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A
Project Study ReportOn
ICICI Prudential Life Insurance Private Limited
HYDERABAD(AP)
Titled
Financial Planning And Market Research Of LifeInsurance
Submitted in partial fulfillment for theAward of degree of
Master of Business Administration
Submitted By: - Submitted To:-AXITA JAIN Ms. BHUMIJA CHAUHAN
MBA Part IV Faculty ISIM
2009-2011
INTERNATIONAL SCHOOL OF INFORMATICS & MANAGEMENTJAIPUR
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Acknowledgement
I express my sincere thanks to my project guide, Mr. LOKESH JAIN, headtrainer of ICICI Prudential Life Insurance private Ltd.,Hyderabad , for guidingme right form the inception till the successful completion of the project. Isincerely acknowledge him for extending their valuable guidance, support forliterature, critical reviews of project and the report and above all the moralsupport he had provided to me with all stages of this project.I would also like to thank the supporting staff of ICICI Prudential LifeInsurance, Hyderabad, for their help and cooperation throughout our project.
RAKESH KUMAR SHARMA
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TABLE OF CONTENT
Executive summary ....4
Introduction of industry..6
History of life insurance in India ..8
Insurance sector reforms.11 Insurance Regulatory & Development Authority.14
Insurance market in India....15
ICICI prudential life insurance.17
Key benefits of life insurance..28
Scope of the study.30
Objective of project30
Products & services..33
Tools overview ..40
Investment allocation....47
Research Methodology....65
Interpretation of data ...76
Recommendations to company..85
Conclusion..87
Bibliography..93
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EXECUTIVE SUMMARY
The project was conducted in ICICI PRUDENTIAL LIFE
INSURANCE COMPANY LIMITED. The study was related to
understanding the products & services provided by the company.
Title of the project is FINANCIAL PLANNING AND MARKET
RESEARCH OF LIFE INSURANCE
Location: - Hyderabad(AP)
ICICI PRUDENTIAL has one of the largest distribution networks
amongst private life insurers in India, having commenced
operations in 200 cities & towns in India.
They began their operations in December 2000 after receiving
approval from Insurance Regulatory Development Authority
(IRDA). Today, our nation-wide team comprises of over 2000branches (inclusive of 1,074 micro-offices), over 274,500 advisors;
and 20 bancassurance partners.
As we all know that every topic of research has its own importance
& its slightly tough to-gather the information that is required
completely for a particular product.
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This report explained about the different portfolio adopted in
different product by ICICI PRUDENTIAL Life Insurance Company.
So that, it will help the company to get better return from their
investment in Equity as well as Debt instruments.
The company is providing different products for different customer
according to the needs & requirement of the customer. It will
increase the profitability of the company by attracting more & more
customer for giving better services to their investors.
It was really a good experience to work with ICICI PRUDENTIAL &
it will help me in the future.
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INTRODUCTION OF INDUSTRYA) INSURANCE IN INDIA:
The insurance sector in India has come a full circle from being an
open competitive market to nationalization and back to a
liberalized market again. Tracing the developments in the Indian
insurance sector reveals the 360-degree turn witnessed over aperiod of almost two centuries.
With largest number of life insurance policies in force in the world,
Insurance happens to be a mega opportunity in India. It is a
business growing at the rate of 15-20 percent annually and
presently is of the order of Rs 450 Billion. Together with banking
services, it adds about 7 per cent to the countrys GDP. Gross
premium collection is nearly 2 per cent of GDP and funds available
with LIC for investments are 8 per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life
insurance cover while health insurance and non-life insurance
continues to be below international standards. In addition, this part
of the population is subject to weak social security and pension
systems with hardly any old age income security. This is an
indicator that growth potential for the insurance sector is immense.
A well-developed and evolved insurance sector is necessary for
economic development as it provides long-term funds for
infrastructure development and at the same time strengthens the
risk taking ability. It has estimated that, over the next ten years
India would require investments of the order of one trillion US
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dollar. The Insurance sector, to some extent, can enable
investments in infrastructure development to sustain economic
growth of the country.
