EXECUTIVE SUMMARY

ICICI Prudential Life Insurance is one of the largest Insurance

networks in the country, and 2nd Life Insurance Company in India. The ICICI
Group has been in existence since 1955 when ICICI Ltd., was created. ICICI
Prudential started in 2002 as subsidiary of ICICI Ltd., Today ICICI Life
Insurance has a customer base of 4 million with total assets exceeding Rs.1,
00,000 Cr. making it the 2nd largest life insurance company in the country,
next only to LIC.

The Insurance sector, after the opening up, provides greater

opportunities. Several global players have emerged and the market has
changed significantly. In the changed scenario, the expectation is that the
low Insurance premium as a percentage of GDP prevailing in India will
improve and will offer better opportunities to the insurance players.

Life Insurance sector is one of the key areas where enormous

business potential exists. In India currently the life insurance premium as a
percentage of GDP is 1.3 per cent against 5.2 per cent in the US, but in the
liberalized scenario, the life insurance
premiums were projected to grow at around 18% to 20% from Rs 215 billion
in 1998- 99 to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10.
Corporate non-life
premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386

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billion in 2009-10 and personal line non-life from Rs 4 billion to Rs 51
billion.

In the life Insurance segment the Life Insurance Corporation of India

(LIC) is the major player. The LIC has 2050 branches. It is constituted in to
seven Zones. Currently there are 5, 60,000 LIC agents in India. General
Insurance is another segment, which has been growing at a faster pace.

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 CHAPTER 1

INTRODUCTION

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INTRODUCTION

Life insurance is a form of insurance that pays monetary proceeds upon the
death of the insured covered in the policy. Essentially, a life insurance policy
is a contract between the named insured and the insurance company wherein
the insurance company agrees to pay an agreed upon sum of money to the
insured's named beneficiary so long as the insured's premiums are current.

With a large population and the untapped market area of this population
insurance happens to be a very big opportunity in India. Today it stands as a
business growing at the rate of 15-20% annually. Together with banking
services, it adds about 7 percent to the countries GDP. In spite of all this
growth statistics of the penetration of the insurance in the country is very
poor. Nearly 80% of Indian populations are without life insurance cover and
the health insurance. This is an indicator that growth potential for the
insurance sector is immense in India.

It was due to this immense growth that the regulations were introduced in
the insurance sector and in continuation “Malhotra Committee” was
constituted by the government in 1993 to examine the various aspects of the
industry. The key element of the reform process was participation of
overseas insurance companies with 26% capital. Creating a more
competitive financial system suitable for the requirements of the economy
was the main idea behind this reform.

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Since then the insurance industry has gone through many changes. The
liberalization of the industry the insurance industry has never looked back
and today stand as one of the most competitive and exploring industry in
India. The entry of the private players and the increased use of the new
distribution are in the limelight today. The use of new distribution
techniques and the IT tools has increased the scope of the industry in the
longer run.

Insurance is the business of providing protection against financial aspects of

risk, such as those to property, life health and legal liability. It is one method
of a greater concept known as risk management –which is the need to mange
uncertainty on account of exposure to loss, injury, disadvantage or
destruction.

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

many who are exposed to some or similar risk shares loss of the unfortunate.
Insurance does not protect the assets but only compensates the economic or
financial loss.

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

and in return is able to claim a payment from the insurer if the insured
suffers a defined type of loss. This relationship is usually drawn up in a
formal legal contract.

Insurance companies also earn investment profits, because they have the use
of the premium money from the time they receive it until the time they need
it to pay claims. This money is called the float. When the investments of

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float are successful they may earn large profits, even if the insurance
company pays out in claims every penny received as premiums. In fact, most
insurance companies pay out more money than they receive in premiums.
The excess amount that they pay to policyholders is the cost of float. An
insurance company will profit if they invest the money at a greater return
than their cost of float.

An insurance contract or policy will set out in detail the exact circumstances
under which a benefit payment will be made and the amount of the
premiums.

Classification of insurance

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

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:

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

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

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

life insurance company in Calcutta. The first Indian owned Life Insurance
Company; the Bombay mutual life assurance society was set up in 1870.the
life insurance act, 1912 was the first statuary measure to regulate the life
insurance business in India. In 1983, the earlier legislation was consolidated
and amended by the insurance act, 1938, with comprehensive provisions for

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detailed effective control over insurance. The union government had opened
the insurance sector for private participation in 1999, also allowing the
private companies to have foreign equity up to 26%. Following the opening
up of the insurance sector, 12 private sector companies have entered the life
insurance business.

Benefits of life insurance

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

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

Fundamental principles of life insurance contract;

1) Principle of almost good faith:

“A positive duty to voluntary disclose, accurately and fully, all facts,

material to the risk being proposed whether requested or not”.

2) Principle of insurable interest:

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

and gives legal right to insure that person”.

2) Non-life (general) Insurance:

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

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established in India in 1850, whose shares were mainly held by the British.
The first general insurance company to be set up by an Indian was Indian
mercantile insurance co. Ltd., which was stabilized in 1907 . there emerged
many a player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of

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

CONCEPTUAL BACKGROUND

 Satisfaction is defined as . . .
“A person’s feeling of pleasure or disappointment resulting from comparing
a product’s perceived performance (or outcome) in relation to his or her
expectations.”
Customer Satisfaction can be defined as supplying or gratifying all wants
or wishes, fulfilling conditions or desires, or the state of the mind anything
that makes a customer feel pleased or contented.

Consumer Behavior:
Consumer behavior is defined as the behavior that consumers display in
searching for, purchasing, using, evaluating and disposing of products and
services that they expect will satisfy their needs.
The study of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services ideas, or experiences to
satisfy needs and desires

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Customer value: The ratio between the customers’s perceived benefits
(economic, functional and psychological) and the resources (momentary,
time, effort, psychological) used to obtain those benefits.

Customer satisfaction: Customer satisfaction is the individual’s perception

of the performance of the product or service in relation to his or her
expectations.

Motivation: The processes that account for an individual’s intensity,

direction, and persistence of effort toward attaining a goal.

