A

PROJECT REPORT

ON

To Study the Brand Image of ICICI Prudential life

Insurance

AT
ICICI PRUDENTIAL LIFE INSURANCE,
PUNE.

SUBMITTED TO UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE
MASTERS IN BUSINESS ADMINISTRATION (M.B.A.)

SUBMITTED BY
Sandeep S.Sankpal

( BATCH - 2006-08 )

BRACT’s
Vishwakarma Institute of Management,
Kodhawa Pune- 411014.

1
 ACKNOWLEDGEMENT
The completion of the project would have been a dream without the help and support of
people who gave their valuable time to me for collection of information needed for the
project.

Firstly, I would like to thanks

for their guidance at each step of my project.

I give my vote of thanks to

for their valuable support and guidance at any time when required.

And lastly, I am thankful to my parents, friends and my colleagues for their valuable
encouragement and support and to all those who inspired me in making my dream come
true of developing this project

(sandeep sharad sankpal)

2
 CONTENT

Sr no. Contents Page no.

1 Executive Summary
2 Objective
3 Introduction to Topic

4 Company Profile

5 Product profile
6 Research methodology
7 Data analysis and Findings
8 Conclusion
9 Recommendations
10 Annexure
11 Bibliography

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 EXECUTIVE SUMMARY

Insurance is one sector, which holds great future in India. The market is vast and there is
a lot of cushion for new entrants to operate alongside our public sector giants viz LIC &
GIC.The industry is expected to grow at an average annual inflation adjusted rate of 7.6%
and 14% in the non-life segment respectively. Pension is another crucial sector, which
has assumed critical dimensions in the past few years. Government reports are indicative
of the huge market that remains to betapped.
The objective of the project is “To Study the brand Image of ICICI Prudential Life
insurance” The project was carried out for ICICI Prudential,Pune.

Data is collected from both primary and secondary sources. As a primary source a survey
of policyholders & company officials has been conducted. Articles, Newspapers,
magazines referral books and internet services have been used as secondary sources of
data.

Research Instruments

Questionnaire method (survey)

Customer questionnaire

Types of research used:

Exploratory research ~ It is always not possible of desirable to use direct questioning to

obtain information. In this case the secondary data is used to arrive at conclusion. In this
project desk research. This is a part of exploratory research, is used.

4
Descriptive research ~ here mainly only primary data is used. It is generally a
quantitative measurement of customers’ attitude and perception of a certain product.
Under the descriptive research the sample survey method has been used in the product
The Primary objective of my project is to study the Brand image of ICICI Prudential life
insurance company.
After analyzing the whole survey I come to know that market prospects of insurance is at
a growing pace. Privatization is playing an important role in the way of growth of
insurance sector in India. Some measures were suggested by the experts like improved
marketing strategies, huge distribution network, penetrating the rural sectors etc.

Conclusion
After completing the study, I have to compile the whole data which include some positive
& negative aspects of our compared to the current industry scenario. After compiling the
whole data I have to analyse where our company is lacking on the current scenario and
they have to improve where we are failing time to time stand in the current market. After
compiling and analysis the data after the study company has to implement and improve
themselves time to time to stand in the current market otherwise as much products
company launches in the market, company can never stand upto the industry norms and
needs.

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 OBJECTIVES

Primary Objectives
 To study the “ Brand image of ICICI Prudential life insurancecompany”

SecondaryObjectives

 To find out the advantage of the policies offered by ICICI PREDUNTIAL

over various companies.
 To study the differentiating strategies adopted by ICICI PRUDENTIAL to
win the customers.
 To study the viewpoint of policyholders and further to suggest the
modalities to improve the efficiency of ICICI PRUDENTIAL.

6
 INTRODUCTION TO TOPIC

Importance:

Topic brands image of “ ICICI Prudential Life Insurance” in the century of awesome
entrepreneurs, One of the most worthwhile discoveries that have evolved is in the
form of “BRANDS” . A brand is not only created by what the consumer perceive but
what the management perceives about their respective prospects. Brands is the make
or break in the ongoing world.
Today the future is very much dependent on the Brand created. Brand
provides a majestic and transparent view of the image all around. Same is the effect in
the insurance sector. The more the Brands awareness, more trustworthy the company.
In the present scenario LIC Is the leader in the insurance industry because of its
highly regarded and proved Brands Image. Same is the case with ICICI Prudential as
it is the leader in the private insurance sector. In my project I have highlighted the
consumers thrust towards various products and why they regard it as a worthybrand.
As of these regards my topic needs a special recognition.

Scope :

My study will be based on the views of several perspective clients on the brand image
of my company. For creating and maintaining the strategic advantage for the ICICI
Prudential Life Insurance business through understanding the customer’s, building
sustainable value position and execute every aspect of brand strategy , revenue
potential through the design/ deployment of strategic, tactical market plans. As much
services company is offering to the prospective clients , but if they are not able to
give much benefit to their client’s brand image of ICICI Prudential Life Insurance
will also be helpless in promoting the company’sproducts.
I am elaborating my study by giving an example of today industry scenario.

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 LIFE INSURANCE INDUSTRY

Life insurance industry may be defined as a plan under which large groups of
individuals can equalize the burden of loss from death by distributing funds to the
beneficiaries of those who die. From the individual standpoint life insurance is a
means by which an estate may be created immediately for one’s heirs and
dependents. It has achieved its greatest acceptance in Canada, the United states,
Belgium, South Korea, Australia, Ireland, New Zealand , The Netherlands, and
Japan , countries in which the face value of life insurance policies in force
generally exceeds the nationalincomes.

In the United states in 1990 nearly $9.4 trillion of life insurance was in force. The
assets of the more than 2,200 U.S. life insurance companies totaled nearly $1.4
trillion, making life insurance one of the largest savings institutions in the United
states. Much the same is true of other wealthy countries, In which life insurance
has become a major channel of savings and investment, with important
consequences for the nationaleconomy.

Life insurance is relatively little use in poor countries, although its acceptance has
been increasing.

Types of contracts.
The major types of life insurance contracts are term, whole life, and universal life,
but innumerable combinations of these basic types are sold. Term insurable
contracts. Issued for specified periods of years, are the simplest. Protection under
these contracts expires at the end of the stated period, with no cash value
remaining , Whole life contracts, on the other hand, run for the whole of the
insured’s life and gradually accumulate a cash value, The cash value, which is
less than the face value of the policy, is paid to the policyholder when the
contracts matures or is surrendered. Universallife

8
Contracts, a relatively new form of coverage introduced in the United States in
1979, have become a major class of life insurance, They allow the owner to
decide the timing and size of the premium and amount of death benefits of the
policy. In this contracts, the insurer makes a charge each month for general
expenses and death benefit is a set amount, while in type –B policies the death
benefits is a set amount plus whatever cash value has been built up in thepolicy.