Insurance is a federal subject in India. Two legislations govern the
sector- The Insurance Act- 1938 and the IRDA Act- 1999. The
insurance sector in India has come a full circle from being an open
to a liberalized market again. Tracing the developments in the
Indian insurance sector reveals the 360-degree turn witnessed
over a period of almost two centuries.
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.
B)HISTORICAL PERSPECTIVE ABOUT LIFEINSURANCE IN INDIA:
The history of life insurance in India dates back to 1818 when it
was considered as a means to provide for English Widows.
Interestingly in those days, a higher premium was charged for
Indian lives than the non-Indian lives, as Indian lives were
considered more risky for coverage.
The Bombay Mutual Life Insurance Society started its business in
1870. It was the first company to charge same premium for both
Indian and non-Indian lives. The Oriental Assurance Company
established in 1880. The General insurance business in India, on
the other hand, can trace its roots to the Triton (Tital) Insurance
Company Limited, the first general insurance company established
in the year 1850 in Calcutta by the British. Until the end of
nineteenth century, insurance business was almost entirely in the
hands of overseas companies.
Insurance regulation formally began in India with the passing of
the Life Insurance Companies Act of 1912 and the provident fund
Act of 1912. Several frauds during 20's and 30's sullied insurance
business in India. By 1938, there were 176 insurance companies.
The first comprehensive legislation was introduced with theInsurance Act of 1938 that provided strict State Control over
insurance business. The insurance business grew at a faster pace
after independence. Indian companies strengthened their hold on
this business but despite the growth that was witnessed, insurance
remained an urban phenomenon.
The Government of India in 1956, brought together over 240private life insurers and provident societies under one nationalized
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monopoly corporation and Life Insurance Corporation (LIC) was
born. Nationalization was justified because it would create much-
needed funds for rapid industrialization. This was in conformity
with the Government's chosen path of State lead planning and
development.
The (non-life) insurance business continued to thrive with the
private sector until 1972. Their operations were restricted to
organized trade and industry in large cities. The general insurance
industry was nationalized in 1972. India Assurance Company,
Oriental Insurance Company and United India Insurance Company
are subsidiaries of the General Insurance Company (GIC).
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Important milestones in the life insurance business inIndia:
1907: The Indian Mercantile Insurance Ltd. set up- the first
company to transact all classes of general insurance 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.
1938: Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interests of the
insuring public.
1956: 245 Indian, foreign insurers and provident societies were
took over by Central government and nationalized. LIC formed by
an Act of Parliament- LIC Act 1956- with a capital contribution of
Rs. 5 crores from the Government of India.
.
1957: General Insurance Council, a wing of the Insurance
Association of India, frames a code of conduct for ensuring fair
conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set
minimum solvency margins and the Tariff Advisory Committee set
up. 7
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1972: The general insurance business in India nationalized
through The General Insurance Business (Nationalization) Act,
1972 with effect from 1st January 1973. 107 insurers
amalgamated and grouped into four companies- the National
Insurance Company Limited, the New India Assurance Company
Limited, the Oriental Insurance Company Ltd. and the United India
Insurance Company Ltd. GIC incorporated as a company.
INSURANCE SECTOR REFORMS:
In 1993, Malhotra Committee- headed by former Finance
Secretary and RBI Governor R.N. Malhotra- formed to evaluate
the Indian insurance industry and recommend its future direction.
The Malhotra committee was setup with the objective of
complementing the reforms initiated in the financial sector.
The reforms was 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
the overall financial system where it was necessary to address the
need for similar reforms. In 1994, the committee submitted the
report and some of the key recommendations included:a) Structure: Government stake in the insurance Companies must
brought down to 50%. Government should take over the holdings
of GIC and its subsidiaries so that these subsidiaries can act as
independent corporations. All the insurance companies must have
greater freedom to operate.
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b) Competition: Private Companies with a minimum paid up capital
of Rs.1bn should allow entering the sector. No Company should
deal in both Life and General Insurance through a single entity.