Personality can be described ad the psychological characteristics that both

determine and reflect how person responds to his or her environment.

Perception is defined as the process by which an individual selects,

organizes, and interprets stimuli into a meaningful and coherent picture of
the world.

Consumer learning is the process by which individuals acquire the

purchase and consumption knowledge and experience they apply to future
related behavior.

THE CONSUMER ADOPTION PROCESS

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The consumer adoption process is the process by which customers learn
about new products, try them, and adopt or reject them. Today many
marketers are targeting heavy users and early adopters of new products
recognizing that specific media can reach both groups and tend to be opinion
leaders. The consumer adoption process is influenced by many factors
beyond the marketer’s control, including consumers and organizations
willingness to try new products, personal influences and the characteristics
of the new products or innovations

STAGES OF ADOPTION PROCESS

An innovation refers to any good, service, or idea. That is perceived by

someone as new. The idea may have long history, but it is an innovation to
the person who sees it as new. Innovation takes time to spread through the
special system. The consumer adoption process focuses on the mental
process through which an individual passes from first hearing about an
innovation to final adoption. Adopters of new products have moved through
the following five stages.

1. AWARENESS: The consumer becomes aware of the innovation but

lacks information about it.

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 2. INTEREST: The consumer is stimulated to see the information about

the innovation.

3. EVALUATION: The Consumer considers whether to try the

innovation or not.

4. TRIAL: The consumer tries the innovation to improve his estimate of

its value.

5. ADOPTION: The consumer decides to make full and regular use of

the innovation.

1. INDUSTRY PROFILE

1.1 Insurance in India

The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360
degree turn witnessed over a period of almost two centuries.

1.2 A Brief history of the Insurance Sector

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The business of life insurance in India in its existing form started in India in
the year 1818 with the establishment of the Oriental Life Insurance
Company in Calcutta.
Some of the important milestones in the life insurance in India are;
1912: The Indian Life Assurance
For over 50 years, life insurance in India was defined and driven by only one
company- the Life Insurance Corporation of India (LIC). With the Insurance
Regulatory and Development Authority (IRDA) Bill 1999 paving the way
for entry of private companies into both life and general sectors there was
bound to be new-found excitement- and new success stories. Today, just
three years since their entry, their cumulative share has crossed 13% (source:
IRDA), far exceeding expectations. Clearly insurance is on a growth path.
The percentage of premium income to GDP which was just 2.3% in 2000-01
rose to 3.3% in 2002-03; and life insurance has emerged as the dominant
contributor to this growth.
The industry presented a huge opportunity. Life insurance penetration, for
instance, was at an abysmal 22% of the insurable population. However,
private players have had to rise to many challenges. They were faced with
attitudinal barriers towards the category and the perception that insurance
was only a tax saving tool. Insurance per se had lost it basic rationale:
protection. It wasn’t surprising then that its potential lay frozen and
unexploited. The challenge for private insurance players was to change the
established category driver and get customers to evaluate life insurance as an
investment-cum-protection tool.

PREMIUM UNDERWRITTEN BY LIFE INSURERS

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The life insurance industry recorded a premium income of Rs.82854.80
crore during the financial year 2005-06 as against Rs.66653.75 crore in the
previous financial year, recording a growth of 24.31 per cent. The
contribution of first year premium, single premium and renewal premium to
the total premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30
crore (12.47 per cent); and Rs.56637.16 crore (68.36 percent), respectively.
In the year2000-01, when the industry was opened up to the private
players, the life insurance premium was Rs.34,898.48 crore which
constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore
of renewal premium and Rs. 2740.45 crore of single premium. Post opening
up, single premium had declined from Rs.9, 194.07 crore in the year
2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the
guaranteed return policies. Though it went up marginally in 2003-04 to
Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a
significant shift with the single premium income rising to Rs. 10336.30
crore showing 74.11 per cent growth over 2003-04.
(Rs. lakh)

Insurer 2004-05 2005-06

First year premium including Single
premium
LIC* 1734761.74 2065306.36
(6.34) (19.05)
Private Sector 244070.58 556457.34
(152.74) (127.99)
Total 1978832.32 2621763.70
(14.68) (32.49)

Renewal Premium
LIC 4618580.96 5447422.62
(19.47) (17.95)
Private Sector 67962.05 216293.48
(343.12) (218.26)
Total 4686543.01 5663716.10
(20.75) (20.85)

Total Premium

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 LIC 6353342.70 7512728.98
(15.63) (18.25)
Private Sector 312032.63 772750.82
(178.83) (147.65)
Total 6665375.33 8285479.80
(18.91) (24.31)

1.3 Brief Review of Scenario – Insurance

Insurance in India started without any Regulation in Nineteenth century.

It was story of a typical colonial era. A few British companies dominated
the market mostly in large urban centers.

Insurance was nationalized mainly on 3 counts First, Indian lives were

not insured. Second, even if they were insured, they were treated as
substandard lives and extra premium was charged. Third, there were
gross irregularities in the functioning of Life insurance was nationalized
in the year 1956, and then general insurance was nationalized in the year
1972. In 1999, the private insurance companies were allowed back again
into insurance sector with maximum cap of 26 percent foreign holding.

 1818 The British introduce to India, with the establishment of the

Oriental Life Insurance company in Calcutta.
 1850 Non life insurance debuts, with Triton Insurance Company.
 1870 Bombay Mutual life Assurance Society is the first Indian-owned
life insurer
 1907 Indian mercantile Insurance is the first Indian non-life insurer.

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  1912 The Indian life assurance companies’ act enacted to regulate the
life insurance business.
 1938 The insurance act, which forms the basis for most current
insurance laws, replaces earlier act.
 1956 Life insurance nationalized, government takes over 245 Indian
and foreign insurers and provident societies.
 1956 Government sets up LIC
 1972 Non life insurance nationalized, GIC set up.
 1993 Malhotra committee, headed by former RBI governor
R.N.Malhotra, set up to draw up a blue print for insurance sector
reforms.
 1994 Malhotra Committee recommends re-entry of private players,
autonomy ot PSU insurers.
 1997 Insurance regulator IRDA (Insurance Regulatory and
Development Authority) set up.
 2000 IRDA starts giving licensed to private insurers
 2001 ICICI Prudential Life Insurance came into the market to sell a
policy.
 2002 Banks were allowed to sell insurance plans, as TPAs enter the
scene, insurers start settling non-life claims in the cashless mode.