Life insurance may also be classified, according to type of customers, as ordinary

group, industrial, and credit. The ordinary insurance market includes customers of
whole life, term, and universal life contracts and is made up primarily of
individual purchasers of annual – premium insurance. The group insurance
market consist mainly of employees who arrange group contracts to cover their
employees. The industrial insurance market consists of individual contracts sold
in small amounts with premium collected weekly or monthly at the policyholder’s
home. Credit life insurance is sold to individuals. usually as part of an installment
purchase contracts; under these contracts if the insured dies before the installment
payments are completed, the seller is protected for the balance of the unpaiddebt.

Insurance may be issued with a premium that remains the same throughout the
premium-paying period, or it may be issued with a premium that increased
periodically according to the age of the insured. Practically all ordinary life
insurance policies are issued on a level – premium basis. which makes it
necessary to charge more than the true cost of the insurance in the earlier years of
the contracts in order to make up for much higher costs in the later years; the so-
called overcharges in the earlier years are nor really overcharges but re a
necessary part of the total insurance plan, reflecting the fact that mortality rates
increase with age. The insured is not overpaying for protection, because of the
claim on the claim on the cash values or may recapture it completely by lapsing
the policy. The insured does not, however, have claim on all the earnings that
accrue to the insurance company from investing the funds of itspolicyholders.

9
By combining term and whole life insurance, an insurer can provide many
different kinds of policies. Two examples of such “package” contracts are the
family income policy and the mortgage protection policy. In each of these, a base
policy , usually whole life insurance, is combined with term insurance , is
combined with term insurance calculated so that the amount of protection declines
as the policy run its course. In the case of the mortgage contracts, for example, the
amounts of decreasing term insurance is designed roughly to approximate the
amount of the mortgage of a property. As the mortgage is paid off, the amount of
insurance declines correspondingly. At the end of the mortgage period the
decreasing term insurance expires, leaving the base policy still in force. Similarly,
in a family income to the beneficiary over a period of years roughly
corresponding to the period during which the children are young anddependent.

Some whole life insurance policies permits the insured to limit to limit the period
during which premium are to be paid, Common examples of these are 20- year
life, 30 – years life, and life paid up at age 65. On these contracts, the insured
pays a higher premium to compensate for the limited premium- paying period. At
the end of the stated period, the policy is said tobe
“paid up” but it remains effective until death of surrender.

Term insurance is most appropriate when the need for the protection runs for only
a limited period; whole life insurance is most appropriate when the protection
need is permanent. The universal life plan, which earns interest at a rate roughly
equal to that earned by the insurance (approximately the rate available in long –
term bonds and mortgage), may be used as a convenient vehicle by which to save
money. The owner can vary the amount of death protection as the need for it
changes in the course of life. The policy offers flexibility and saves the owner
commission expenses by eliminating the need for dropping one policy and taking
out another as protection requirementschange.

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SATTLEMENT OPTIONS
The death proceeds or cash values of insurance may be settled in various
ways. The insured may take the cash value and laps the policy. A beneficiary may
take lump sum settlement of the face amount upon the death of the insured. The
beneficiary may instead, elect to receive the proceeds over a given number of
years of in some fixed amounts, such as Rs.1000 a month, for as long as the
proceeds last. The money may be left with the insurer temporarily to draw
interest. Or the proceeds may be used to purchased a life annuity, which in effect
is another insurance policy guaranteeing regular payment for the lifeinsured.

LIFE INSURANCE – OTHER PROVISIONS

Life insurance policies contains various clauses that protect the rights of
beneficiaries and insured. Perhaps the best- known is the incontestable clause,
which provides that if a policy has been in force for two years the insurer may not
afterward refuse to pay the proceeds of cancel the contract for any reason expect
nonpayment of premium. Thus, if the insured made a material misrepresentation
when the policy was originally obtained, and this misrepresentation is not
discovered until after the contestable period, beneficiary may still receive the
value of the policy so long as the premiums are maintained. Another protective
clause is the suicide clause, which states that after a given period, usually two
years, the insurer may not deny liability for subsequent suicide of the insured. If
suicide occurs within the period, the insurer tenders was misstated when the
policy was taken out, the misstatement-of-age clause provides that the amount
payable is the amount of insurance that would have been purchased for the
premium had the correct age been stated, Many life insurance policies, known as
participating policies, return dividends to the insured. The dividends, which may
amount to 20 percent of the premium, may be accumulated in cash left with the
insurer at interest, used to buy additional life insurance, used to reduce premium
payments, or used to pay up the correct sooner than would otherwise have been
possible.

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 SPECIAL RIDERS

The insured may, at a nominal charge, attach to the contract a waiver-of-

premium rider under which premium payments will be waived in the event of
total and permanent disability before the age of 60. Under the disability income
rider, should the insured become totally and permanently disabled. a monthly
income will be paid. Under the double indemnity rider, if death through accident.
the insurance payable is double the faceamount.

GROUP INSURANCE

group have always been important in the insurance field, from the burial
societies of the Romans and the insurance funds of the medieval guilds to the
fraternal and religious insurance plans of modern times. In the 20th century private
insurance companies have written increasingly large amounts of group insurance;
particularly in life insurance, health insurance , and annuities. In 1990 more than
95 percent of the industrial labour force in the United States was covered by
group life and health insurance plans established by employers. Much of the
imputes for these employee benefit plans came from the labour unions, which
pressed for such “fringe benefits”
in bargaining with employers.
Group insurance is widely used throughout the world, both in the form of
private plans and as insurance plans. Social security plans with group coverage
exist in more than 140 nations. Private group plans are generally offered wherever
private life and health insurance companies operate. Group life insurance is the
most commonly offered plan; group health plans are government- operated in
many nations. In many countries, group health plans are common as a supplement
to social insurance pension schemes.

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Group insurance has been especially popular in Japan, where many employees
serve a company for life. All Japanese life insurance companies offer group life
insurance. Health insurance is provided by the government. Funded group pension
become popular after a 1962 tax low made contributions tax- deductible for
Japanese employers. In addition, virtually all Japanese employers provide lump-
sump retirement allowances to their workers.

GROUP LIFE INSURANCE

under group life insurance an employers signs a master contracts with the
insurance company outlining the provisions of the plan. Each employee receives a
certificate that give evidence of participation in the plan. The amount of insurance
depends on the employee’s salary or job classification; usually the employer pays
a portion of the premium and the employees pays the rest, but sometimes the
employers pays the entire cost of the plan.
A major advantage of group life insurance to an employee is that usually .
coverage maybe obtained regardless of health. An employee who leaves the group
may, without a medical examination, convert the group coverage to an individual
policy. The premiums on group life insurance are considerably less than on
comparable individual policies, mainly because the selling and administrative
costs are minimal.

