8/8/2019 PROJECT REPORT ON ICICI PRU http://slidepdf.com/reader/full/project-report-on-icici-pru 1/34 Summer Training Report On INSURANCE SALES & MARKETING & ADVISOR HIRING OF LIFE INSURANCE CO. LTD., ALLAHABAD UTTAR PRADESH Submitted By DEVESH MOHAN DWIVEDI Roll No. 3510930045, MBA Batch 2009-2011 In Partial Fulfillment of the Requirements of the Degree of Master of Business A dministration Submitted To Corporate Guide Academic Guide Mr. Sunil Pandey Pro f. Ms. Swaati Bhatt Branch manager SRM University ICICI Prudential Ltd Delhi -Meerut Road Modinagar SRM UNIVERSITY, GAZIABAD CAMPUS Date - DECLARATION I Devesh Mohan Dwivedi Registration No.-3510930045,MBA programme, SRM University , batch of 2009-2011 do hereby solemnly declare that this dissertation is an ori ginal work of mine and this has not been submitted to any other institute/unive rsity towards any other degree/diploma. date- Devesh Mohan Dwivedi
I Devesh Mohan Dwivedi Registration No.-3510930045,MBA programme, SRM University, batch of 2009-2011 do hereby solemnly declare that this dissertation is an ori
ginal work of mine and this has not been submitted to any other institute/university towards any other degree/diploma.
ACKNOWLEDGEMENTThere is always a sense of gratitude which one express to other for the helpfulso needy services they render during all phases of life. I would like to express
my gratitude towards all those who have been helpful to me in getting this mighty task of preparing project to a successful end.First of all, I consider it a pleasant duty to express my heartfelt appreciation, gratitude and indebtedness to my guide for her keen interest, invaluable paintaking & excellent guidance, patience, endurance, encouragement & thoughtful advice throughout the project work duration.I would take this opportunity to thank all my family members for their helps & suggestions during the course of project work. I am also thankful to all my friends who gave me constant & continuous inspiration to complete this project.
DEVESH MOHAN DWIVEDI
CERTIFICATETo Whom It May Concern:
This is to certify that Mr. DEVESH MOHAN DWIVEDI Roll No. 3510930045 of MBA (M&HR) is a bonafide regular student of SRM University NCR Campus, Modinagar for the session 2009-2011.He has completed the project report entitled “INSURANCE SALES & MARKETING & ADVISOR HIRING” in the organization ICICI Prudential Life Insurance Co. Ltd. for the Internship Project Report MBA degree
2. Introduction/Statement of the problem 753. Objective of the Study
80
4. Research Methodology825. Data Collection & Presentation86
6. Data Analysis94
7. Findings of the Study97
8. Recommendations100
9. References/Biblography109
10. Appendics
111
COMPANY PROFILE
ICICI PRUDENTIAL LIFE INSURANCE LTD.
It 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 insuran
ce companies to begin operations in December 2000 after receiving approval frominsurance regulatory development authority (IRDA). ICICI and Prudential came together in 1993 to form prudential ICICI asset Management Company, which has todayemerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to you. Riding on the success of this relationship, the two companies joined hands once mor
e in 2000, to form ICICI Prudential Life Insurance, with a commitment to provideleading-edge life insurance solutions.ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of March 31,
2010) with ICICI Bank and Prudential plc holding 74% and 26% stake
respectively. For the period April 1, 2009 to March 31, 2010, the company has
garnered total premium of Rs 16,532 crores and has underwritten over 10
million policies since inception. The company has assets held over Rs. 57,000
crores as on March 31, 2010. For the past nine years, ICICI Prudential Life has retained its leadership
position in the life insurance industry with a wide range of flexible productsthat meet the needs of the Indian customer at every step in life.
Board of DirectorsThe ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad.Ms. Chanda D. Kochhar, ChairpersonMr. N. S. Kannan, Director
Mr. K. Ramkumar, DirectorMr. Barry Stowe, DirectorMr. Adrian O’Connor, DirectorMr. Keki Dadiseth, Independent DirectorProf. Marti G. Subrahmanyam, Independent DirectorMs. Rama Bijapurkar, Independent DirectorMr. Vinod Kumar Dhall, Independent Direct
PRUDENTIAL PLC. :It is a leading international financial services company in the UK, with around25 million customers worldwide. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions,mutual funds, banking, investment management and general insurance.• Started operations in 1848 and is now one of the largest life insurance companies in the world.• Presence in UK, Europe, US and throughout Asia.• Insurance and investment funds under management exceed Rs. 11,00,000 crores.• Solid reputation built over 150 years.• Already established as one of the biggest private sector mutual fund companies i
n India (prudential ICICI AMC).India is one of three countries in Asia where prudential is the leading privateinsurer the other two being Vietnam and Indonesia. It is the second largest insu
rer in Malaysia and third largest in Singapore.It helps people to enhance and protect their own and their dependants’ financial well being by providing them with appropriate savings and protection products. Ithas strong positions in three of the largest and most attractive markets in theworld, where rising global wealth and changing demographics are fuelling demandfor long-term savings.Their strategy is to build sustainable, profitable businesses in each of these m
arkets, and thereby maximize returns to our shareholders over time. In the UK Prudential is a leading life and pensions provider with around seven million customers. M&G was acquired by Prudential in 1999 and is the Group
s UK and Europeanfund manager, responsible for managing over £111 billion of funds (as at December2003). Launched by Prudential in 1998, Egg is an innovative financial services company, with over three million customers, with nearly six per cent of UK creditcard balances.In Asia, Prudential is the leading European life insurer with 23 life and fund management operations in 13 countries serving some fifteen million customers.In the US, Prudential owns Jackson National Life, a leading life insurance company, and has more than 2.8 million policies and contracts in force.DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in over 2100 cities and townsin India, stretching from Bhuj in the west to Guwahati in the east, and Amritsarin the north to Trivandrum in the south.The company has 7 bancassurance partners having tie-ups with ICICI Bank, Ratanagiri District Central Co-op Bank, Ballia Kshetriya Co-operative Bank, Renuka Nagrik Sahakari Bank, Bhandara Urban Co-operative Bank, Balasinor Nagarik Sahakari Bank Limited, Arvind Co-op Bank. It has also tied up with NGOs, MFIs and corporates for the distribution of rural policies and organisations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society.ICICI Prudential has recruited and trained more than 290,000 insurance advisorsto interface with and advise customers. Further, it leverages its state-of-the-a
rt IT infrastructure to provide superior quality of service to customers VISION :
To make ICICI Prudential the dominant life and pensions player built on trust by world-class people and serviceHope to achieve by: -• Understanding the needs of customers and offering them superior products and service.• Leveraging technology to service customers quickly, efficiently and conveniently.• Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders.• Providing an enabling environment to foster growth and learning for our employees.• And above all, building transparency in all our dealings.The success of the company will be founded in its unflinching commitment to 5 core values: –• Integrity.• Customer First.• Boundary less.• Ownership.• Passion. ACHIEVEMENTS :The no.1 private life insurance company with : –
• Maximum number of policies sold.• Largest premium income.• Largest agency force.
Life Stage Needs SolutionNearing Retirement Protection against liabilities LifeGuard
Retirement planning LifeLink Pension II LifeTime Pension II
Tax Planning All Life Insurance plans - Sec 88
All Retirement plans - Sec 80CCC(1)
SWOT ANALYSISThe overall evaluation of a company’s Strengths, Weakness, Opportunities and Threats is called SWOT Analysis.ICICI Prudential Life Insurance Ltd:(1) STRENGTHS:
The ICICI is a strong brand among its competitors. Wide reach in the urban areas and up growing in rural areas too. With the help of the tie up with the Prudential Plc it has accessed as major Insurance player in India. Smart Kid, Life Time & Retirement Solutions are the major policies captured by ICICI Pru in the market than any other Insurance Players.(2) WEAKNESS: Although it has a tie up with the Prudential Plc the perception of the consumerin terms of insurance is still remain a bit doubtful compared to the giant LIC and with growing competitors like HDFC Standard Life etc.
