organization study at icici prudential
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AN ORGANIZATION STUDY
ICICI Prudential Life Insurance
Sl NoDESCRIPTIONPAGE NO.
1I.1I.2I.3CHAPTER IINTRODUCTIONINDUSTRY PROFILECOMPANY PROFILE
9 10 11 12 15
CHAPTER IIORGANISATIONAL STRUCTURE
188.8.131.52.43.53.6CHAPTER IIIFUNCTIONAL AREASHUMAN RESOURCEMARKETINGFINANCEQUALITY CONTROL DEPARTMENTIT AND SYSTEMS DEPARTMENT 44 46 48
4CHAPTER IVSWOT ANALYSIS
6CHAPTER VFINDINGS SUGGESTION CONCLUSION
BIBLIOGRAPHY 57 58 59 60
1.1 INTRODUCTION ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The authorized capital of the company is Rs.2300 Million and the paid up capital is Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and PrudentialplcUK(26%).
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 19, 2000, becoming one of the first few private sector players to enter the liberalized arena.
The Company is now operational in Mumbai, New Delhi, Pune, Chennai, Kolkata, Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut,MangaloreandLudhiana.
Till March 31,2002 the Company has issued 100,000 polices translating into a Premium Income of around Rs. 1,200 Million and a sum assured of over Rs.15,000 Million.The Company recognizes that the driving force for gaining 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 levels through constant innovation in products, distribution channels and technology based delivery. The Company has already taken significant steps to achieve this goal.. 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.
1.3 INDUSTRY PROFILEWith an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion). According to government sources, the insurance and banking services' contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP. Till date, only 20% of the total insurable population of India is covered under various life insurance schemes, the penetration rates of health and other non-life insurances in India is also well below the international level. These facts indicate the of immense growth potential of the insurance sector. The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. The life insurance industry in India grew by an impressive 36%, with premium income from new business at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff competition from private insurers. This report "Indian Insurance Industry: New Avenues for Growth 2012", finds that the market share of the state behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04.
Though the total volume of LIC's business increased in the last fiscal year (2004-2005) compared to the previous one, its market share came down from 87.04 to 78.07%. The 14 private insurers increased their market share from about 13% to about 22% in a year's time. The figures for the first two months of the fiscal year 2005-06 also speak of the growing share of the private insurers. The share of LIC for this period has further come down to 75 percent, while the private players have grabbed over 24 percent.
VisionTo make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service.This we 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, Boundaryless, Ownership and Passion. Each of the values describe 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.Mission ICICI Prudential Target Returns Fund (There is no guarantee or assurance of returns) is specially designed with the objective of providing investors with trigger options to pre-set their investment objectives by allowing them to re-balance the investment to pre-selected debt funds, once their investment objectives are met. The fund utilizes fundamental analysis for individual security selection with a view to invest in equities of companies that are highly liquid with large market capitalization.
ICICI Bank (NYSE:IBN) is India''s second largest bank and largest private sector bank with over 50 years of financial experience and with assets of Rs. 1812.27 billion as on 30th June, 2005. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is a leading player in the retail banking market and has over 13 million retail customer accounts. The Bank has a network of over 570 branches and extension counters, and 2,000 ATMs.Prudential plc
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldwide. As of June 30, 2004, the company had over US$300 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.MANAGEMENT Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Ms Chanda D. Kochar (Chairperson ) Mr NS Kannan , DirectorMr K Ramkumar ,DirectorMr Barry Stowe ,Director
Ms. Shikha Sharma, Managing Director & CEOMr. N.S. Kannan, Executive DirectorMr. V. Rajagopalan,Chief -ActuaryMr. Sandeep Batra, Chief Financial Officer & Company SecretaryMs. Anita Pai, Chief -Customer Service and OperationsMr. Puneet Nanda, Chief Investments
ICICI Prudential has a wide array ofinsurance plansthat have been designed with the philosophy that different individuals are bound to have differing insurance needs.The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend on the age and life stage of the individual apart from a host of other factors.Life Insurance Plans:Under Life insurance plans, ICICI Prudential offers plans under the following major need categories: Education Insurance Plans Wealth Creation Plans Premium Guarantee plans Protection PlansPension & Retirement Solutions:
The primary objective of apension plan is to help you provide for your financial needs in your post retirement years. You will find a Pension Planning Calculator on the site, meant to make your pension plan review as simple as possible. The calculator is the first step in your Pension Plan scheme, there are othe steps towards getting the Indian pension policy you need. LifeStage Pension LifeTime Super Pension LifeLink Super Pension ForeverLifeHealth Product Suite:
Under Health Product Suite, ICICI Prudential offers plans under the following major need categories:Hospitalisation Plans MediAssure Hospital Care Critical Illnessl Pans Crisis Cover Cancer Products Cancer Care Diabetes Products Diabetes Care Active Diabetes Assure Education Insurance Plans
One of your most important responsibilities as a parent is to ensure that your child gets the best possible education that can be provided.ICICI Prudential offers a wide portfolio ofeducation insurance plansthat are designed to provide peace of mind to you, as a parent, that your child's education will be secure. These plans ensure that money is made available at the crucial junctures in a child's education - Class X, Class XII, graduation and post-graduation - to fund crucial commitments for the child's future.Importantly, education insurance plans ensure that in the unfortunate event of the death of a parent, the child's education continues unhampered.Under the education insurance plans platform, ICICI Prudential brings the following products to you. Please click on the product name to know more about the plans.
