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Insurance is defined as a co-operative device to spread the loss
caused by a particular risk over a number of persons who are
exposed to it and who agree to ensure themselves against that risk.Risk is uncertainty of a financial loss. It should not be confused
with the chance of loss, which is the probable number of losses out
of confused with peril, which is de fined as the cause o f loss or with
hazard, which is a condition, may increase the chance of loss.
Every risk involves the loss of one or other kind. The functi on of
insurance is to spread the loss over a large number of persons who
are agreed to co-operate each other at the time of loss. The risk
cannot be over rated but loss occurring due to a certain risk can be
distributed amongst the agreed persons. They are agreed to share
the loss because the chance of loss is there.
Everybodys greatest asset during his/her working years is his/her
ability to earn an income. It is important to adequately safeguardthis asset to ensure his/her cash flow will continue in the event of
an unexpected disaster. His/her insurance policies will help to
protect him/her (if any) against any unforeseen odds.
There are two kinds of insurance available viz. Life Insurance andGeneral Insurance.
Life Insurance
Provides for dependents in case of death.
Replaces earning power, if disabled.
Protects his/her ability to meet accumulation / education
/ marriage goals.
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premium) for a large unknown loss , which may or may
not occur.
1.1 History of Insurance
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 1700s 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.
The Industrial Revolution in the US, in the early & mid 1800s prompted dramatic
group. During this time, many companies were establishes to sell life insurance
policies & annuities. Several shared profits among policy holders, also developed. In
addition, some life insurance companies charged premiums according to age of people
& health.
Life insurance, in its present form, came to India from the United Kingdom with the
establishment of a British firm, Oriental Life Insurance Company in Calcutta in 1818,
followed by Bombay Life Insurance Assurance Company in 1823, the Madras
Equitable Life Insurance Society in 1829, & the Oriental Government Security Life
Assurance Company in 1874. Prior to 1871, Indian lives were treated as sub-standard
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& charged extra premium of 15% to 20%. Bombay Mutual Life Assurance Society, an
Indian insurer which came into existence in 1871, was the first to cover Indian lives at
normal rates.
The Indian Life Assurance Companies Act, 1912 was the first statutory measure to
regulate life insurance business. Later in 1928, the Indian Insurance Companies Act
was enacted, to enable the govt. to collect statistical information about both life &
non-life insurance business transacted in India by Indian & foreign insurers, including
the provident insurance society. Comprehensive arrangements were, however, brought
into effect with the enactment of the Insurance Act, 1938. Efforts in this direction
continued progressively & the Act was amended in1950, making far reaching
changes, such as requirement of equity capital for companies carrying on life
insurance business, stricter controls on investment of life insurance companies, ceiling
on the expenses of management & agency commission etc.
By 1956, 154 insurers, 16 non-Indian insurers & 75 provident societies were carrying
on life insurance business in India. On 19th January 1956, the management of the
entire life insurance business of 229 Indian insurers & provident insurance societies &
the Indian life insurance business of 16 non-Indian life insurance companies then
operating in India, was taken over by the central govt. & then nationalized on 1st
September 1956 when Life Insurance Corporation came into existence.
An ordinance was passed in 1968 to amend the Insurance Act to regulate/control non-
life insurance resulting in set up of GIC in 1973. Malhotra committee submitted its
report in 1994 & recommended means to reintroduce an element of competition by
withdrawing the exclusivity of LIC & GIC. In 1997, Insurance Regulatory Authority
(IRA) was established which was later re-styled as IRDA in 1999.
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1.2 Advantages of Life Insurance
1.It is superior to an ordinary saving plan: Unlike other saving plans, it affords full
protection against risk of death. In case of death, the full sum assured is made
available under a life assurance policy; whereas under saving scheme the total
accumulated saving alone will be available. The later will be considerably less than
the sum assured, if death occurs during early years.
2. Easy settlement & protection against creditors: The life assured can name
person(s) called Nominee to whom the policy money would be payable in the event of
his death. The proceeds of a life policy can be protected against the claim of the
creditors of the life assured by effecting a valid assignment of the policy.
3. Ready marketability & suitability for quick borrowing: After an initial period,
if the policy holder finds him unable to continue payment of premiums, he can
surrender the policy for a cash sum. Alternatively, ha can tide over a temporary
difficulty by taking loan on the sole security of the policy without delay. Further, a life
insurance policy is sometimes acceptable as security for a commercial loan.
4. Tax Relief: The Indian Income-Tax Act allows deduction of certain portion of the
taxable income which is diverted to payment of life insurance premiums from the total
income tax liability. When this tax relief is taken into account, it will be found that the
assuredis in effect paying a lower premium for his insurance.
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1.3 Goals should you plan for in advance?
1) Your family's protection - so that your loved ones are secure should an
unfortunate event happen to you. Buying Life insurance assures that your family
receives a lump sum that safely tides them over any financial crises that might occur
in your absence.
2) Child's education: As parent, your primary responsibility is to ensure your
children's future. Our Education Insurance plans ensure your child receives money at
key stages of his or her education even in your absence.
3) Savings: Savings plans allow you to steadily save towards a pre-decided goal in a
secure manner. These plans provide you with a host of benefits. You can choose the
premium, the underlying fund in which you want to invest your money, the ratio
between protection and investment as per your requirements.
4) Retirement: Retirement plans help you secure regular income for your retired life.
During the Accumulation phase, you systematically save while you are working.
When you retire, the Payout stage of the plan begins. You then purchase an annuity,
which will serve as a steady stream of income, for the rest of your life.
5) Health: An integral part for financial planning is protecting oneself against any
medical emergencies as well. Hence, a very prudent decision would be to choose a
combination of plans that look after your finances and offer you a protective health
cover to ensure your financial planning is in track despite any major illnesses.
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2.1 Sharing of Risks
Insurance is a co-operative device to share the burden of risk,
which may fall on happening of some unforeseen events, such as
the death of head of the family, or on happening of marine perils orloss of by fire.
2.2 Co-operative Device
Insurance is a co-operative form of distributing a certain risk over a
group of persons who are exposed to it (Ghosh & Agarwal). A
large number of persons share the losses arising from a particular
risk.
2.3 Evaluation of Risk
For the purpose of ascertaining the insurance premium, the volume
of risk is evaluated, which forms the basis of insurance contract.
2.4 Payment of happening of specified event
On happening of specified event, the insurance company is bound
to make payment to the insured. Happening of the specified eventis certain in life insurance, but in the case of fire, marine or
accidental insurance, it is not necessary. In such cases, the insurer
is not liable for payment of indemnity.
2.5 Amount of payment
The amount of payment in indemnity insurance depends on the
nature of losses occurred, subject to a maximum of the sum insured.
In life insurance, however, a fixed amount is paid on the happeningof some uncertain event or on the maturity of the policy.
2.6 Large number of insured persons
The success of insurance business depends on the large number ofpersons insured against similar risk. This will enable the insurer tospread the losses of risk among large number of pe rsons, thus keepingthe premium rate at the minimum.
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2.7 Insurance is not a gambling
Insurance is not a gambling. Gambling is illegal, which gives gain
to one party & loss to the other. Insurance is a valid contract to
indemnity against losses. Moreover, insurable interest is present ininsurance contracts & it has the element of investment also.