(3) THREATS:
It is mainly facing stiff competition from the giant LIC and HDFC Standard Lifeand with other private insurance players like TATA AIG, BIRLA SUNLIFE, ING VYSYAetc. (4)OPPORTUNITIES: The present interest regarding the insurance and saving plans by customers in India is the biggest opportunity to capture more and more customers by consequently increasing customer base.
WORKING WITH ICICI PRUDENTIALICICI Prudential is India
s leading private life insurance company. You could bea part of the growing ICICI Prudential family:• An advisor• An employeeBe an advisor
Being an ICICI Prudential advisor can be an enriching and exciting career option. It’s an opportunity to associate with an industry leader, be in touch with the latest and finest insurance practices from around the globe, and grow both personally and professionally.
Here are some of the benefits of being an ICICI Prudential Life Insurance Advisor:• Unlimited earning potential
• A clear career path• All round support through exclusive advertising, your own in-house consultant, and world-class training• A comprehensive benefit packageWhat does it take to be an ICICI Prudential advisor?
At ICICI Prudential, we believe that our Advisors are our ambassadors to the customers. They are a key source of business for the organization, and are
the continuing link with our clients. That is why; we take a lot of care in recruiting and developing our advisor force, so that we continue to set higher standards of quality in service and salesmanship. To cater to the needs of the knowledge-oriented marketplace, we look for graduates who are service-oriented, goodcommunicators and enjoy meeting new people. Prior sales experience is an added benefit.Some of the qualities we seek are:• Self motivator• A master communicator• A go-getter• A graduateTraining
At ICICI Prudential, we understand the importance of training in a dynamic business environment. Our advisors go through both generic and specific, professional programs that help them remain well-informed and knowledgeable aboutthe company’s products in the market. There is a further focus on soft skills suchas communication, managing long-term relationships and selling skills, which are very relevant in a service-driven industry like life insurance.State of the art infrastructure training facilities coupled with an excellent faculty, guarantee an exceptional learning environment. For advisors who might beoccupied with their daily business/professional routines, ICICI Prudential alsooffers convenient training options such as online and self-learning are also provided by the organization.A 17-day training schedule covers the mandatory IRDA training requirements and ICICI Prudential product-training module. Revision session ensure that the candid
ates thoroughly understand the course contents and are well prepared for the licensing examination. Theoretical training is interspersed with practical appointment settings with potential customers, giving advisors a feel of how their business will work from the very first day. All through, the Unit Manager and the management provide continuous support to the advisors in achieving independence towards garnering business.Career
At ICICI Prudential, career development is emphasized upon from thevery day the advisor joins the system. Though individual meetings with his or her manager, the advisor can discuss various issues related to business development and career enhancement. Expectations from the organization in terms of chalking a career in the insurance industry are also discussed. Tiger Team: ICICI Prudential offers the “Tiger Team” program for identified high potential advisors. Handpicked by the management, these advisors are placed on a fast-track career path and recognized as ‘Tiger trainers’. The advisors can participate in this program, subject to certain criteria being fulfilled. Pinnacle Program: Absorption into themanagement is another career enhancement option provided at ICICI Prudential through the Pinnacle Program. This program helps advisors build a full time careeras a unit manager in the organization, offering great potential for managing a team of advisors and personal development. ‘Fast track Pinnacle’ program is also available to advisors who are able to meet the performance criteria within the stipulated time.Rewards and Recognition
ICICI Prudential advisors are constantly recognized and rewarded for their performance. Numerous contests all year round promote healthy competiti
on amongst advisors and recognition for their efforts. Depending on the level ofbusiness the advisor achieves in a year, he or she can become a member of various clubs such as the President’s club, ICICI Pru Star International and the ICICI
Pru Star India club. Each of these clubs have specific performance criteria forqualification and members of these clubs are entitled to attend seminars held atexotic international and domestic locations each year. Advisors can also qualify for the renowned MDRT (Million Dollar Round Table), an exclusive internationalinsurance advisors club.An EmployeeICICI Pru offers exciting career opportunities for people from a variety of stre
ams. You can apply for jobs at ICICI Prudential Life Insurance through our e-recruitment section.
DISTRIBUTIONTied AgencyTied Agency is the largest distribution channel of ICICI Prudential, comprisinga large advisor force that targets various customer segments. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business. With focus on sales & people development, tied agency has emerged as a robust, predictable and sustainable business model.Banc assurance and AlliancesICICI Prudential was a pioneer in offering life insurance solutions through bank
s and alliances. Within a short span of two years, and with nearly a large number of partners, B & A has emerged as a vital component of the company
s sales anddistribution strategy, contributing to approximately one third of company
s total business. The business philosophy at B&A is to leverage distribution synergies with our partners and add value to its customers as well as the partners. Flexibility, adaptation and experimenting with new ideas are the hallmarks of this channel.Customer Service & OperationsThe Operations department oils the work processes between the customer and the company to ensure consistent and quality service to the customer. To streamline the operations, the Operations department interfaces between the clients and theagents, the branches and the underwriters, and manages work processes.
The Vision at Customer Service is to deliver
World Class Service
at every opportunity. Units such as the 9 to 9 contact centre, Outbound Call Centre, CustomerCare and Query Resolution Unit are all committed to providing effective solutions to over lakhs of customers across the countryITThe Information Technology function at ICICI Prudential is committed to enable business through the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to end-users, the Solutions Group- Web that provides real-time information to customers and is responsiblefor customer relationship management, IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. This team works as an in house R&D Solution Group, exploring new technological initiatives and also caters to information needsof corporate functions in the organization. IT Infrastructure group is responsible for providing hardware, software, network services to the whole organization. This group runs the
Digital Nervous System
of the Enterprise at the highestlevels of efficiency and provide robust, scalable and highly available platformfor deployment of business application.MarketingThe Marketing function at ICICI Pru covers an array of activities - brand and media management, channel support, direct marketing and corporate communications.The Brand and Communications team is in charge of advertising, consumer research, media planning & buying and Public Relations; that helps develop and nurture ICICI Prudential
s corporate identity while effectively communicating its varied
product offerings to the customer. Channel marketing provides support to the sales force by streamlining the design and development of collaterals and sales tools across distribution channels. The Direct marketing team was set up to generat
e high quality leads for profitable business. The team achieves this through target database acquisition and communicating customised product information through e-mailers, telemarketing and innovative direct mailers.FinanceFinance function in ICICI Prudential is committed to create an infrastructure that is aligned to shareholder expectations. Finance basically comprises of four functions. . Corporate Planning and MIS provide feedback on business strategies.
This includes driving the budgeting process, providing strategic inputs for decision-making and management reporting and analysis. The Accounts function includes preparation and maintenance of financial records, funds management, and expense processing and treasury operations. Compliance ensures that every action is within the regulatory framework. This includes reviewing compliance requirements and supporting the ethical framework of ICICI Pru life. Internal audit provides assurance to the management over the organizations
control framework and includes process risk management, information security assessment and business continuity assessment.HRThe people strategy of ICICI Prudential is "To build a committed team with a culture of innovation, learning and growth. The Human Resource Function at ICICI Pr
udential drives the people strategy of the business. With its initial focus on operational excellence to deliver benefits and services to staff members, HR is now committed to building capability through state of the art processes. A robustperformance management system, compensation system and a segmented training architecture enable it to deliver value to the organization.Business ExcellenceExcellence The Business Excellence function is committed to building a quality mindset across the organization. ICICI Prudential is the first organization in the Insurance Industry that has adopted the Six Sigma Methodology for process efficiency and measurement. The team is also driving the Malcolm Baldrige frameworkacross the organization, an intervention that examines management of key inputsfor Business Excellence.
