DECLARATION

I hereby by declare that this report is the result of my own work in the partial fulfillment of the requirement for the degree of Master Of Business Administration, U.P. Technical University, Lucknow. This report is sole property of ICICI Prudential Life Insurance company Limited, Delhi and is not to be used copied or edited by any person.

Satya Prakash M.B.A.(Second semester) H.R.Institute of Technology,Ghazibad

ACKNOWLEDGEMENT

I am thankful to management of ICICI prudential life insurance company limited for granting the permission, corporation and valuable information for competition of this project. No words are enough to thank Mr.Ashok Kumar (head of dep,MBA) and Mr.Imran Ali (unit manager ), who not only inspired me to work on this project but also accepted to guide me. In spite of heavy responsibilities and busy schedules, they always managed time to provide proper guidance. I also thankful to Miss Poornima Bhalla ( Internal guide) who gave me an opportunity to do this project. Last but not the least, I would like to say that my parents and friends for giving me their constant support and encouragement in completion of my project.

Satya Prakash

PREFACE
The competition in the insurance sector is highly volatile in nature. Over the decade only government undertaking company was operating in India but with the opening up of the economy several new player like private sector & multinational insurance entered in Indian horizon. In the giving project I made a comparative analysis of life insurance among MNC Comparing their features & services one hand & also done a research on the interest of investor regarding life insurance in ICICI prudential company limited. Research design method used was descriptive research. The sampling method used was simple random sampling. I have taken a sample size of 70 respondents. I first formed a structure questionnaire to collect data & the questionnaire is filled by the person, who have one charted insurance company & or more with any other MNC insurance company. On the basis of filled questionnaire, coding sheet is formulated &the conclusions are drawn with the help of graphs pie charts.

CONTENTS OF TABLE
COMPANY PROFILE EXECUTITIVE SUMMARY OF THE PROJECT PRODUCT POLICIES PRODUCT PORTFOLIO INTRODUCTION TO CHANNEL DEVELOPMENT AND RECRUITMENT METHODOLOGY USED TO RECRUIT ADVISOR SWOT ANALYSIS FUTURE GROWTH PROSPECTS OF COMPANY RECOMMENDATONS LEARNINGS BIBLOGRAPHY

COMPANY PROFILE
. ICICI Prudential Life Insurance Company is joint venture between two heavy weights, ICICI Bank, India and Prudential Plc., UK. The name, ICICI Bank is not a new name in the Indian finance sector. It is Indias second largest bank and largest private sector bank with over 50 years of financial experience. It offers a wide range of banking products and financial services to corporate and retail customers in the areas of investment banking, life and non-life insurance, venture capital and asset management. It is a leading player in the retail banking market and has over 40 million retail customer accounts. The Bank has a network of over 850 branches and extension counters, and more ATMs. Prudential Plc. is a London based finance company. It was established in the year 1848. The name Prudential might not be familiar among us but we have an emotional attachment with this name and specially our previous generation. The reason. Many of us were infants when Kapil Dev NiKanj lifted the Cricket World Cup at Lords in the year 1983. That World Cup was sponsored by none other than Prudential Plc. Another famous example. In the year 1998, a movie named Titanic took away almost all the Academy Awards of that year. The incident of Titanic was a true one. The accident took place in the year 1913. It was Prudential Plc., which provided the ship the insurance coverage. The business of Prudential Plc. spans

across the globe. By its products and services, it has brought a revolution of sort in the finance sector. It provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldwide. The credit goes to the company to bring to the market an integrated range of financial services and products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. Since its inception, it has been doing its business with its flag always flying high. ICICI Prudential began its operations in India in December 2000. It is among the first private sector insurance companies to get the approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudentials equity base stands at Rs. 1185 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. Until Sep 30, 2005, the company wrote 283,818 policies. Inn the process, it has garnered Rs 820 crore of new business premiums for a total sum assured of Rest 7,131 crore. For the past four years, ICICI Prudential has been donning the No. 1 position in the private life insurance sector in the country. It has a wide range of flexible products that meet the needs of the Indian customer at every step.
Although for the last 50 years LIC has been the only company to cater the consumer needs in the insurance sector but in the past 5 years 21 insurance companies have emerged in this scenario

ICICI Prudential Life Birla Sun Life Bajaj Allianz

 Max New York Life Met Life ING Vyasa Om Kotak Mahindra Tata AIG Aviva HDFC Standard Life SBI Life Iffko-tokio Reliance life Bharti Pnb life New players need to recognize the limitations of their rival and decide upon the right mix of distribution channels in their business.

EXECUTIVE SUMMARY
Identifying different profiles of the people and giving them a Business Opportunity to join ICICI Prudential as an advisor. A market survey was done on life insurance companies. Different questions regarding the companies training programs for advisor, top 5 usp's, training centers etc were asked. The areas covered up in this survey were Delhi and Ghaziabad. The report contains details of different life insurance companies, which are in healthy competition with ICICI Prudential life insurance. Insurance industry is growing rapidly day-by-day. India itself has a population of 1.12billion out of which roughly 33.2% people are insured. This clearly shows that most of the people are not insured just because they dont know much about insurance. Most people have some common queries about life insurance:

What is Life Insurance?

A policy that will pay a specified sum to beneficiaries upon the death of the insured.

An agreement that guarantees the payment of a stated amount of Monetary benefits upon death of the insured.