Plan NamePlan Type
SmartKid New Unit-linkedRegular Premium
SmartKid New Unit-linkedSingle Premium
SmartKid Regular PremiumUnit LinkedUnit LinkedTraditional
Wealth Creation Plans
Wealth Creation Plans give the customer the dual benefit of protection along with the potentially higher returns of market-linked instruments. The most important benefit ofULIPsis the flexibility they give the customer in choosing the premium amount and also choosing the underlying fund in which this money is to be invested. Wealth creation plans also offer the customer more liquidity options as compared totraditional plans. As such,ULIPsare ideal for customers who want the protection of a life cover to be allied to the returns of market linked instrument giving them an unmatched combination of benefits.Under the wealth creation platform, ICICI Prudential brings the following products to you. Please click on the product name to know more about the plans.
Plan NamePlan Type
ICICI Pru SecureSaveICICI Pru Wealth AdvantageICICI Pru LifeStage AssureICICI Pru LifeTime GoldICICI Pru PremierLife GoldICICI Pru LifeLink SuperICICI Pru LifeStage RPUnit LinkedUnit LinkedUnit LinkedUnit LinkedUnit LinkedUnit LinkedUnit Linked
Why ICICI Pru Secure Save
Life is full of uncertainties and a safety net that will protect us from any fall is what we always strive for. The same is true for our investments where we would love to enjoy the upside of our investments while keeping our downside safe.Presenting ICICI Pru SecureSave which aims to grow the value of customers hard earned savings over time with an assurance of a minimum guaranteed maturity amount to protect you from the downside of equity markets.
Features and benefits of ICICI Pru SecureSave
Guaranteed Maturity Benefit: The SecureSave Guarantee fund provides a Guaranteed Maturity Benefit (GMB). It applies only at maturity, not on death, partial withdrawal or surrender. The GMB for the various policy terms offered under the policy are shown below.Premium Payment Term5 yrs7 yrs10 yrs
Term of the Policy10 yrs15 yrs20 yrs
Guaranteed Maturity Benefit(As a % of Aggregate Investment Premium)*110%125%150%
* This Guarantee is on the Investment Premiums, i.e., your annual premiums less the Mortality charge
Why ICICI Pru Wealth Advantage
There are a number of things you need to do regularly, to ensure that your life runs smoothly. Things like. your bill payments, your childs school fees, EMIs and so on. Keeping a track of all these is difficult indeed.And there are those things that ask for your attention only once but reward you with returns all your life, like ICICI Pru Wealth Advantage. This is our first whole life ULIP that provides a long term cover with just a single premium and allows you to stay invested throughout your life.Features and benefits of ICICI Pru Wealth Advantage
Whole Life Plan Single Premium Automatic Withdrawal Plan Automatic Transfer Strategy Death benefit Choice of 7 investment funds Switch benefit Why LifeStage Assure Well begun, they say, is half done. This adage holds true as much to life as to your long-term financial planning. However, times have changed now; markets have become volatile. Everyone knows for sure that the growth story of India is intact for a longer term. Equity markets havent lost there charm as a long term investment. Yet, everyone is waiting for a right time to invest. Since timing the market correctly is difficult for an average investor and capital preservation during such volatile times is important.