INTRODUCTION OF INSURANCEInsurance may be described as a social device to ensure protection of economic value of life and other assets. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance.Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a resultof the occurrence of unforeseen events. The term "risk" is used to describe thepossibility of adverse results flowing from any occurrence or the accidental happenings, which produce a monetary loss.Insurance is a pool in which a large number of people exposed to a similar riskmake contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. The sharing of risk amonglarge groups of people is the basis of insurance. The losses of an individual are distributed over a group of individuals.It is used with reference to financial protection against a possibility, such asfire, accidental damage, theft, or medical expenses: motor insurance, house hold insurance, travel insurance, health insurance.• It ensures protection of economic value of asset.• It is a joint venture• It is a social security tool
• It is a risk transfer mechanism.The insurance institute of India was established in 1955 fro the purpose of imparting insurance education to persons engaged or interested in insurance. The ins
titute conducts written examinations at various levels and arranges tuition services, both oral and postal
DEFINITIONS:General definition:In the words of John Magee, “Insurance is a plan by themselves which large numberof people associate and transfer to the shoulders of all, risks that attach to i
ndividuals.”
Fundamental definition:In the words of D.S. Hansell, “Insurance accumulated contributions of all partiesparticipating in the scheme.”
Contractual definition:In the words of justice Tindall, “Insurance is a contract in which a sum of moneyis paid to the assured as consideration of insurer’s incurring the risk of payinga large sum upon a given contingency.”
CHARACTERISTICS OF INSURANCE• Sharing of risks• Cooperative device• Evaluation of risk• Payment on happening of a special event• The amount of payment depends on the nature of losses incurred.• The success of insurance business depends on the large number of people insuredagainst similar risk.• Insurance is a plan, which spreads the risk and losses of few people among a large number of people.• The insurance is a plan in which the insured transfers his risk on the insurer.• Insurance is a legal contract, which is based upon certain principles of insuran
ce which includes utmost good faith, insurable interest, contribution, indemnity, causes proximal, subrogation, etc.• The scope of insurance is much wider and extensiv
IRDA (The Insurance Regulatory And Development Authority)A critical element, of financial sector reforms is the development of a pool ofhuman resources having right skill and expertise in each segment of the industryto provide quality intermediation to market participants. Quality intermediation requires personnel working in the industry need to –(1) Follow a certain code of conduct.(2) Have an understanding of business and skills to service different constituents in the market.In order to ensure this, the IRDA (hereinafter referred to as the “regulations”). Regulation 6 of the regulations requires that a person desiring to obtain or renewa license to act as an insurance agent or a composite insurance agent shall pass the pre-recruitment examination in life or general insurance business, or both, as the case may be, conducted by the insurance institute of India, Mumbai or any other examination body “duly recognized by the authority”Accordingly, the institute has developed pre-recruitment examinations in both life and general insurance business. These examinations are administrated all overthe country manually by the institute and electronically by the national stockexchange of India ltd., mumbai (hereinafter referred to as the “NSE”). The nationalstock exchange of India ltd. A company registered under the companies act, 1956,provides a testing and certification mechanism called NSE’s certification in finan
cial markets (NCFM) to test practical knowledge and skills that are required foroperations in financial markets in a secure and unbiased manner. NCFM is designed to administer tests in a modular fashion. It offers a comprehensive range of
modules that cover many different areas of finance. It is an on-line nation –widetesting and certification system where the entire process from generation of question paper to certifying is fully automated.Insurance industry is at a threshold of a major change. With the deregulation ofthe insurance sector, doors of the Indian market have opened up to private sector and foreign companies. Around 30 companies have shown interest for stating the business.
Many foreign companies have also entered into alliance with Indian companies. Most of these companies have many years of experience in the financial and insurance sector. The entry of such private companies is regulated by IRDA.IRDA has putrules and guidelines to govern private participation (Indian or with a tie-up with a foreign company) in the sector.IRDA has granted license for life insurance to the following companies:ICICI prudential life insurance company ltd.• HDFC standard life insurance company ltd• Om kotak Mahindra life insurance company LTD• Max New York life insurance company ltd• Birla Sun life insurance company ltd• Tata Aig life insurance company ltd
• SBI life insurance company ltd• Ing Vysya life insurance company ltd• Aviva life insurance company ltd• Etc.Mechanism :The basic mechanism of insurance works with the principle where people exposed to the risks come together and pool funds to protect each and individual againstrisk. Therefore, risk is spread out .The insurance companies collect money in advance and creates a fund from which losses are paid.Risk is defined as the possibility of adverse results flowing from any occurrence. Insurance reduces the impact of risk on the owner and those who depend on theasset .It must however be noted that, only economic or financial losses can becompensated. For example, the emotional support that the breadwinner provides ca
n neither be evaluated nor compensated. However, the financial support can be evaluated and compensated.Role of insurance in economic development :Insurance premium collected by insurance companies are invested in various development projects. They provide the much – needed cash for economic development andgrowth. LIC (Life Insurance Corporation Of India) used this money to invest in infrastructure development e.g. housing loans, sewage systems and electricity.Role of insurance in nation building : -Insurance benefits society by :-• Providing relief to the insured from any mishap.• Reducing the burden of the government in providing relief to old citizens.• Placing large sums of money at the disposal of the government for development ofthe economy.Insurance company operations : -The process of creating a product, making it available to consumers, ensuring customer satisfaction is integral to an insurance company.
CREATING THE PRODUCT :The functional areas that are involved in the creation of a product are :1. Actuarial.2. Accounting.3. Marketing.4. Agents, brokers & sales representatives.5. Information systems.6. Investment.
10. Claim administration.The creation of a product involves the following stages :1. Idea generation.2. Comprehensive business analysis.3. Technical designing.4. Implementation.5. Product introduction.
6. Sales monitoring and review.Basically the various elements, which can upset human plans, are :• Burglary.• Death.• Accidental permanent disability.• Sickness.• Critical illness.Events that must occur at some time, such as death, are provided for by assurance.There are two different branches of insurance :• Life insurance.• Non-life or General insurance.
Life Insurance :It insures the life of a person. Human life is an income-generating asset. Thisasset can be lost through unexpected death or made non-functional through sickness or disability caused by an accident. There is no certainty that an accident will happen. On the other hand there is a certainty that death will happen, but its timing is uncertain.Life insurance is a branch of insurance in which compensation is made availableto designated survivors of a deceased person, or to a person on their own survival after a fixed term of years, in return for payments, or premiums. Life assurance is based on the mathematics of probability, which determines the level of premium to be paid, and on compound interest, which determines the growth over time,through investment, of the fund constituted by the intake of premiums. The two t
ogether ensure an adequate fund to provide the compensation required.Life insurance protects against loss of income of an individual.Life Insurance :• Does not protect the asset.• Does not prevent its loss.• It is not a contract of indemnity.• It cover depends on the paying capacity of an individual.Insurance reduces the impact of risk on the owner and those who depend on the asset. It must however be noted that, only economic or financial losses can be compensated not emotional support.Life insurance products provide for: -• Risk cover.• Investment.• Health cover.Four main types of insurance policies: -• Term assurance (Only in the term).• Whole-life assurance (Whole-life).• Pure endowment (Only on the survival of the selected term).• Annuity. (A form of pension in which an insurance company makes a series of periodic payments to a person (annuitant) (or) his (or) her dependents over a no. Ofyears. (Term) in the return for the money paid to the insurance company eitherin a lump sum (or) in installments.Non-Life (Or) General Insurance :It insures everything except life.i.e. vehicle, electronic, furniture, medical, home (or) building, industry etc.