Why Insurance?
Insurance is the protection of life and assets against unforeseen circumstance. Whether it is a general accident policy, a Mediclaim policy or a pension policy, an insurance policy helps you to scope with uncertainty and insecurity. Ever thought about why you should take an insurance policy. For one, it helps you to hedge risks against unforeseen circumstances and save more. If that's not all, it is: Superior to an ordinary savings plan as it provides full protection against risk of death. Encourages and forces compulsory savings unlike other saving instruments, wherein the saved money can be easily withdrawn. Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan. Offers tax relief to policyholders. Hedges risk against uncertainty. For a policy taken under the MWP Act 1874, (Married Women's Property Act), a trust is created for wife and children as beneficiaries. Based on the concept of sharing of losses, the society will benefit as catastrophic losses are spread globally.

10

Who can buy a life insurance policy? Any person above 18 years of age, who is eligible to enter into a valid contract, can go for an insurance policy. Subject to certain conditions, a policy can be taken on the life of a spouse or children.

How is a life insurance policy useful?

Planning for the financial consequences of a premature death is an essential part of every financial plan. Generally, the consequences are simply too large to ignore and cannot be totally covered with your own resources. Life insurance is nothing but a contract with an insurance company under which the insured (purchaser) pays a premium in exchange for coverage of specified losses. Life insurance protects your family against the risk of the premature death of you (or your spouse). Life insurance planning should consider your family's short-term needs (for example, medical expenses) and long-term needs (for example, replacing your income). In the course of our life we are accosted by risk-that of failing health, financial losses, accidents and so on. Insurance is a means by which life's uncertainties are addressed in financial terms. It offers a monetary compensation against those losses. Insurance is considered more as a hedging mechanism rather than a true investment avenue. Life insurance, in particular is essentially acknowledged as a mechanism that eliminates risk-substituting certainty for uncertainty primarily by transferring risk from the insured to the insurer.

11

Is life insurance a saving instrument?

Life insurance is mainly considered as a saving instrument rather than an investment avenue as it promotes compulsory savings besides reducing tax burden on the policyholder and protects the family of the policyholder in the event of unforeseen happening. It is the only saving instrument, which covers the life risk besides giving tax concession both at entry (premium paid) and at exit points. The section 10 (D) of the income tax act totally exempts payment of tax on any amount received as bonus against life insurance policies

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PRODUCTS POLICIES
ICICI Prudential has a wide array of insurance plans that 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 categories:
Education Insurance Plans Wealth Creation Plans Premium Guarantee plans Protection Plans

Retirement Solutions: The primary objective of a retirement plan is to help you provide for your financial needs in your post retirement years. Forever Life
Lifetime Super Pension Lifeline Super Pension

13

Health Product Suite:

Under Health Product Suite, ICICI Prudential offers plans under the following major categories:
Health Assure Health Assure Plus Hospital Care Cancer Care Cancer Care Plus Diabetes Care Diabetes Care Plus

14

PRODUCT PROFILE
PREMIER LIFE
How do I start? Open an account with a minimum contribution of: Rs . 60,000/ annum for annual premium payment Rs. 30,000/ half year for half-yearly payment Rs. 5,000/month for monthly premium BENEFITS

a. Death benefits
The death benefit will be higher of the Sum Assured (decreased by the amount of withdrawals mode) or value of units. b. Liquidity

Partial withdrawals would be allowed after 3rd year policy year & after payment of 3 year premium. Partial withdrawals would be subject to surrender value. Each partial withdrawal during the 4th and 5th year would be limited to 20% of the value of the investment at the time of withdrawal. The minimum partial withdrawals amount as to be Rs. 10,000.
15

c. Additional allocation of units

There would be additional survival units payable to the policy holder at various point of time during the coverage term.

Premium paying term Premium paying term =3 Nil Premium paying term

Bonus

Units Received

Nil

0.50% at the end of 6th year

=5 0.25% at the end of 5 year 0.50 % at the end of 8 year 1.00% at the end of 10 year Premium paying term =7 1.00% at the end of 7 year 2.00% at the end of 12 year 2.50%at the end of 15 year Premium paying term =10 2.00% at the end of 10 year 3.00%at the end of 15 year 3.50% at the end of 20 year

OPTION:
CHOICE of premium paying term: You can choice between the following premiums paying term option:

3 year term

16

 5 year term 7 year term 10 year term

INVEST SHIELD GOLD

HOW DOES INVEST SHIELD GOLD WORK FOR ME? Invest shield gold provide you with an option to select a specific level of protection as per your need, based on a multiple of your annual premium. A part of the premium paid is adjusted toward mortality charges & fixed charges & the rest is invested in your Unit Fund will be based on the Net Asset Value at that time. The total value of your policy is based on the number of units allotted to you & the Net Asset Value. Asset allocation Debt Equity % of unit FUND Minimum 70% Maximum 30%

17

What are the limits or conditions?

Minimum age at entry: 0 year Maximum age at entry: 60 year Maximum age at maturity: 75 year Minimum sum assured: Rs.1, 00,000 How do I start? You can start with a minimum premium of:

Rest. 25,000per annum premium payment Rs. 2084 per month for monthly premium

Rs. 12500 per half-year for half- yearly premium payment

BENEFITS In unfortunate event of the death of the life assured the nominee received the Sum Assured along with the higher of the value of your Unit Fund Or the guaranteed value of your Unit Fund, provided due till date are paid in full.

At the end of the police term, either the value of your Unit Fund or the guaranteed value of your Unit FUND, whichever is higher will be paid as maturity benefits.