2.8 Insurance is not charity
Charity pays without consideration but in the case of insurance,
premium is paid by the insured to the insurer in consideration of
future payment.
2.9 Protection against risks
Insurance provides protection against risks involved in life,
materials & property. It is a device to avoid or reduce risks.
2.10 Spreading of risk
Insurance is a plan, which spread the risks & losses of few people
among a large number of people. John Magee writes, Insurance is
a plan by which large number of people associates themselves &transfer to the shoulders of all, risks attached to individuals.
2.11 Transfer of risk
Insurance is a plan in which the insured transfers his risk on the
insurer. This may be the reason that Mayerson observes, that
insurance is a device to transfer some economic losses to the
insurer, and otherwise such losses would have been borne by the
insured themselves.
2.12 Ascertaining of losses
By taking a life insurance policy, one can ascertain his future
losses in terms of money. This is done by the insurer to
determining the rate of premium, which is calculated on the basis
of maximum risks.
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2.13 A contract
Insurance is a legal contract between the insurer & insured under
which the insurer promises to compensate the insured financially
within the scope of insurance policy, & the insured promises to paya fixed rate of premium to the insurer.
2.14 Based upon certain principle
Insurance is a contract based upon certain fundamental principles
of insurance, which includes utmost good faith, insurable interest,
contribution, indemnity, subrogation, etc., which are the basis for
successful operation of insurance plan.
2.15 Utmost Good Faith
Insurance is a contract based on good faith between the parties.
Therefore, both the parties are bound to disclose the important facts
affecting to the contract before each other. Utmost good faith is
one of the important principles of insurance.
To conclude, insurance is a device for the transfer of risks from the
insured to the insurers, who agree to it for a consideration (known
as premium), & promises that the specified extent of loss suffered
by the insured shall be compensated. It is a legal contract of a
technical nature.
To conclude, insurance is a device for the transfer of risks from the
insured to the insurers, who agree to it for a consideration (known
as premium), & promises that the specified extent of loss suffered
by the insured shall be compensated. It is a legal contract of a
technical nature.
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3.1 ICICI Prudential Life Insurance Company Limited
ICICI Prudential Life Insurance Company Limited was incorporated on December 12,
2000. The authorized capital of the company is `.2300 Million and the paid up capital
is `. 1500 Million. The Company is a joint venture of ICICI (78%) and Prudential Plc.
UK (22%).
The Company was granted Certificate of Registration for carrying out Life Insurance
business, by the Insurance Regulatory and Development Authority on November 24,2000. It commenced commercial operations on December 12, 2000, becoming one of
the first few private sector players to enter the liberalized arena.
The Company is now operational in Agra, Ahmedabad, Ajmer, Allahabad, Amritsar,
Aurangabad, Bangalore, Bhatinda, Bhopal, Bhubaneswar, Chandigarh, Chennai,
Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Greater Noida, Hyderabad, Hubli,
Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi,
Kolkata, Kota, Kharagpur, Kottayam, Lucknow, Ludhiana, Madurai, Mangalore,
Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Rajkot, Ranchi,
Surat, Thane, Thrissur, Trichy, Trivandrum, Vadodara, Vashi, Vijaywada.
Till March 31,2002 the Company has issued 100,000 polices translating into a
Premium Income of around `. 1,200 Million and a sum assured of over `.15,000
Million.
The Company recognizes that the driving force for gaining sustainable competitive
advantage in this business is superior customer experience and investment behind the
brand. The Company aims to achieve this by striving to provide world-class service
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levels through constant innovation in products, distribution channels and technology-
based delivery. The Company has already taken significant steps to achieve this goal.
3.2 Achievements
In the fiscal year 2009-2010, ICICI had disbursed a total of ` 258 crore.
Private market leader for 9 years in a row.
Over `573.19 billion of assets held as of March 2010.
Over 10 million policies issued since inception.
Renewal premium growth of 19% for FY 2010.
Most customer responsive insurer*: Over 10,000 service touch points.
Awarded The International Service Excellence Award 2009.
*Avaya Global Connect, 2005 & 2007
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3.3 Sponsors
3.3.1 ICICI Ltd
ICICI Ltd was established in 1955 by the World Bank, the Government of India and
the Indian Industry, to promote industrial development of India by providing project
and corporate finance to Indian industry.
Since inception, ICICI has grown from a development bank to a financial
conglomerate and has become one of the largest public financial institutions in India.
ICICI has 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 ` 319.65
billion.
ICICI has now developed a whole range of activities to become a Universal Bank.
Some of ICICI spectrum of activities includes:
Commercial Banking - ICICI Bank, India's first internet bank.
Information Technology - ICICI InfoTech, transaction processing, software
developmentInvestment Banking - ICICI Securities, one of the key players in the Indian
Capital Markets
Mutual Fund - Prudential ICICI AMC, leading private sector mutual fund
player in India
Venture Capital - ICICI Venture, leading private equity investor with focus on
IT and HealthCare
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Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset
Products
Distribution - ICICI Capital, Distribution and Servicing of Retail LiabilityProducts
ICICI is listed on the Indian Stock Exchanges and on the New York Stock
Exchange (NYSE). On September 22, 1999, it became the first Indian company to
be listed on the NYSE (symbol: IC and IC.D). The listing of ICICI BANK has
followed this on NYSE (symbol: IBN) on March 28, 2000.
3.3.2 Prudential Plc.
Prudential Plc. was founded in 1848. Since then it has grown to become one of the
largest providers of a wide range of savings products for the individual including life
insurance, pensions, annuities, unit trusts and personal banking. It has a presence in
over 15 countries, and caters to the financial needs of over 10 million customers.
It manages assets of over US$ 259 billion (Rupees 11, 39,600 crore approx.) as of
December 31, 1999. Prudential plc has had its presence in Asia for the past 75 years
catering to over 1 million customers across 11 Asian countries. Prudential is the
largest life insurance company in the United Kingdom. Asia has always been an
important region for Prudential and it has had a presence in Asia for over 75 years. In
fact Prudential's first overseas operation was in India, way back in 1923 to establish
Life and General Branch agencies.
In the US, Prudential owns Jackson National Life, one of the leading life insurance
companies. Prudential controls approximately 4% of all the listed shares on the
second largest stock exchange in the world, the London Stock Exchange, making it
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one of the largest institutional investors in the UK. Prudential is focused on the
Internet generation and is one of the first financial service organizations to use the
Internet on a fully integrated basis.
In October 1998, Prudential launched a "branchless" bank based on the internet.
Unusually titled as " egg:|". The bank has in a short span of its existence become a
leading banking service provider in the UK. Infect in the first six months of its
existence it garnered over 5 billion (US$ 8 billion) in deposits from over 500,000
customers.
Development of superior products and services that offer value for money and security
while producing superior financial returns enables Prudential to maximize the value of
its shareholder's investment and to establish lasting relationships with customers and
policy holders.
ICICI and Prudential came together in 1993 to provide mutual fund products in India
and today are the largest private sector mutual fund company in India. The two
companies bring together two of the strongest financial service brands in Asia known
for their professionalism, excellent quality of service and long term commitment.
3.4 Aim of the Company
Their vision is to make ICICI Prudential Life Insurance Company the dominant new
insurer in the life insurance industry. This they hope to achieve through their
commitment to excellence, focus on service, speed and innovation, and leveraging our
technological expertise.