Why LifeTime Gold
Gold has alway always retained its glitter through the ages. This precious yellow metal, much coveted and valued, remains a symbol of class and an ageless asset. The same attributes of gold - precious and valuable - are now yours to enjoy with a policy that's simply pure gold ULIP. Presenting ICICI Prudential's LifeTime Gold, a regular premium unit-linked policy that offers potentially higher returns through the Multiplier Fund that invests in the top 50 large cap companies. Features and benefits of LifeTime Gold-
Flexible policy term choices of premium payment investment fund Systematic withdrawal of money
Why LifeLink Super Well-deserved financial incentives, rewarding business profits and even ancestral money are precious amounts that you should invest immediately so they earn you potentially higher returns in the long run. Invest in ICICI Prudential's LifeLink Super policy-a single-premium unit-linked policy that works best for investors who have in mind long-term financial goals, such as the education of a child or the purchase of a larger home.
Features and benefits of LifeLink Super
2 options of Sum AssuredFlexible policy termPartial withdrawal of money Attractive premium allocation rates7 investment fundsSwitch benefitMaturity benefit Death benefit
Why Life Stage
We have different priorities at different life stages. With such changing priorities, it is important to adopt Asset Allocation as an investment practice. It helps to strike the right balance by distributing your investments across different asset classes like equity and debt. More importantly, it should also change according to our life stage profile age, risk tolerance, etc. However, the discipline of making the right Asset Allocation at various life stages in todays fast-paced life requires the expertise and dedicated time of someone who can manage your money on a day-to-day basis.Features and Benefits of LifeStage RP Option to choose a unique and personalized life-cycle based portfolio strategy to create ideal balance between Equity and Debt Option to change in chosen portfolio strategy 4 times in a policy term (CIPS - Change in Portfolio Strategy) Additional allocation of units at regular intervals to enhance your investment Premium Guarantee Plans
The latest addition to thelife insuranceproduct portfolio of ICICI Prudential is the Premium Guarantee plan - InvestShield Life New. Premium Guarantee plans are the idealinsurance-cum-investmentoption for customers who want to enjoy the potentially higher returns(over the long term)of a market linked instrument, but without taking any market risk.Under the Premium Guarantee Plans platform, ICICI Prudential brings to you the following products:Plan NamePlan Type
InvestShield Life NewInvestShield CashBakUnit LinkedUnit Linked
Why InvestShield Life New?
InvestShield Life New is a one of its kind market linked policy that gives the policyholder the chance of enjoying the potentially higher returns of a market linked instrument. The underlying investment fund in InvestShield Life New has up to 40% investment in equities and related securities.Features and benefits of InvestShield Life New
As a market-linked plan with premium guarantee and enhanced life insurance, InvestShield Life New offers a host of benefits to the policyholder.Key Benefits Premium GuaranteeMaturity BenefitDeath BenefitTax BenefitsWhy InvestShield CashBak?
InvestShield CashBak is a one of its kind market linked policy that gives the policyholder the benefit of capital appreciation while maintaining a balance between return, safety and liquidity. Moreover, InvestShield CashBak also has the added assurance of a Premium Guarantee which ensures that in the event of the market returns being negative, the sum of all premiums paid is returned to the policyholder on maturity of the plan. In other words, InvestShield CashBak is a downside protected plan.In addition to this, the policyholder gets a life insurance cover for protecting the family against the financial implications of the death of the policyholder.Features and benefits of InvestShield CashBak
As a market-linked plan with premium guarantee and enhanced life insurance, InvestShield CashBak offers a host of benefits to the policyholder. Key Benefits Premium Guarantee Partial Withdrawals Maturity Benefit Death Benefit Tax Benefits Protection Plans
Why ICICI Pru Pure Protect
As the head of your family, you have always fulfilled your responsibilities and given your family the comforts they wanted. You have always been there for them. However, life is full of uncertainties. So, it is important to ensure that your family is protected, should something unfortunate happen to you. ICICI Pru Pure Protect is a term plan (Without Return of Premium) which will be available in two variants: ICICI Pru Pure Protect Classic: For Sum Assured of up to Rs. 25,00,000 ICICI Pru Pure Protect Elite: For Sum Assured of Rs. 25,00,000 and above Invest in the plan that best suits your protection needs and guarantees lifelong comfort and security to your family.Read more about this life insurance policy at Pure Protect at a glance.