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CHOICE OF Premium payment term

Premium Payment term 5 Year 7 Year 10 Year SOME CHARGES: Fixed charges Fund-related charges Mortality charges Top-up charges

Maturity Term 10 Year 15 Year 20 Year

EDUCATION GURANTEED
Smart Kid Education plan have 4 products offer: Unit-linked Regular premium Unit-linked Regular Premium II Unit-linked Single Premium II Regular Premium The uniqueness of this plan is that even if anything happens to the parent, the benefits to the child are not compromised. The benefits under this police:

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Death benefits The death benefit is equal to the Sum Assured chosen at the Time parent applies & will be payable immediately on the police holder. In case of unfortunate death, here is how the police work: Sum Assured chosen is paid immediately

The police benefits continue so that the unit can be withdrawn for your child as & when required for education or developmental needs.

INVEST SHIELD LIFE

How does Invest Shield Life work for me? You can choose a specific level of protection as per your needs, based on a multiple of your annual premium. Part of the premium paid by you is adjusted towards mortality charges, allocation charges & fixed charges & the rest is invested in your Unit Fund. Entry into the Unit Fund will be based on the NAV at that time. The total value of your police is based on the number of unit allocated to you & the NAV.

HOW DO I START?

Choose your term from 10 to 30 years & a minimum premium of: Rs. 8000 per annum for annual premium payment Rs. 4000 per half-year for half-yearly premium payment Rs. 667per month for monthly premium payment

20

21

What are the limits or conditions applicable? Minimum age at entry: 0 year Maximum age at entry: 55 year Maximum age at maturity: 65 year Maximum cover ceasing age: 75 year Minimum term: 10 year Maximum term: 30 year Minimum Sum Assured: Rs. 1, 00,000 Now, ICICI prudential Life Insurance presents a comprehensive range of unitlinked product that take care of your wealth creation by providing you flexibilities in saving & investment & option for your production needs. We present life time II comprehensive portfolio of products that provide you complete flexibility to choose a solution, based on your specific needs.

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LIFE TIME SUPER

How do I start? Open an account with a minimum premium of Rs. 24000/-p.a. for annual mode Rs. 12000/-per half year for half-yearly mode Rs. 2000/- per month for monthly mode Benefits Death benefit: In unfortunate event of death, your close once is spared an uncertain future. Our guaranteed death benefit ensures that the nominee will receive the higher of either the death benefit chosen or the value of units. Liquidity option: There is no maturity date. Anytime after 3year of commencement you can make partial or complete withdrawals, at no penalty, to meet your immediate requirements. Option: a. Choice of Investment Plan You have the option to choose how you want your investments to grow based on the objectives of each of the plan.

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Maxi miser: If high growth in your priority, this is the plan for you. You can enjoy long term appreciation from a portfolio that is invested primarily in equity & equity-related securities. Protector: If on the other hand your priority is steady return, you can opt for the protector plan. Here you can accumulated a steady income, at low risk across a medium to long term period from a portfolio, which is primarily invested in fixed income securities. Balancer: If you prefer a balance of growth & steady returns, choose our balancer plan. This would ensure that your portfolio is invested in equity & equity-link securities as well as in fixed income securities. b. Choice of Switch between Investment options

If at later stage your financial priorities change, you can switch between the various investment options at any time. There is provision of 4 free switches every policy year, subject to the condition that the minimum switch amount is Rs. 10000. Any switch beyond this limit will be charged at Rs.100/switch. c. Choice of Top-up Top-up your investment any time you have surplus funds. The Top-ups will not have any effect on the Sum Assured of the product. The minimum amount of topup is Rs.5000.

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METHODOLOGY USED TO RECRUIT ADVISOR

The basic aim of the company in providing us with this assignment was to find out the peoples perception of their brand in the market and via this increasing their advisor base by encasing on their brand name. 1) Hence, our sales pitch in recruiting the good profile advisor was based on: Money: For those who are needy, greedy and speedy Excellent back end support, attractive payments and benefits and Extensive training for that edge over competition

Reward and Recognition:

For those who want to be recognized and honored Several programs including foreign trips, seminars etc. Selected club memberships like presidents club, ICICI Pru Star Club, MDRT club etc. Achievements rewarded with trophies and certificates as well with Point rewards to give you a flying start.

Carrier Prospects
For people who want to climb the success ladder fast.

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 Programs like PINNACLE, AGENCY CHAMPION and TIGER TEAM has been devised. This whole strategy was based on the MASLOWs THEORY OF NEEDS. 2) Then, instead of going personally and meeting these already well-established Advisors, we tried the concept of holding BOP (Business Opportunity Presentation).

For this we drafted an invitation, which was a gimmick so as to entice these

advisors into coming to our own office, and it was based on the pretext of ONE MILION POLICY CELEBRATIONS, the target that ICICI PRU has just achieved. And result was good in the sense that we were able to convert 5 to 10 advisors for our company then and there only. 3) Then, we targeted high profile people like CAs or MBAs or govt. people. For that, we drafted a letter in which we just gave them a hang of what our proposal was for them (for recruiting them as our advisors) and asked them contact us themselves if they are interested. We got at least 10-15 calls of people who were interested and wanted to become our advisors. Meetings were held with them and they were converted. The BOP letter and then invitation for the BOP i.e. Business Opportunity Presentation has been attached at the end in the annexure. to

Training activities for agents/advisors.

26

 As per IRDA guidelines, 100hrs training is compulsory. Both online & classroom training are available. Training is compulsory with both part-time & full time Options. A clear exam is conducted by IRDA, the minimum qualification required is12th pass for urban areas 10th pass for rural areas.

Commission Structure. Depends on the product, like on savings 20-40% Ist year premium.

On investment 20%

On pension 7.5% Modes & ways through which the company recruits agents. Direct contacts. Newspaper adds. Consultants. Member of the company can introduce a new member. Current agent force 1500-2000in NOIDA.