Foreign companies were allowed to enter the industry in
collaboration with the domestic companies. Postal Life Insurance
was allowed to operate the rural market. Only one State Level Life
Insurance Company should be allowed to operate in each state.
c) Regulatory Body:
The Insurance Act should be changed. An Insurance Regulatory
body should be set up. Controller of Insurance- a part of the
Finance Ministry- should be made independent.
d) Investments:
Mandatory Investments of LIC Life Fund in government securitiesto was reduced from 75% to 50%. GIC and its subsidiaries are not
to hold more than 5% in any company (there current holdings to be
brought down to this level over a period of time)
e) Customer Service:
LIC should pay interest on delays in payments beyond 30 days.Insurance companies must be encouraged to set 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
services and increase the coverage of insurance policies, industry
should be opened up to competition. But at the same time, the
committee felt the need to exercise caution as any failure on the
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part of new players could ruin the public confidence in the industry.
Hence, it was decided to allow competition in a 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- The Insurance Regulatory and
Development Authority.
A reform in the Insurance sector was initiated with the passage of
the IRDA Bill in Parliament in December 1999. The IRDA since its
incorporation as a statutory body in April 2000 has fastidiously
stuck to its schedule of framing regulations and registering the
private sector insurance companies. Since being set up as an
independent statutory body the IRDA has put in a framework of
globally compatible regulations. The other decision takensimultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the
launch of the IRDA online service for issue and renewal of licenses
to agents. The approval of institutions for imparting training to
agents has also ensured that the insurance companies would have
a trained workforce of insurance agents in place to sell theirproducts The Government of India liberalized the insurance sector
in March 2000 with the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting all entry restrictions for
private players and allowing foreign players to enter the market
with some limits on direct foreign ownership. Under the current
guidelines, there is a 26 percent equity cap for foreign partners in
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.
an insurance company. There is a proposal to increase this limit to
49 percent.
The opening up of the sector is likely to lead to greater spread and
deepening of insurance in India and this may also include
restructuring and revitalizing of the public sector companies. In the
private sector 12 life insurance and 8 general insurance
companies have been registered. A host of private Insurance
companies operating in both life and non-life segments have
started selling their insurance policies since 2001.
THE INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY:
Reforms in the Insurance sector were initiated with the passage of
the IRDA Bill in Parliament in December 1999. The IRDA since itsincorporation as a statutory body in April 2000 has fastidiously
stuck to its schedule of framing regulations and registering the
private sector insurance companies.
The other decisions taken simultaneously to provide the
supporting systems to the insurance sector and in particular the
life insurance companies launched the IRDAs online service forissue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has
also ensured that the insurance companies would have a trained
workforce of insurance agents in place to sell their products, which
are expected to be introduced by early next year.
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Since being set up as an independent statutory body the IRDA has
put in a framework of globally compatible regulations. In the
private
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.
sector 12 life insurance and 6 general insurance companies have
been registered.
INSURANCE MARKET IN INDIA:
The India Insurance market despite having a highly elaborate
history spanning almost two centuries, has come of age only in
last 50 years after the formation of the Life Insurance Corporation
(LIC) of India in 1956 and the entry of private companies into the
market in 2000.
Traditionally the Indian Insurance Market had centered on the life
insurance until recently, a host of other insurance policies covering
a diverse range of issues and objects like Medical Insurance,
Accident Insurance, Fire Insurance, Automobile Insurance and
other policies which fall under the category of general insurance
are being provided by various private insurance companies.A) PERFORMANCE OF THE INDIAN INSURACE MARKET-A
REPORT:
The following points will provide you an insight into the insurance
market in India and its fast expanding prospects. The report is well
supported by data based on detailed analysis that would help
investors, financial service providers and global banking players toventure into the Indian insurance market.
Taking into account the changing socioeconomic demographics
rate of GDP growth, behavior of consumers, and occurrences of
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intervals the market of Life Insurance in India is expected grow to
the value around US $ 41.44 billion by the year 2009. The Market
is expected to grow at a compounded annual growth rate (CAGR)
of more than 200% year over year (YOY) from year 2006 onwards.