1.4 The Insurance Regulatory and Development Authority (IRDA):

Reforms in the Insurance sector were initiated with the passage of the IRDA
Bill in Parliament in December 1999. The IRDA since its incorporation as a

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statutory body in April 2000 has fastidiously stuck to its schedule of framing
regulations and registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems

to the insurance sector and in particular the life insurance companies were
the launch of the IRDA’s online service for issue and renewal of licenses to
agents.

The approval of institutions for imparting training to agents has also ensured
that the insurance companies would have a trained workforce of insurance
agents in place to sell their products, which are expected to be introduced by
early next year.

Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life
insurance and 6 general insurance companies have been registered.

With the demographic changes and changing life styles, the demand for
insurance cover has also evolved taking into consideration the needs of
prospective policyholder for packaged products. There have been
innovations in the types of products developed by the insurers, which are
relevant to the people of different age groups, and suit their requirements.
Continued innovations in product development has resulted in a wide range
of flexible products to meet the requirements for cover at different stages of

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life -today a variety of products are available ranging from traditional to Unit
linked providing protection towards child, endowment, capital guarantee,
pension and group solutions. A number of new products have been introduced
in the life segment with guaranteed additions, which were subsequently
withdrawn/toned down; single premium mode has been popularized; unit
linked products; and add-on/riders including accidental death;
dismemberment, critical illness, fixed term assurance risk cover, group
hospital and surgical treatment, hospital cash benefits, etc. Comprehensive
packaged products have been popularized with features of endowment,
money back, whole life, single premium, regular premium, rebate in
premium for higher sum assured, premium mode rebate, etc., together with
riders to the base products.

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1.5 Historical Perspective

 Prior to 1956 -242 companies operating

 1956 -Nationalization- LIC monopoly player -Government control
 2001 -Opened up sector

1.6 Contribution to Indian Economy

 Life Insurance is the only sector which garners long term savings.
 Spread of financial services in rural areas and amongst socially less
privileged.
 Long term funds for infrastructure.
 Strong positive correlation between development of capital markets
and insurance/pension structure.
 Employment generation.

1.7 Insurance Industry prior to de-regulation

Prior to deregulation in 2000, market was a public monopoly.

 Public Monopoly
- 2000 Offices
- Over 800,000 agents
 Distribution through tied agents only
 Sales approach primarily on a tax savings platform

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  Traditional style product offering : Endowment and money back plans
 Inadequate and inflexible products
 Pensions: Small part of product offer
 Limited focus on customer needs

1.8 Improving Service Standards

 Pre Deregulation – Limited Distribution

Channel Access Service Points Use of IT

 Advisors  Branch  Limited use of IT

Network
 Post Deregulation – Service through Distribution

Multi Channel Access Multiple Service Use of IT

Points
 Advisors  Call Centers  Shorter time
 Brokers &  Email around time
Corporate agents  Website  Claims
 Bancassurance  Branch  Policy
Network Issuance

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2. COMPANY PROFILE

ICICI Prudential Life Insurance Company Limited (‘the Company’) a

joint venture
between ICICI Bank Limited and Prudential plc of UK was incorporated
on July
20, 2000 as a company under the Companies Act, 1956 (‘the Act’). The
Company
is licensed by the Insurance Regulatory and Development Authority
(‘IRDA’) for carrying life insurance business in India.

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
(UK). The company brings together the local market expertise and financial
strength of ICICI Bank and Prudential’s International life insurance
experience. The company was granted a certificate of Registration by the
IRDA on November 24, 2000 and eighteen days later, issued its first policy
on December 12. 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).

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From its early days, ICICI Prudential seemed to have the wherewithal for a
large-scale business. By March 31, 2002, a little over a year since its launch,
the company had issued 100,000 policies translating into premium income
of approximately Rs. 1,200 million on a sum assured of over Rs.23 billion.
When the company began its operations, the need was to build a brand that
was relatable to, symbolized trust and was easily recognized and understood.
It launched a corporate campaign ICICI Prudential also made using the
theme of ‘Sindoor’ to epitomize protection, trust, togetherness and all that is
Indian; endearing itself to the masses. The success of the campaign, ‘the
calling card of the company’ saw the brand awareness scores almost at par
with its 40 year old competitor. The theme of protection was also extended
to subsequent product and category specific campaigns –from child plans to
retirement solutions –which highlight how the company will be with its
customers at every step of life.

From day one, the company has unflinchingly focused on being mass-market
player, developing products, creating a distribution network and deploying
resources that would further its goal. Apart from ramping up thoroughly
training its advisors, the company has twelve ‘Bancasurance’ partners –the
largest in the country. It swiftly revised and added to its initial range of
products, pioneering market-linked products and pension plans, to offer
customers the most flexible life insurance policies in the country. In
February 2004, ICICI Prudential increased its capital base by Rs. 500
million, its ninth capital hike, bringing the total paid –up equity capital to
Rs. 6,750 million. With the authorized capital of the company standing at
Rs. 12 billion, ICICI Prudential continues to have the highest capital base

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amongst all life insurers in the country. The challenge ICICI Prudential now
faces is to retain its top-notch position and continue to deliver the finest life
insurance and pension solutions to its ever-growing customer base.

ICICI Prudential’s equity base stands at Rs. 1185 crore with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the year ended
March 31, 2006, the company garnered Rs.2, 412 crore of weighted new
business premium and wrote 837,963 policies. The sum assured in force
stands at Rs.45, 888 crore. The company has a network of over 72,000
advisors; as well as 9 bancasurance partners and over 200 corporate agent
and broker tie-ups.

ICICI Prudential is also the only private life insurer in India to receive a
National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings.
The AAA rating is the highest credit rating, and is a clear assurance of ICICI
Prudential’s ability to meet its obligations to customers at the time of
maturity or claims.