Top 5 USPs (Unique Selling Proposition) Of RELIENCECAPITAL

27

 Best insurer according to Outlook. Declared bonus every year from the day of incorporation (only company.) Provides fast service to the customers in terms of claim

28

INTODUCTION TO CHANNEL DEVELOPMENT AND RECRUITMENT

Who is an insurance advisor?
An agent is the representative of an insurance company who sells different policies or product to its clients. Another term used for insurance agents is advisors; ICICI Prudential life insurance company Ltd introduced this term. Today in life insurance companies advisors are known to be the backbone of the whole system. Advisors/agents do not work on monthly payroll basis; they receive a certain commission on the policies they sell to the clients. The eligibility required to become an advisor/agent is that he/she should be 12th pass to operate in urban area and 10th pass for rural areas. Before a person becomes an advisor/agent he/she has to undergo 100hrs training according to IRDA norms, which is compulsory. A person who wants to be an advisor has first to fill a recruitment form and has to pay a fee of Rs. 1000/- in favor of ICICI Prudential. Then, he has to pass a test, which is compiled by IRDA. After he gets through that test he is awarded a license and then his training starts in the company regarding the insurance business. ICICI Pru provides this training in 3 modes as per the suitability of the advisors viz: -

1) Classroom

training: - it is a Full Time Training with a period of 17 days

regular between 9 am to 5pm at the training centers allotted to the advisor. 2) Online training: - it is another mode of training where the company provides CDS and books to the advisor for his own study.
29

3) Classroom training: - it is a Part Time Training with a period of 36 days.

Advisor Role.
To provide ongoing financial advice for his/her clients: Identify future clients Making appointments Conduct financial review meetings with prospects/clients. Close sales Get referrals Provide service to clients. Follows internal sales and reporting system. Working Environment of an advisor/agent. To be a part of world-class sales team. Work from your own office or residence. Work full time or part time (an advisor can work part time by undergoing only 50hrs of training and 100hrs training is for full time advisors.) Earn Commission, Bonus & Incentives. No upper limits on earnings. Flexible career. Opportunities for an Advisor/agent.

30

 No startup capital required. Flexible working environment. Be your own boss. Unlimited earning potential. To be a part of a world-class team.

Training activities for agents/advisors.

As per IRDA guidelines, 100hrs training is compulsory. Both online & classroom training are available. Training is compulsory with both part-time & full time Options. A clear exam is conducted by IRDA, the minimum qualification required is12th pass for urban areas 10th pass for rural areas.

Commission Structure.
Depends on the product, like on savings 20-40% Ist year premium.

On investment 20%

On pension 7.5% Modes & ways through which the company recruits agents. Direct contacts.
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 Newspaper adds. Consultants. Member of the company can introduce a new member. Current agent force 1500-2000in NOIDA.

Top 5 USPs (Unique Selling Proposition) Of RELIENCECAPITAL Best insurer according to Outlook. Declared bonus every year from the day of incorporation (only company.) Provides fast service to the customers in terms of claim

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Payments & benefits-commission Structure for advisors/agents.

Number of Policies Sold Average Premium Rs. Total Premium Earned Rs. Commission @ 25% Bonus @ 40% of Commission Earnings from New Business Rs. Commission on Renewal Premium@7.5% For year 2, 3, and 5% after that Earnings from renewal business Rs. Total Earnings Rs. Year 1 50 10000 500000 125000 50000 175000 Year 2 75 10000 750000 187500 75000 262500 37500 175000 37500 300000 Year 3 100 10000 1000000 250000 100000 350000 56250 37500 93750 443750

Most preferred profiles to recruit as Advisors/agents.

Housewives Income Tax Consultant Chartered Accountant Sales Personnels working in Automobile Dealership Credit Card Co. Telecom

33

 Mutual Fund DSAs M Rs Doctors Teachers VRS Holders Advisors of other insurance companies Post Office Agents Business Men Accountants OI in an organization

34

How does an advisor/agent work.

Firstly an advisor/agent has to make a list of 100 people that he/she knows. Then the Advisor/agent makes a call to these clients and tries to fix an appointment. When an appointment is fixed the advisor/agent meets the customer & tries to sell the product. After that the advisor/agent asks for the reference of maximum number of people from the client. The reference is asked in context to make future calls and the whole procedure is repeated again.

INSURANCE ADVISOR SURVEY

QUESTION:1-GENDER OF THE RESPONDENT?
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Table 1 Frequency Percent Valid Female 18 25.7 Male 52 74.3 Total 70 100.0
Gender of respondent
Female Male

Valid Percent 25.7 74.3 100.0

Cumulative Percent 25.7 100.0

26%

74%
CONCLUSION As we can see from the figure itself that there is a sex ratio difference between males and females, which is near about 3:1 in the insurance industry. It is mainly because advisors job is demanding in terms of rigorous fieldwork and hence women finds difficult to cope up with it.

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QUESTION:2-MARITAL STATUS OF THE RESPONDENT?

Table 2 Frequency 53 17 70 Percent 75.7 24.3 100.0 Valid Percent 75.7 24.3 100.0 Cumulative Percent 75.7 100.0

Valid

Married Unmarried Total

Marital status of the respondent

Married Unmarried

24.3

75.7

CONCLUSION More married people work, as advisors and company prefer to employ them in comparison to unmarried ones because being family people they tend to take their work more seriously. Because generally a laid back attitude has been observed in the unmarried people.

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QUESTION:3-EDUCATIONAL QUALIFICATION OF THE

RESPONDENT?
Table 3 Frequency Percent 5 7.1 43 61.5 22 31.4 70 100.0 Valid Cumulative Percent Percent 7.1 7.1 61.5 68.6 31.4 100.0 100.0

Valid

Inter Graduate Professional Total

Educational qualification of the respondent

Inter
Graduate Professional
7.7

30.8

61.5

CONCLUSION Among insurance advisors, it has been observed that 61.5% of them are graduates in comparison to professionals like CAs or MBAs who are just 31.4%. While intermediate pass people just make 7.1% of the whole lot.