Features and Benefits of Pure Protect
Take a look at the features and benefits of the plan: Death benefit Maturity benefit Additional Benefits Accidental Death and Disability Benefit Rider:On death of the life assured due to an accident, the beneficiary gets the additional Sum Assured under the Rider.In case of death due to accident while the life assured is using, as a fare paying passenger, authorized public mass surface transport, namely bus or train, operating under terms of such authorization the beneficiary gets twice the Sum Assured under the rider.In the event of total and permanent disability, 10% of the Rider Sum Assured is paid out every year, for 10 years.Waiver of Premium Rider:In case of total and permanent disability due to an accident, under this rider the company will pay the remaining premiums till maturity.
Protect your family with ICICI Prudential's LifeGuard. LifeGuard acts as a shield that safeguards your loved ones from financial insecurity, at all times.A cost-effective plan, LifeGuard comes intwo variants: LifeGuard with Return of Premium (life cover with maturity benefit), and LifeGuard Single Premium (premium at policy inception, cover till policy matures). Invest in a plan that best suits your requirements and guarantee your family lifelong comfort and security.
Features and Benefits of LifeGuard
LifeGuard offers a choice of2 life insurance plans: LifeGuard with Return of Premium and LifeGuard Single Premium. Take a look at the features and benefits of the plans:Death benefit: Provide for your beneficiary to receive the Sum Assured should something happen to you.Extended life cover: Invest in LifeGuard with Return of Premium plan and safeguard your family with an additional coverat 50% of the original Sum Assuredfor 5 years after your policy terminates. Additional riders: Protect your family from accidents and disability by adding on the Accident and Disability Benefit Rider (ADBR) and the Waiver of Premium Rider (WOPR). ADBR: The rider benefit amount will be paid to your family in the event of death or disability due to an accident. WOPR: In the case of total and permanent disability due to an accident, all further premiums will be waived and policy benefits will continue.
Tax benefitsMaturity benefit.Why Save'n'Protect
Life Insurance SchemeAssure your loved ones stay secure, even when you are unable to hold up the protective umbrella yourself. Invest in ICICI Prudential's Save'n'Protect life insurance scheme, and in addition to safeguarding your family, Save'N'Protect will enable you to make regular, systematic savings, so you can effortlessly provide your family with every comfort and meet your long-term financial objectives. Learn more about the features and benefits of the SavenProtect life insurance scheme, from ICIC Prudential, and start protecting the future of your family and loved ones today!
Features and benefits of Save'n'Protect
When you invest in SaveNProtect, you give yourself the guarantee of safeguarding your familys well being in addition to savings towards some important goals.Take a look at the features and benefits of this plan:Sum Assured: Choose your Sum Assured depending on the level of cover with which you want to protect your family. The minimum Sum Assured is Rs. 50,000.
3 premium paying modes: Choose to pay your premium in monthly, bi-annual or annual installments. Your premium is determined based on your age and the Sum Assured you choose.Death benefitMaturity benefitExtended life coverAdditional ridersTax benefits
Why Home Assure
Owning your very own home is a cherished dream. We want to ensure that this dream comes true, irrespective of what the future holds. We are pleased to bring you Home Assure. This extremely affordable Term Life Insurance Plan offers you protection against your loan amount with complete convinience in application. In case of an unfortunate event of death, the financial security of your family is not affected. The family need not direct their savings towards paying off the outstanding loan. ICICI Prudential will pay the outstanding amount to the bank directly. Your family will continue to retain the home purchased by your hard earned money.
Features and benefits of Home Assure
1. All you have to do is pay a single premium to opt for the insurance cover and you will continue to remain covered throughout the insurance tenure i.e. the under-construction period (if applicable) + the original home loan tenure.
2. You will need to state in advance the expected under-construction period as 0,1, or 2 years. This will be added to the home loan term to compute the total insuranceterm.3. You will be covered for the entire loan amount (santioned home loan + single premium paid). The premium is very affordable and there will be a minimal increase in the EMI due to the loan for the insurance premium.4. The insurance cover would start from the date of first disbursement of the home loan and ICICI Prudential shall accept risk from the date the premium is debited to the account of the life assured.5. The insurance cover would be as per the original loan schedule.6. On survival upto the end of term, no benefit will be payable.Tax benefits: Premium paid for the policy and critical illness benefit rider will be eligible for tax benefit under Sec. 80C and 80D respectively. Any amount paid to you will be eligible for tax benefits under Sec. 10 (10D) as per prevailing Income Tax laws.