Functions of insurancePrimary functions :1. Provide protection : Insurance cannot check the happening of the risk, but can provide for the losses of risk.2. Collective bearing of risk : Insurance is a device to share the financia
l losses of few among many others.3. Assessment of risk : Insurance determines the probable volume of risk byevaluating various factors that give rise to risk.4. Provide certainty : Insurance is a device, which helps to change from uncertainty to certainty.Secondary functions :1. Prevention of losses : Insurance cautions businessman and individuals toadopt suitable device to prevent unfortunate consequences of risk by observingsafety instructions.2. Small capital to cover large risks : Insurance relives the businessman from security investment, by paying small amount of insurance against larger risks and uncertainty.
3. Contributes towards development of larger industries.Other Function :Means of savings and investment:Insurance companies are business houses. The product they sell is financial protection. To succeed and survive, they must cover their costs, which include payments to cover the losses of policyholders, as well as sales and administrative expenses, taxes and dividends.Insurance companies have two sources of income for covering these costs : premiums and investment income.The premiums are collected on a regular basis and invested in Government Bonds,Gilt, stocks, mutual funds, real estates and other conservative avenues. However, investment income depends on market conditions, interest rates, economy etc. and varies from year to year. Because of the uncertainty associated with the inve
stment income, insurance companies must generate enough income from premiums tocover the bulk of their expenses.The risk becomes insurable if the following requirements are complied with:• The insured must suffer financial loss if the risk operates.• The loss must be measurable in money,• The object of the insurance contract must be legal.• The insurer should have sufficient knowledge about the risks he accepts.
Fundamentals of InsuranceThe fundamental Principles of the Insurance are as follows:• Insurable Interest : Insurable interest means the legal right to insure. Insurable Interest is a must and only then the insurance contract is enforceable at law. This principle differentiates a Contract of insurance from wager. Lack of insurable interest renders the contract null and void. For Insurable Interest to exist there must be Property, Rights, Interest, Life or Liability; this must be insured and the Insured should have a legally recognizable relationship thereto. The Insured should be benefited by the safety of the property or is prejudiced byits loss. Insurable Interest may arise in the following manner:1. Ownership: Absolute ownership entitles the owner to insure the property. Thisis the commonest method whereby Insurable Interest arises.2. Partial Interest is also insurable e.g. a mortgagee. A creditor can also insure the life of his debtor but only to the extent of his loan.3. Administrators and executors i.e. officials appointed by a court of law to take care of a property may also insure the property.
4. Relationship does not automatically constitute insurable interest. The o
nly relationship recognized by law for this purpose is the one between a husbandand wife.
5. An employer can insure his employee under a Personal Accident Policy as h
e has insurable interest in them.• Proximate cause: Generally, the claims are payable under insurance policies if they arise out of events which are proximately caused by the insured perils. In other words, the proximate cause of the event has to be peril covered by the policy, so as to constitute a valid claim.• Contribution: An insured may have several insurance on the same subject matter.If he recovers his loss under all these insurance, he will obviously make a prof
it out of loss. This will be an infringement of the principle of indemnity. Common Law has, therefore, evolved the doctrine of contribution whereby the insuredis prevented from recovering more than his loss, despite his having severalinsurance on the subject matter.• Subrogation: The principle of indemnity seeks to prevent the insured from makingprofit out of loss. However, it may so happen that that the insured may recoverhis loss under his policy and he may also have rights against third parties. If, after the insurance claim is settled, the insured is allowed to enforce his rights against third parties and to retain whatever damages he receives from them,he will certainly make a profit and the principle of indemnity will be infringed.Common Law has therefore, evolved the doctrine of subrogation as corollary to th
e principle of indemnity. Subrogation may be defined as the transfer of rights and remedies of the insured to the insurers who have indemnified the insured in respect of the loss. The Common Law right of subrogation is implied an all contracts on indemnity, as it arises only after payment of loss.• Utmost Good Faith: In all General Insurance contracts we know that a property orinterest or liability or life is offered for insurance and the insured has to take decisions on the acceptance of the proposal. If he decides to accept the proposal a premium commensurate with the risk has to be charged. To enable him to take necessary decision in this regard, the insurer must have certain facts aboutthe risk offered. These facts influence the judgment of the insurer in decidingabout the acceptance or otherwise of the risk and the rate of premium to be charged, if accepted. Such facts are known as material facts.
NATURE OF INSURANCE CONTRACTS:When the insured pays the premium and the insurers accept the risks, the contract of insurance is concluded. The policy issued by the insurers is the evidence of the contract. The contract of insurance, like any other contract, for examplea contract for the sale of goods, is subject to the general law of contract as embodied in the Indian Contract Act, 1872.According to this Act, a contract must have certain essential features in orderto make it legally valid and enforceable. The following are the essential elements:a) Offer and acceptance: Usually, the offer is made by the propose, and acceptance made by the insurer.b) Consideration: This means that the contract must involve some mutual benefitto the parties. The premium is the consideration from the insured and the promise to indemnity is the consideration from the insurers.c) Agreement between the parties: Both the parties should agree to the same thing in the same sense.d) Capacity of the parties: Both the parties to the contract must legally competent to enter into the contract. For example, minors cannot enter into insurancecontracts.e) Legality: The object of the contract must be legal and the contract should not violate any legal requirements. E.g. no insurance can be had for smuggled goods.RISKReasonable or not, risks are inescapable in business. Every business venture is
something of a gamble, because the possibility of loss is as real as the prospects for profits. And even though managers do everything possible to ensure that their business succeeds, they cannot guard against every conceivable form of risk
Pure Risk versus Speculative Risk:• Pure Risk: Events representing the kind of risk that no business can predict orescape, known as Pure Risk, it is the threat of a loss without the possibility of gain. In other words, a disaster such as avalanche or fire is costly for the business it strikes, but the fact that no disaster occurs contributes nothing to
a firm
s profit.• Speculative Risk: It is the type of risk that offers the prospect of making profit - and prompts people to go into business in the first place. Every business accepts the possibility of losing money in order to make money.Approaches to Risk ManagementRisk Management is the process of reducing the threat of loss due to uncontrollable events. Steps in selecting a risk management approach: •• To identify all the things those can possibly go wrong. •• To consider the probability that an event will occur.
Techniques of Risk Management are:
1. Avoiding the Risk: When a company avoids risk, it eliminates the possibilitythat a particular event will occur. To avoid the possibility of a suit, for example, not to produce any products -which would, of course, eliminate both the threats of a lawsuit and the opportunity to profit. With rare exceptions, avoidingrisk entirely is extremely difficult.
2. Reducing Risk: A more practical approach is to reduce the risk by taking precautions. Risk reduction is an important element in most companies
approach to risk management. Typical precautions include putting safety locks on doors to prevent robberies, installing overhead sprinklers to minimize fire damage, and periodic checking motor vehicles to prevent accidents.
3. Assuming risk: Many companies draw on current revenues or set aside a "Contin
gency Fund" to cover unexpected losses. Setting aside money on regular basis could be cheaper than purchasing insurance. Moreover, the company can earn intereston the reserved cash. Such assumption of risk is also called self-insurance orrisk retention.