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QUESTION:4-CLUB MEMBERSHIP OF THE RESPONDENT?

Table 4 Frequency Percent 22 31.4 48 68.6 70 100.0 Valid Cumulative Percent Percent 31.4 31.4 68.6 100.0 100.0

Valid

Yes No Total

Club membership of the respondent

yes
no

31.4

68.6

CONCLUSION The insurance advisors who do remarkable work in terms of fetching business for the company is given club memberships like DM club, MDRT club, Zonal Club etc.

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QUESTION:5- MODE OF TRAINING BY IRDA UNDERGONE

BY RESPONDENT?
Table 6

Frequency Valid Classroo m Online None

Total

Percent 64.3 21.4 14.3

Valid Percent 64.3 21.4 14.3

Cumulative Percent 64.3 85.7 100.0

45 15 10

70

100.0

100.0

Mode of training by IRDA undergone by respondent

Classroom Online None

21.4

14.3 64.3

CONCLUSION Insurance companies provide training in three modes classroom training, online training and part time training. We find out that 64.3% of the respondents had preferred to take classroom training as according to them it gives a better hang of the insurance business operations since you are one on one with the training manager and hence you can ask any queries then and there only.

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QUESTION:6-EXPERIENCE IN THE FIELD OF THE

RESPONDENT?
Table 6 Frequency Valid 0 to 6 months 6 to 12 months More than 1 year Total 5 9 56 70 Percent 7.1 12.9 80.0 100.0 Valid Percent 7.1 12.9 80.0 100.0 Cumulative Percent 7.1 20.0 100.0

experience in the field of the respon dent

1 00

80

Y Axis

60

4 0

20

0 0 to 6 m th on s 6 to 12 m onths m than 1 year ore

CONCLUSION 80.0% of the total respondents were found to be well established in this field since they have been working for over one year and majority for the last 10 15 yrs.

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QUESTION:7-CUSTOMER SIZE PER MONTH OF THE

RESPONDENT?
Table 7
Frequency Percent 15 21.4 7 10 48 70 68.6 100.0 Valid Percent 21.4 10 68.6 100.0 Cumulative Percent 21.4 31.4 100.0

Valid

1 to 5 5 to 10 More than 10 Total

cu stom size per m nth o th resp er o f e onden t

50

40

Frequency

30

20

10

0 1 to 5 5 to 10 m than 10 ore

CONCLUSION On an average an insurance advisor deals with more than 100 customers in a month and out of them he converts 80% of the calls i.e. he sells policies to them. 68.6% of the respondents had a customer base of more than 10 which was the minimum figured option included in our questionnaire. And these were the advisors who had been in this field for the last 5 to 8 years or more than that.

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QUESTION:8-CONTACTING THE CUSTOMER BY THE

RESPONDENT?
Table 8 Frequency Valid Personal meeting & telephone Telephone & references All Total 13 18 39 70 Percent 18.6 25.7 55.7 100.0 Valid Percent 18.6 25.7 55.7 100.0 Cumulative Percent 18.6 44.3 100.0

contacting the customer by the respondent

personal meeting & telephone telephone & references all

9

10

46

CONCLUSION When respondents were asked that what are the ways they use for contacting the clientele base they are having then 55.7% of them named telephone calls, personal meetings and references as the major means of keeping in touch with their customers while only 25.7% named telephone calls and referees as their sources.
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QUESTION:9-FREQUENCY OF VISITING THE CUSTOMER

BY THE RESPONDENT?
Table 9 Frequency Percent 12 17.2 49 70 9 12.8 70 100.0 Valid Cumulative Percent Percent 17.2 17.2 70 87.2 12.8 100.0 100.0

Valid

Once a month Twice a month More than that Total

fr q e c o v itin th c s m r b th r s o d n e u n y f is g e u to e y e e p n e t

5 0

4 0

Frequency

3 0

2 0

1 0

0 o c am n ne o th tw eam n ic o th m reth nth t o a a

CONCLUSION 70.0% of the advisors were find to visit their customers almost twice a month for various purposes like updating the customers for new policies and products company is introducing etc. and only 17.2% visited their clients once a month.

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QUESTION:10-ANNNUAL PRODUCTIVITY OF THE

RESPONDENT?
Table 10 Valid Percent 10 24.3 65.7 100.0 Cumulative Percent 10 34.3 100.0

Frequency Valid Below Rs. 50,000 Rs. 50,000 -1,00,000 Above Rs. 1,00,000 Total 7 17 46 70

Percent 10 24.3 65.7 100.0

a n u l po u t it o t er s o d n n n a r d civ y f h e p n e t

5 0

Frequency

4 0

3 0

2 0

1 0

0 b lo R. 5 , 0 e w s 00 0 R. 5 , 0 - 10 , 0 s 00 0 - , 00 0 a o eR. 10 , 0 b v s , 00 0

CONCLUSION The commission earned by the advisors on the policy they sell to their customers is called the premium or the productivity. 65.7% of them had an annual productivity of more than 1 laces due to the large amount of business they gained via insurance only while 24.3% were earning between 50,000 to 1,00,000 because either they were new to this business or they were not able to devote much time to this field.

