLife.


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Q4. Are you a present policy holder?


Yes No Total

Responses 24 56 80

%age 30 70 100

Table 4

24

56

YesNo

Chart 4

The graphs show that approximately 70% of the respondents were without

policies.

Inference

This shows that most of the market is unexplored representing a huge sales

potential.


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Q5. What is your satisfaction level with Life Insurance Policy?


Table 5

9

38

21

12

Chart 5

Strongly SatisfiedSatisfiedCan't SayNot Satisfied

The graphs show that almost 15 % of the respondents are not satisfied with

the existing products and services.

Inference

This shows that the plans should be customized and more features

should be added to products to make them more profitable and more attractive.


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Strongly

Satisfied

Satisfied Can't

Say

Not

Satisfied

Responses 9 38 21 12

%age 11 48 26 15

Q6. Do you think ICICI Prudential is a reliable insurance company?


Yes No Total

Responses 48 32 80

%age 60 40 100

Table 6

48

32

Chart 6

YesNo

The graphs show that almost 40% of the respondents lacked trust in ICICI

Prudential Life Insurance Company.

Inference

This shows that much needs to be done in order to develop trust and

reliability of ICICI Prudential Life Insurance Company among people.


MBA-G 69

Q7. Are you aware about the products of ICICI Prudential?


Yes No Total

Responses 22 58 80

%age 73 27 100

Table 7

22

58

Chart 7

YesNo

‘

The graphs show that approximately 73% of the respondents were unaware

about the products of ICICI Prudential Life Insurance Company.

Inference

This shows that there is a need of making product information common

among masses using proper media.


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Q8. Are you interested to know about ICICI Prudential?


Yes No Total

Responses 59 21 80

%age 74 26 100

Table 8

59

21

Chart 8

YesNo

The graphs show that approximately 74% of the respondents are interested to

know about the ICICI Prudential Life Insurance Company.

Inference

This shows that proper course of action should be followed to make people

aware of ICICI Prudential Life Insurance Company so that they can invest in it.

This also shows that ICICI PRUDENTIAL INSURANCE COMPANY enjoys a

good image among the masses.INSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT

MBA-G 71

Q9. Do you think Insurance Polices should provide more returns besides risk

cover?


Strongly

Agree

Agre

e

Doesn't

Matter

Disagre

e

Response

s

26 42 6 6

%age 33 53 7 7

Table 9

26

42

66

Chart 9

Strongly AgreeAgreeDoesn't MatterDisagree

The graphs show that approximately 53% of the respondents are interested in

more returns besides risk cover from Life Insurance Companies.

Inference


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This shows that insurance companies should focus on investments that provide

considerable amount of returns besides Insurance Cover.

Q10. Where do you invest your savings?


Bank

s

Real

Estate

Share

Market

Other

s

Respons

es

51 4 6 9

%age 64 5 7 24

Table 10

51

4

6 9

Chart 10

BanksReal EstateShare MarketOthers

The graphs show that approximately 64% of the respondents invest their

savings in banks

Inference


MBA-G 73

This shows that strategies should be formulated in such a manner that bank

customers could be converted into insurance customers, as is done through

bank assurances.


MBA-G 74

Q11. Are you a Tax Payer?


Yes No Total

Responses 19 61 80

%age 24 76 100

Table 11

19

61

Chart 11

YesNo

The graphs show that approximately 24% of the respondents are tax payers

and need to save tax.

Inference

This shows that tax saving benefits should be highlighted during the marketing

of insurance products to increase the customer base of the Insurance

Companies.


MBA-G 75

Q12. Life Insurance Policies provide security and financial Solution for your

tomorrow?

Ans: Responses were (Out of 80).

Strongl

y Agree

Agre

e

Can't

Say

Disagre

e

Strongly

Disagree

Response

s

19 43 8 8 2

%age 24 53 10 10 3

Table 12

19

43

8 8 2

Chart 12

Strongly AgreeAgreeCan't SayDisagreeStrongly Disagree

The graphs show that approximately 23% (10+10+3) of the respondents do

not take insurance as a tool for protection and financial solutions for tomorrow.