65% of the general insurance market is controlled by private
house that already exists in the market.
However in automobile insurance, public sector covers a
substantial 68% of the total market value.
Among individual companies that are worthy of mentioning,
ICICI Lombard enjoys a whopping 53% market share in Accident
Insurance while the remaining 47% is shared by New India
Assurance and United India Insurance both belonging to the public
sector
The other key players of the market include:
A) In Public Sector:
Life insurance Corporation(LIC) of India, National Insurance
Company Limited, Oriental Insurance Limited, New India
Assurance Company Limited and United India insurance Company
Limited.
B) In Private Sector:
ICICI prudential Life Insurance, Bajaj Allianz, SBI Life, HDFC
Standard, Birla Sunlife, Aviva Life Insurance, Kotak Mahindra old
mutual, Max New York Life and Met life, Tata AIG Life, ING Vysya.
Thus, the ever increasing population of the country will ensure
constant boom in the India Insurance market in the distant future.
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ABOUT
COMPANY
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ICICI Prudential Life Insurance
Overview:-
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. 47.80 billion, with ICICI Bank holding a
stake of 74% and Prudential plc holding 26%.
They began their operations in December 2000 after receiving
approval from Insurance Regulatory Development Authority
(IRDA). Today, their nation-wide team comprises of over 2100
branches (inclusive of 1,116 micro-offices), over 290,000 advisors;
and 18 bancassurance partners.
ICICI Prudential is 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 they
grow their 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
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The ICICI Prudential edge comes from their commitment to their
customers, in all that they do - be it product development,
distribution, the sales process or servicing. Here's a peek into what
makes us leaders.
1. their 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 that are a
hedge against inflation and yet promise a fixed income after you
retire, or Health insurance that arms you with the funds you might
need to recover from a dreaded disease.
2. 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 andhassle-free claims process.
3. 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.
4. Last but definitely not the least, our 32,000 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 in
life.
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Vision & Values
Vision:
To be the dominant Life, Health and Pensions player built on trust
by world-class people and service.
ICICI Prudential Life Insurance Company hopes 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,
Boundaryless, Ownership and Passion. Each of the values
describe what the company stands for, the qualities of our people
and the way we work.
They believe that we are on the threshold of an exciting new
opportunity, where we can play a significant role in redefining and
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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, Boundaryless, Ownership, and
Passion. These values shine forth in all we do, and have become
the keystones of our success.
Promoters
ICICI Bank
ICICI Bank Limited (NYSE:IBN) is India's largest private sector
bank and the second largest bank in the country, with consolidated
total assets of $121 billion as of September 30 , 2008. ICICI
Banks subsidiaries include Indias leading private sector insurance
companies and among its largest securities brokerage firms,
mutual funds and private equity firms. ICICI Banks presence
currently spans 19 countries, including India.
Prudential Plc
Established in London in 1848, Prudential plc, through its
businesses in the UK, Europe, US, Asia and the Middle East,
provides retail financial services products and services to more
than 21 million customers, policyholder and unit holders and
manages over 256 billion of funds worldwide (as of June 30,
2008). In Asia, Prudential is the leading Europe-based life insurer
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with life operations in China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand,
and Vietnam. Prudential is one of the largest asset management
companies in terms of overall assets sourced in Asia ex-japan,
with 34.3 billion funds under management (as of June 30, 2008)
and operations in ten markets including China, Hong Kong, India,
Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United
Arab Emirates.
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Management Profile
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board
comprises reputed people from the finance industry both from
India and abroad
Mr. K.V. Kamath, Chairman
Ms. Chanda Kochhar, Director
Mr. Barry Stowe, Director
Mr. Adrian OConnor, Director
Prof. Marti G. Subrahmanyam, Director
Mr. Mahesh Prasad Modi, Director
Ms. Rama Bijapurkar, Director
Mr. Keki Dadiseth, Director
Ms. Shikha Sharma, Managing Director
Mr. N.S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Promoters:-
ICICI Bank
ICICI Bank is India's second largest bank and largest private
sector bank with over 50 years presence in financial services and
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with assets of over Rs 3569.32 bn (USD 88 billion) as on June 30,
2007. The Bank offers a wide range of banking products and
financial services to corporate and retail customers through a
variety of delivery channels and through its specialized
subsidiaries in the areas of investment banking, life and non-life
insurance, private equity and asset management.