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QUESTION:11-OURCE OF INFORMATION OF THE

CUSTOMER?
Table 11 Valid Cumulative Percent Percent 22.8 22.8 20 37.2 20 100.0 42.8 80.0 100.0

Valid

Newspapers Television and radio Relatives/friend s Other sources Total

Frequency 16 14 26 14 70

Percent 22.8 20 37.2 20 100.0

s uc o inomt no t ec so e o r e f f r aio f h u t mr

2 5

2 0

Frequency

1 5

1 0

0 n wp p r e s a es te v io a dr d le is n n a io r la e /fr n s e tiv s ie d o e s uc s th r o r e

CONCLUSION As per the point of view of the 37.2%advisors, the customers usually get to know about the policies and products of any insurance company via their relatives or friends while 22.8% advisors gave the credit to the advertising in the newspapers as the source of information to the people. TV and Radio had 20% of the advisors favoring them.

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QUESTION:12-PARAMETERS DEMANDED IN INSURANCE POLICIES?

Table 12

Valid

Service Quality Product features Brand Total

Valid Cumulative Frequency Percent Percent Percent 14 20 20 20 19 27.2 27.2 47.2 11 26 70 15.7 37.1 100.0 15.7 37.1 100.0 62.9 100.0

p m rs de an ed in in ran e po ara ete m d su c licies

service quality product features brand

21 4 .5

3 3.85

2 7.69

16.92

CONCLUSION 37.1% advisors feel that while buying a policy what customer looks is the brand name associated with it. Like for selling a LIC, which is a generic brand you dont need to do that much hard work because customer knows it. 27.2% favored quality of the product they are selling as the top priority of the customer.15.7% advisors gave their consent to the product features as one of the enticing factor for the customers in buying into a policy.
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QUESTION:13-PURPOSE OF GETTING INSURANCE?

Table 13 Frequency 9 10 11 13 11 16 70 Valid Cumulative Percent Percent Percent 12.8 12.8 12.8 14.3 14.3 27.1 15.7 18.6 15.7 22.9 100.0 15.7 18.6 15.7 22.9 100.0 42.8 61.4 77.1 100.0

Valid

Protection Savings Child future Retirement Investment Tax saving Total

p r o eo g t in a i s r n e up s f et g n n ua c

po cio r te t n sv g a in s c ildfu r h tue r tir mn e e et in e t e t v smn

1. 5 38 2 0

ta s v g x a in

1. 8 53

1. 2 69

1 .8 3 5

2 0

CONCLUSION 22.9% of the advisors felt that retirement and tax saving are the main purpose of the people for getting an insurance done. While 15.7% felt that child future and protection were the causes for the people to get an insurance done.15.7% favored investment as the reason and 14.3% voted for savings as one of the cause for getting insurance.

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QUESTION:14-Nearest competitor of the company with

which respondent is associated?

Table 14

Valid

LIC ICICI PRU LIFE OTHER S Total

Frequency 46 16 8 70

Percent 65.7 22.8 11.5 100.0

Valid Cumulative Percent Percent 65.7 65.7 22.8 11.5 100.0 88.5 100.0

n a e t c m e r o th c m a yw w ic r s o d n is e r s o p tito f e o p n ith h h e p n e t a s c te s o ia d
8 0

6 0

Percent

4 0

2 0

0 L IC IC I P UL E IC R IF OH R TES

CONCLUSION LIC is one generic brand, which no one can beat, and hence the biggest competitor of any insurance company.65.7of the respondents had this viewpoint while only 22.8% felt that ICICI Prudential is the next big emerging competitor after LIC of course.

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QUESTION:15-ANY OTHER AGENT IN THE FAMILY OF

RESPONDENT?
Table 15 Frequency 16 54 65 Percent 22.8 77.2 100.0 Valid Percent 22.8 77.2 100.0 Cumulative Percent 22.8 100.0

Valid

Yes No Total

a y o er ag nt in th fam o resp n en n th e e ily f od t

yes no

20

8 0

CONCLUSION Only 22.8% of the total advisors surveyed had some other family member also as an agent along with them and 77.2% of the advisors were the only one in their family who were into the insurance business.

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GENERAL MASS SURVEY QUESTION:1-PREFERENCE OF THE ICICI ?

Table 1 Freque ncy 50 20 70 Valid Percent 71.4 28.6 100.0 Cumulative Percent 71.4 100.0

Valid

MALE FEMALE Total

Percent 71.4 28.6 100.0

G end O The R er f espon den t

m ale fem ale

37.3

62.7

CONCLUSION As the figures speak for themselves, total respondents whom we surveyed 71.4% were MALE while rest was FEMALE (28.6%).

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QUESTION:2-MARITAL STATUS OF THE RESPONDENT?

Table 2 Frequency Percent 38 54.2 32 45.8 70 100.0 Valid Percent 54.2 45.8 100.0 Cumulative Percent 54.2 100.0

Valid

Married Unmarried Total

Marital Status Of The Respondent

married unmarried

47.76 52.24

CONCLUSION As the figure show that 54.2% were married while 45.8% were unmarried. In a way, it helped us because while prospecting the people for making them the advisors we prefer those who are married.

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QUESTION:3-EDUCATIONAL QUALIFICATION OF THE RESPONDENT?

Table 3 Frequency Valid Any Professional Degree Post Graduate Graduate Undergraduate/ XII Pass Total 7 30 24 9 70 Percent 10.0 42.8 34.3 13.9 100.0 Valid Cumulativ Percent e Percent 10.0 42.8 34.3 13.9 100.0 10.0 52.8 87.1 100.0

Educational Q ualification O The R f espondent

any peofessional degree post graduate graduate

13.4 10.4

undergraduate/ XII pass

13.4

62.7

CONCLUSION 42.8% of the respondents were found to be post graduates and next came under graduates and graduates with 34.3%. Only 10.0% were found to be professionals like CAs or MBAs.