The success of the organization will be founded on its strong focus on values and
clarity of purpose. These include:
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* Understanding the needs of customers and offering them superior products and
service
* Leveraging technology to serve customers quickly, efficiently, & conveniently.* Developing & implementing superior risk management & investment strategies to
offer sustainable & stable returns to the policy holders.
* Building long lasting relationships with their partners
* Providing an enabling environment to foster growth and learning for their
employees
They believe that they can play a significant role in redefining and reshaping the
sector. Given the quality of their parentage and the commitment of their team, they
feel that there will be no limits to their growth. The success of the company lies in its
unflinching commitment to five core values: - Integrity, Customers first, Boundary
less, Ownership, & Passion.
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K. V. Kamath
Managing Director and Chief Executive Officer
Lalita Gupte
Joint Managing DirectorKalpana Morparia
Joint Managing Director
Chanda Kochhar
Deputy Managing DirectorNachiket Mor
Deputy Managing Director
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Board Committees
Audit CommitteeBoard Governance &
Remuneration Committee
Mr. Sridar Iyengar
Mr. NarendraMurkumbi
Mr. M. K. Sharma
Mr. N. Vaghul
Mr. Anupam PuriMr. M. K. Sharma
Mr. P. M. Sinha
Prof. Marti G. Subrahmanyam
Customer Service
CommitteeCredit Committee
N. Vaghul
Narendra Murkumbi
M.K. Sharma
P.M. Sinha
K. V. Kamath
Mr. N. Vaghul
Mr. Narendra Murkumbi
Mr. M .K. Sharma
Mr. P. M. Sinha
Mr. K. V. Kamath
Fraud Monitoring
CommitteeRisk Committee
Mr. M. K. Sharma
Mr. Narendra
MurkumbiMr. K. V. Kamath
Ms. Kalpana
Morparia
Ms. Chanda D.
Kochhar
Mr. N. Vaghul
Mr. Sridar Iyengar
Prof. Marti G. SubrahmanyamMr. V. Prem Watsa
Mr. K. V. Kamath
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Share Transfer &
Shareholders'/
Investors'
Grievance
Committee
Asset-Liability Management
Committee
Mr. M. K. Sharma
Mr. Narendra
Murkumbi
Ms. Kalpana
Morparia
Ms. Chanda D.
Kochhar
Ms. Lalita D. Gupte
Ms. Kalpana Morparia
Ms. Chanda D. Kochhar
Dr. Nachiket Mor
Committee of
Directors
Mr. K. V. KamathMs. Lalita D. Gupte
Ms. Kalpana
Morparia
Ms. Chanda D.
Kochhar
Dr. Nachiket Mor
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5.1 Insurance solution 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 17 products cab is enhanced with up to 6 riders, to create a
customized solution for each policyholder.
Savings Solutions..
Secure Plus is a transparent and feature-packed savings plan that
offers 3 levels of protection. Cash Plus is a transparent, feature-packed
savings plan that offers 3 levels of protection as well as liquidity options.
Save n Protect is a traditional endowment savings plan that offers life
protection along with adequate returns. Cash Back is an anticipated
endowment policy ideal for meeting milestone expenses like a childs
marriage, expenses for a childs higher education or purchase of an asset.
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Protection Solutions.
LifeGuard is a protection plan, which offers life cover at very low
cost. It is available in 3 couponslevel term assurance, level term
assurance with return or premium and single premium.
Child Solutions.
Smart kid child plans provide guaranteed educational benefits to a
child along with life insurance cover for the parent who purchases the
policy. The policy is designed to provide money at important milestones
in the childs life. SmartKid child planed are also available with in unit-
linked formboth single premium and regular premium.
Market-linked Solutions
LifeLink is a single premium Market Linked Insurance Plan,
which combines life insurance cover with the opportunity to stay,
invested in the stock market. Life Time offers customers the flexibility
and control to customize the policy to meet the changing needs at
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different life stages. It offers 3 investment optionsGrowth Plan, Income
plan and Balance plan.
Retirement Solutions
Forever Life is a retirement products targeted at individual in there
thirties. Secure Plus Pension is a flexible pension plan that allows one to
select between 3 levels of cover.
Market-linked retirement products
Life Time Pension is a regular premium market-linked pension plan. Life Link
Pension is a single premium market linked pension plan. ICICI Prudential also
launched Salaam Zindagi, a social sector group insurance policy targeted at the
economically underprivileged sections of the society.
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for
companies seeking to enhance benefits to their employees.
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Group Gratuity Plan
ICICI Prus group gratuity plan helps employers fund their
statutory gratuity obligation in a scientific manner. The plan can also
customize to structure schemes that can provide benefits beyond the
statutory obligations.
Group Superannuation Plan
ICICI Bank offers flexible defined contribution superannuation
scheme to provide a retirement kitty for each member of the group.
Employees have the option of choosing from various annuity options or
opting for partial commutation of the annuity at the time of retirement.
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Group Term Plan
ICICI Prus flexible group term solution helps provides affordable
cover to members of 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.
5.2 RIDERS
5.2.1 Flexible Rider Options
ICICI Prudential Life offers flexible riders, which can be added to the basic policy at amarginal cost, depending on the specific needs of the customer.
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 sum assured under the policy.
Accident benefit: This rideroption pays the sum assured under the rider on
death due to accident.
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Critical Illness benefit: Protects the insured against financial loss in the event
of specified critical illness. Benefits are payable to the insured for medical expenses
prior to death.
Major Surgical Assistance benefit: Provides financial support in the event of
medical emergencies, ensuring that benefits are payable to the life assured for medical
expenses incurred for surgical procedures. Cover is offered against 43 different
surgical procedures.
Income benefit: This rider pays the 10% of the sum assured to the nominee
every year, till maturity, in the event of the death of the life assured. It is available on
SmartKid, SecurePlus & CashPlus
Waiver of Premium: In case of total & permanent disability due to an
accident, the premiums are waived till maturity. This rider is available with
SecurePlus & CashPlus.
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6.1 Finance
Finance function in ICICI Prudential is committed to create an infrastructure that is
aligned to shareholder expectations. Finance basically comprises of four functions. .Corporate Planning and MIS provide feedback on business strategies. This includes
driving the budgeting process, providing strategic inputs for decision-making and
management reporting and analysis. The Accounts function includes preparation and
maintenance of financial records, funds management, and expense processing and
treasury operations. Compliance ensures that every action is within the regulatory
framework. This includes reviewing compliance requirements and supporting the
ethical framework of ICICI Pru life. Internal audit provides assurance to the
management over the organizations' control framework and includes process risk
management, information security assessment and business continuity assessment.
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6.2 Marketing
Today the definition of marketing has been changed. The marketing activityof an organization before the product is produced and continues even after the
product is sold. In the buyer market of recent times the sharpest weapon that a
company can develop is globalize marketing place in the value creation and
delivery. The proud and demanding customer of today brings before corporate
a critical fact, when the customer is jury. It is the value generation for the
customer that will separate the victor from vanquished. The value of customer
service cascades all over the company. The aim of customer focus is not just
satisfaction but delight satisfaction.
Till the year 1999 the life insurance business was exclusively conducted by
the Life Insurance Corporation (LIC) while the general insurance business in
India, was exclusive by General Insurance Corporation and its four
subsidiaries. The insurance sector is opened for private participation since
November, 2000.