Prudential Plc
Established in London in 1848, Prudential plc, through its
businesses in the UK and Europe, the US and Asia, provides retail
financial services products and services to more than 20 million
customers, policyholder and unit holders and manages over 256
billion of funds worldwide (as of June 30, 2007). In Asia, Prudential
is the leading European life insurance company
For the past six years, ICICI Prudential has retained its leadershipposition in the life insurance industry with a wide range of flexible
products that meet the needs of the Indian customer at every step
in life.
Management Team
The ICICI Prudential Life Insurance Company Limited
Management team comprises reputed people from the finance
industry both from India and abroad.
Ms. Shikha Sharma, Managing Director & CEO
Mr. N. S. Kannan, Executive DirectorMr. Bhargav Dasgupta, Executive Director
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Ms. Anita Pai, Executive Vice President Customer Service &
Technology
Dr. Avijit Chatterjee, Appointed Actuary
Mr. Puneet Nanda, Executive Vice President & Chief Investment
Officer
Ms. Shikha Sharma
Managing Director & CEO
ICICI Prudential Life Insurance Company Limited
Ms Shikha Sharma is the Managing Director & CEO of ICICIPrudential Life Insurance Company. ICICI Prudential was
amongst the first private sector companies in India to be awarded
a life license in December 2000, and since its inception the
company has established itself as Indias leading private life
insurer, offering a complete range of products to meet the varying
needs of the Indian customer.
Ms Sharma, is a B.A. (Hons.) graduate, has a Post Graduate
Diploma in Software Technology, from the National Centre for
Software Technology, Mumbai and completed her Masters of
Business Administration from the Indian Institute of Management -
Ahmedabad.
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She began her career with ICICI, one of India's largest financial
services providers, in 1980. She has been instrumental in setting
up various group businesses for the company, including
investment banking and retail finance.
Mr. N. S. Kannan
Executive Director
ICICI Prudential Life Insurance Company Limited
N. S. Kannan is the Executive Director of ICICI Prudential Life
Insurance Company. Kannan has been with the ICICI group forover 15 years. He looks after the corporate centre including the
Finance and accounts functions, Investor/analyst relationship,
Investment Management, Corporate Strategy, Corporate
Communications, Human Resources and Business Intelligence.
Prior to current assignment, he was in-charge of business
functions including retail business, group business, marketing &investments management.
He joined the ICICI group in 1991 as a project officer. During his
tenure at ICICI group, he has handled project finance operations,
infrastructure financing, structured finance and treasury
operations.
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Mr. Bhargav Dasgupta
Executive Director -
ICICI Prudential Life Insurance Company Limited
Bhargav Dasgupta joined ICICI Prudential Life Insurance
Company Ltd as Executive Director in October 2006, and is
responsible for sales, distribution, product development, and
marketing for the retail and group businesses of the company.
Prior to joining ICICI Prudential Life, Bhargav was with ICICI Bank.He began his stint with ICICI in 1992 in the Projects & Corporate
Finance Division. Since then he has held key leadership positions
in diverse business areas of the Group.
From being Deputy Head of the Oil & Gas Strategic Business Unit
to setting up the Technology Management Group, Bhargav movedon to develop the strategic plan for the Groups Business Process
Outsourcing and International
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Key Benefits of Life Insurance
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The table below gives a general guide to the plansthat are appropriate for different life stages.