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QUESTION:4-OCCUPATIONAL BACKGROUND OF THE

RESPONDENT?
Table 4 Frequency Percent Valid Got/ State Services Private Job Professional Others Total 22 33 10 5 70 31.4 47.1 14.3 7.2 100.0 Valid Percent 31.4 47.1 14.3 7.2 100.0 Cumulativ e Percent 31.4 78.5 92.8 100.0

O c p to a B c g u dO T e R s o d n c u a n l a k ro n f h e p n e t

G v S te o t/ ta S rvice e s P a Jo riv te b P fe s n l ro s io a
7 .5

o e th rs

1 .9 1 3 .3 1

4 .3 9

CONCLUSION Most of the respondents belonged to the private sector like they were working in some bank or in any private enterprise so they were easily convertible into agents because they can take agencies on their name while government people cant do that. Only 31.4% belonged to the government sector.
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QUESTION:5-ANNUAL HOUSEHOLD INCOME?

Table 5 Frequency Valid 5 to 8 laces 3 to 5 laces 1 to 3 laces Total 36 22 14 70 Percent 51.4 31.4 20 100.0 Valid Percent 51.4 31.4 20 100.0 Cumulative Percent 51.4 82.8 100.0

Annual Household Incom e

5 to 8 lacs 3 to 5 lacs 1 to 3 lacs

20.9

50.7

28.4

CONCLUSION Almost 51.4% were found to earn between 5 to 8 laces. Those people who are earning up to one lac are avoidable profile for tapping the insurance advisors.We were supposed to look for people who fell in an average income group of earnings between3 to 5 lacs. Even people who had income of 8 lacs were to be ignored because it was difficult to entice them into the insurance business.
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QUESTION:6-Option Chosen By The Respondent To Make

Extra Income?
Table 6 Frequency MUTUAL FUND AGENT/ INSURANCE AGENT TRADING OF STOCK INVESTMENT IN PROPERTY Total 27 23 20 70 Percent 38.5 32.8 19.4 100.0 Valid Percent 38.5 32.8 28.7 100.0 Cumulative Percent 38.5 71.3 100.0

O tio C o e B T eR s o d n T M k E traIn o e p n hsn y h epnet o ae x cm

MM L MT A F N UUL U D A E T GN/ IN U A C S RN E A E T GN
1 .9 1 1 .4 9

T A IN O RD G F SOK T C IN E T E TIN VSMN P OE T R PRY

3 .3 4

3 .3 4

CONCLUSION 32.8% of the respondents wanted to earn that extra income by means of the trading of the stock or being an insurance advisor while 19.4% preferred investing in the property.

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QUESTION:7-BEST INSURANCE COMPANY AS RATED BY

THE RESPONDENT?
Table 7 S.N. 1. 2. 3. 4. Fr Valid Cumulative equency Percent Percent Percent 35 50 50 50 18 25.7 77.7 77.7 8 11.4 11.4 89.1 9 11.9 11.9 100.0 70 100.0 100.0

LIC ICICI RELIENCE OTHER Total

Best Insurance Company As Rated By The Respondent

LIC ICICI OTHER

9

22.4

68.7

CONCLUSION When the respondents were asked to give a name of insurance company, which they found best then one could easily see the impact of the LIC in life of a common man since 50.0% instantly took the name of LIC only. ICICI Pru stood second with 25.7% people recalling its brand name.

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QUESTION:8INTEREST OF THE RESPONDENT IN JOINING

ICICI PRU ?
Table 8 Frequency Percent Certainity 35 50.0 Probably 15 21.4 Definitely not 20 28.6 Total 70 100.0 Valid Cumulativ Percent e Percent 50.0 50.0 21.4 71.4 28.6 100.0 100.0

Valid

Interest Of The Respondent In Joining ICICI PRU

CERTAINLY PROBABLY DEFINITELY NOT

17.9

43.3

38.8

CONCLUSION If given a choice to join ICICI Prudential as its advisor, almost 50% of the respondents said that they would certainly be interested while only 21.4% said that they would think over it because as per them their decision depended on the money they will be getting from prudential in comparison to other insurance companies.

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QUESTION:9-Interest of the Respondent in Getting High

Returns in ICICI?
Table 9 Freque ncy 58 12 70 Percent 82.8 17.2 100.0 Valid Cumulative Percent Percent 82.8 82.8 17.2 100.0 100.0

Valid

Yes No Total

Interest Of The Respondent In Getting High Returns

Yes
No
13.4

86.6

CONCLUSION 82.8% of the total respondents said that they would definitely like to join a ICICI where they will be rewarded with high returns without actually spending a single penny from their pocket. While 17.2% said they are not interested since as per them there is no such business where you dont have to invest any thing.

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SWOT ANALYSIS
Strengths:

Vast untapped market -

In a country of 1 billion people there is a huge potential market for life insurance products. In India the penetration of the insurance sector in the rural and semiurban areas is low. There is a market of 900 million for life insurance and 200 million for householders insurance policy. In addition to this the affluent section can be tapped for Overseas Mediclaim and Travel Insurance policies.

Huge pool of skilled professionals-

Whether it is banks or insurance companies there is no dearth of skilled professionals in India to carry out a successful banc assurance venture.

Weakness:

Lack of networking among bank branches

In spite of growing emphasis on total branch mechanization (TBM) and full computerization of bank branches, the rural and semi-urban banks have still to see information technology as an enabler. Complete integration of branch network involves huge investments for creating IT and communication infrastructure.