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 COMPANY PROFILE

India's Number One private life insurer, ICICI Prudential Life Insurance
Company is a joint venture between ICICI Bank-one of India's foremost financial
services companies-and Prudential plc- a leading international financial services
group headquartered in the United Kingdom. Total capital infusion stands at Rs.
23.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding
26%.We began our operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). Today, our nation-wide
team comprises of over 680 offices, over 235,000 advisors; and 23 banc assurance
partners.
ICICI Prudential was the first life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years
in a row, ICICI Prudential has been voted as India's Most Trusted Private Life
Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most
Trusted Brands'. As we grow our distribution, product range and customer base,
we continue to tirelessly uphold our commitment to deliver world-class financial
solutions to customers all over India.

The ICICI Prudential Edge - What makes us No. 1

The ICICI Prudential edge comes from our commitment to our customers, in all
that we do - be it product development, distribution, the sales process or servicing.
Here's a peek into what makes us leaders.
1. Our products have been developed after a clear and thorough understanding of
customers' needs. It is this research that helps us develop Education plans that
offer the ideal way to truly guarantee your child's education, Retirement solutions
thatareahedgeagainstinflationandyetpromiseafixedincomeafteryouretire,

14
or Health insurance that arms you with the funds you might need to recover from
a dreaded disease.

2. Having the right products is the first step, but it's equally important to ensure
that our customers can access them easily and quickly. To this end, ICICI
Prudential has an advisor base across the length and breadth of the country, and
also partners with leading banks, corporate agents and brokers to distribute our
products.
3. Robust risk management and underwriting practices form the core of our
business. With clear guidelines in place, we ensure equitable costing of risks, and
thereby ensure a smooth and hassle-free claimsprocess.
4. Entrusted with helping our customers meet their long-term goals, we adopt an
investment philosophy that aims to achieve risk adjusted returns over the long-
term.
5. Last but definitely not the least, our 20,000 plus strong team is given the
opportunity to learn and grow, every day in a multitude of ways. We believe this
keeps them engaged and enthusiastic, so that they can deliver on our promise to
cover you, at every step inlife.

Vision & Values

To be the dominant Life, Health and Pensions player built on trust by world-class
people and service
This we hope to achieve by
Understanding the needs of customers and offering them superior products and
service Leveraging technology service customers quickly, efficiently and
conveniently
Developing and implementing super risk management and investment strategies
to offer sustainable and stable returns to ourpolicyholders
Providing an enabling environment to foster growth and learning for our
employees

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And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5

core values -- Integrity, Customer First, Boundary less, Ownership and Passion.
Each of the values describe what the company stands for, the qualities of our
people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, where

we can play a significant role in redefining and reshaping the sector. Given the
quality of our parentage and the commitment of our team, there are no limits to
our growth.

Our values

Every member of the ICICI Prudential team is committed to 5 core values:

Integrity, Customer First, Boundary less, Ownership, and Passion. These values
shine forth in all we do, and have become the keystones of our success.

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FACT SHEET

THE COMPANY

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. ICICI Prudential
was amongst the first private sector insurance companies to begin operations in
December 2000 after receiving approval from Insurance Regulatory Development
Authority (IRDA).

ICICI Prudential's capital stands at Rs. 23.72 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the first quarter
ended June 30, 2007, the company garnered Rs. 987 crore of weighted retail +
group new business premiums and wrote over 450,000 retail policies in the
period. The company has assets held to the tune of over Rs. 18,400crore.

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 (Ind)
rating is the highest 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 six years, ICICI Prudential has retained its position as the No. 1
private life insurer in the country, with a wide range of flexible products that meet
the needs of the Indian customer at every step in life.

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Distribution

ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India. It has a strong presence across India with over 680 branches and
over 235,000 advisors

The company has over 23 bancassurnace partners, having tie-ups with

ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna
Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank,
Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored
Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati Co-
operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-operative
Bank and Imphal Urban Cooperative BankLimited.

Some of the important milestones in the life insurance business in

India are:-

1818: Oriental Life Insurance Company, the first life insurance company on
Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.

1983: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.

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 1956:245 Indian and foreign insurers and provident societies are taken over by
the central government and nationalized. LIC formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.

Who is the industry leader in the insurance industry? Why?

Life insurance Corporation of India

Their aim is to spread life insurance widely and in particular to the rural areas
and to socially and economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial cover
against death at a reasonable cost.

Maximum mobilization of people’s savings by making insurance-linked savings

adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its

policyholders whose money it holds in trust, without losing sight of the interest
of the community a whole; the funds to be deployed to the best advantage of the
investors as well as community as a whole; keeping in view national properties
and obligation of attractive return.

Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.

Act as trustee of the insured public in their individual and collective capacities.

Meet the various life insurance needs of the community that would arise in the
changing social and economics environment.

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 Involve all people working in the corporation to the best of their capability in
furthering the interest of the insured public by providing efficient service with
courtesy.

Promote amongst all agents and employees of the corporation a sense of

participation pride and job satisfaction through discharge of their duties with
dedication towards achievement of corporate objective.

Insurance sector reforms

In 1993, Malhotra Committee headed by former finance secretary and RBI

Governor R.N.Malhotra was formed to evaluate the Indian insurance industry and
recommend its future direction.

The Malhotra committee was set up with the objectives of complementing the
reforms initiated in the financial sector. The reforms were aimed at “creating a
more efficient and competitive financial system suitable for the requirements of
the economy keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of overall financial system where it
was necessary to address for need for similar reforms…..”

In 1994, the committee submitted the report and some of the key
recommendations included:

1) structure

Government stake in the insurance companies to be brought down to 50%

Government should take over the holdings of GIC and its subsidiaries so that
these subsidiaries can act as independentcorporations.

All the insurance companies should be given freedom to operate.

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2) Competition
Private Companies with a minimum paid up capital of Rs. 1 bn should be
allowed to enter the industry.
No company should deal in both life and General Insurance through a single
entity foreign companies may be allowed to enter the industry in collaboration
with the domestic companies.
Postal life insurance should be allowed to operate in the rural market
Only One state level life insurance company should be allowed to operate in
each state.

3) RegulatoryBody
The Insurance Act should be changed
An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the finance Minister ) should be
Made independent .

4) Investments
Mandatory Investments of LIC life fund in government securities to be
reduced from 75 % To 50 %
GIC and its subsidiaries are not to be hold more than 5 % in any company
( There current holdings to be brought down to this level over a period of
time)

5) CustomerService
LIC should pay interest on delays in payment beyond 30 days
Insurance companies must be encouraged to ser up unit linked pension plans.
Computerization of operations and updating of technology to be carried out in
The insurance industry. The committee emphasized that in order to improve

The customer service and the coverage of the insurance industry should be

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 Opened up to competition.