Life Stage Primary Need Life Insurance ProductYoung & Single Asset creation Wealth creation plans
Young & Justmarried
Asset creation & protectionWealth creation andmortgage protection plans
Married with kidsChildren's education, Assetcreation and protection
Education insurance,mortgage protection &wealth creation plans
Middle aged withgrown up kids
Planning for retirement & assetprotection
Retirement solutions &mortgage protection
Across all life-stages
Health plans Health Insurance
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Instrument Safety LiquidityPost TaxReturns
TaxEfficiency
LifeCover
ProvidentFund
High Low Good Good None
Shares Low Average Uncertain Low NoneKVPs,NSCs,etc
High Low Low Low None
Bonds, FixedDeposits
Average Average Average Low None
MutualFunds
Average High High Average None
PostalSavingsSchemes
High Low Low Average None
LIFEINSURANCE
HIGH LOW GOOD HIGH YES
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SCOPE&
OBJECTIVE
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Scope of the study
The insurance industry in India is about many decades old. The
life insurance corporation of India was the lone player in the
country for around 5 decades. It is during the later half fifties till
nineties, public sector owned companies are providing insurance
to public.
The ICICI Prudential providing different products for different
consumer & according to it they have set the different portfolio for
different products. Many products do well in the market & many fail
in the market.
In this study we come to analyze different portfolio of different
products which are doing well in the market.
Objective of project
The objective of this project was to assist ICICI prudential life
insurance in positioning the important role of life insurance sector
as an investment being a leading private life insurance company.
For the company to successfully achieve this it needs to
understand the general publics priorities & feedback so as to
provide them the best solutions through use of superior & flexible
products & services.
First:-
The first & foremost objective of the study is to analyzedifferent sectors on which the icici prudential makes the portfolio.
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Second:-The next objective of the study is to know how different
products will perform in the market.
Third:-The next objective of the study is to analyze the product
performance with the benchmark set by the company
Therefore, here we come to analyze the different graph of different
product with portfolio, performance & compare with the benchmark
set by the company.
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PRODUCTS&SERVICES
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H) PRODUCTS:
INSURANCE SOLUTION FOR INDIVIDUALS:
ICICI Prudential Life Insurance offers a range of innovative,customer-centric product that meets the needs of customers atevery stage.
a) SAVINGS & WEALTH CREATION PLANS:
Save n Protect
Cash back.
Life Time Gold
Life Stage RP
Life Link Super
Premier life Gold.
Invest Shield Cash Back.
b) PROTECTION SOLUTION:
Pure protect
Life Guard
Home Assure
Life Stage Assure
c) CHILD PLANS:
Smart Kid New ULRP
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d) RETIREMENT SOLUTION:
Forever Life Life Time Super Pension
Life Stage Pension
Life Link Super Pension
Immediate Annuity
e) HEALTH SOLUTION:
Health Assure Plus
Cancer
Hospital Care
Crisis Cover
Diabetes Care Active
Medi Assure
Health saver
f) GROUP INSURANCE SOLUTION:
ICICI Prudential also offers group insurance solution forcompanies seeking to enhance benefit to their employees.
Group Gratuity Plan
Group Superannuation Plan
Group Immediate Annuities
Group Term plan
g) FLEXIBLE RIDER OPTIONS:
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ICICI Prudential Life Insurance offers flexible riders, which can be
added to the basic policy at a marginal cost, depending on the
specific needs of the customer.
Accidental & Disability Benefit
Critical Illness Benefit
Wavier of premium
Income Benefit Rider
Insurance Plans - At a GlanceBroadly, insurance plans can be distinctly
divided into ULIP (Unit Linked Insurance Plans) and traditional
plans. A brief detail of both segments:
Traditional Plans
This Traditional Plan provides safety & security to the consumer
who doesnt want to take any type of risk due to the fluctuation in
the market. This plan provides happiness & security for the family.
This term plan insures the policyholders life & provides total
security to the family, at a very affordable cost.
These are the oldest types of plans available. These plans cater
to customers with a low risk appetite. Some of the common
features of traditional plans are:
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Steady Investment
1. Major chunk of investible funds are in debt
instruments.
2. Steady and almost assured returns over the long term.
Features
Death benefit is Sum Assured + guaranteed & vested bonus.
Helps in asset creation as they are for a long tenure.
Premium to Sum Assured ratios are fixed for each plan and
age.
Characteristics of Traditional Plan
1. It provides financial assistance to the family &prevents
the liquidation of existing assets incase of a financial
emergency.