Low savings rate

Though we have a huge market for insurance policies, the middle class who constitutes the bulk of this market is today burdened under inflationary pressures. The secret lies in inculcating savings habit but considering the amount of surplus funds available with the middle class for investing in future security, the ability to save is very nominal

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Opportunities:

Data mining :

Banks have a huge customer database which has to be properly leveraged. Target segments should be identified and tapped. Wide distribution networks of banks provides a great opportunity to sell insurance products through banks

Another potential area of growth of banc assurance is exploiting the corporate customers and tying up for insurance of the employees of corporate clients

Threats:

Human Resource Challenges:

Success in banc assurance venture requires a change in mindset. Though we have a large talent pool, the inability to sell complex insurance products on the part of bank professionals and their reluctance to learn can be severe setback. There has to be a change in the thinking, approach and work culture.

Non-response from the target groups can also pose a challenge as it happened in the USA in 1980s

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FUTURE GROWTH PROSPECTS OF COMPANY:

IN the total market share, LIC has reduced its share from 91% to 70%. This means that private insurance players have got more margins in their hands which have increased from 9% to 30% in last 3years only. In the private market share, ICICI PRU leads with 39% of the market share in its hand followed by Bajaj Allianz with 18% shares and then comes Birla Sun Life with 15% market shares. ICICI PRU has been maintaining its NO 1 position since last 6 years because of its prolific product range and commanding brand equity. It has a highest capital base of Rs. 1000 crores and a team of more than 88,000 well-trained advisors. It enjoys a brand recall rate of 92% and gives credit of its success to the 5 core values Integrity Customer Boundary Less Ownership Passion
Private Players 30% LIC Private Players LIC 70%
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Total Market Share

MARKET SHARE IN PRIVATE SECTOR

BajajPrivate Allianz 18%

Birla Sun Life 15% Max New York Life 8%

share in the market

ICICI Prudential 39% ICICI Prudential Tata AIG HDFC Std Life Max New York Life Birla Sun Life Bajaj Allianz

HDFC Std Life 14%

Tata AIG 6%

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So, in future it might be possible that the unit value of scheme and market share of ICICI prudential life insurance will be increase.

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RECOMMENDATIONS AND SUGGESTIONS

During the exposure of 2 months I had in the insurance industry via ICICI Prudential, it helped me to develop the basic understanding of how this industry works and the work experience & knowledge gained has also helped me to give the recommendations as stated below: An insurance policy is a product, which needs a lot of convincing before it can be sold because what I analyzed in this internship that there are very few people who have a basic knowledge about life insurance especially the lower middle class society. So, it is essential for the advisor to know what the customer actually needs and then letting the customer know what benefits he will get out of it.

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 The limitation here is how to win the trust of people when so many companies are offering the same product range. Here, icici pru needs to encash its brand name because after the survey I conducted what I concluded is that after LIC if people know any other insurance company is then it is ICICI Prudential. During the calls where I went along with the Unit manager, I observed that people in general have the perception that insurance is all about getting discount in tax. People should be made realize that it is a great way of saving for the future too. Besides doing market research, my other job was also to increase the advisor base of the company. And company preferred the profiles of the already established insurance advisors of the other company especially the LIC ones. What I suggest is that before approaching these prominent agents we need to do a SWOT analysis of the co. they are into. Like LIC Agents usually complain of LOW returns and hence icici pru can tap them on this loophole of LIC. Instead of approaching these good profile agents personally, the company can hold Seminars Or Club Meetings because every one comes for free lunches. Once they come, they can be given Business Opportunity presentations about the incentives, commission structure etc ICICI Pru is offering to its advisors.
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 Since the commission structure has been fixed by the IRDA only so no

insurance company can give more commission on products but every company has a different mode of distributing commission, since ICICI pru has all kind of products and policies with it (including the products which LIC have and even those which LIC do not have) thus every agent can earn as much (NO UPPER LIMIT ON EARNINGS) as he wants because he has more choice to offer to the customer. This can be one of the sales pitch for the ICICI Pru.

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LEARNINGS
The basic aim of the company in providing us with this assignment was to find out the peoples perception of their brand in the market and via this increasing their advisor base by encashing on their brand name.

I learned how to recruit insurance advisor and convinced them for job profile.
When I was doing this project I met several person & collected their responses, some of them give positive response, some gave negative response &some cant say any thing, they dont believe in private sector. I also personally met 9 to 10 person in a day. I also do Tele-calling & appointment. It is very helpful in the collection of the customer databases.

Under this project:

No. of customer met; more than 100 No. of customer called(phone); 50 No. of forms filled; more than 60 No. of customer converted; 40 ICICI Prudential Life Insurance Company is the number one private life insurance company in India with a market share of 42.2%. Birla sun life stands second in private life insurance companies with a market share of 18.5%. Looking in private

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sector ICICI Prudential has been the dominant player because the amount of gap between the market shares is huge. But if we analyze in all sectors of life insurance then LIC has been the most dominant player since 1956. The impact of LIC has been so much in both rural and urban areas that people use the term LIC instead of life insurance. ICICI prudential faces a big challenge in front of them to stay in the race with Life insurance corporation (LIC) because with the entrance of other companies like Max New York, HDFC Standard Life & Birla Sun Life the competition has become tougher. But insurance is also growing day by day, India has a population of 1.2 billion and only 33.3% population is insured. This means insurance is an upcoming industry but ICICI prudential has to work a lot on their strategies to overcome LIC.

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BIBLOGRAPHY
Study Material for AMFI exam Investment update report of other AMCS Various Business Newspaper Magazines WWW. AMFINDIA . COM WWW. ICICIPRULIFE.COM
WWW.INVESTMSRTINDIA.COM WWW.PERSONALFN.COM WWW.ECONOMICTIMES.COM WWW.STOCKINDIA.COM

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