Pension & Retirement Solutions:The primary objective of apension plan is to help you provide for your financial needs in your post retirement years. You will find a Pension Planning Calculator on the site, meant to make your pension plan review as simple as possible. The calculator is the first step in your Pension Plan scheme, there are othe steps towards getting the Indian pension policy you need. LifeStage Pension LifeTime Super Pension LifeLink Super Pension ForeverLifeWhy LifeStage Pension
Retirementtime is the time to live your dream, dream that you have been putting off as you never had the time for it. But your retirement dream has a cost attached to it. We call this your retirement number.0To help you achieve your retirement number ICICI Prudential presents to you, LifeStage Pension.One of the most distinguishing features of this policy is that it has no premium allocation charge for regular premiums which means 100% of your money is invested. Whats more, the policy provides you with a unique lifecycle-based strategy that continuously re-distributes your money across various asset classes based on your life stage and risk tolerance, eventually providing you with a customisedretirement solution.Invest today to attain your retirement number and fulfill your dreams.Key Benefits of LifeStage Pension Option to choose a unique and personalised lifecycle based portfolio strategy to create ideal balance between Equity and Debt. This plan invests 100% of your money in the portfolio of your choice. Enjoy the flexibility to choose from 5 pension options through which you can receive your pension. Opportunity to earn potentially higher returns by investing inUnit Linked Funds. Receive tax-free commutation up to one-third of the accumulated value on vesting (retirement) date.Fund options available with ICICI Pru LifeStage Pension
Pension Flexi GrowthObjective : To generate superior long-term returns from a diversified portfolio of equity and equity related instruments of large, mid and small cap companies.Indicative Portfolio AllocationMax (%)Min (%)
Equity & Related Securities10020
Debt, Money Market & Cash800
Risk- Reward profile of the Fund: HighPension Flexi BalancedObjective : To achieve a balance between capital appreciation and stable returns by investing in a mix of equity and equity related instruments of large, mid and small cap companies and debt and debt related instruments.Indicative Portfolio AllocationMax (%)Min (%)
Equity & Related Securities600
Debt, Money Market & Cash10040
Risk- Reward profile of the Fund: ModeratePension ProtectorObjective:To provide accumulation of income through investment in various fixed income securities. The fund seeks to provide capital appreciation while maintaining a suitable balance between return, safety and liquidity.Indicative Portfolio AllocationMax (%)Min (%)
Debt Instruments, Money Market & Cash100100
Risk- Reward profile of the Fund: LowPension Maximiser (This Fund shall not be available for investment to those Policyholder whose application is received by the companys office after February 22, 2008)Objective:To provide long-term capital appreciation through investments primarily in equity and equity-related instruments.Indicative Portfolio AllocationMax (%)Min (%)
Equity & Related Securities10075
Debt, Money Market & Cash250
Risk- Reward profile of the Fund: High to those policyholder whose application is received at the Companys office after February 18, 2008)Pension Balancer
Objective:To provide a balance between long-term capital appreciation and current income through investment in equity as well as fixed income instruments in appropriate proportions depending on market conditions prevalent from time to time.Indicative Portfolio AllocationMax (%)Min (%)
Equity & Related Securities400
Debt, Money Market & Cash10060
Risk- Reward profile of the Fund: ModeratePension PreserverObjective:To provide suitable returns through low risk investments in debt and money market instruments while attempting to protect the capital deployed in the fund.Indicative Portfolio AllocationMax (%)Min (%)
Money Market & Cash10050
Risk- Reward profile of the Fund: Capital PreservationPension Multiplier (This Fund shall be available for investment to those policyholders whose application is received at the Companys office on or after February 23, 2008)Objective: To provide long-term capital appreciation from an equity portfolio predominantly invested in NIFTY scrips.Indicative Portfolio AllocationMax (%)Min (%)
Equity & equity related securities10080
Debt, Money market & Cash200
Potential Risk-Reward profile of the Fund: HighPension R.I.C.H. (This fund shall be available for investment to those policyholders whose application is received at the Companys office on or after March 15, 2008)Objective: To generate superior long-term returns from a diversified portfolio of equity an equity related instruments of companies operating in four important types of industries viz., Resources, Investment-related, Consumption-related and Human capital leveraged industries.Indicative Portfolio AllocationMax (%)Min (%)
Equity & equity related securities10080
Debt, Money market & Cash200
Potential Risk-Reward profile of the fund: HighPension Return Guarantee Fund (PRGF)Objective: The fund seeks to provide guaranteed returns through investment in a diversified portfolio of high quality fixed income instruments.Portfolio AllocationMax (%)Min (%)
Debt, Money market & Cash100100
Risk-Reward Profile of the Fund: Low
Health Insurance Products
ICICI Prudential offers health insurance plans under the following major need categories:Comprehensive health coverage:Health SaverA comprehensive whole life plan that covers you against hospitalisation expenses and creates a health fund to cover any other health expenses.Hospitalisation coverage:MediAssureA reimbursement hospitalization plan covering hospitalization stay and treatment. The claim payout is based on actual expense incurred.Hospital CareGet free quote and buy onlineA fixed benefit cashless hospitalization plan covering various stages of treatment and over 900 surgeries.Critical illness coverageCrisis Cover-A comprehensive health insurance policy that covers 35 critical illnesses, death and disability.