4. Transferring the risk: Most companies still rely on outside insurance firms for financial protection against catastrophic losses. In buying insurance, companies transfer the risk of loss to an insurance firm, which agrees to pay for certain types of losses. In exchange, the insurance firm collects a fee known as a premium.
INSURANCE MARKETING:A marketing mix is a combining of these four variables in a way that will meet or exceed organizational objectives. A separate marketing mix is usually craftedfor each product offering. When constructing the mix, marketers must always be thinking of who their target markets are. Mix coherency refers to how well the components of the mix blend together. A strategy of selling expensive luxury products in discount stores has poor coherency between distribution and product offering.In the long term, all four of the mix variables can be changed, but in the shortterm it is difficult to modify the product or the distribution channel. Therefore in the short term, marketers are limited to working with only half their toolkit. This limitation underscores the importance of long term strategic planning
. Some commentators have increased the number of p
s in the mix to 5, 6 or even8. "People" is sometimes added, recognizing the importance of the human elementin all aspects of marketing. Others include "Partners" as a mix variable because
of the growing importance of collaborative channel relationships.
7 – P’s of ICICI Prudential
TARGETING
A target market is the market segment, which a particular product is marketed to. Age, gender and/or socio-economic grouping often define it. Targeting strategyis the selection of the customers you wish to service. The decisions involved in targeting strategy include: How many segments to target? Which segments to target? How many products to offer? Which products to offer in which segments?There are three steps to targeting: Market segmentation. Target choice. Product positioning.Targeting strategy decisions are influenced by: Market maturity. Diversity of buyer’s needs and preferences. The company
s size. Strength of the competition. The volume of sales required for profitability.
5 – Patterns Of Target Market Selection Single - Segment Concentration.- Through concentrated marketing, the firm gains a strong knowledge of thesegment’s needs and achieves a strong market presence. Selective Specialization.- The firm selects a number of segments, each objectively attractive and a
ppropriate. Product Specialization.- The firm makes a certain product that it sells to several segments.
Market Specialization.- The firm concentrates on serving many needs of a particular customer group.
Full Market Coverage.- The firm attempts to serve all customer groups with all the products they might need.
Single - Segment Concentration
Single - Segment Concentration.- Through concentrated marketing, the firm gains a strong knowledge of thesegment’s needs and achieves a strong market presence.
Selective Specialization Selective Specialization.- The firm selects a number of segments, each objectively attractive and appropriate.-
Product Specialization Product Specialization.The firm makes a certain product that it sells to several segments.
Market Specialization.- The firm concentrates on serving many needs of a particular customer group.
Full Market Coverage Full Market Coverage.- The firm attempts to serve all customer groups with all the products they might need.
Major Segmentation Variable For ICICI Prudential Life Insurance Pvt. Ltd.Geographic Segmentation : - Region : Eastern, Western, Northern, Southern Parts of India. Density : Urban, Suburban, Rural. City Or Metro Size.Demographic Segmentation : - Age : For All Ages. Family Size : 1-2, 3-4, 5 + Family Life Cycle : Young, Single, Married, Married with children, Older.
Gender : Male & Female. Income : Low, Medium, High. Occupation : Any.
Education : Any. Religion : Any. Generation : Present & Future. Nationality : Indian. Social Class : Upper Lowers, Working Class, Middle Class, Upper Middles, Lower Uppers, Upper Uppers.
Psychographic Segmentation : - Life Style : Any Personality : AnyBehavioral Segmentation : - Benefits : Quality Service. Loyalty Status : None, Medium, Strong. Readiness Stage : Unaware, Aware, Informed, Interested, Desirous. Attitude Toward Product: Positive, Indifferent, Negative, and Enthusiastic.
POSITIONING OF ICICI PRUDENTIAL LIFE INSURANCE PVT LTD. Attribute Positioning.
- Positioned as 5 years of existence in India as started their operations in 2000. Benefit Positioning.- Positioned as the leader in Life Time, Retirement Solutions & Smart Kid. Use or Application Positioning.- Positioned as best for Insurance Services. User Positioning.- Positioned as best for all age groups according to their requirements. Competitor Positioning.- Positioned as to be 2nd and 3rd in couple of years in terms of quality insurance services than LIC & HDFC. Product Category Positioning.- Positioned as the leader in a certain services like Smart Kid, Life Time & Ret
irement solutions category. Quality or Price Positioning.- Positioned as offering the best value for their services.
ROLE OF AN ADVISOR:1. Identify future clients/prospect2. Making appointment.2. Conduct financial review meeting with prospect.4. Close sale.5. Get referral6. Provide service to clients/prospect.7. Follow internal sales and reporting system.After analyzing the quality (which the company is looking for), back office service (which the company is giving to that person). functions to be performed. role to be played . I used to describe the benefits which the advisor can get out of his/her joining as an advisor in ICICI Prudential Life Insurance Company.
OPPORTUNITIES:1. No start up capital is required to becoming an advisor.2. Flexible working environment.3. Be his/her own boss.4. Unlimited earning potential.5. To be part of world class team.Besides these ICICI Pru has given the following benefits to the individual thosewho are willing to join as an advisor in our company.
PROCESS OF INSURANCE ADVISORFirst of all a questionnaire was made. Cold calling and f
ind which person have been interested became an advisor was done and the questio
nnaire was made to be filled by the respondents there. Data are also collected through personal references, websites, tata yellow pages, newspapers, phone directories, etc.After this I fixed the meeting and explain the process of the plan and after that his/her queries were answered. If he/she gets satisfied with the plan then certain questions were asked from him in order to satisfy the criteria of Q- SCORESHEET .Q – SCORE SHEET consist of 5 criteria. Out of the five criteria if minimum
three are satisfied then only the respondent can became a advisor.Now if it is found that this person is a right according to the Q – SCORE SHEET then he/she filled his/her information. After this he/she submitted the foam withthe important documents. These documents includes: -1. 10TH MARKSHEET2. MARKSHEET OF THE GRADUATION3. PHOTOGRAPHS4. A DEMAND DRAFT OF RS 1000 IN FAVOUR OF ICICI PRUDENTIAL LIFE INSURANCE.The companiy provides a 100 hours training with the help of IRDA. This trainingis finished in 15-20 days. After this the company gives the date of examination.
A center was told to them where the examination took place. In the exam
the minimum pass marks were 45 out of 100. If they clear the examination then the company issues a certificate to them declaring that they had now become a legal advisor of the company. But if any person were not able to clear the exam thenhe give the re-examination by submitted the fees.
After this they become a advisor then the company give an agent code. With the help of this code an advisor open the zero balance in the ICICI BANK. This was the whole study during the summer training.
Instructions
• Please answer the below question in yes/no.• In case of Q score is less than 3, approval from either1) Territory manager or above.
2) Sales manager-channel development.
Q SCORE SHEET
Application No.Age above 25? Yes / NoMarried? Yes / NoAre you a graduate? Yes / NoLiving in same city for more than 5 years? Yes / NoHousehold income above 2 lakhs? Yes / NoTotal score (Out of 5)
STATEMENT OF THE PROBLEM:-The statement of the problem is getting the recruitment of the advisor who donejob successfully and consistently. It is, of course, the one job must not delegate. Philosophy of high standardsPhilosophy of high standards and a success syndrome is the central point of maintaining high standards. The presence of successful, high-performing Advisors inyour organization attracts more of the same. A recent study revealed that nearlyone-half of these individuals choose an insurance career because a successful advisor influences them. Our experience at ICICI Prudential supports this conclusion.