Before 1999 there was no marketing done by LIC due to its monopoly but now
after 5 years the picture has changed. Now there are private players in market.
With the effective marketing techniques the private players has changed the
whole scenario of the insurance sector. They are slowly and gradually driving
the business out of the hands of the LIC. Before 1999 customer had no option
other than LIC, but now they have got many options. This is the significant
change in insurance industry. Now the customer is back in the center state. All
the companies are trying to please the customer with the innovative schemes
and better service.
6.2.1 Relationship Marketing in Insurance
It is five times more expensive to acquire a new customer than to retain an old
one. Relationship marketing is the practice of building long term satisfying
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relationship with key parties customers and suppliers. They accomplish this by
promoting and delivering high quality, goods, services, and fair prices to other
parties overview. Relationship marketing results in strong economic, technicaland social ties among the parties.
6.2.2 .1 Definition of Relation Marketing:
Relationship marketing can be defined as the process to identify, establish,
maintain and other stakeholders at a profit so that the objective of all parties
involved are net and this is done by mutual exchange and fulfillment of
promises.
The important objectives of relationship marketing to acquire new customers
maintain and enhance relationship with existing customers, re-activities of ex-
customers and handling of customer terminations. The key objective of
relationship marketing is to establish one to one relationship with all the
customers. This may have sound like a day dream few dream few years ago but
thanks to the technological breakthrough and technological solution providers,
it is very much of a reality.
6.2.2.2 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
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Relationship marketing is one of the hottest tread in the present marketing
scenario. Satisfied customers not only stay with a company but they are also
walking talking advertisement for the companys product.
6.3 Operations
The Operation department oils the work processes between the customer and
company to ensure consistent and quality service to the customer. To
streamline the operations, the operations department interfaces between the
clients and the agents, the branches and the under writers, and manages work
processes.
The vision at customer service is to deliver World Class Service at every
opportunity. Units such as the 9 to 9 contact centre, out bound call centre,
customer care. And query reduction unit are all committed across the country.
ICICI Prudential has one of the largest distribution networks amongst private
life insurers in India, having commenced operations in 58 cities and towns in
India.
These are.. Agra, Ahmedabad, Ajmer, Amritsar, Aurangabad, Bangalore,
Bhopal, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Gurgaon,
Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Kanpur, Karnal,
Kochi, Kolkata, Kota, Kolhapur, Kottayam, Lucknow, Ludhiana, Madurai,
Mangalore, Meerut, Mumbai, Nagpur, Nashik, Noida, New Delhi, Patiala,
Pune, Raipur, Rajkot, Ranchi, Surat, Thane, Thrissur, Trichy, Trivendrum,
Udaipur, Vadodara, Vashi, Vijayawada and Vizag.
The Company has twelve banc assurance tie-ups having agreements with
ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna
Bank, Punjab and maharastra Co-Operative Bank, Goa State Co-operative
Bank, Indoor Paraspar Sahakari Bank, Manipal State Co-Operative and
Jalgaon Peoples Co-Operative Bank, as well as some corporate agents. It has
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tie-up with organizations like Dhan for Distribution of Salaam Zindgi, a Policy
for the socially and economically underprivileged sections of society.
ICICI Prudential has recruited and trained over 32000 insurance advisors tointerface with and advice customers. Further, it leverages is State-of the art IT
infrastructure to provide superior quality of service to customer.
The Operation Department of ICICI Prudential delivers the following services
to the customers such as:
Out Bound Call Centre
Customer Care
Query Resolution Unit
Policy Login Process
9 to 9 Contact Centre
6.3.1 Role of Information Technology in Operation Department:
The Information Technology function at ICICI Prudential is committed to
enables business through the use of technology. It is segmented into 4 groups
to enable highest levels of delivery to the customers: Life Asia Solutions
Group that provides flexibility in designing better product offering to end-
users, the Solutions Group- Web that provides real-time information to
customers and is responsible for customer relationship management, IT
Architecture and Corporate Solutions Group is in charge of developing and
maintaining a blueprint for the IT Architecture for the enterprise as a whole.
This team works as an in house R & D Solution Group, exploring new
technological initiatives and also caters to information needs of corporate
functions in the organizations. IT Infrastructure group is responsible for
providing hardware, software, network services to the whole organization. This
group runs the Digital Nervous System of the Enterprise at the highest levels
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of efficiency and provide robust, scalable and highly available platform for
development of business application.
With the help of Information Technology, an advisor and managers canlogin the policy from any of the offices of ICICI Prudential Ltd. And also with
the help of IT any employee or management can know any information,
anything about the policy, advisors record, any branchs sales, any new
schemes, any managers record, and other thins at any time any place.
6.4 Human Resource
The people strategy of ICICI Prudential is To build a committed team with a culture
of innovation, learning and growth. The Human Resource Function at ICICI
Prudential drives the people strategy of the business. With its initial focus on
operational excellence to deliver benefits and services to staff members, HR is now
committed to building capability through state of the art processes. A robust
performance management system, compensation system and a segmented training
architecture enable it to deliver value to the organization.
The joint strengths
A powerful joint venture partnership with each carrying a set of strengthscomplementing each others
Reputation
Insuranceexpertise
Product
Distribution
Operations
Brand strength
Infrastructure
Customer base
Local knowledge
Market Innovators
PRUDENTIALICICI
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6.4.1 PERFORMANCE APPRAISAL
It is the systematic evaluation of the individual with respect to his or herperformance on the job and his or her potential for development.
Objective of Performance appraisal if for Developmental uses for agents and Financial
Consultants, for wages, transfer, promotion, for documentation and for organizational
purpose like Human Resource Planning, Job analysis and for training and
development.
ICICI PRUDENTIAL first set the objective of performance appraisal then in
establish job expectation and then decide whose performance should be rated and who
the raters are. Basically raters are immediate supervisor, subordinates, peers, clients.
For Performance Appraisal modern method is used like MBO (Management By
Objectives) and 360 degree appraisal. But there is some limitation like Hello effect,
Bias, Perception factor, Spill over etc.
6.4.2 Selection Methods:
The selection procedure is concerned with securing relevant information about
an applicant. This information is secured in a number of steps or stages. The
objective of selection process is to determine whether an applicant meets the
qualifications for a specific job and to choose the applicant who is most likely
to perform well in that job.
The hiring procedure is not a single act but it is essentially a series of
methods or steps or stages by which additional information is secured about the
applicant. At each stage, facts may come to light which may lead to the
rejection of the applicant. A procedure may be compared to a series of
successive hurdles or barriers which an applicant must cross. These are
intended as screens, and they are designed to eliminate an unqualified applicant
at any point in the process. This technique is including all these hurdles.
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6.4.3 Placement & Induction:-
Placement at ICICI bank is done very critically. The human resources areconsidered very critical and are said to be main power of the bank. The CEO
Mr. K. V. Kamath says, Human capital is very important at ICICI. Training is
a big thing; each employee spends at least 69 hours during the year recharging
himself. Placement is done on the qualification and merit basis. Generally for
the retail banking and other in house jobs placement is done on the basis of the
interviews by branch and regional heads. They select only those competent
people who are ready to work round the clock and have full dedication towards
the bank.
Induction is a technique by which a new employee is rehabilitated into the
changed surroundings and introduced to the practices, policies and purposes of
the organization. In other words, it is a welcoming process-the idea is to
welcome a new comer, make him feel at home and generate in him a feeling
that his own job, however small, is meaningful and has significance as a part of
the total organization.