1.2 COMPANY PROFILEICICI 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). ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7 bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life
3.1 ORGANISATION STRUCTURE
General ManagerManagerAssistant ManagerAccountant Assistant AccountantSenior ClerkJunior ClerkAttendersHead Office
Branch structure Manager
Accountant (1)Accountant (2)Assistant accountantAssistant accountant Assistant Accountant Senior Clerk Junior Clerk Attenders 3.2 Recommendation about promotional strategies
The suggestions have been classified into two categories. Action oriented suggestions People oriented suggestions
3.2.1 Special Recommendation
The insurance sector has largely stuck to images of happy families, carefree couples and cute babies. We have to use a different route to break the clutter, and humor and endorsement of celebrities is some of the routes available to us."ICICI Prudential should come in front for development of rural sector, by way ofestablishing a school, by digging a well in villages. May be it seems like a fools suggestion but it is one of the way to gain trust in rural sector. We can also use to advertise us by using the way of HALLA BOL. If we adopt this technique then I am sure that this will be most creative and cheaper advertisement all over the world. And by this way ICICI Prudential can again list their name in top advertise
CHAPTER-III FUNCTIONING OF DIFFERENT DEPARTMENT
2.1HUMAN 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
General Manager Manager (HR) Assistant ManagerJunior Superintendent Senior Assistant Junior Assistant
Working period is from 10 am to 5 pm. Working days are from Monday to Saturday. Production department, Quality control department work for 24 hrs So there are three shifts per day. These shifts are from 6.30 am to 2.30 pm, 2.30 pm to 10.30 pm, and 10.30 pm to 6.30 am.The important functions performed by the department are1. Induction and Orientation1. Training1. Performance Appraisal1. Promotion1. Recruitment1. Welfare Measures
RecruitmentTemporary recruitment is done through employment exchanges. The duration of temporary employee is 180 days. For permanent recruitment they first give notification in minimum three newspapers. From the approved applications, candidates are selected for written tests. Those who pass the written test are called for interview. The company has both permanent and temporary employees. Permanent recruitment is done by the head office. TrainingTraining is given to the permanent employees, both off the job and on the job training is given. HR department is in charge of providing training to the permanent employee PromotionPromotions are of two types i.e. Seniority based promotion and performance based promotion. Middle level employees are promoted on the basis of their seniority and top level employees are promoted on the basis of performance.
Welfare MeasureIcici Prudential has a welfare society. Most of the employees are the members of the welfare society. The enrolment in the society is kept optional. There is a separate committee, chairman and secretary for the welfare society. The members of the welfare society have to contribute an amount of Rs.50 every month as a welfare fund. From this fund cash award is given to children of employees who scored high mark in public examinations. Moreover certain amount from the fund is given to the marriage of the concerned member, marriage of the members children etc .Certain percentage of the profit from the company is given as ex-gratia to all the employees except to those employees who availed bonus. Employee should present 240 days in a year to get full ex-gratia. Housing subsidy is also given to the employees. Loan up to 2 lakhs and 1% subsidy is given to all the employees. Employee state Insurance (ESI) is given to employees whose salary is less than 7500. Medical allowance of Rs.100 is given to those employees who do not prefer ESI. Annually employee can take leave up to 33 days out of which 12 days are regarded as casual leave. If an employee is physically present for 246 days he can enter in to Departmental Promotional Committee (DPC). For this minimum of 5 years service is essential.