But at the same time, the committee felt the need to exercise caution as any
Failure on the part of new players could ruin the public confidence in the
Industry. Hence, it was decided to allow competition in limited way by
stipulating the minimum capital requirement of Rs.100 crores . The committee
felt the need to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act as independent companies
with economic motives. For this purpose, it had proposed setting up an
independent regulatory body

Life Insurance Sector in India

Many may not be aware that the life insurance industry in India is as old as itis
in any other part of the world. The first Indian life insurance company was
oriental life insurance company, which was started in India 1818 at Kolkata. A
number of players ( over 250 in life and about 100 in non-life) mainly with
regional focus flourished all across the country. However, the government of
India, concerned by the unethical standards adopted by some players against
the consumers, nationalized the industry in two phases in 1956 (life) in1972
( non – life). The insurance business of the country was then brought under
two public sector companies, life insurance corporation of India ( LIC ) and
general insurance corporation of India (GIC)
In line with the economic reforms that were ushered in India in early nineties,
the government set up a committee on reforms ( popularity called the Malhotra
committee in April1993 to suggest reforms in the insurance sector. The
committee recommended throwing open the sector to private players to ushers

22
in competition and bring more choice to the consumer. The objectives was to
improve the penetration of insurance as a percentage of GDP, which remains
low in India even compare to some developed countries in Asia.

Reforms were initiated with the passage of insurance regulatory and

development authority ( IRDA) bill in 1999. IRDA was set up as an
independent regulatory authority. Which has put in place regulations in line
with global norms. So far in the private sector, 12 life insurance companies and
9 general insurance companies have been registered.
TABLE 1.

Countries Insurance Penetration Insurance Density

(Premiums as a % of (Per Capita premiums in
GDP) USD)
United 12.71 3028.5
Kingdom
Japan 8.73 3165.1

United states 4.43 1611.6

South Africa 14.04 392.9

Australia 6,04 1193.0

South Korea 9..89 905.6

India 1.77 7.5

China 1.12 9.5

Malaysia 2.13 86.4

Indonesia 0.51 4.0

Brazil 0.36 12.9

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INDIAN IN

INSURANCE INDUSTRY

Insurers
Insurance industry, as on 1.4.2000
Life insurers:

Life insurance Corporation of India (LI C)

Yr: 2000-2001: (From 2nd April’2000 to 31st December’2001)

Insurance Industry in the year 2000-2001 had 10 new entrants, namely

Life Insurers :

Sr.No Registration Date ofReg. Name of thecompany

Number

1 101 23.10.2000 HDFC standard life insurance

Company ltd.

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 2 104 15.11.2000 Max New York life insurance co.ltd.
3 105 24.11.2000 ICICI Prudential life insurance co.ltd
4 107 10.01.2001 OM kotak Mahindra life insurance
Co.ltd.
5 109 31.10.2001 Birla Sun life insurance co.Ltd.
6 110 12.02.2001 Tata AIG life insurance co.ltd
7 111 30.03.2001 SBI life insurance co.Ltd.
8 114 02.08.2001 ING Vyasa life insurance co.Pvt.ltd.
9 116 03.08.2001 Allianze Bajaj life insurance co.Ltd.
10 117 06.08.2001 Metlife India Insurance Company Ltd

Yr:2001-2005 :( From 1st Jan 2001 to Dec.2005)

Insurance Industry in this year, So far has 2 new entrants; namely

Life Insurers

S.no. Registration No. DateofRegistration Name of theCompany

1 121 03.01.2005 Reliance Life

2 122 14.05.2005 Aviva life insurance
co. Ltd.

Yr.2006 – 2004: (from 1st Jan 2006 till Date)

Insurance Industry in this year, so far has 1 new entrants; namely

S.no. Registration No. DateofRegistration Name of theCompany

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1 127 06.02.2004 Sahara Indiainsurance
Co.ltd.

INSURANCE MARKET IN INDIA

By any yardstick, India, with about 200 million middle class households, present huge
untapped potential for players in the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for global
insurance majors. Tables 1 reflect the low percentage and par capita penetration of
insurance in India compared to other developed and developing countries.

With the per capita income in India expected to grow at over 6 % or the next 10 year and
with improvement in awareness levels, the demand for insurance is expected to grow at
an attractive rate in India. An Independent consulting company, the monitor group has
estimated that the life insurance market will grow from Rs. 218 billion in 1998 t Rs.1003

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 TABLE–2 Life Insurance Industry In IndiaFY
2003 – 04

Cumulative up to October 2003

company Premium % of Total Policies % Of Total

( In Rs. Million) (In Policies
Million)
LIC 59187 88.8 9.9 94.2
ICICI 2484 3.7 0.16 1.3
Prudential
Birla Sun life 788 1.5 0.05 0.5
Tata AIG 792 1.2 0.08 0.6
HDFC 740 1.4 0.08 0.8
Standerd
Allianz Bajaj 582 0.8 0.06 0.8
Max New 576 0.6 0.05 0.5
Yark
Others 1384 2.0 0.22 2.0
Total 65,339 100 10.6 100

27
For instance, Investors In Prudential – ICICI liquid plan can withdraw any amount over
and above Rs. 15,000, provided they have an account with ICICI Bank.

VISION

Vision is a short, succinct statement of what the organization intends to become and to
achieve at some point in the future, often stated in competitive terms. Vision refers to the
category of intentions that are broad, all – intrusive and forward – thinking. It is the
image that a business must have of its goals before it set out to reach them. It describes
aspirations for the future, without specifying the means that will be used to achieve those
desired ends.

Warren Bennis, a noted writer on leadership, says: “To choose a direction, an executive
must have developed a mental image of the possible and desirable future state of the
organization. This image, which we call a vision, may be as vague as a dream or as
precise as a goal or a mission statement.”

Mission Statement

28
A mission statement is an organization’s vision translated into written form. It makes
concrete the leader’s view of the direction and purpose of the organization. For many
corporate leaders it is a vital element in an attempt to motivate employees and to give
them a sense of priorities.

A mission statement should be a short and concise statement of goals and priorities.
In turn, goals are specific objectives that relate to specific time periods and are stated in
terms of facts. The primary goal of any business is to increase stakeholder value.

Mission:

“To make ICICI Prudential the dominant life and pension players built on trust by world
– class people andservice.”

This, the company hopes to achieve by:

 Understanding the needs of the customers and offering them superior products
and service.
 Leveraging technology to service customers quickly, efficiently andconveniently.
 Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to thepolicyholders.
 Providing an enabling environment to foster growth and learning for our
employees
 And above all, building transparency in alldealings.

The success of the company will be founded in its unflinching commitment to 5 core
values –

29
  Integrity
 CustomerFirst
 Boundaryless
 Ownership
 Passion
Each of the values describes what the company stands for, the qualities of our people and
the way it works. The company believes that it is on the threshold of an exciting new
opportunity, where it can play a significant role in redefining and reshaping the sector.
Given the quality of there parentage and the commitment of the team, there are no limits
to growth.

# Evaluation of mission statement according to 9 criterion of fred & forest David

( 1 = Statement includes component, 0 = statement doesn’t include component )

Component Mission statement

1. Customers 1

2. Product / Services 1

3. Geographic Markets 0

4. Technology 1

5. Concern for survival / Growth / Profits 1

6. Philosophy 1

7. Public Image 0

30
8. Employees 0

9. DistinctivenessCompetence 0

Redraft of mission Statement should include –

“ We ask to dominate the Indian life & pension insurance sector while contributing
back to society in terms of actively encouraging socio – economic development.”