For the past five years, ICICI Prudential has retained its position as the No.1
private insurer in the country, with a wide range of flexible products that
meet the needs of the Indian customer at every step in life.

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

been meteoric, becoming the number one private life insurer within months
of launch. Today, it has one of the largest distribution networks amongst
private life insurers in India, with branches in 54 cities. The total number of

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policies issued stands at more than 780,000 with a total sum assured in
excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total
received premium income of Rs. 9.9 billion; up 135% last years total
premium income of Rs.4.20 billion. New business premium income shows a
106% growth at Rs. 7.5 billion, driven mainly by the company’s range of
unique unit-linked policies and pension plans. The company’s retail market
share amongst private companies stood at 36%, making it clear leader in the
segment. To add to its achievements, in the year 2003/04 it was adjudged
Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand
Survey’ by AC Nielsen ORG-MARG). It was also conferred the ‘Outlook
Money-Best Life Insurer’ award for the second year running. The company
is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work,
not life’ campaign. Notably, ICICI Prudential was also short-listed to the
final round for its ‘Sindoor campaign in EFFIES 2002.

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

customer a choice. This has been the driving force behind its multi-channel
distribution strategy, which includes advisors, banks, direct marketing and
corporate agents. In fact, ICICI Prudential was the first life insurer to invest
in multiple channels and offer the customer choice and access; thus reducing
dependency on any one channel, great strides in the retirement solutions and
pensions market.

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The Company’s penetration of the retirement market was driven by the
focused approach towards creating awareness through sustained campaign;
‘Retire from work, not life’. Within six months, the campaign rewarded
ICICI Prudential with an increased share of 23% of the total pensions market
and 78% amongst private players. ICICI Prudential has one of the largest
distribution networks amongst private life insurers in India, having
commenced operations in 132 cities and towns in India, stretching from
Bhuj in the west to Guwahati in the east, and Jammu in the north to
Trivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements

with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord
Krishna Bank, and some co-operative banks, as well as over 200 corporate
agents and brokers, it has also tied up with NGOs, MFIs and corporates for
the distribution of rural policies.

ICICI Prudential has recruited and trained more than 72,000 insurance
advisors to interface with and advise customers. Further, it leverages its
state-of-the-art IT infrastructure to provide superior quality of service to
customers.

About the Promoters

ICICI Bank (NYSE:IBN) is India’s second largest bank with an asset base
of Rs.2513.89 billion as on March 31, 2006. ICICI Bank provides a broad
spectrum of financial services to individuals and companies. This includes
mortgages, car and personal loans, credit and debit cards, corporate and

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agricultural finance. The Bank services a growing a customer base of more
than 17 million customers through a multi channel access network which
includes over 620 branches and extension counters, 2200 ATMs, call centers
and internet banking (www.icicibank.com)

PRUDENTIAL plc, Established in London in 1848, through its business in

the UK and Europe, the US and Asia, provides retail financial services

products and services to more than 16 million customers, policy holder and

unit holders world wide. As of December 31, 2005, the company had over

US$ 400 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 23 life and mutual fund

operations in twelve countries –China, Hong Kong, India, Indonesia, Japan,

Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

Achievements

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

been meteoric, becoming the number one private life insurer within months
of launch. Today, it has one of the largest distribution networks amongst
private life insurers in India, with branches in 54 cities. The total number of

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policies issued stands at more than 780,000 with a total sum assured in
excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total
received premium income of Rs. 9.9 billion; up 135% last years total
premium income of Rs.4.20 billion. New business premium income shows a
106% growth at Rs. 7.5 billion, driven mainly by the company’s range of
unique unit-linked policies and pension plans. The company’s retail market
share amongst private companies stood at 36%, making it clear leader in the
segment. To add to its achievements, in the year 2003/04 it was adjudged
Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand
Survey’ by ACNeilsen ORG-MARG). It was also conferred the ‘Outlook
Money-Best Life Insurer’ award for the second year running. The company
is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work,
not life’ campaign. Notably, ICICI Prudential was also short-listed to the
final round for its ‘Sindoor campaign in EFFIES 2002.

In Keeping with its belief that a happy customer is the best endorsement,
ICICI Prudential has embraced the ‘SIX SIGMA’ approach to quality, an
exercise that begins and ends with the customer from capturing his voice to
measuring and responding to his experiences. This initiative is currently
helping the company improve processes, turnaround times and customer
satisfaction levels. Another Novel introduction is the ICICI Prudential
Lifestyle Rewards Club, India’s first rewards programme for Life Advisors;
it allows ICICI Prudential Advisors to redeem points for items ranging from
kitchenware to gold, white goods, and even international holidays.

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Promotion

ICICI Prudential is a case study in how advertising and marketing can play a
vital role in re-shaping an industry. It has demonstrated how an industry
where the customer was nothing more than a policy number has changed to
one where ‘customer preference’ rules the roost.

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

multi-faceted task. At the time of launching operations, the communications
task was to build credibility, so as to give the customer the confidence that it
was ‘a company that could be trusted to invest funds with’. The aim was to
encourage people to view insurance not as a compulsory tax saving
instrument, but as a means to lead a worry-free, secure life and in the
process, create the differentiator for brand ICICI Prudential.

The brand proposition for all the campaigns was reflected in the line:
‘Suraksha: Zindagi ke har kadam par’. The campaign featured a significant
competitive advantage, the sound financial backing and credentials of ICICI
Prudential, and showcased products from different segments. The
advertising idea was encapsulated in the symbol of protection –the
‘Sindoor’. This campaign contributed extensively to raising brand awareness
and creating a distinctive identity for the company.

The Company recently tied up with the Forbes Six Sigma rated Dabbawalla
organization in Mumbai for a direct marketing exercise. In a Unique effort to
create awareness about a tax saving product, the company attached a
creative of a bitten apple to Mumbai’s ubiquitous lunchboxes. It worked

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wonderfully with Mumbai’s office-goers and one that translated into
substantial business for the company.