When a new comer joins an organization, he is an utter stranger to the
people, work place and work environment. He may feel insecure, shy and
nervous. The first few days may be anxious and disturbing ones for him. He
may have anxiety caused by not following the usual practices prevalent in the
organization, or the haphazard procedures, and lack of information. These may
develop discouragement, disillusionment or defensive behavior. Induction leads
to reduction of such anxieties; dispels the irrational fears
present employees and hold colleagues responsible for assisting the new comer
so that he may feel confident. ICICI says that, newcomers are to be a part of
informal identification of talent apart, there is a formal process. It starts form
induction, where newcomers are subject to the OPQ (occupational personality
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questionnaire). The tests have also been conducted right up to the general
manager and senior general manager.
6.4.4 Training and Development:-
ICICI is a kind of private sector bank where if you are confident and
competent then you can get your carrier advancement and development at a
very high speed. CEO Mr. K. V. Kamath says, There are several young people
in our organization who are on the threshold of making it to the board. He
himself has this habit of dropping in unannounced on people tow or three levels
below him. It helps him to keep a tab on things and also to find out who is
knocking on top management doors. His management by walking about also
takes him to the basement, to see that everything is spick and span. He does like
to get to the bottom of things.
At ICICI executive development programme is more important. Because
they believe that if the executives are properly trained, properly motivated and
fully focused then they can guide any kind of work force. All those persons
who have authority over others and are responsible for their activities and for
the operations of an enterprise are managers. In a business organization, the co-
ordination and direction of the efforts of others is a major part of the
management job. The manager has to deal not only with the staff but also with
others outside his own group, and has decided influence on the organization.
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7.1 Why is retirement planning important?
Retire from work. Not from life.
A retirement plan is an assurance that you will continue to earn a satisfying income
and enjoy a comfortable lifestyle, even when you are no longer working. To
understand why an increasing number of individuals have already started planning for
their retirement, and why you should too, read on.
Independence is the new way of life: An increasing number of young Indian
professionals are moving away from the traditional joint family structure. Since
support no longer comes easily, parents have realized the need to provide for
themselves during their retirement years.
Costs set to soar: Skyrocketing costs throw even a well-salaried person off balance.
With rates rising every day, you can imagine how high they will be when you are
ready to retire. A retirement plan provides you with a steady income every month, to
arm you in the face of rising costs.
To understand how inflation can impact your monthly expenses, we use our special
tool, the Inflation Index calculator.
Non-earning retirement phase is now longer: Only 4% of India working
population- mostly government employeesare covered by pensions. The remaining
96% comprises self-employed and salaried professionals who do not have a formal,
mandated provision for pensions.
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7.2 Why start planning for retirement right away?
Both Ramesh and Vikram want to retire at the age of 60 years. To take care of his
post-retirement requirements, Ramesh invests a total amount of`. 35 lakhs towards
his retirement corpus. On the other hand, Vikram invests a total of`50 lakh towards
his retirement. Despite investing less, Ramesh accumulates `298 lakh, compared to
Vikram's accumulation of`216 lakh!. Read on to find out how.
What Ramesh had in his favor was TIME. He began investing a sum of`1 lakh p.a.
earlier, at the age of 25 years, up to the age of 60. Ramesh, to compensate for lost
time, saved twice the amount invested by Ramesh i.e. `. 2 lakhs every year from the
age of 35 till the age of 59 years.
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It is for this precise reason you should plan for your retirement now-and not later; so
you get the advantage of investments that multiply quickly each year, giving you theadded advantage!
The graph above shows the retirement amount both Ramesh and Vikram accumulate
by the age of 60 years. Please note: The assumption is that both investments
appreciate at the rate of 10% per annum.
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7.3 How to plan for Retirement?
5 simple steps to arrive at an idealretirement plan
Step 1: Decide how much income you require to live comfortably in your post-
retirement years. Remember to take into account aspects like increased medical costs,
vacations and gifts for family, but reduce costs like children's education and rent, if
you own your home. Use our easy Inflation Index Calculator to calculate the impact of
inflation.
Step 2: Determine how much you need to save regularly, starting today. Use
our Retirement Calculator to determine how large a kitty you will need and how much
you need to save each year.
Step 3: Select the right retirement plan that enables you to meet your post-
retirement requirements. Preferably invest in market-linked plans, which can provide
you with potentially higher returns in the long run. Our Life Stage Profiler will help
you select the plan that meets your criteria
Step 4: Start saving now so you have time on your side and can enjoy the power of
compounding. Use our simple Power of Compounding Calculator.
Step 5: Systematically invest a fixed amount every month for your post-retirement
years.
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8.1 Types of Insurance Plans - Traditional or Unit Linked
Insurance Plans - At a glance
Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A
brief detail of both segments:
Unit Linked Insurance Product
ULIPs have gained high acceptance due to attractive features they offer. These
include:
1. Flexibility
1. Flexibility to choose Sum Assured.
2. Flexibility to choose premium amount.
3. Option to change level of Premium /Sum Assured even after the plan has
started.
4. Flexibility to change asset allocation by switching between funds
2. Transparency
1. Charges in the plan & net amount invested are known to the customer
2. Convenience of tracking ones investment performance on a daily basis.
3. Liquidity
1. Option to withdraw money after few years (comfort required in case of
exigency)
2. Low minimum tenure.
3. Partial / Systematic withdrawal allowed
4. Fund Options
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1. A choice of funds (ranging from equity, debt, cash or a combination)
2. Option to choose your fund mix based on desired asset allocation
8.1.1 Traditional Plans
These are the oldest types of plans available. These plans cater to customers with a
low risk appetite. Some of the common features of traditional plans are:
Steady Investment
Major chunk of investible funds are in debt instruments.
Steady and almost assured returns over the long term.
Features
Death benefit is Sum Assured + Guaranteed & vested bonus.
Helps in asset creation as they are for a long tenure.
Premium to Sum Assured ratios are fixed for each plan and age.
Generally withdrawals are not allowed before maturity.
8.1.2 Unit Linked Plans
ULIPs: An Introduction
Most importantly, what are ULIPs? Here, you will find all the information you needto set your mind at ease about how to invest in ULIPs, and which ULIP is right foryou.
ULIPs are a category of goal-based financial solutions that combine the safety ofinsurance protection with wealth creation opportunities. In ULIPs, a part of the
investment goes towards providing you life cover. The residual portion of the ULIP is
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invested in a fund which in turn invests in stocks or bonds; the value of investmentsalters with the performance of the underlying fund opted by you.
Simply put, ULIPs are structured in such that the protection element and the savingselement are distinguishable, and hence managed according to your specific needs. Inthis way, the ULIP plan offers unprecedented flexibility and transparency.
8.1.2.1 Working of ULIPs
It is critical that you understand how your money gets invested once you purchase aULIP:
When you decide the amount of premium to be paid and the amount of life cover youwant from the ULIP, the insurer deducts some portion of the ULIP premium upfront.This portion is known as the Premium Allocation charge, and varies from product toproduct. The rest of the premium is invested in the fund or mixture of funds chosen byyou. Mortality charges and ULIP administration charges are thereafter deducted on aperiodic (mostly monthly) basis by cancellation of units, whereas the ULIP fundmanagement charges are adjusted from NAV on a daily basis.