2.2MARKETING 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 sellers 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.
Marketing concept has constructed mainly on four pillars:Target market :-companies do best when they define their target market(s) carefully and prepare a tailored marketing programme Customer needs:- Different types of customers are in the market. They have different types of needs likes
STRUCTURE OF MARKETING DEPARTMENT
Assistant Marketing OfficerMarketing Officer Assistant Manager General ManagerManager (Marketing)
Marketing Research is the systematic method of gathering, recording, objective, search and analyzing of valid and reliable information relating to the marketing of goods and services. Several factors are contributed to the growth of marketing research. Those are,To know the potential area of selling for the manufacturer, where his goods could be marketedTo understand the buyer behavior Increasing the usage of computers has further contributed to the growth of marketing research changes in the composition of population, particularly. The shift from rural to the urban areas, has widened the scope for the marketing of various types of goods and services in the urban areas.
2.3 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 organizations 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.
Income Statement the profit and loss account sets out income as well as expenses of the same period and after matching the two, the difference being the net profit or net loss, is shown as the difference between the two sides of the account. Thus, the earning capacity and the potential of an organization are reflected by its profit and loss account.
Position Statement otherwise know as the balance sheet displays the total resources of a business and the owners and creditors equity in these resources. It indicates a statement of affair of a business at a particular moment of time and thus it is static in nature.
Statement of Retained Earning also known, as the profit and loss appropriation account, is generally a part of the profit and loss account. It shows how the profit of the business for the accounting period is appropriated towards reserve and dividend and how much of the same is carried forwarded as retained earnings.
Statement of Changes in Financial Position also known as the fund flow statement, summarizes the changes in assets, liabilities and the owners equity between two balance sheet dates. Thus, it is a statement of flows, i.e., it measures the changes that have been taken place in the financial position of a firm between two balance sheet dates. It summarizes the sources and uses of the funds obtained.
3.6.1 STRUCTURE OF FINANCE AND ACCOUNTS DEPARTMENT
Junior Assistant Senior Assistant Junior Superintendent Assistant Manager General ManagerManager (Finance)
CHART SHOWING ANATOMY OF FINANCIAL STATEMENTS
Statement of changes in Financial PositionStatement of Changes in Owners Equity changes in Retained Earnings Income StatementsOrProfit & loss A/cPosition StatementOrBalance Sheet
Cash FlowStatementFund FlowStatement
FINANCIAL ANALYSIS Financial analysis is the process of identifying the financial strengths and weakness of the firm by properly establishing relationships between the items of the balance sheet and profit and loss account. The purpose of financial analysis is to disclose the information contained in the financial statements so as to judge the profitability and financial soundness of the organizationQUALITY CONTRO DEPARTMENT: Quality control department as the name suggests this department takes care of the quality of insurance policies offered by the company. Quality control department plays an important role in the company. Quality control department sees that every insurance which has been sold should not be based on fake promises and should meet the requirement of customers.
Structure of Quality control department
Manager (Quality control)
IT AND SYSTEMS DEPARTMENT: IT and Systems department of icici prudential life insurance is responsible for all the work related to information technology. In this company every department use different software and different ERP. ICICI PRUDENTIAL use FIDELIO software to save their data like no. of policies sold. Each department is connected through this software and according to their requirement every department take information from that software. If there is any problem with the systems, software or networking then system department staff is called.
Strengths 1. 200 years record of profitability2. Entire range of products for corporate and retail customers3. Market segmentation and products for niche segment4. Significant presence in Credit cards, Insurance, Mutual funds, Investment banking, Personal loans and SME sector5. 54 overseas offices spanning 28 countries6. 21 banking and non-banking subsidiaries and associates7. Over 80% of top corporate in India have strong relationships with SBI8. Largest individual customer base in the country9. Leading provider of financial services across retail and wholesale segments
Weaknesses 1. Constrained by the norms of public sector status2. Large size has its impact on swiftness of response3. Comparatively large number of employees4. Lack of innovation5. Inability to implement proper individual reward schemes to motivate and enhance productivity due to industry wide implications
1. Improvement in the economic conditions2. Increasing purchasing power of large number of middle class -------------3. Indias stature as leading IT power4. Retail finance and insurance sector5. Low penetration of credit cards6. Cross-selling7. Infrastructure development
1. Asset Quality2. Interest Rate risk3. Operations risk in view of increasing use of technology in day to day operations4. Fleet-footed foreign banks and private banks5. Pressure on margins
CHAPTER-VIFINDINGS, SUGGESTION AND CONCLUSION
6.1 Findings 80% of the respondents have bought a life insurance policy from ICICI Prudential Life Insurance Company Ltd.