SWOT ANALYSIS OF ICICI PRUDENTIAL

LIFE INSURANCE COMPANY

STRENGTHS

 Efficiently trained sales force andadvisors.

 There is improvement in response and turnaround times in specific areas such

as delivery of first policy receipt, Policy Document, premium notice, Final
maturity payment, Settlement of claimsetc.

 Competitive activity, evolution of the distributionchannels

WEAKNESSES

 More or less all players ( Including market leader LIC ) have aggressively
recruitedandtrainedadvisors,appointedagents,launchednewproducts,

31
 Improved customer service standards and revamped / expanded their
distribution networks. If at all there was any major difference between players
it was only in time lag in launching of services.
 Consumer awareness, though increasing, it still low and different types of
policies available and the specific benefits of each often confuse them ; thus
it’s the job of insurance companies to educate them aboutthese.

OPPORTUNITIES

There are 17 insurance companies in the market today. According to a UN survey, only 4
to 6 percent of India’s population is insured. Of these, 22 percent are under – insured. So
the market presents opportunities for the enterprising.

Only 22 percent of the insurable possesses life insurance. What’s more, in country of
over one billion people. Life insurance premium forms only 1.8 per cent of the GDP,
Indicating the extent ofunderinsurance

ICICI Prudential life insurance company has entered in to strategic tie - up with the
federal bank for the distribution of life insurance products. ICICI PrulLife financial
services consultants ( FSC ‘s) could now approach federal Bank customers, based on
referrals from the bank. This alliance expands ICICI Prulife’s reach to around 5 lakh
customers across 30 bank braches in Kerala and 30 in other cities including a large
number of NRI customers.
ICICI prudential life insurance company has recruited talent at lateral level from
various industries, such as FMCG, banking, telecom, etc. for its middle and senior
management terms. Says Shubro Mitra, chief, Human Resources, ICICI Prudential Life. “

32
The candidate must have the requisite qualifications in their functions and relevant
experience, however not necessary in the field of insurance. In fact, Only two people
amongst the senior management team has any experience in insurance.-- the head of sale
and chief actuary. Most importantly, the individuals must have a winning attitude,
energy, willingness to learn and to able to bring fresh ideas and perspective to the
business.”
Allahabad bank has forayed into Bank assurance business, The bank and
Prudential Insurance Company Limited have entered a strategic Bank assurance tie - up
for distribution of life insurance product in Kolkata. Under the tie - up , ICICI Prulife
financial Service Consultants will offer its entire bouquet of life insurance products to
customers of Allahabad Bank.

ICICI Prudential life insurance has flagged off operations in Channai. The fourth office
of the company, it has accepted five proposals sponsored Madras Cements Ltd and Lucas
TVS favoring underprivileged children. ‘ Salam Zindagi ‘.a social sector policy will
cover larger groups amongst the economically weaker section of thesociety.

The company targets to cross the one lakh policy mark by the end of the next fiscal and
have already sold 1,500 policies till date. It hopes to break even in four to six years and
for now has no plans to introduce any new products. The policies currently on offer are
ICICI Pru Single premium Bond. ICICI Pru save’ n Protect, ICICI Pru Forever Life,
ICICI Pru Cash Bak and ICICI Pru life guard.

ICICI Pru life has very quickly gone on to become India’s largest private life insurance
company. Again the success lay in aggressive marketing, smart advertising,
omnipresence and quick expansion. ICICI also has a storing presence in the general
insurance sector with ICICI Lombard General Insurance Company Limited.

A large part of the success of the new entrants ran be attributed to the government
appointed Insurance Regulatory and Development Agency ( IRDA), which developed the

33
regulatory framework. The regulation governing the life and non life insurers are
pragmatic and forward - Looking, ensuring the customer is protected and creating an
environment for thriving private sector participation and a level playing field.

Banc assurance and corporate agents are the two emerging channels that give companies
an opportunity to reach out to much larger number of individuals who might be interested
in insurance. Moreover, people inherently trust their local through that channel is also
regarded with less suspension, These channels have only just emerged, but are already
making heir mark. With time and the appropriate regulations, the contribution of such
channels is bound to drive penetration of the category.

Multiple touch points have emerged -- contact centers, emails, facsimile, website, and of
course snail-mail - which enable the customer to get in touch with the insurance
companies quickly, easily and directly
.
With the transformation in the industry come a huge opportunity to tap hitherto largely
ignored segments. One of the most promising areas of for life insurers is retirement
solutions. Consider this : Only 89% of the working population in our country has a form
of social security for old age. People in the unorganized sector, self - employed persons
and those engaged in agriculture, have no form of guaranteed post - retirement income.
Add to this fact that life expectancy is expected to rise from 77 years to 85 years in the
next decade. And those persons aged 60 and above are expected to form 8.6 % of the
total population by the year 2016. It become oblivious that the task of retirement planning
and pensions is immense and require comprehensive, long - rangingregulations.

Penetration of life insurance is beginning to ct across socio- economic classes and

attracts people who have never purchased insurance before. With this heightened
awareness and consumer education comes a willingness to view life insurance as an

34
integral part of the financial portfolio, marking a significant change from the earlier
attitude, where insurance was purchased as a tax - saving.

THREATS
ICICI Prudential life Insurance company pvt. Ltd.( ICICI Prulife ) is a joint venture
company in the life insurance segment in India. It is the leading private life insurance
company In India. Expanding at a rapid pace ICICI Prulife is opening branches across
multiple cities and towns in India.

With multiple branches across the country a need was identified by the head office to
service their internal employees in the same way as they would service an external
customer. The user base was growing with people being added every day.

The Problem:

 ICIC Prulife wanted to services its employees across different functions in the
same way as they service an external customer whilet.

 Data flow throughout the organization was via emails - thus all data was stored in
silos - an individual’s mailbox. There was no visibility or count of the issues
being faced in theorganization.

 Data was hence not centrally available to gather information and convert the same
into knowledgebase.

 Employees often spent considerable time in finding out from whom to seek
information. This in turn had an overall enterprise efficiently impact.

35
  With multiple branches all across the country, the need existed to be able to
centrally provide a pool of expert as it was not possible to have experts for every
function at every branchlevel.

 This in turn would mean that a user would have to know the expert, location of
the expert and his availability and correspond with him over email long distance
phone calls. This was not feasible; as it was nor possible to educate all the users
of the different experts and with possible transfer of experts the problem was
greater than itseemed.