Atmosphere of SuccessIdeally, as prospective Advisors enter your office, they should find themselvessurrounded by an atmosphere of success. They should see evidence of a positive a
nd dynamic environment. They should be aware of high quality men and women – highstandards of production – high standards of the office neatness and arrangement – high standards of income – high standards of business management. They should be made to feel to, taste it and senses it. As a result, they will have a natural inclination to become a part of the winning sales organization you building.There is no question about it – it’s always easier to recruit successfully in an org
anization that is on the move. You must contribute to an environment where things are obviously happening – one that has an atmosphere of success. This is the starting point if you are going to attract high – potential advisors. Attraction PowerSecond, Work at developing your “Attraction Power”. Strive to be the kind of personyou want other to be. Be kind other want to emulate. You’ll have taken a giant steno toward being an effective recruiter when you do.
Be especially consociation about your appearance. You can’t judge a book by its cover is a well-worn and accepted adage. However, most prospects and prospective advisors don’t believe it. They judge you by your overall appearance. Also,work consistently at doing the thing, which will cause you to be known for whatyou know. An active Involvement in social and civic organization will assist yo
u in letting your reputation precede you. You’ll have taken another step toward being an effective recruiter when you do these things.
Decide on the profile of the adviserNext, decide on the profile of the adviser who will fit and grow best in your operation – the kind of person you can develop best. Experience, age, market, contacts, income requirements, and a number of other factors should be considered in answering the big question – what kind of an advisor is best suited for you and your organization. Constant need of advisors at ICICI PrudentialRemember the need of quality advisors never diminishes at ICICI Prudential. It continues in to the future as far as you can see.
Thread of discount (TOD)Fifth, be reminded that there is no large, ready supply of high potential candidates who are discontented with their present job. However, things do happen in individual’s jobs, their lives or their family situation, which can cause them to become prospects for you – some times, almost overnight. When the thread of discount surfaces, be sure they are thinking of you and the ICICI Prudential. Success determined by past performanceSixth, most successful advisor are highly competitive and generally come into our business from jobs where there success is determined by their performance. Consistence search for prospective advisors among coaches, commission sales peopleand individual who have been in business for themselves. Build a weekly recruiting success formulaFinally, build a weekly recruiting success formula. Our statistics show that torecruit one person, you’ll probably need at least 30 initial contacts. This will gives you seven people who will pass the selection test. This is turn develops two advisor you will appoint. Understanding these ratio enable you, emotionally and physically, to plan and achieve the necessary activity to reach your recruiting goal each year.
My objective is to maximize the recruitment number of good quality advisor by minimizing the relevant cost and comparative study of ICICI Prudential product with other insurance companies .There are more objectives regarding the research methodology and these are stated below:1. To increase the equity base of ICICI Prudential by increasing the numberof good quality advisor who sell the more policy.2. To hold the market share and also to increase the competitive edge over
other. Then only ICICI Prudential will be able to the position as first rank. Again this is possible only when the company recruiting good quality advisors those who are having much more contact with high or medium profile people those whoare the potential customer for the company.With the aim to make comparative analysis among the various insurance companieswith respect to their smart kids product is done considering following factor:• Entry Age & Maturity date• Premium value & Term• Death Benefit• Surrender Benefit• Withdrawal
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research design depends on type of research studies that we are going to make. My research study is descriptive type. Research methodology is all of the techniques, methods and procedures adopted in terminology work to carry out terminologyresearch. It is a way to systematically solve the research problem.DESCRIPTIVE RESEARCH STUDY:.In this type of research study the researcher must able to define clearly, whathe/she wants to measure and must find adequate methods measuring it along with the clear cut definition of population he/she wants to study. Since the aim of study is to obtain complete and accurate information, who must be interested in insurance company. The design in such studies must be rigid and rigid. For the study I have taken a sample of about 100 customers, etc from each and every marketin Delhi, Noida and Ghaziabad. In planning and designing a specific researchproject it is necessary to anticipate all the steps that must be under taken ifthe project is to be successful in collecting valid & reliable information. If it were broken down into very small parts or activities, the marketing research process would consist of a great no of steps ---- Selecting a sample type. Specifying research objectives. Preparing a list of the needed information. Designing the data collection project. Determining a sample size. Organizing and carrying out the fieldwork.
Analyzing the collected data and reporting the findings.1. FORMULATION OF OBJECTIVE:
Research Objective must be clearly defined (what the study is about and why it is being done) then only, it can be achieved in a best way.With the aim to make comparative analysis between the Insurance companies we ana
lyze the data of different companies in various prospective: ---Purpose of study:
To study and evaluate various strategies of ICICI PRUDENTIAL forvarious section of society.2. DATA SOURCESThe second stage is the collection of data is the data sources Primary Data Sources and Secondary Data Sources. Primary Data Sources are collected specifically
for the purpose of research study, which is to be done, and secondary data source are already collected data, with some other objective.Primary Data Source:Questionnaire: A formal list of Questions is formulated and asking the questions from the people who are having the related information. Here the Questionnaire is Structured. Close end Questionnaire with Dichotomous and Multiple Choice Questions. Main aim is to compare the Customer Attitude and Loyalty towards SMARTKIDS PLAN product of different companies.Secondary Data Source:Internal sources: On-Line Information, Report of IRDA( INSURANCE REGULATORY &DEVELOPMENT AUTHORITY ),External data: Magazines like Business Standard, Books on insurance and journals
.3.SAMPLING PLANSampling Unit (Who Is Being Surveyed)All prospective who are interesting in investment cum insurance.Sampling Size (How Many People Should Be Surveyed)100 customers in ALLAHABAD & AROUNDContact Method (How The Subject Should Be Contacted)Cold calling, Personal Contract, Through InternetAfter using contact method those person interested I meet them individual.
(1) he above pie-chart gives the split of the sample area-wise. The sampleconstituted 53% of the respondents from Ghaziabad, 33% from East-Delh
i and 14% from Noida.(2) The above pie chart gives the age-group wise split of the sample. Accordingto it there were 37% respondents belonging to group 15-25 years. 24% were of group 25-35 years. 22% were of group 35-45 years and finally 22%belonged to 45-55 years.
(3) Out of the total appointments called for is 100,15 of them were finally converted. Hence the conversion rate turns out to be 15. %.(4) The above pie chart gives the income group wise split of the sample.
According to this every person earn the different income.The income of the mostly people is >10000.