Brand Values

Market Research reveals that the values people associate with ICICI
Prudential are, indeed, those that the company hopes to project: lifelong
protection and value for money. The core value is protecting your loved
ones, throughout life’s ups and downs. It is a powerful proposition; one,
which ICICI Prudential, is taking into the market place.

DISTRIBUTION SYSTEM

Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential,

comprising a large advisor force that targets various customer segments. The
strength of tied agency lies in an aggressive strategy of expanding and
procuring quality business. With focus on sales & people development, tied
agency has emerged as a robust, predictable and sustainable business model.

Bancassurance and Alliances

ICICI Prudential was a pioneer in offering life insurance solutions through

banks and alliances. Within a short span of two years, and with nearly a
large number of partners,

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B & A has emerged as a vital component of the company’s sales and
distribution strategy, contributing to approximately one third of company’s
total business.
The business philosophy at B&A is to leverage distribution synergies with
our partners
and add value to its customers as well as the partners. Flexibility, adaptation
and experimenting with new ideas are the hallmarks of this channel.

CUSTOMER SERVICE AND OPERATIONS

The Operations department oils the work processes between the customer
and the 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 underwriters, 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, Outbound Call Centre,
Customer Care and Query Resolution Unit are all committed to providing
effective solutions to over lakhs of customers across the country.

Information Technology

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The Information Technology function at ICICI Prudential is committed to
enable 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 offerings to end-
users, the Solutions Group- Web that provides real-time information to
customers and is responsible for customer relationship management, IT
Architecture & 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 organization. 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 of efficiency and provide robust, scalable and highly available
platform for deployment of business application.

Marketing

The Marketing function at ICICI Pru covers an array of activities - brand and
media management, channel support, direct marketing and corporate
communications. The Brand and Communications team is in charge of
advertising, consumer research, media planning & buying and Public
Relations; that helps develop and nurture ICICI Prudential's corporate
identity while effectively communicating its varied product offerings to the

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customer. Channel marketing provides support to the sales force by
streamlining the design and development of collaterals and sales tools across
distribution channels. The Direct marketing team was set up to generate high
quality leads for profitable business. The team achieves this through target
database acquisition and communicating customized product information
through e-mailers, telemarketing and innovative direct mailers.

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.

Human Resource

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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.

Business Excellence
The Business Excellence function is committed to building a quality mindset
across the organization. ICICI Prudential is the first organization in the
Insurance Industry that has adopted the Six Sigma Methodology for process
efficiency and measurement. The team is also driving the Malcolm Baldrige
framework across the organization, an intervention that examines
management of key inputs for Business Excellence.

Bancassurance
One of the most significant advances in the financial services sector over
the past couple of years has been the growth of Bancassurance – which,
in simplest terms, means the distribution of insurance products through a
bank’s distribution channels. In other words, Bancassurance is a service
which can fulfill both banking and insurance needs at the same time.

Bancassurance as a concept first began in India with the opening up of

the insurance industry to private sector participation in December 1999

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 which saw the entry of 20 new players - with 12 in the life insurance
sector and 8 in the non-life sector. Bancassurance has also seen
significant rise in other Asian markets. For example, Bancassurance
accounted for 24% of new life insurance sales by ‘weighted’ premium
income in Singapore in 2002. This is a significant increase on the
equivalent 2001 statistic of 15% and is as a result of growth in significant
bank-centric Bancassurance operations.

Although the concept of Bancassurance looks simple enough, it is far

from that in real life practice. Legislative differences, consumer behavior,
impact of history and culture, product complexity, employee work culture
and many such other factors have contributed to significant differences in
results across countries. For example, in France and Spain 60% to 80% of
life insurance products are sold through bank branches compared to 10%
in UK and USA.

Bancassurance Models

Globally we have 4 kinds of Bancassurance business models:

 Distribution alliance between the insurance company and the bank

 JV between the two

 Merger between bank and insurer

 Bank builds or buys own insurance products

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Most of the Bancassurance operations in India fall into the first model,
which in a way is quite a prudent decision. The Indian Bancassurance scene
as of now looks as promising as perilous, being a vast, unexplored and
uncharted expanse. As banks are quite risk averse, it is but natural for them
to withhold from making any long term commitment, which would be quite
costly if the Bancassurance business runs into trouble. In terms of the
present regulatory framework, one bank can tie-up with only one life and
one non-life insurer, while insurers have the choice to tie-up with any
number of banks. We also have examples of joint ventures between the bank
and insurer such as SBI Life and ICICI Prudential.

Stages in Policy Issuance

1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At
this stage, the application form is received by COPS, but it is pending for
issuance due to further clarifications required from the customer.

2) Login

A proposal which is complete i.e., duly filled with all necessary documents
attached to it & accepted by the Branch ops, is called a Login

3) Reject

An Application gets rejected at the Branch Ops level due to necessary details
not filled in the form or necessary documents not submitted is a Reject. It is

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then sent back to the Advisor for completion.

4) Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status

When a customer refuses to take a policy post login but before Issuance is
called a Decline

6) Cancellation

When the cheque given by the customer bounces, it amounts to cancellation

of the policy.

7) Lapse

A policy for which the Customer fails to pay subsequent premiums is a

Lapsed Policy.

8) Freelook

Post issuance of the policy, the policyholder has the option to turn down the
policy within 15 days from the date of issuance. This period of 15 days is
called Freelook Period.

9) Surrender: When a customer wants to discontinue with the policy.

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 The joint strengths

A powerful joint venture partnership with each carrying a set of strengths

complementing each others

Brand strength Reputation

Insurance
expertise
Infrastructure

Customer base PRUDENTIAL Product

ICICI
Market Innovators Distribution

Local knowledge Operations

2.4 PRODUCT/SERVICES PROFILE

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ICICI Prudential’s ultimate promise is financial security. A strong brand
certainly boosts sale, but without customer-friendly, innovative products,
even the best brand would not last long.