Since the fund of your choice has an underlying investmenteither in equity or debtor a combination of the twoyour fund value will reflect the performance of the
underlying asset classes. At the time of maturity of your plan, you are entitled to
receive the fund value as at the time of maturity. The pie-chart below illustrates the
split of your ULIP premium:
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8.1.2.2 Types of ULIPs
One of the big advantages that a ULIP offers is that whatever be your specificfinancial objective, chances are that there is a ULIP which is just right for you. Thefigure below gives a general guide to the different goals that people have at variousage-groups and thus, various life-stages.
Depending on your specific life-stage and the corresponding goal, there is a ULIP
which can help you plan for it.
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8.1.2.3 Areas of ULIPs
Retirement Planning
Wealth Creation
Children Education
Health
8.1.2.4 ULIPs for Retirement Planning
Retirement is the end of active employment and brings with it the cessation of regular
income. Today an increasing number of people have stated planning for their
retirement for below mentioned reasons
Almost 96% of the working population has no formal provisions for retirement
With the growing nuclearisation of family structure, traditional support system
of the younger earning membersis no longer available
Developments in the healthcare space has lead to an increase in life expectancy
Cost of living is increasing at an alarming rate
Pension plans from insurance companies ensure that regular, disciplined savings in
such plans can accumulate over a period of time to provide a steady income post-
retirement. Usually all retirement plans have two distinctive phases
The accumulation phase when you are saving and investing during your earning
years to build up a retirement corpus and
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The withdrawal phase when you actually reap the benefits of your investment
as your annuity payouts begin
In a typical pension plan you have the flexibility to make a lump sum payment or a
regular contribution every year during your earning years. Your money is then
invested in funds of your choice. You can opt to receive the annuity at any time after
vesting age (age at which you become eligible for pension chosen by you at the
inception of the plan).
Most of the Unit linked pension plans also come with a wide range of annuity
options which gives you choice in structuring the post-retirement benefit pay-outs.
Also at the time of vesting you can make a lump sum tax-exempted withdrawal of up
to 33 per cent of the accumulated corpus.
In a retirement plan, the earlier you begin the greater you gain post retirement due to
the power of compounding.
Let us take an example of Gaurav & Hari. Both of them want to retire at the age of 60.
Gaurav starts investing `. 10,000 every year from the age of 25 till the time that he
retires. In all, he would have invested `. 350,000. If his investments were to earn 7%
return every year, at the time of his retirement, Gaurav will have a retirement corpus
of`. 13, 82,368.
Now, Hari starts investing 10 years later (i.e. at the age of 35) and in order to make up
for the lost time, invests `.15,000 every year (which is 50% more than Gauravs
annual investment).
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So, by the time of his retirement, he would have invested `. 3,75,000. And assuming
the same annual return of 7%, he will end up with a retirement corpus of`9, 48,735.
So, you see how despite setting aside more than 50% of Gauravs annual contribution,
Hari ends up with a retirement corpus which is almost a third lesser than Gauravs.
That is the power of compounding.
Which is why, it is never too early to invest in a ULIP for retirement planning.
8.2 When ULIPs works best
Whether you are in the process of deciding which ULIP to invest in; or whether you
already have a unit linked insurance policy to secure your important financial goals
there are some key principles which should govern any decision related to ULIPs.
Adhering to these key principles will allow you to make optimum utilization of your
ULIP.
Appropriate Life Cover
Right Fund Option
Long Term Investment
Know the Charges
Know the Features
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8.3 Types of annuity
An annuity is a series or stream of payments. In the context ofretirement planning,
an annuity is a contract between you and the insurance company under which the
insurance company promises pays you money for a stipulated period-often for life.
You, the person receiving the payments, is the "annuitant".
Types of annuity options offered by ICICI Prudential:
Life Annuity: In this plan, you receive annuities for as long as you live. Payments
are no longer made after your demise.
Life Annuity with Return of Purchase Price: You receive annuities for as long as
you live and your nominee receives the purchase price of the policy after demise. The
purchase price refers to the value of your investment corpus at the end of the
accumulation phase (with which the annuity was purchased).
Life Annuity Guaranteed for 5, 10 and 15 Years and Life Thereafter: You receive
annuities for a minimum term i.e. 5, 10 or 15 years. Annuities continue for life
thereafter. If death occurs before the end of the pre-decided term, the company pays
the annuity till the end of that term to the nominee.
Joint Life, Last Survivor Annuity without Return of Purchase Price: Both your
spouse and you will receive annuities for life.
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Joint Life, Last Survivor Annuity with Return of Purchase Price: Both your
spouse and you will receive annuities for life. After this, the purchase price is returned
to your nominee.
8.4 Retirement Solutions
To cater to the needs of a customer looking for retirement planning, ICICI
Prudential presents a wide array of products. These products have been designed to
take into account the diverse set of needs that characterize individual customers.
Plan Name Plan Type
ICICI Pru LifeTime Super PensionULIP
8.4.1 ICICI Pru LifeTime Super Pension
Why LifeTime Super Pension
ICICI Pru LifeTime Super Pension
is a complete insurance cum pension plan that performs two crucial roles: it acts as a
protective cover while you earn for your retirement, and provides you with
regular pension once you retire.
Features and benefits of ICICI Pru LifeTime Super Pension
Choice of flexible life cover
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Increased Age at Entry Maximum Cover age increased Pension through Annuity card
Cover continuance option after 3 years
Death Benefit
In case of death before vesting age:
Higher of the Sum Assured or the Fund Value will be paid as the death benefitto the nominee. However, if spouse is nominee, Fund Value or Sum Assured
can be taken as annuity.Investment Options
Choice of Investment Funds
o Pension Flexi Growth II ( Aggressive Equity Fund)o Pension R.I.C.H. II (Equity Fund)o Pension Multiplier II (Equity Fund with NIFTY 50 benchmark)o
Pension Flexi Balanced II ( Aggressive Balanced Fund)o Pension Balancer II (Balanced Fund)o Pension Protector II (Debt Fund)o Pension Preserver (Money Market Fund)o Pension Return Guarantee Fund (Close ended Debt Fund)*
Switches
o 4 switches in a policy year freeo Subsequent switches in that year are charged `. 100 per switch.
Add-on Riders
o Accidental Death & Disability Ridero Waiver of Premium Rider (Permanent Disability)
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How does the policy work?
o Choose an amount that you wish to invest annually subject to a minimum of
`.10,000.
o Choose a term between 10 & 57 years, subject to vesting (retirement age)
between 45 and 75 years.
o You have an option either to choose Zero sum assured or choose any sum
assured between 1 lakh and annual premium x policy term.
o You can opt for add-on riders available under the policy for a nominal extra
amount.
o During the term of the policy, you pay regular premiums and accumulate
savings for your retirement.
Surrender Values
Post payment of 3 years premiums
No of completed years of policy SV as a % of Fund Value
3 Years 96%
4 Years 98%
5 years 100%
Before 3 years premiums are paid
Premiums paid Surrender Value if not reinstated
Less than 1 yr Nil
1 yr to
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Entry Parameters
Minimum age at Entry 18 years
Max Age at Maturity 65 Years
Minimum Term 10 years
Maximum Term 57 years
Max Cover Age 75 Years
Min Premium `. 12,000 p.a
Minimum Vesting age 45 years
Maximum Vesting age 75 Years
Cover Continuance option
o Available after 3 years premium payment
o Ensures that the life cover & rider cover continues, if policy holder stops paying
premiums
o Policyholder can OPT FOR the option, anytime within six months before end of
reinstatement period.
o Alternatively, Policyholder can choose the option at inception.