The challenge
 Need of solution that would be…….

o Easy to use - without any training, as it was not possible totrain an

employee force of 1500+ spread across 40+locations.
o Centralized administration of thesystem.
o Updating of user information on daily basis - because of addition of
employees almost on dailybasis.
 Ensuring the solution becomes the only conduit for employeesservice.
 Drive usage through out theenterprise.
 Low on band with consumption as if had to be on theWAN

Consumer awareness, though increasing, it still low and different type of policies
available and the specific benefits of each often confuse them. And it’s the job of
insurance companies to educate them about these.

36
Major Players

Major players in the market include ING Vyasa, ICICI Prulife ,SBI Life ,HDFC,AMP
Sanmar, Birla Sunlife, Max New York Life, Tata AIG, Aviva, Oriental Insurance,
Allianze bajaj and Om Kotak.

MARKETING STRATEGY OF
ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI Prudential is case study in the role of marketing in reshaping an industry. It

highlights how an industry where “sell” and “push” were oft used words and consumer
was nothing more than a file no. has changed to one where “consumer preference” and
“consumer pull” rules the roost. Here’s a look at how ICICI Pru changed the rules of the
game and emerged a leader in the process.

Background

When the insurance sector was liberalized in 2000, the private players had to contend
with a few issues. Ratio of premium to GDP was low : 1.3 % of GDP was invested in
insurance, Insurance penetration was at an abysmal 22 % of the insurable population.
Besides the above the private players were faced with: Attitudinal Barriers, Perceptionof

37
insurance as tax saving tool and lack of a consumer centric approach in service and
product offerings.

The Marketing challenge facing ICIC Pru :

The challenge therefore wa to change established category drivers ( death payment & tax
saving ) and to get the consumer to evaluate insurance on more emotional platform
( protection ) rather than a mere rational decision ( Tax savings ).

Differentiation Strategy

The creative execution:

TVC:Building image and creating a differential in the most creative and compelling
manner. The creative execution heightened the emotional connect with the ICICI Pru
brand - Indian; satisfaction that one’s loved ones are protected. Symbolic representation
of the protector of the family through situation showcasing various life stages and
creating endearing imagery of protection and familialbonding.
Press:Gave the consumer a rational and tangible reasons to buy insurance first and
secondly from ICICI Prudential. The product specific advertising focused on changing
the prevalent perception about insurance and breaking a few myths: non- affordability,
insurance not being good investment option and the myth that insurance was good only
for tax saving.

Other Communication:

38
Other program included direct mail, PR of communication campaign in press and TV,
website marketing; and database generation through Banc assurance channels.
The Result of communication efforts :
Being no.1 in awareness and saliency. Awareness between feb and sept. 2001. Image :
Highest score among all insurance players including LIC, on image parameters like
safety, modernity, service, good returns etc. Intention to invest: next only to LIC as per
research ( All Source : Research by ORG Mar).NO. of calls and E-mails: There were
70000 calls at the call center and 6585 emails in the year 2001.

Sum up:

In just over a year ICICI Pru has emerged as India’s No.1 Private life insurance company
with almost 50 % market share of the private players. Has sold highest no. of policies
both in volume and value. Major Milestone - Over 150000 policies on March31,2005.

MARKET SAGMENTS

The life insurance and pension business has two distinct customers segments -individuals
and corporate. In case of retail business for individuals, the 4 sub segments are -
protection , investment , saving and pension. Apart from the existing leader LIC , new
companies such as HDFC standard life, TATA AIG , ICICI Prudential and more will
seek to be present across all the segment ofmarket.
Among retails product for individual, pure risk protection product have been introduced
by some of the new life insurance companies in the market. As these products have no
savings components to it, the premium are very low compared to other products.
Investment products provide long term investment growth and insurance cover. This
segment is growing rapidly, saving product like Endowments and Money - Back Provide
a combination of protection and investment benefits. The last segment of pension
includes products that are aimed at offering customer an income during their retirement
Years.

39
In case of the group business, there are three segments - Protection, Statutory savings and
pension, Group insurance products are taken to provide low cost life insurance cover to a
group of people. Group insurance product are taken to provide low cost life insurance
cover as part of employee benefit package to motivate employees or to cover the housing
or vehicle loan given by employee to employee. It can also be used as a substitute for the
statutory EDLI subject to approval by the Regional Provident Fund Commissioner. The
statutory savings segments essentially comprise of the gratuity products for companies.
The pension segment will include products like group superannuation, which will enable
a company to benefit from the actuarial, investment and operational expertise of a
specialist company to manage its superannuationfunds.

Source: CII Insurance Committee Report 1999.

MARKETNG MIX POLICIES:

Different companies can choose to position themselves differently and hence the
marketing mix would be different. However, there are certain common characteristics
that one can cull out from the possible strategies that companies canadopt.

PRODUCT: The development of flexible product to suit individual requirement is what

will differentiate the winners from the also - rans. The key to providing insurance
solution, not standardized insurance product. The concept of riders/optional benefits has
already been a huge innovation brought about by the new players, which has led to
customization of products for individuals needs. However, companies may differentiate
themselves on the basis of product segment that they choose to focus on and excel in.

DISTRIBUTION: Different companies may however choose different channels and

different geographies to focus on. The channel option are - tied agency force, corporate
agents and brokers and this is an area where different companies will make different
choices. Many companies like HDFC Standard life are focusing on all channels whereas

40
companies like Max New York life are focusing on the tied agency force only. Customer
interface will be a key challenge for life insurance companies and includes every that
interaction that the customer has with the company, such as sales, new business
underwriting, policy servicing, premium payments, claim processing and so on.
Technology can play a crucial role in delivering the highest standard of service set by the
company and it will be imperative for any serious players to excel in all of these.

PRICE: Price is relevant differentiator only in two segments - pure term insurance and
in pure annuities. Here too, service delivery and financial strength will need to be present
at a minimum acceptable level for price to be a relevant differentiator. In case of saving
oriented products. Long term returns generated will be more relevant than just price of
the product. A focus on generating good investment performance and keeping a tight
control on costs will help in generating good long - term maturity value for customers,
Norms have been laid down on all of these by IRDA and adhering to these while
delivering good returns will be a challenge.

ADEVERTISING AND PROMOTION: The level of demand is latent and will

have to be activated considerably. The market needs to be developed. Greater awareness
of insurance and need too have it as a protection tool rather than as a tax planning
measure needs to be appreciated by the Indian people. Various communication tools
including advertising, direct marketing and road shows will contribute to all this and
different companies will take different approaches onthese.

41
 Product profile

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 eachpolicyholder.

Savings Solutions

 SecurePlus is a transparent and feature-packed savings plan that offers 3

levels ofprotection.
 Cash Plus is a transparent, feature-packed savings plan that offers 3 levels
of protection as well as liquidityoptions.
 Save’n’Protect is a traditional endowment savings plan that offers life
protection along with adequatereturns.
 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.