ICICI Prudential’s product range has been developed on the understanding

that different people have their own sets of needs at various stages of their
lives. It has thus built a flexible portfolio of products that can be customized
to cater to varying needs of people at each stage, and thus ensure protection
in every step of life. The company’s philosophy has been to help customers
understand their financial needs and work closely with them to customize a
product that would meet. Advisors can offer a complete range of products –
Savings plans, Child plans, Market-linked plans, Protection plans, and
Retirement plans – and tailor a flexible solution to meet customers’ changing
needs at every stage of life. In fact, ICICI Prudential was the first to un-
bundle product benefits, pioneering the concept of ‘riders’ and soon after
introduce comprehensive market-linked and retirement plans.

ICICI Prudential has launched a handful of products that are analyzed

below:

ICICI Prudential's life insurance products may be loosely categorized under

three forms: pure life insurance products without an investment angle to
them; a product that is a mix of a cumulative investment scheme and an
insurance product; and, finally, standard products such as money-back and
endowment policies.

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Single Premium Bond: The Single Premium Bond is the name of a policy
that combines the features of an investment in a cumulative deposit scheme
with that of an insurance product.

Policy-holders are required to pay a one-time premium based on a target

sum assured. At maturity, the policy-holder gets the sum assured and
guaranteed additions that work out to a compound return of 4.5 per cent the
sum assured.

The insurance part of the package comes in the form of death benefits that
are paid in the case of the demise of the policy-holder. The size of the death
benefit is linked to the number of years left for the policy to expire. On
maturity date, the maturity value is also paid in addition to the death benefits
that would have been paid earlier.

Life Guard policies: The company offers two pure life insurance products
that have an umbrella name, Life Guard. One of them involves a one-time
premium for which there are no maturity benefits. The other requires regular
premium payments that are returned at the end of the policy. Life Guard
offers absolutely no investment-related return and is suitable for individuals
looking for an unadulterated insurance package.

Insurance Solutions for Individuals

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

centric products that meet the needs of customers at every life stage. Its
products can be enhanced with up to 5 riders, to create a customized solution
for each policyholder.

Savings Solutions

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 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

 CashBak is an anticipated endowment policy ideal for meeting

milestone expenses like a child’s marriage, expenses for a child’s
higher education or purchase of an asset.

 LifeTime and LifeTime II offer customers the flexibility and control

to customize the policy to meet the changing needs at different life
stages. Each offer 4 fund options –Preserver, Protector, Balancer and
Maximiser.

 LifeLink Super is a single premium Unit Linked Insurance Plan

which combines life insurance cover with the opportunity to stay
invested in the stock market.

 Premier Life is a limited premium paying plan that offers customers

life insurance cover till age of 75.

 InvestShield Life is a Unit Linked plan that provides capital guarantee

on the invested premiums and declared bonus interest.

 InvestShield Cash is a Unit Linked plan that provides capital

guarantee on the invested premiums and declares bonus interest along
with flexible liquidity options.

-39-
  InvestShield Gold is a Unit Linked plan that provides capital
guarantee on the invested premiums and declares bonus interest along
with limited premium payment terms.

Protection Solutions

 LifeGuard is a protection plan, which offers life cover at very low

cost. It is available in 3 options –level term assurance with return of
premium and single premium.

 HomeAssure is a mortgage reducing term assurance plan designed

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

Child Plans
 SmartKid education 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 child’s life. SmartKid plans are also available in
unit-linked form – both single premium and regular premium.

Retirement Solutions

-40-
  ForeverLife is a retirement product targeted at individuals in their
thirties.
 SecurePlus Pension is a flexible pension plan that allows one to
select between 3 levels of cover.
 Market-linked retirement products
 LifeTime Pension II is a regular premium market-linked pension
plan.
 LifeLink Pension II is single premium market linked pension plan.
 InvestShield Pension is a regular premium pension plan with a capital
guarantee on the investible premium and declared bonuses
 Golden Years: is a limited premium paying retirement solution that
offers tax benefits up to Rs 100,000 u/s 80C, with flexibility in both
the accumulation and payout stages.

Health Solutions
 Health Assure and Health Assure Plus: Health Assure is a regular
premium plan which provides long term cover against 6 critical
illnesses by providing policy holder with financial assistance,
irrespective of the actual medical expenses. Health Assure Plus
offers the added advantage of an equivalent life insurance cover
 Cancer Care: is a regular premium plan that pays cash benefit on
the diagnosis as well as at different stages in the treatment of
various cancer conditions.

-41-
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies
seeking to enhance benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner.
The plan can also be customized to structure schemes that can provide
benefits beyond the statutory obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a 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 a partial commutation of the
annuity at the time of retirement.
ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution
helps provide affordable cover to members of a group. The cover could
be uniform or based on designation/rank or a multiple of salary. The
benefit under the policy is paid to the beneficiary nominated by the
member on his/her death.
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic
policy at a marginal cost, depending on the specific needs of the
customer.
1. Accident and disability benefit: If death occurs as the result of an
accident during the term of the policy, the beneficiary receives an

-42-
 additional amount equal to the rider sum assured under the policy.
If the death occurs while traveling in an authorized mass transport
vehicle, the beneficiary will be entitled to twice the sum assured as
additional benefit.
2. Accident Benefit: This rider option pays the sum assured under the
rider on death due to accident.
3. Critical Illness Benefit: Protects the insured against financial loss
in the event of 9 specified critical illnesses. Benefits are payable to
the insured for medical expenses prior to death
4. 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 in SmartKid, SecurePlus, and CashPlus.
5. Waiver of Premium: In case of total and permanent disability due
to an accident, the premiums are waived till maturity. This rider is
available with SecurePlus and CashPlus.

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-44-
 CHAPTER 2
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

-45-
 STATEMENT OF THE PROBLEM

“Study of investors Perception towards ICICI Prudential Life Insurance

Products”.
OBJECTIVE OF THE STUDY

For every problem there is a research. As all the researches are based
on some and my study is also based upon some objective and these
are as follows.

1. To understand the insurance business and products of ICICI

Prudential life insurance co ltd.

2. To find out the people’s perception about life insurance.

3. To find out whether people were really aware of life insurance.

4. To find out how people think about private life insurance.

5. To find out what respondents expect from life insurance.

5. To understand investors perception

7. To come out with conclusion and suggestions based on the analysis

and the
Interpretation of data.