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o If opted for, life cover is available throughout the policy term.
o If not opted for, life cover continues for a period of 2 yrs from the date of last
unpaid premium, post which policy will be foreclosed & Surrender value paid.
Other Conditions
o Increase/Decrease in Annual PremiumNot Allowed
o Increase/ Decrease in Sum AssuredNot Allowed
o LoansNot Available
o Top ups- You can decide to increase your investment by investing surplus
money over and above your premiums, anytime from inception of policy.
o The minimum amount of top-up is `.2000.
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8.5 Retirement Calculator
Retirement Calculator
Enter your monthly expenses in the fields below to calculate your Retirement
Number.
Current monthly expenses (Rs.)
Food 3000
Transport 5000
Clothing 2000
Medical expenses 1000
Education expenses1500
Rent (if not owned home) 5000
Miscellaneous 1000
Total expenses 18500
Expected annual inflation rate6
%
Current age (yrs.)25
Expected age of retirement (yrs.) 55
Number of years from retirement 30
Calculate
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Retireme
nt can be
a meaningful phase in your life. A phase where you can follow your true passion. But
it is very important to remember that every passion has a cost attached to it. In
addition, there is the cost of maintaining your current lifestyle post-retirement.
Our pension plans give you a monthly income, post-retirement. With financial
worries taken care of, you are free to do what youve always felt passionately
about.
Becoming a cricket coach, owning your own fruit farm or becoming a vineyard owner
etc.
The Retirement Calculator will help you plan better.
As you will see, the key is to start planning early.
Your result
Current age (yrs.) : 25
Age at which you want to retire (yrs.) : 55
Corpus required post retirement (`.) : 89887294
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Objectives
To Study the Brand awareness of the new product i.e. ICICI Pru
LifeTime Super Pension.To know what are the priorities of people for making investment in
Insurance.
To know about the customer satisfaction about the product ICICI Pru
LifeTime Super Pension plan.
To know the standing of the ICICI Prudential Life Insurance Co. in
market.
To know their likings about the product ICICI Pru LifeTime Super
Pension plan.
Data Source:
The data would be collected from both primary as well as secondary source.
Consumers would be asked to fill questionnaires to arrive at the information.
Various secondary sources of data as magazines, journal, Internet etc. would
also be explored.
Sampling Area:
The sampling areas of this research are in Electronic City, Bangalore.
Sampling method:
The convenient sampling method was used for this research and the
respondents were those who have already taken or yet to take life insurance
policy.
Sample Size:
The size of this research is 50 respondents.
Research Instrument:
The research instruments, which was used, for collecting the data is
questionnaire through telephonic interview.
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Method of contact:
The method of contact was done through telephonic interview as this
would help to qualify the customers issues while filling up the questionnaireand also helps them if they do not have the knowledge about any insurance
plan of the company.
Method of making an approach for Sales:
After analyzing the data form the questionnaires the needs of prospects
were identified and the best suitable insurance solution was suggested to them
and the company accordingly.
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9.1 Data Analysis
1. My average annual income is
Particulars No. of Respondents Percentage
Upto 1 lakh 3 6%1 lakh to 3 lakhs 21 42%3 lakhs to 5 lakhs 23 46%5 lakhs and more 3 6%
Total 50 100%
According to Table 1
From the above table and chart it is inferred that
6% earns upto 1 lakh.
42% earns between 1 lakh and 3 lakhs.
46% earns between 3 lakhs and 5 lakhs.
6% earns more than 5 lakhs.
6%
42%46%
6%
analysis of income
upto 1 lakh 1 lakh to 3 lakhs 3 lakhs to 5 lakhs 5 lakhs and more
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2. I am Owner of Insurance.
Particulars No. Of Respondent PercentageYes 31 62%
No 19 38%
Total 50 100%
According to Table 2
From the above table and chart it is inferred that
62% says Yes
38% says No.
62%
38%
Analysis of Insured Customers
yes
no
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3. My favored insurance company
Particulars No. Of Respondents PercentageLIC 20 40%
ICICI Prudential 13 26%HDFC 7 14%Birla Sun Life 4 8%Bajaj Allianz 4 8%Others 2 4%Total 50 100%
According to Table 3
From the above table and chart it is inferred that40% prefers LIC.
26% prefers ICICI Pru.
14% prefers HDFC.
8% prefers Birla Sun Life.
8% prefers Bajaj Allianz.
4% prefers Others.
40%
26%
14%
8%
8%
4%
Favored Insurance Company
LIC
ICICI Pru
HDFC
Birla Sun Life
Bajaj Allianz
Others
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4. My satisfaction with my current insurer
Particulars No. Of Respondents Percentage
Yes 41 82%
No 9 18%
Total 50 100%
According to Table 4
From the above table and chart it is inferred that82% says Yes.
18% says No.
82%
18%
Satisfaction Level
yes
no
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5. Main concern while taking an insurance policy
Particulars No. Of Respondents Percentage
Tax benefit 16 32%
Security 9 18%
Investments/Savings 25 50%
Total 50 100%
According to Table 5
From the above table and chart it is inferred that
50% says for Tax benefits.
18% says for Security.
32% says for Investments/Savings.
32%
18%
50%
Concern of respondents
Tax Benefit Security Investments/Savings
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7. Policy satisfaction with regards to financial needs (Ratings as 1- highly
dissatisfied, 2- dissatisfied, 3- neutral, 4- satisfied, 5- highly satisfied)
Ratings No. Of Respondents Percentage
1 7 14%2 9 18%3 9 18%4 11 22%5 14 28%Total 50 100%
According to Table 7
From the above table and chart it is inferred that
14% says Highly Dissatisfied.
18% says Dissatisfied.
18% says Neutral.
22% says Satisfied.
28% says Highly Satisfied.
14%
18%
18%22%
28%
Analysis of Policy Satisfaction
Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied
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8. I pay the premium for ICICI Pru LifeTime Super Pension plan which is
Particulars No. Of respondents PercentageVery High 14 28%
High 11 22%Moderate 13 26%Low 11 22%Very Low 1 2%Total 50 100%
According to Table 8
From the above table and chart it is inferred
28% says premium paid is Very High.
22% says premium paid is High.
26% says premium paid is Moderate.
22% says premium paid is Low.
2% says premium paid is Very Low.
28%
22%26%
22%
2%
Premium Paid
Very High High Moderate Low Very Low
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9. I come to know about this policy from..
Particulars No. Of Respondents Percentage
Advertisement 10 20%
Friends and Relatives 12 24%
Direct selling agents 21 42%
Others 7 14%
Total 50 100%
According to Table 9
From the above table and chart it is inferred that
20% came to know from Advertisements.
24% came to know from Friends and Relatives.
42% came to know from Direct Selling Agent.
14% came to know from Others.
20%
24%42%
14%
Policy source Analysis
advertisement friends and relatives direct selling agent others
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10. I am satisfied with the incentives (tax benefits and Bonuses) associated with
LifeTime Super Pension?