42
  Lifetime & Lifetime 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 andMaximiser.
 LifeLink II is a single premium Market Linked Insurance Plan which
combines life insurance cover with the opportunity to stay invested in the stockmarket.
 Premier Life is a limited premium paying plan that offers customers life
insurance cover till the age of75.
 InvestShield Life is a Market Linked plan that provides capital guarantee
on the invested premiums and declared bonusinterest.
 InvestShield Cash is a Market Linked plan that provides capital guarantee
on the invested premiums and declared bonus interest along with flexible liquidity
options.
 InvestShield Gold is a Market Linked plan that provides capital guarantee
on the invested premiums and declared bonus interest along with limited premium
paymentterms

Protection Solutions

 LifeGuard is a protection plan, which offers life cover at very low cost. It
is available in 3 options ? level term assurance, level term assurance with return of
premium and singlepremium.
 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

43
  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 regularpremium.

Retirement Solutions

 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 ofcover.

Market-linked retirement products

 LifeTime Pension II is a regular premium market-linked pensionplan

 LifeLink Pension II is a single premium market-linked pensionplan.
 InvestShield Pension is a regular premium pension plan with a capital
guarantee on the investible premium and declaredbonuses.
 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
payoutstages.

ICICI Prudential also launched “Salaam Zindagi”, a social sector group

insurance policy targeted at the economically underprivileged sections of thesociety.

Health Solution

44
  Health Assure: Is a regular premium plan, which provides l ong term
cover against 6 critical illnesses by providing policyholder with financial assistance,
irrespective of the actual medicalexpenses.
 Health Assure Plus: Is a regular premium plan which provides long term
cover against 6 critical illnesses by providing financial assistance, irrespective of actual
medical expenses, as well as an equivalent life insurance cover

Group InsuranceSolutions

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 ofretirement.

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.

45
 RESEARCH METHODOLOGY
The data related to the customer again consists of two sub divisions.

1. PRIMARY DATA - This is the original source of the information, First hand in
nature where the researcher himself goes to different people covered under the sample
and collect the data himself. Primary data is collected through the followingmethod.

 Personal interviews
 Groupinterviews
 Questionnaires

46
  TelephonicInterviews.
 Surveys

In the project personal interviews, Questionnaire method and telephonic method were
used to understand and decipher the psyche of the customer.

2. SECONDARY DATA - Secondary data is one, which is derived by any other

person or institute or body. It already exist and processed. The researcher has only to
decide that how it will be handy to appraise his project.

The various method of collection of secondary data are :

 Books
 Internet
 Insurance manuals and organization’s project detailbrochure
 Magazines
 Pamphlets of various insurancecompanies.
In this part of the research the secondary data is not used.

The data pertaining to the competitors have been through the following sources.
 Internet
 Magazines
 Pamphlets of the InsuranceCompany.

Research instrument :-
Questionnaire method ( survey )
Customer questionnaire

47
Sampling Plan:-

Area covered:-
Pune region
Sampling element: -walk in customer on field.
Sampling Size: -300 Customers.

Types of research used -

Exploratory research - It is always not possible or desirable to use direct questioning to
obtaining information. In this case the secondary data is arrive at conclusion. In this
project desk research, which is a part of exploratory research, is used.
Descriptive research - Here mainly only primary data is used. It is generally a
quantitative measurement of customer’s attitude and perception of certain product. Under
the descriptive research the sample survey method has been used in theproduct.
Sampling method:
The sampling method are categorized into two types

Probability sampling -
It does not depend upon the existence of detailed information about the universe for its
effectiveness. Probability sampling provides estimation, which are essentially unbiased
and have measurable precision.
Various types of probability sampling are:
1. Simple randomsampling
2. Systematicsampling
3. clustersampling
Non - probability sampling -

48
This method has been used in the project. This method does not provide every item in the
universe with a known chance of being included in the sample. The selection process
partially subjective.
There are three types of non- probability sampling
1. Judgmental sampling
2.Quota sampling
3.Conveniencesampling
The judgment as well as convenience method of sampling have been combined and used
in the project. In judgment method of sampling the choice of sample items depends
exclusive on the judgment of the researcher. In other words, the researcher includes those
items from the people, which he thinks are typical of the universe with regards to
characteristics under investigation.

DATA ANALYSIS AND FINDINGS

Q.1. What is your yearlyincome?

No. Particulars No. of Respondent % No. of Respondent

1 Below l lack 115 38.33
2 l to 1. 5 lack 67 22.33
3 1.5 to 2.5 lack 40 13.33
4 2.5 to 4 lack 78 26
Total 300 100

49
 Yearly Income of Policy holders

26%

39%
Below l lakh
l to 1. 5lakh
1.5 to 2.5 lakh
2.5 to 4 lakh

13%

22%
Analysis;
39 % people had their yearly income below 1 lack and rest of them people had their
income above l lack.

Q.2. Which insurance policy do youhave?

Particulars No of Respondent % No. of Respondent

ICICI 117 39
LIC 150 50
ANY OTHER 33 11
Total 300 100

50
 Insurance Policy
11 %

39%

ICICI

LIC
50% ANY OTHER

Analysis:
Out of 300 customers I surveyed 39 % customers had ICICI Policy, whereas 50 %
customers had LIC Policy and 11 % customers were having policies of other companies.
As per the response of the customers the reason behind that, LIC is the oldest insurance
player in the market since 1954 and has been enjoying monopoly for the last 40 years.
Where as ICICI Prudential had entered in market before 3 - 4 years only.

Q.3. i) Reason behind purchasing ICICI Prudential lifeinsurance

policy?

No. Particulars No. of Respondent % No. of Respondent

1 Quick service 30 25.64
2 Multiple choices 27 23.08
3 No. one co.( Private ) 15 12.82
4 Tax saving 35 29.91
5 saving / Investment 10 8.55

51
 Total 23%
117 100
13%

Analysis;
30 out of 117 people want life insurance as a quick service; whereas 27 people consider
life insurance policy as multiple choices. 15 people says that the company should be No.
one in private life insurance sector and 35 & only 10 people considering that policy
should save tax and increase investment of the people.

ii) Reason behind purchasing LIC Policy?

No. Particulars No. of Respondent % No. of Respondent

1 Quick service 09 6
2 Multiple choices 10 6.67
3 Govt.company 50 33.33
4 Tax saving 49 32.67

52
5 saving / Investment 32 21.33
Total 150 100

Reason behind purchasing LIC policy

6%
21% 7%
Quick service

Multiple
choices
Govt.company

33% Taxsaving

33% saving /
Investment

Analysis;
9 out of 150 people purchase LIC policy because of Quick service, whereas 10 people
consider LIC has multiple choices. 50 out of 150 people take interest to policy because of
it is Govt. company.49 &32 people out of 150 people consider LIC policy should be tax
saving and increase investment of people i.e. major reason behind purchasing LIC Policy.

Q.4. Do you want any addition in your currentpolicy?

