pricing strategies of icici prudential

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Amity Business School

INDIAN INSURANCE INDUSTRY

Amity Business School

US$ 41billion industry in India. Fifth largest life insurance market Growth of 32-34% p.a. 26% FDI allowed by IRDA since 2000. 1 govt. company i.e. LIC, 12 private life insurance company and 9 general insurance company

ICICI Prudential v/s ICICI Lombard

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Prudential is a Life Insurance company covering Life Insurance, Retirement Plans and Health Insurance Lombard is a General Insurance Company covering health, car, home, travel etc.

ICICI PRUDENTIAL Amity Business SchoolICICI Prudential Life Insurance Company is a joint venture between ICICI Bank & Prudential PLC. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000. Largest private life insurance company The company has a network of about 56,000 advisors; as well as 150 corporate agent tie-ups. Since its inception, ICICI Prudential has retained its position as the No. 1 private life insurer in the country. Most trusted private life insurer: 3years in a row More than four million policies sold.

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SUSTAINED PRIVATE MARKET LEADERSHIPFY 2006 1 2 3 ICICI Prudential Birla Sun Life HDFC Standard Life Max New York Life Bajaj Allianz FY 2007 ICICI Prudential Birla Sun Life FY 2008 ICICI Prudential Birla Sun Life FY 2009 ICICI Prudential Bajaj Allianz

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FY 2010 ICICI Prudential Bajaj Allianz SBI Life Insurance Reliance

Bajaj Allianz Bajaj Allianz HDFC Standard Life HDFC Standard Life Max New York Life HDFC Standard Life ING Vysya Life Birla Sun Life Max New York Life

4

5

HDFC Standard Life

Reasons for Growth

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Lucrative offers High standard service Customer-centric products Good communication techniques Use of customer feedback in improvement of offers.

STRATEGIESMarketing Strategies:-

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Aggressive advertising TELEVISION ADVERTISING: Targeting through news channels, specially through business news channel. Tax Savings

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

CONSUMER SURVEY ICICI Prudential customers Sample Size: 40 people Source: Personally, telephone or e-mail Sex Ratio: 30:10 Age Group: 21-63

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Q. Which policy do you have?

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Q. Are you satisfied with pricing policy of the company?

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A B

Yes No

Observation 26 14

Q. Do you know any Amity Business School other company which gives similar policy at a lesser price?

A B

Yes No

Observation 28 12

Yes No

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

22 21 20 19 18 17 16

Yes

No

Q. Rank these companies:Companies Ranking (Approx.)

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A B C D E

ICICI Prudential LIC HDFC Standard Life Max New York Religare

2 1 4 3 5

PRICINGLife Protection:Age:30 Duration: 30 years Sum assured: Rs. 10Lakhs Premium: Rs. 2230

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

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Health:Age: 30 Sum Assured: Rs. 10lakhs Premium: Rs. 7099

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V/S

Amity Business School

Amity Business School

PRICING STRATEGYPRICING FOLLOW THE LEADER PRICING LEADER PRICING PREMIUM PRICING

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DISCOUNTS CORPORATE DISCOUNTS FAMILY DISCOUNTS EXISTING CUSTOMER

SWOTSTRENGTH No. 1 private life player in India. Innovative insurance policies One of the largest financial Institution of Indias.

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Training provided to all people associating with ICICI prudential. Highest paid up capital deposited in IRDA Assets base of ICICI is more than Rs. 1,08,000 Crores.

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WEAKNESS Very huge premiums of policies. Target upper class people only. Policy charges are very high. Restricted to Urban India Tag of Private Player

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

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THREATS Threat from existing life insurance players Threat from new entrance. Threat from substitute products Change in the policy of IRDA People aware dont aware of different distribution channel.

CONCLUSION Market Leader as well as Market Follower ICICI and Prudential PLC meeting its goals Tough Competition Excellent Future IRDA dependent Rural Development

Amity Business School

Amity Business School