Particulars No. Of Respondents Percentage
Highly Satisfied 9 18%
Satisfied 12 24%
Moderate 15 30%
Unsatisfied 11 22%
Highly Unsatisfied 3 6%
Total 50 100%
According to Table 10
From the above table and charts it is inferred that
18% are Highly Satisfied.
24% are Satisfied.
30% are Moderate.
22% are Unsatisfied.
6% are Highly Unsatisfied.
18%
24%
30%
22%
6%
Satisfactory level about Incentives
highly satisfied satisfied moderate unsatisfied highly unsatisfied
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11. I think Automatic Transfer Strategy option allotted with the plan makes me
Criteria No. Of Respondents PercentageSatisfied 27 54%
Neutral 13 26%
Unsatisfied 7 14%
Unaware 3 6%
Total 50 100%
According to Table 11
From the above table and chart it is inferred that
54% are Satisfied.
26% are Neutral.
14% are Unsatisfied.
6% are Unaware.
54%26%
14%
6%
ATS satisfaction analysis
satisfied neutral unsatisfied unaware
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12. I am finding the Investment Option and Switches associated with this plan as
Opinions No. Of Respondents PercentageVery Good 14 28%
Good 25 50%
Fair 11 22%
Bad 0 0%
Very Bad 0 0%
Total 50 100%
According to Table 12
From the above table and chart it is inferred that
22% says Very Good.
50% says Good.
28% says Fair.
0% says Bad.
0% says Very Bad.
22%
50%
28%
0% 0%
Analysis on Investment option and
Switches
very good good fair bad very bad
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13. I think that services have improved after allowing Private Players in the
insurance sector
Particulars No. of Respondents Percentage
Yes 42 84%
No 8 16%
Total 50 100%
According to Table 13
From the above table and chart it is inferred that
84% says Yes.
16% says No.
84%
16%
Analysis on service
yes no
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Findings are the broader aspects of the analysis.
The findings from the data collected and analysis made is that
From the analysis it was found that 62% of the respondents from our samplespace are insured whereas 38% are not insured.
According to the Indian custom of belief that government bodies are the saferplace; we can see that 40% of the respondents have their insurance in LIC whileICICI Pru (26%) and others are lagging behind.
It was found that most of the people buy life insurance as just a savingsand
investments tool or as a life cover while only a few of the respondent take it as asecurity option.
A Majority of the respondent buy insurance products because of the needreason while rest of the respondents buy for the brand purpose.
After giving the respondents a demo about the product ICICI Pru LifeTime
Super Pension plan it was seen that most were interested in this plan.
From the survey it was found that amongst 50 respondentsa) 84% of the respondents think that services have improved.b) 16% of the respondents think that services have not improved.
A Majority of the people come to know about the policies from the DirectSelling Agents.
A Majority of the people are satisfied by the incentives associated with their
policies.
Most of the respondents are satisfied by the services offered by their insurancecompany while some says that they are not satisfied by the services.
Most of the respondents want more Transparency from the side of the company.
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It is good to see that people are getting aware of their future and insurance. The
fact is that only 3% of the total population of INDIA is insured which gives alot of ground to cover, thus ICICI Pru needs much more work to do in
increasing its Advisor base so to acquire the rest 97% of the total Indian
population.
ICICI Prudential needs to take necessary steps in spreading awareness among
the people for having insurance.
ICICI Pru as already being the market leader in Private Sector still it needs to
put more efforts in sustaining its position and growing in the insurance market.
Though some percentage of people is not satisfied with their insurer, hence
ICICI Pru needs to reach to the extent of the customer needs.
ICICI Pru should take steps in explaining the people that risk in life increases
with the increase in the age, thus charging a level premium will reduce their
premium charges at their later age.
ICICI Pru must also take required measures towards improving the advisors
convincing power.
ICICI Pru has their Financial Planner and Calculator and this should be
provided to each and every people with proper instruction to use them so that
people should become smarter in doing their financial planning.
ICICI Prus agents should take more necessary steps in asking for references to
the customers they visit, as we know that people get moved by their own
relatives and friends rather than any unknown person.
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ICICI Pru should take necessary steps to make their process more transparent so
that the customers get full satisfaction. Step should be taken like
a) SMS alerts about the premium received and payment dates.
b) Information through emails and faxes so that customer should know where their
funds are being invested.
c) Alerts about any new plans according to their needs.
d) Information about the rate of returns, etc.
All these steps will make the system of ICICI Pru more transparent and customerfriendly to achieve their satisfactory level.
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Conclusion
The company is in the regular process of investing considerably in expanding
the advisor base & administration & building infrastructure to meet demand in
the increasing market.
The companys group business is also beginning to show results, with
restructured group gratuity, superannuation & term products attracting many
corporate clients.
The company is still in an ongoing process of launching new products for
people of every age group.
The retirement planner given by ICICI Prudential Life Insurance gives a right
estimation about the needed investments to be done.
The features of the product are customer friendly and the company works
totally prioritizing the customer needs.
ICICI Prudential Life Insurance Companys achievements itself are now
creating a new level of faith among the people of INDIA.
More work need to be done by ICICI Prudential on sustaining their position in
the market in regards of features affiliated with its products with respect to
other Insurer Segment.
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Bibliography
Reference Books
Marketing management by - Philip Kotler.
IC 33 Life Insurance
HANDBOOK for EFFECTIVE SALESICICI Prudential Life Insurance Pvt.Ltd
Websites
www.iciciprulife.com
www.google.co.in
www.irda.gov.in
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Study on Customer Satisfaction of Retirement Plan of ICICI Prudential with
reference to LifeTime Super Pension Plan
Questionnaire
Name
Age
Occupation
Q1. What is your average annual income?
Up to 1 lakh
1 lakh to 3 lakhs
3 lakhs to 5 lakhs
5 lakhs and more
Q2. Are you currently insured?
Yes
No
If yes, please give the detail of the company, plan, premium etc.
Q3. Which one is your favored insurance company?
LIC
ICICI Prudential
HDFC
Birla Sun Life
Bajaj Allianz
Others
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Q4. Are you satisfied with your current insurer?
Yes
No
Q5. What is your main concern while taking insurance policy?
Tax benefits
Security
Investments/savings
Q6. Are you interested in the LifeTime Super Pension plan offered by ICICI
Prudential?
Yes
No
Cant say
Q7. Does this policy satisfy your financial needs? (Please rate on the scale of 1 to
5 with 1 being least satisfied)
Highly Dissatisfied
Dissatisfied
Neutral
Satisfied
Highly Satisfied
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Q8. Please express your opinion for the premiums paid for the above product
plan?
Very High
High
Moderate
Low
Very Low
Q9. How do you come to know about this policy?
Advertising
Friends and relatives
Direct selling agents
Others
Q10. Are you satisfied with the incentives (tax benefits and Bonuses?)
Associated with LifeTime Super Pension?
Highly SatisfiedSatisfied
Moderate
Unsatisfied
Highly Unsatisfied
Q11. What do you think about the Automatic Transfer Strategy option allotted
with the plan?
Satisfied
Neutral
Unsatisfied
Unaware
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Q12. According to you, how you are finding the Investment Option and
Switches?
Very Good
Good
Fair
Bad
Very Bad
Q13. Do you think that services have improved after allowing Private
Players in the insurance sector?
Yes
No
Give reason why?