SIGNIFICANCE OF THE STUDY

-46-
The project is concerned with the “STUDY ON INVESTOR
PERCERPTION AT ICICI PRUDENTIAL LIFE INSURANCE.
This study is very useful as the financial market become more
sophisticated and complex, investor needs a financial intermediary
who provides the required knowledge and professional expertise on
successful investing and Life insurance is a form of insurance that
pays monetary proceeds upon the death of the insured covered in the
policy. Essentially, a life insurance policy is a contract between the
named insured and the insurance company wherein the insurance
company agrees to pay an agreed upon sum of money to the
insured's named beneficiary so long as the insured's premiums are
current

Research in common parlance refers to a search for knowledge. One

can also define research as a scientific and systematic search for
pertinent information on a specific topic.

The word research has been derived from French word Researcher
means to search.

FRANCIES RUMMER defined “Research: It is a careful inquiry or

examination to discover new information or relationship and to
expand or verify existing knowledge.

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Research is the solution of the problem, whether created or already
generated. When research is done, some new out come, so that the
problem (created or generated) to be solved.

RESEARCH DESIGN:

Research Design is the conceptual structure within which research is

conducted. It constitutes the blueprint for collection, measurement
and analysis of data. The design used for carrying out this research is
Descriptive.

DATA TYPE: In this research the type of data collection is

 Primary data
 Secondary data

DATA SOURCE: The sources of collection of secondary data are:

 Questionnaire
 Books
 Websites
 Magazine
 Brochure

SAMPLING PLAN:

-48-
It is very difficult to collect information from every member of a
population .As time and costs are the major limitation that the
researcher faces.

A sample of 100 was taken the sample size of 100 individuals were
selected on the basis of convenient sampling technique. The
individuals were selected in the random manner to form sample and
data were collected from them for the research study.

ANALYSIS AND INTERPRETATION:

Data collection through questionnaire and personnel interview
resulted in availability of the desired information but these were
useless until there were analyzed. Various steps required for this
purpose were editing, coding and tabulating. Tabulating refers to
bringing together similar data and compiling them in an accurate and
meaningful manner. The data collected by questionnaire was
analyzed, interpreted with the help of table, bar chart and pie chart.

-49-
 CHAPTER 3
SWOT ANALYSIS

Strengths and weaknesses

-50-
 Strengths and weaknesses internal to the organization. Strengths represent
positive attributes or characteristics, factors that provide an advantage.
Weaknesses are attributes or characteristics that place the business at a
disadvantage relative to others.

Opportunities and threats

Opportunities and threats are external to the organization. Opportunities
represent external trends and chances to improve performance - something
happening in the outside environment that presents positive potential.
Threats are elements or trends in the outside environment that could cause
trouble for the business, place it at risk.

Strengths
1. Good/very good package
2. Market competitive/over-competitive in most areas
3. mechanism works well for the management grades

Weaknesses
1. Pay compression between bands
2. Competence-progression automatic
3. Little recognition of individual performance
4. Attraction/retention differences across the businesses
5. Lack of a longer term view
6. Overtime addiction

Opportunities
1. Build performance culture instead of expectation culture
2. Better employee relations climate in recent years
3. Clear business strategy

Threats

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1. Need clarity over behaviours to encourage
2. Balance between quality and speed

-52-
 CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

1. Age of the respondents

PARTICTULARS PERCENTAGE
NO.OF.RESPONDENT
Less than 25 11 11%

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 25 - 35 40 40%
35 – 45 20 20%
Above 45 29 29%
TOTAL 100 100

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 11% of the respondents are less than 25 years old.

b) 40% of the respondents are between 25 and 35 years of age.
c) 20% of the respondents are between 35 and 45 years of age.
d) 29% of the respondents are more than 45 years of age.

2. Qualification of the respondents.

PARTICUALR PERCENTAGE
NO.OF.RESPONDENT
Graduate 52 52%
Post Graduate 29 29%
Diploma 8 8%
Other discipline 11 11%
TOTAL 100 100%

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 52% of the respondents were graduate

b) 29% of the respondents were post graduate
c) 8% of the respondents were diploma
d) 10% of the respondents were other discipline

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3) Occupation of the respondents

PARTICULARS PERCENTAGE
NO.OF.RESPONDENT
Business man 34 34%
Professionals 18 18%
Job holders 37 37%
Others 11 11%
TOTAL 100 100%

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 34% of the respondents are businessmen.

b) 18% of the respondents are professionals.
c) 37% of the respondents are job holders.
d) 11% of the respondents are background.

4) Average annual income of respondents.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Up to 1 lakh 33 33%
1 lakh - 3 lakh 43 43%
3 lakh - 5 lakh 20 20%
5 lakh & above 4 4%

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TOTAL 100 100%

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 33% of the respondents have an average annual income up to 1

lakh
b) 43% of the respondents have an average annual income from 1
lakh to 3 lakh
c) 20% of the respondents have an average annual income from 3
lakh to 5 lakh
d) 4% of the respondents have an average annual income above 5
lakh

5) Family size of respondents

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Below 5 members 50 50%
5 - 10 members 32 32%
Above 10 members 28 28%
TOTAL 100 100%

ANANLYSIS:

From the survey it was found that amongst 100 respondents

a) 50% of the respondents are below 5 members.

b) 32% of the respondents are between 5 to 10 members.
c) 28% of the respondents are above 10 members.

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6) According to life insurance is.

PARTICULARS PERCENTAGE
NO.OF.RESPONDENT
Risk Coverage 10 10%
Tax Savings 3 3%
Good return 4 4%
Security 3 3%
All the above 80 80%
TOTAL 100

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 10% of the respondents say risk coverage.

b) 3% of the respondents say tax savings.
c) 4% of the respondents say good returns.
d) 3% of the respondents say financial security.
e) 80% of the respondents say all of the above.