(5) I found that those people who are between 30-35% are more serious for this. Because every people want to earn more money for their family . So that they are more interested in this area.(6) And if we analyze according to income then I found that those peoplewho are having income less than 2 lakh is more serious about this. Because they have required of the money(7) And if we consider according to occupation then I found that those peopl
e who are either businessmen or in private job they are more interested in thisarea. Because they want to secure their future.(8) Many People want to work as an advisor but they want to do it as a parttime, not full time.(9) ICICI PRUDENTIAL LIFE INSURANCE and BAJAJ ALLIANZ is tough competitor to each other. In this year the market share of BAJAJ ALLIANZ is more than ICICI PRUDENTIAL LIFE INSURANCE. The market ICICI PRUDENTIAL LIFE INSURANCE is than .8%to BAJAJ ALLIANZ(10) In this year BAJAJ ALLIANZ is collected the more premium than ICICI PRUDENTIAL LIFE INSURANCE.(11) The parameters which effect the customer while going for the insurance policy the parameter rated most is Retirement Benefit that is 35% the next parameteris Tax Rebate with a share of 28% the other parameters are Saving & Investment
Change is very important and one who goes with the changing environment always succeed, that is what I have learned from the study. The competition has grown too much in the insurance sector with the opening of the sector. This is for the LIC to change their strategy on the basis of the competition. For many years it w
as only LIC for life and GIC for general insurance companies available. In 1991when the liberalization started, foreign investors become attracted towards thecountry. In 1993 government appointed Mr. R.N. Malhotra committee to suggest reforms measures. In 1998 the New IRDA Bill was passed and became a law which pavedthe way for foreign insurance companies.Multinational insurance companies aligned with the Indian companies to step intothis sector. LIC has the largest network of operation with 2148 offices, 124,000 employee and 750000 agents.ICICI Prudential is the largest private player in the insurance industry in India. It is my great experience and pleasure working in a company like ICICI Prudential. It was a great learning experience about recruitment strategy of an advisor, about the business, about the fulfillment of the business and so on. After go
ing through the whole project for two months I have got different issues like motivation, encouragement from the senior. Career path and so on.It has sold overone lakh fifty thousand policies till date.So, It is my great experience and pleasure working in a company like ICICI Prudential. It was a great learning experience about recruitment strategy of an advisor, about the business, about the fulfillment of the business and so on. After going through the whole project for two months I have got different issues like motivation, encouragement from the senior.It was also a great experience of meeting various kinds of people like CA, FD, LAWYER Service, persons etc. It was a great learning experience of how, to approach different kind of people.After this I find that mostly people believe in LIC. Because it is a governmentcompany.
Thus it can say that these have been a great two months of learning and growth.
RECOMMENDATIONS
Suggestions and Recommendation
The company is charging Rs. 1500 from person who wants to join the company as anadvisor but the fees is too high for the freshers. They have to arrange the money for it and if they fail to do so they are left in vain. The fees should be reduced to a considerable amount so that any person who wants to join the companycan easily arrange it and be part of the prestigious group. Further it has beenseen that the no. of the advisors joining the company is far more in the month of May as compared to the other part of the year, when the fees is totally whippe
d by the company. So if the fee is reduced the no. of advisors joining the company will increase and this will help in capital gain to the company.The minimum age criteria set by the company for the person joining as an advisor
is 25 yrs. This age limitation should be reduced to 21 yrs. This is an ideal time for the fresh graduates to join the company as an advisor and achieve the positions they deserve. An advisor can easily reach to higher posts in the companywith the span of time and showing their capabilities to do the work assigned tothem at different levels. The company should try to hit this segment. Since theadvisors can also became an employee of the prudential, starting from unit manager, through the pinnacle program, and can go to more higher posts also, the stud
ents finds it’s a great opportunity for themselves. The zeal to show good performance is also much high in them as compared to other segments people.The company should take proper care of the advertisements of the new schemes launched by it so that more and more people are attracted towards it and become a member of it. The advertisements give a way to the people about the benefits of the scheme and to overcome the increasing competition with the other big names ofthe market.The company should gives an attractive gifts and packages to the advisors as pertheir work so that they can have faith in the company and works in more enthusiastic manner to earn more and more benefits.The company should provide an intensive training to the fresh advisors so that they can cope up with the increasing competition in the market and overcome the d
ifficulties they faces during their work in a more effective manner.The commission provide to the advisors should be enhanced so that the existing employees and the interested candidates to join the company are attracted towardsit. In addition to it a minimum monthly package should also be given to them and the existing method of giving only the commission should be replaced. When there is a monthly salary in addition to the commission the advisors will stick totheir jobs and will give the company more profit with the increasing experiences.It has been seen that most of the branches of prudential are situated in the metropolitans and the urban areas. But the life of India lives in the villages andthe semi-urbans. The company should try to hit these areas so as to increase theopportunities. This will help in boosting the profit of the company and new schemes should be launched to attract this segment of population.
The company’s more sellable life time policy has a minimum premium of Rs. 18000/-where as this premium is as low as to Rs. 10000/- of their competitors in the market. If this premium is reduced by the company to a competitive amount than more people can be attracted towards the life term policies offered by the companyand the loss can be adjusted by increasing the no. of customers. The low incomegroup can also be attracted towards it by launching new schemes and policies with a low premium.
PROMOTIONAL STRATEGIESPress publicity: Paper inserts Advertisements in newspaper (local and national). Interest cards distribution Mailers/personal invitations to selective section of the society Leaflets
Outdoor publicity: Banners in commercial areas and prime sites. Air balloons at shopping complex. Bus stands shelters. Advertisements on Dividers and Railings.Media: Local channel advertisement (cable TV scrolls) Advertisements in news channels and business channelsFace to face:
Personal interaction of marketing executives through Meetings Detailing about schemes and updating them from time to time
Event sponsoring in local clubs and social gathering Road shows Contacting senior citizens in parks in morning and evening. Contacting office goers in the morning and evening at stop lights by distribution of interest cards.
LIMITATIONSThese are measured in terms of, Interest – Time – Cost – Human error.Interest :Most of people had a bad perception on insurance sector. As most of the people are satisfied in their works they have very less interest to do a side-by-side business and especially in insurance sector.Time :Professionals, Business Men, Employees etc don’t have time to do an extra businessand even though they are interested they don’t have time to attend the training f
or advisor ship due to their hectic schedule in their perspective works. As theydon’t attend the training they might not be able to know about the process of insurance sector and its product information. So time takes a major role in this sector.Cost :As concerned regarding cost, company is spending an approximate of 10,000 / - per head on training. They are spending this money by means of seminars, lectures,stationary, food etc. so company is charging 1500/ - per head earlier itself for the sake of insurance exam and for other formalities so that company have faith on the candidate that he/she may not escape from company after taking training. Company had kept a motivation factor too, i.e.; actually by rule that 1500 / -is non-refundable. But if the candidate can give 7 policies in first 3 months it will be paid from the pockets of ICICI Pru.
Human Error :Insurance is a type of industry that is fully 100% based on human feelings and their actions. Mainly every advisor should have patience in large amounts, shouldn’t have ego problems, have motivation skills, have enough confidence to go through in the market, have very good relationship skills and ability to maintain goodsociety
2. HAVE YOU TAKEN ANY LIFE INSURANCE POLICY?a) YES b) NO
IF YES THEN WHAT AMOUNT?3. DO YOU THINK THE POLICY YOU HAVE TAKEN IS ENOUGH TO COVER YOUR LIFE?
a) YES b) NO4. DO YOU HAVE VEHICAL (TWO WHEELER OR FOUR WHEELER) IS IT INSURED?
a) YES b) NO5.WHAT ARE YOUR FUTURE GOALS?
a) MONEY b) GOING ABROAD c) CHILD EDUCATION d) HOUSE e) CARSOME IMPORTANT INFORMATION ABOUT FOR AGENT6. HAVE YOU HEARD ABOUT ICICI PRUDENTIAL COMPANY?