Particulars No. of Respondent % No. of Respondent
Yes 126 42
No 137 45.67
Can’t say 37 12.33
Total 300 100

53
 12%

42%
Yes
No
Can't say

46%

Analysis:
After all interviews, out of 300 people, 42 % people said that they want addition in their
current policy, 45.67 % people don’t want any addition in their current policy. And 12.33
% people out of 300 can’t say about addition in their current policy.

Q.5. Do you want to comment on the product & servicesoffered

by ICICI &LIC?

Particulars
No. ICICI LIC
1 Company should come 196 104
with new products

54
2 Company should improve 94 159
their marketing strategy

3 Company should give maximum 134 153

Returns to the policy holders.

4 Company should increase tax 187 113

Saving of policy holders.

Analysis;
Comments of people over two companies i.e. ICICI & LIC i.e.196 and 104 respectively
said that company should come with new products. 94 people for ICICI and 159 people
for LIC said that company should improve their marketing strategy. Company should
give maximum returns to the policy holders said pointed out by 134 people for ICICI and
153 people for LIC. And 187 people for ICICI and 113 people for LIC said that company
should increase tax saving of policyholders.

Q. 6. Do you think Services has improved after entry of private

players in insurance sector?

No. Particulars NO. of Respondent % No. of Respondent

1 Yes 237 79
2 No. 63 21

55
 Total 300 100

Customer Response For Service

21%

Yes

NO

79%

Analysis;
Yes, the service has improved after entry of private players.79 % people out of 300 said
yes and 21% people said no.

Q.7. Do you think that services of ICICI Prudential ismuch

better thanothers?

No Particulars No. of Respondent % No. of Respondent

1 Yes 214 71.33
2 No. 86 28.67
Total 300 100

56
 29%

Yes
NO

71%

Analysis;
As we see that 71.33 % people satisfied by better service from ICICI Prudential life
insurance and 28.67 % people said that service of ICICI Prudential are not better .

Q.8. which policy do youPrefer?

No. Particulars No, of Respondent % NO. of Respondent

1 ICICI 109 36.33
2 LIC 145 48.33
3 Other 46 15.33
Total 300 100

Reason

57
 PreferenceforPolicy(Companywise)

60
48.33
% No.ofRespondent

50
40 36.33

30
20 15.33

10
0
ICICI LIC Other
Name ofCompany

Analysis;
The above data shows that 36.33 % people out of 300 prefer ICIC Prudential life
insurance policy and 48.33 % people out of 300 prefer LIC Policy, but 15.33 % people
prefered other companies’ policy.

Q.9. what do you think what are the major problems ofinsurance
sector?

No. Particulars No. of Respondent % No. of

Respondent
1 Lengthy process of deposits of 167 55.67
Premium & Claims
2 No Maximum Returns at the time of 23 7.67
claim
3 Insolvency of company 110 36.67
Total 300 100

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 Major Problems of Insurance company

60 55.67
50 Lengthy process
40 36.67 of deposits of
Premium &
30 Claims
No Maximum
20 Returns at the
7.67 time of claim
10
Insolvency of
0 company.
Lengthy process of No Maximum Insolvency of
deposits of Returns at the time company.
Premium &Claims of claim

Analysis;
167 people out of 300 said that major problem of insurance sector is that the lengthy
process of deposit of premium and claim. 23 people think that the problem is no
maximum returns after completing of policy period. But remaining i.e.110 people fear
about insolvency of company.

CONCLUSION

For the last year I have seen the development in the insurance sector after privatization.
This step of government of India has resulted in form of competition in the market and
prospects to cover up the huge untapped market. Before privatization LIC had 100 %
market share but after privatization it has come down 71 % and 29 % for private players.
Insurance sector is developing at a faster pace as compare to earlier one but still it has
more scope to grow at the fastest pace it ever grows. Private players are giving a stiff
competition to LIC. ICICI prudential has become the no.1 private player in the market
due to its performance.

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However, still now there is huge untapped market for insurance in India. Now as the
ICICI Prudential has the brand name in market, the company should come with new
plans at lower premium and huge tax benefits. The company should use their SWOT we
should make use of its strengths of high quality products. They should promote their
product throughout the country and target specific group or class for each plans orpolicy.

SUGGESTION AND RECOMMENDATIONS

 Opening up the sector certainly means more awareness amongst customers and
higher expectations. Which can be satisfied by brand awareness i.e. brand image
has to be created, new product, better packaging and improved customer service.
Potential buyers for most of this Insurance lie in the middle class. ICICI
Prudential will have to explore new distribution and marketing channels to reach
the customers.

 The vast potential of the Indian middle class population can be unleashed by
repositioning Life Insurance as a risk cover instrument

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  The key to tap the rural market can be through Co-operative societies, Village
panchayat, and post offices. Where the co-operative societies and village
panchayat can act as ‘Corporate Agents’ to create brand image of ICICI
Prudential in the ruralmarket.

 A tie up with hospital chains for selling health insurance can be an effective
channel to reach a wide base of customers for ICICIPrudential.

 A make up the Supportive & Co-operative Insurance Advisor Channel for ICICI
Prudential to give good services to potentialcustomers.

 ICICI Prudential should have educated, talented and trained sales force so that
they could be able to make people understand regarding their need for insurance
and can create the brand image of ICICI Prudential.

BIBLIOGRAPHY
1. Philip kotler , “ Marketing Management” , PearsonEducation,
2. C.R. Kothari , “ Research Methodology“

Websites

 www.google.com
 www.icicipru.co.in
 www.bimaonline.com

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Brochure / Information Booklets

 ICICIPrudential
 Product listLIC

ANNAXURE

Q.1. What is your yearlyincome?

a) Below llack
b) l lack to 1. 5lack
c) 1.5 lack to 2.5 lacks
d) 2.5 lack to 4 lacks

Q.2. Which insurance policy do you have ?

1 ICICI

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2. LIC
3. Anyother

Q.3. i) Reason behind purchasing ICICI Prudential life insurancepolicy?

a) Quick service
b) Multiplechoices
c) No. one private insurance company
d) Tax saving
e) Saving /Investment

ii) Reason behind purchasing LIC Policy?

a) Quick Service
b) Multiple choices
c) Govt. company
d) Tax saving
Saving /investment

Q.4. Do you want any addition in your currentpolicy?

a) Yes
b) No
c) Can’tsay
Q.5. Do you want to comment on the product & services offered by ICICI &LIC?
a) Company should come with newproducts
b) Company should improve their marketingstrategy
c) Company should give maximum returns tothe
policyholders.
d) Company should increase tax saving of policyholders.

Q. 6. Do you think Services has improve after entry of private players in insurancesector
a) Yes
b) No.

Q.7. Do you think that services of ICICI Prudential are much better thanothers?
a) Yes
b) No.

Q.8. which policy do youPrefer?

a) ICICI
b) LIC
c) Other
Reason

Q.9. what do you think what are the major problems of insurancesector?
a) Lengthy process of deposits of Premium &Claims
b) No Maximum Returns at the time ofclaim
c) Insolvency ofcompany.

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