Inference

This shows that there is still a lot of confusion about the benefits of the

insurance which is not taken as a financial benefactor for tomorrow. INSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT

MBA-G 76

Q13. What could be the reason behind less impetus and interest towards

Insurance?


Table 13

11

3123

15

Chart 13

Region AwarenessMotivationIncomeOthers

The graphs show that approximately 39% of the respondents do not take

insurance because of motivational factors.

Inference

This shows that there is still a lot of confusion about the functioning of insurance

companies. The ULIP products should be promoted and also sales force needs

to be trained properly to increase the customer base.


MBA-G 77

Region

Awareness

Motivatio

n

Income Others

Responses 11 31 23 15

%age 14 39 29 18

CHAPTER 6

FINDINGS OF THE STUDY


MBA-G 78

Findings of the Study

The respondents having knowledge about the Life Insurance is fairly good.

Nearly half of the respondents have been exposed to Life Insurance by their Friends and

Relatives.

The awareness of ICICI Prudential among respondents is fairly low as compared to LIC

and MetLife.

The satisfaction level with Life Insurance policy among the respondents was very good.

Nearly 3/4th of respondents are not aware about the products and services offered by

ICICI Prudential.

Nearly 3/4th of respondents are interested to know about the products and services

offered by ICICI Prudential.

Almost 85% respondents are agreed with the statement that insurance policies should

provide more returns besides risk cover.

The reason for less knowledge and interest towards insurance is lack of motivation and

less income.


MBA-G 79

CHAPTER 7

CONCLUSION


MBA-G 80

Conclusion:

ICICI Prudential Life Insurance Company is a joint venture between ICICI

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

financial services group headquartered in the United Kingdom.

ICICI Prudential was amongst the first private sector insurance companies to

begin operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA).

This research report is based on the survey for finding the position of various

insurance policies offered by the insurance companies. Life insurance products

provide a definite amount of money to the dependants of the insured in case the

life insured dies during his active income earning period or becomes disabled on

account of an accident causing reduction/complete loss in his income earnings.

An individual can also protect his old age when he ceases to earn and has no

other means of income by purchasing an annuity product. The company profiles

of these companies and their product range have to be given in the first part of

this report.

The insurance policy offers the various insurance policies covering the risk of

various stages of life of any person. Covering the risk is become so important

and necessary for any person. In the present scenario the life is becoming so

risky due to the innovation of the various latest technology and modern way of

livings. Insurance products available for life and non-life are many.


MBA-G 81

In non-life, apart from personal covers such as accident covers and health

insurance, there are products covering liabilities under a particular law and or

common law. The various products are designed to cater to different needs of an

individual or industry such as fire insurance policy on multi- storeyed building,

householder’s policy.

An insurance contract promises to make good to the insured a certain sum in

consideration for a payment in the form of premium from the insured. Human

life cannot be valued. Hence the sum assured (or the amount guaranteed to be

paid in the event of a loss) is by way of a ‘benefit’ in the case of life insurance.

The conclusion of this report is that the life insurance is the necessary and

considerable factor for any person for covering the risk of life and for future

security.


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CHAPTER 8

SUGGESTIONS


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SUGGESTIONS

Insurance companies should not mislead to customer to provide wrong information about

own policy.

Rural area in India lacks this facility so the insurance policy should spread their business in

rural area also.

Insurance companies should make personal contact with customer or own client for improve

brand promotion.

Most of person does not know about the full knowledge about insurance policy so the

companies should try to provide the complete knowledge about insurance policy to the

customer.


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CHAPTER 9

BIBLIOGRAPHY


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Bibliography:

Websites:

www.lic.com

www.iciciprulife.com

www.irda.com

www.goolge.com

www.icicibank.com.

Books of References:

Marketing Management by “Philip Kotler”

Marketing Management by “Rajan Saxena”.

ICICI Prudential Company Magazines

Newspaper and Business Magazines


MBA-G 86

http://www.icicibank.com/

http://www.goolge.com/

http://www.irda.com/

http://www.iciciprulife.com/

http://www.lic.com/


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THANK

YOU

87

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