2. It provides complete financial assistance incase of the
death of the life assured & is available at an extremely
cost effective price.
Benefits of Traditional Plan
1. The policy holder does not have to spend a huge
amount of money for buying the insurance plan.
2. The policyholder & his/her family can enjoy peace of
mind even after the maturity of the policy.
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3. The policyholder can opt for a cover which matches
with his/her Net Worth.
4.The family of the policyholder is rest assured that they
can take care of their daily financial needs without any
difficulty even in an event of financial emergency.
ULIP:-
UNIT LINKED INSURANCE PLAN (ULIP) is a life insurance
solution that provides the client with the benefits of protection &
flexibility in investment. It is a solution which provides for life
insurance where the policy value at any time varies according to
the underlying assets at the time.
Unit Linked Insurance Product
ULIPs have gained high acceptance due to attractive features they
offer. These include:
1.Flexibility
Flexibility to choose Sum Assured.1) Flexibility to choose premium amount.
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2) Option to change level of Premium /Sum Assured even
after the plan has started.
3) Flexibility to change asset allocation by switching
between funds.
2. Transparency
Charges in the plan & net amount invested are known
to the customer.
Convenience of tracking ones investment performance
on a daily basis.
3. Liquidity
Option to withdraw money after few years (comfortrequired in case of exigency).
Low minimum tenure.
Partial / Systematic withdrawal allowed
4. Fund Options
A choice of funds (ranging from equity, debt, cash or a
combination).
Option to choose your fund mix based on desired
asset allocation.
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TOOLS
OVERVIEW
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Tools Overview
Asset Allocator
Assets are to be allocated to the investor by seeing the following
question:-
Are you an aggressive investor who wants to ride the equity
markets? Or are you more conservative, comfortable investing in
assured return products? Risk Analyzer will in finding out whatyour asset allocation should be, keeping in mind your risk capacity
and your risk behavior.
Inflation Erosion index
Inflation can easily erode the corpus that we set aside for our post-
retirement needs. This erosion happens due to the fact that our
corpus might not earn an interest that keeps pace with rising costs.
To find out how inflation will impact your expenses in the future,
use our inflation index calculator to find out how your current
expenses will grow in the future. You need to enter your current
expense figures in the Inflation Index Calculator, your expected
rate of inflation, and the no. of years in the future you will incur the
expense.
Power of Compounding
The most powerful boost your money can get is time. Invested
properly over a long period of time, money can grow to many times
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its original amount - the longer the tenure of investment, the
greater will be the corpus amount.
The name of the game is to invest early and to invest regularly. To
further gain an understanding of this concept, try doing your own
experiments with ourSimple Compounding Calculator.
Human Life Value Calculator
Investment in insurance is an essential requirement for one's
financial planning to be complete. However, the quantum of
insurance that one needs is a function of one's income, assets,
liabilities and future goals.
Use the Life Value Calculator to find out how much insurance
cover is needed by you.
Life Stage Profiler
The 'Wheel of Fortune' is an interactive game developed by ICICI
Prudential to help you chose the ideal insurance solution. Based
on your responses to certain key questions, we will recommend a
suite of products that will address your financial and insurance
needs.
Modern portfolio theory
Modern portfolio theory (MPT) proposes how rational investors will
use diversification to optimize their portfolios, and how a risky
asset should be priced. The basic concepts of the theory are
Markowitz diversification, the efficient frontier, capital asset pricing
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model, the alpha and beta coefficients, the Capital Market Line
and the Securities Market Line.
Risk and return
The model assumes that investors are rational, meaning that given
two assets that offer the same expected return, investors will
prefer the less risky one. Thus, an investor will take on increased
risk only if compensated by higher expected returns. Conversely,
an investor who wants higher returns must accept more risk. The
exact trade-off will differ by investor based on individual risk
aversion characteristics. The implication is that a rational investor
will not invest in a portfolio if a second portfolio exists with a more
favorable risk-return profile - i.e. if for that level of risk an
alternative portfolio exists which has better expected returns
Asset Allocation: The key to investing
In the process of personal financial planning an individual must
select assets that will generate adequate returns to meet the
financial goals, and at the desired levels of risk. This is known as
asset allocation. Go through our Risk Analyzer to learn what yourasset allocation strategy should be.