ICICI Prudentials Life Time, Retirement Solutions and Smart Kid are the most preferred policies among all types of policies of the company
63% of the respondents have a High level of satisfaction for the policy service and all of the respondents are satisfied with the existing features of their life insurance policy
Life Risk cover is the main criterion for buying a Life Insurance policy followed by benefit of income tax rebate
Majority of the respondents have implicit faith in Private Life Insurance companies as they believe they are trustworthy
90% of the policy holders opined that the prices of policies of Private Life Insurance companies are affordable
The most important guidance/service expected from a Life Insurance advisor is the thorough and detailed explanation of policy features All the respondents (100%) are aware of ICICI Prudential their main source of awareness being Life Insurance advisors and advertisements
90% of the respondents who hold ICICI Prudentials Life Insurance policy would prefer to go in for another policy only from ICICI Prudential. The most important reasons for this are brand name, wide varieties of policies to choose from and good servicing of policies
ACTION ORIENTED SUGGESTIONSAn intense AIDA model needs to be adopted the AIDA model (Awareness, Internet, Desire,and Action). Customers are aware of majority of products of ICICI PRUDENTIAL LifeInsurance Co. Ltd.To create the awareness regarding Product1. Print & Electronic Media Advertisement should be done (As we can see intense adcampaign of HDFC Standard Life and Bajaj Allianz.)2. After the initial promotional campaign the relative advantage of ICICI PRUDENTIALLife Insurance Co. Ltd. Over its competitor should be highlighted.1. Hoardings at prime areas should be used.
PEOPLE ORIENTED SUGGESTIONS1. Creating offers like lucky draws for the users of Internet.2. Giving free gifts for the customer.
There has been a tectonic shift in advertising the insurance companies. Till 2 or 3 years back a typical Ad will showcase a small happy family enjoying their life. Then one unfortunate Day the head of the family dies in an accident and the rest of the family is drawn to rags. The ad ends up saying Insurance can help them against such calamities. People bought the idea and started buying insurance. But there was a basic flaw in the ad. It tells the consumers about the advantages of having Insurance but nothing about buying insurance from a perticular insurance firm. So whoever casting such ad was helping the industry as a whole but not their specific firm. If we see the recent ads they are talking about how SBI Life can help smoothen your oldage life or how ICICI Prudential can help you in receiving pentions etc. This sounds more logical. Each ad speaks about how their firms offers can help you instead of telling how insurance as a whole can help you.
In concluding part of this project it shows that advertisement is very much important for any business. A huge amount is paid by companies against advertisement. There are many ways available to give advertisement onwhich this amount is paid this are TV, Newspaper, Radio, Internet etc. The amountspent on advertisement over four year across the world is shown I table.At the initial phase of a company it is important that they give emphasis on corporate advertising because it helps in brand recall. At the later stage company can go for product class advertisements. Well it is also found that during session that endorsement of celebrities is helpful in ad recall. But giving advertisement in any type of media is not the only medium; there are many other ways also like social service, by way of educating people.
Especially for Insurance companies if they want to capture rural market then they have to approach in different way. In my opinion rural market can only been captured if we reaches to there heart. And this can be happen only if we solve there basic problem.
1. BIBLIOGRAPHY Below youll Find Host of Additional Resources That you should Find Useful In The Course of Your study Research:
By Books:Marketing management : Philip kotler,JOURNALS : Company Annual report, The Hindu Business Line, Market Research in Insurance. Website www.insuremagic.comwww.indiainfoline.comwww.bimaonline.comwww.expressindia.comwww.responsiveservice.comwww.agencyfaqs.comwww.knowledgedigest.comwww.google.comwww.wikipedia.comwww. indiantelevision.com.