a) YES b) NO7. WHICH INSURANCE INDUSTRY IS BEST IN INDIA?a) ICICI PRULIFE b) LIC c) HDFC STANDARD d) BIRLA SUNLIFE8.DO YOU HAVEB ANY FINANCIAL PRODUCT?a) BANK A/C b) HOME LOAN c) INSURANCE d) CREDIT CARD
9.WHAT IT IS YOUR ANNUAL HOUSE HOLD INCOME?a) 150000 b) 100000 c) 175000 d) MORE THAN 20000010.HAVE YOU ANY EXPERIENCE IN INSURANCE INDUSTRY?a) YES b) NO11.WHAT IT IS YOUR MARITAL STATUS?a) MARRIED b) UNMARRIED12.ARE YOU GRADUATE?a) YES b) NO13.ARE YOU LIVING IN SAME CITY FOR MORE THAN 5 YEARS?a) YES b) NO14.AGE ABOVE 25?a) YES b) NO
15.TELL ME ABOUT YOUR OCCUPATION:a) STUDENT b) SELF EMPLOYED c) GOVT.SERVICE d) OTHER
BIBLIOGRAPHY BIBLIOGRAPHYBOOKS REFERRED: Marketing Management- Philip Kotler RESEARCH METHODOLOGY- (C.R.KOTHARI) BUSINESS WORLD INDIA TODAY
Comparative Study Between Various Policies of ICICI Pudential Life Insurance with Other Private Market Players, namely:1. HDFC Standard Life Insurance2. Birla Sun Life3. Aviva Life InsuranceICICI Prudential Smart KidObjective: It is a plan that provides guaranteed educational benefits to the child along with life insurance cover and hence is suitable for parents (between 20-60 years) with children in the age group of 0-12 yearsSalient Features• It is a money back plan where in sum assured is paid at regular intervals. The policy can be so designed that it provides money at important milestones of the c
hild
s education like secondary education, higher secondary, and graduation andpost graduation.• On death of the life assured with in the term, full sum assured is paid immediately and all future premiums are waived. Death benefits are in additions to the benefits that child is likely to get in the normal course of the policy i.e., child will be eligible for amounts at important milestones of education, irrespective of death of the life assured.• One has the flexibility to choose the exact age of the child (between 22 to 25 years), at which the policy is to mature. The term of the policy is determined byAge of the child on maturity - Age of the child on the date of proposal.Policyholder has the option to avail additional benefits such as Income benefitrider, Accident Disability benefit rider by paying additional premiumOn Survival: Lump sum amounts are payable at regular interval to meet the child
s educational expenses.On Death during the term : Full sum assured is paid and future premiums are waived. Death benefits are in additions to the benefits that child is likely to getin the normal course of the policy i.e., child will be eligible for amounts at important milestones of education, irrespective of death of the life assured.Riders• Income Benefit Rider: Income Benefit Rider pays 10% of sum assured annually to the child on each policy anniversary following an unfortunate demise, till maturity of the Rider.• Accident and Disability Benefit Rider: This provides cover against an unfortunate death due to an accident. If the individual gets permanently disabled due to an accident, it will also provide a regular income for the next 10 years or tillmaturity of the policy. All future premiums, in respect of Sum Assured under thebasic plan equal to accident cover, will be waived.Other Conditions• Minimum age of the Parent : 20 years.• Maximum age of the Parent : 60 years.• Minimum premium: Rs. 8,000 per year.• Minimum Sum Assured:Rs.1,00,000.• Maximum Sum assured: Rs.30,00,000.• Maximum limit under Income Benefit Rider: Rs.10,00,000.
Children
s Plan (HDFC)Objective :The plan is suitable for people who wish to provide for their childre
s higher education/marriageSalient Features• This is a flexible endowment plan taken on the life of the parent for the benefit of the child.• Policy is offered in three variants. Options available are o1. Maturity Benefit Plan2. Accelerated Benefit Plan
3. Double Benefit Plan• The policy provides financial security to the child in the future, by providinglumpsum amounts either on maturity or• Bonus is paid under the policy.• Premiums are payable till death or till maturity which ever is earlier.• The premiums paid will be eligible for tax relief under Section 88 of the IncomeTax Act, 1961. The benefits received under the policy are eligible for tax relief under Section 10(10D) of the Income Tax Act, 1961.Premium can be paid either in yearly, half-yearly or quarterly modes, dependingon your convenience.BenefitsOption On the death of the insured parent during the policy term On matur
ityMaturity-Benefit Plan Future premiums are waived and the policy continues tillmaturity. Sum assured + bonuses are paid.Accelerated-Benefit Plan Sum assured + bonuses are paid and the policy stops. On the survival of the insured parent to the maturity date, sum assured+ bonuses are paid.Double-Benefit Plan Sum assured is paid, future premiums are waived, and thepolicy continues till maturity Sum assured + bonuses are paid.Other Conditions• Minimum Age at Entry: 18 years• Maximum Age at Entry: 60 years• Minimum Age at Maturity : 75 years• Maximum Term : 10 years
• Maximum Term : 25 years
Young Scholar - Birla sunlifeObjective: The plan is suitable for people who wish to provide for their children
s higher education, since benefits under the policy are payable in last five years of term.Salient Features• This is a money back policy where in benefits are payable in the last five yearsof the term.• In the event of death of the life assured with in the term, double the sum assured + any amount in the holding account will be paid. In addition to the above, the child will be eligible for scheduled benefits during the last five years of the term.• Policy can be taken by parents having children aged below 8 years• Favourable terms : Favourable premium rates for female lives• Tax benefits: As per Sec 88 and Sec 10(10D) of the Income Tax Act.Benefits On Survival• If the age of the child is between 0 and 3 years on inception, then 30 % of sumassured is payable at the end of 16th, 17th, 18th and 19th policy year and at the end of 20th policy year amount in the holding account will be paid.• If the age of the child is between 4 and 8 years on inception, then 20 % of sumassured is payable at the end of 11th, 12th, 13th and 14th policy year and at the end of 15th policyyear, amount in the holding account will be paid.On Death during the term• On death of the parent during the term of the policy, double the sum assured is
paid to the nominees. If the cause of death is an accident then triple the sum assured is paid. In case of total disablement sum assured is payable. These benefits are in addition to the scheduled benefits the child is likely to get during
the last five years of the term• In the event of death of the child, parent can continue the policy to receive the benefits or surrender the policy and receive the surrender value.Riders : Riders are additional benefits that can be added to the policy by paying additional premium.• Critical Illness Rider : Amount specified under this rider is paid in the eventof the life assured contracting to any of the four critical illnesses specified
under this rider. Critical illnesses covered under this rider are Heart Attack,Stroke, Cancer and Surgery to Coronary Arteries. However the rider amount is paid provided the life insured survives the specified illness for a period of at least 30days from the date of diagnosis• Term Rider : By the virtue of this rider an additional amount equivalent to theamount specified under this rider paid on death with the term.
Young Achievers - Aviva LifeObjective: The plan is suitable for people who wish to provide for their children
s higher education/marriage.Salient Features• Young Achiever is a regular premium fixed term, protection cum savings plan for
your child.• The policy can be purchased on the life of any one of the parents with the childas the nominee. i.e. the parent is the insured.• Premiums can be paid in yearly, half-yearly, quarterly or monthly (direct debitor ECS only) intervals.• The policy offers two investment fund options: a With Profits Fund and a Unit Linked Fund. .Benefits On Survival• On maturity, the policy value is payable. Policy value is the total number of initial and accumulation units held in the unit account multiplied by the sellingprice of the units.• In case not wish to take the policy value on the policyholder does maturity, hehas the option of continue the unit account for a maximum of five years after th
e maturity date. The monthly administration charge will be reduced to 60% of those charged on policies before maturity On Death during the term• Two options are available:i. Sum insured plus the policy value is paid to the nominee and the policyis terminated.ii. The units can be held till the maturity date and these continue to earninvestment returns. In this case, units are purchased for an amount equal to thesum insured. These are then added to the policy value and returns accrue on this higher sum.If the nominee is a minor, the beneficiary or the appointee has the option of making partial withdrawals as per the terms and conditions of the policy (subjectto a minimum policy value.Other Conditions• The minimum age of the insured (parent): 21 years• The maximum age of the insured (parent): 55 years• The minimum age of the Child: 0 years• The maximum age of the Child: 17 years• The maximum age of the insured (parent) at maturity of the policy: 65 years.
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