7) Awareness of ICICI Prudential life insurance

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 17 17%
No 83 83%
TOTAL 100 100%

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 ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 83% of the respondents say that they are aware of ICICI

Prudential life insurance co.
b) 17% of the say that they are unaware of ICICI Prudential life
insurance co

8) Awareness regarding insurance.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 2 2%
No 98 98%
TOTAL 100 100%

ANALYSIS:
From the survey it was found that amongst 100 respondents

a) 98% of the respondents say that they are aware of insurance.

b) Only 2% are unaware of insurance.

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9) % of respondents who are under different plans of ICICI Prudential life
insurance co.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Invest gain plan 41 41%
Unit gain plan 36 36%
Child gain plan 8 8%
Whole life plan 15 15%
Pension plan No No
TOTAL 100 100%

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 41% of the respondents are under invest gain plan

b) 36% of the respondents are under unit gain plan
c) 8% of the respondents are child gain plan
d) 15% of the respondents are whole life plan
e) No body under pension plan

10) % of respondents benefits of choosing the particular products

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Risk coverage 60 60%
Additional benefit 20 20%
Maturity date 12 12%

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Sum Assured 8 8%
TOTAL 100 100%

ANALYSIS:
a) 36% of the respondents say that a benefit of choosing the particular
Product is for Safety of life.
b) 20% of the respondents say that a benefit of choosing the particular
products is for additional benefit to family
c) 12% of the respondents say that a benefit of choosing the particular
products is for maturity date
d) 8% of the respondents say that a benefit of choosing the particular
products is for sum assured

11) % of disadvantages in insurance plan

PARTICUALRS NO.OF.RESPONDENT PERCENTAGE

Liquidity 35 35%
Lapsation 20 20%
Unable to decide 19 19%
premium
High risk coverage 14 14%
Fixed Term 12 12%
TOTAL 100 100%

ANALYSIS:
From the survey it was found that amongst 100 respondents

a) 35% of the respondents say that disadvantages in insurance

plan are liquidity.
b) 20% of the respondents say that disadvantages in insurance
plan are lapsation.
c) 19% of the respondents say that disadvantages in insurance
plan is unable decide premium.
d) 14% of the respondents say that disadvantages in insurance
plan are high risk coverage at high premium.
-60-say that disadvantages in insurance
e) 12% of the respondents
plan is fixed term
12) % of respondents who want to invest in these different avenues.

PARTICUALRS NO.OF.RESPONDENT PERCENTAGE

Recurring Deposit 40 40%
Equity Fund 25 25%
Balanced Fund 10 10%
Mutual Fund 11 11%
Debt Fund 5 5%
Cash Fund 9 9%
TOTAL 100 100%

ANALYSIS:

From the survey it was found amongst 100 respondents

a) 40% of respondents say that they want to invest in R.D

b) 25% of respondents say that they want to invest in equity
c) 10% of respondents say that they want to invest in balanced fund
d) 11% of respondents say that they want to invest in mutual fund
e) 5% of respondents say that they want to invest in debt market
f) 9% of respondents say that they want to invest in cash

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-62-
 CHAPTER 5
Findinds Suggestions and conclusions

FINDINGS
On an analysis and evaluation of the data collected from the respondents
the following findings were found.

-63-
  Before establishment of private concerns the share of LIC was 22%
hence there is a wide scope for private concerns to enter in to market.
 Total 100 respondents have been approached out of which 75 are the
potential respondents who have shown interest for investment and
finance plan
 Above 20% of respondents are shown interest for investment and
financial plan
 About 33.33% of respondents are not interest to give their personal
records.
 About 12.67% of respondents have already been covered by other
insurance companies.
 About 10% of respondents have given invalid records.
 About 10% of respondents are newly employed or trainees.
 About 10% of respondents interested for investment plan after
knowing ICICI PRUDENTIAL LIFE INSURANCE products.

RECOMMENDATIONS TO COMPANY:

Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI
invested, in terms of work force, in terms of market share, in terms of no. of
customers. All these positive stands of the company place at the number one
position. On second aspect whatever amount of money ICICI Prudential
save, can be used to increase the no. of policies, which will helpful to
increase the market share of the company. Since the customers think about

-64-
the companies in the industry, when they invest money in the life insurance
industry. So it’s necessary to increase the market share of the company.
There are some recommendations.

 Open some more branches in semi urban and rural area.

ICICI Prudential has almost its branches in urban area or metros. So
in order to increase the no. of customer, ICICI Prudential should
increase the approach towards potential customers. For that it has to
increase the branches in the semi urban cities like C, D grade cities.
And the rural marketing is the best option for ICICI Prudential to
increase its base in the market

 Improve customer services.

In order to take the advantage of being industry leader in private
sector, ICICI Prudential has to improve its customer services.
According to my experience in the company, a good number of
customers forget to pay their premium at time so it causes a big loss to
the company. ICICI Prudential has already collaborated with the
ICICI bank for its Bancassurance facility and then can include another
feature in it. ICICI bank can offer a bank account with the life
insurance policy in which an ATM card will be provided. This card
will have all the information regarding the policy as like future
premium payment dates, payment made, money value of the policy at

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 that date, value of the unit linked plan and all other information what
the customer want. This will help the customer to pay premium on
time and save their losses. This will be mutually helpful for both sister
companies, ICICI bank will get new account and ICICI prudential will
be able to more efficient services to their customers.

 Bring some unit linked life insurance plans in the market.

Being a market leader doesn’t ensure the leadership in the future.
Since after increment in FDI from 26% to 49% all player will have the
opportunity to capture the market share. So in order to maintain its
position ICICI Prudential should

-Introduce some new market linked insurance plan, which will give a
competitive advantage to the ICICI Prudential against its competitors.

 Trained the financial advisors more efficiently.

In the changed scenario, more efficient training will be needed, so
ICICI Prudential should provide good and efficient training to their
financial advisors. Because they are the one who interact directly with
the customers. So good training will give them the right way to deal
with the potential customers.

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 BIBLIOGRAPHY

 Marketing Management by Philip Kotler, Pearson Education 2nd ed.

 Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th ed.
 IRDA Journal

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 ICICI Prudential Company magazines
 Newspaper and Business magazines

WEBSITES
 www.iciciprulife.com
 www.google.co.in/indian insurance industry
 www.irdaindia.org

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