Though "asset allocation" decisions are critical to one's financial
plan, it is one that very few understand and consciously keep in
mind when making an investment decision. There are two
questions to be answered in every asset allocation decision:
WHAT and HOW?
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WHAT?
Asset allocation decision is about dividing the investments
between asset classes such as
1) Equities,
2) Cash And Money Markets Equivalents,
3) Bonds,
4) Insurance,
5) Real Estate,
6) Derivatives.
7) Commodities,
8) Antiques And Art,
9) International Financial Instruments
The principal reason for diversifying investments across different
asset classes is to minimize the risk of a portfolio. It requires one
to avoid investments whose returns tend to move too closely with
each other. Given this, the common flaw with investing in "growth
stocks", "value stocks", "small caps" and "mid caps" is that their
returns are all highly correlated, making them all members of thesame asset class, "domestic equities".
HOW?
Once an individual has identified these asset classes, he/she
needs to know how to divide his/her investments in these asset
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classes. The key considerations in choosing the asset classes are
the level of return and the risk
The factors that one should consider in choosing exposures to
different asset classes are as follows:
1. Risk Tolerance:
The degree to which one can tolerate risk varies for different
people, and depends on the following:
Stage in life
Net-worth
Experience with investments
2. Investment objective:
This entails deciding the purpose for which the investments are
being made. Different objectives would demand that one tailor
their investment portfolio to meet these goals.
2. Time Horizon:
Medium term (3-5years)
Long term (5 years & above).
Benchmarks
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To ensure that ICICI maintain a strict discipline in managing
policyholders funds, they have clearly articulated benchmarks for
various unit-linked funds. In addition they also have strict deviation
limits vis--vis benchmarks that ensure that they do not take
undue exposure in any particular sector or stock. It is their
endeavor to give better returns than the benchmark to
policyholders for all the funds that they manage.
Therefore, they concentrate strictly on the market watch & analyze
present as well as future aspects of the investment change the
portfolio of the product according to market situation.
Rupee Cost Averaging
Rupee Cost Averaging is an effective market-timer mechanism
that eliminates the need to time the markets. All one has to do is to
invest a fixed, pre-decided amount of money on a regular basis
over a long period of time.
Since the amount invested per month is constant, one buys more
units when the price is low and fewer units when the price is high.
As a result the average unit cost will always be less than the
average sale price per unit, irrespective of the market rising, falling
or fluctuating.
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INVESTMENT ALLOCATION
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Investment allocation is to be done according to the age group.
This can be explain in above diagram
YOUNG AGE GROUP
In this the main invest is to be done more in equity fund, medium
in debt fund & less in cash i.e. government securities.
ADULT AGE GROUP
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High LowModerate
Young Adult Old
Cash
Equity
Debt
Cash Cash
EquityEquity
Debt Debt
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In this there is moderate concern in debt & equity fund & less in
cash.
OLD AGE GROUP
In this the main invest is to be done more in debt fund, medium in
equity fund & less in cash i.e. government securities.
Therefore while doing any policy for the customer the company
first will check the, what is the risk bearing capacity of the
customer & according to it they will suggest which policy is suitable
for customer.
KINDS OF FUNDS
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L a r g M i d I n d F l e x i
E q u iB a l
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Cash Fund:
100% of the fund shall be invested in Money Market
Instruments and Short Maturity instruments. There is no negative
return in such funds, but there is a chance of getting low returns.
Debt Funds:
100% of the money is invested in low risk high quality fixed
income securities. In these funds no fluctuation in price are there
thats why there is less risk & fixed rate of return we get.
Equity Funds:
Large parts of funds are invested in stocks and balance in
Cash & Debt Instruments. There is high volatility in the market &
therefore there is high risk as well probability of return is high in
these funds.
Balance Funds:
Invest 30-50% in Equity Index Fund & balance 50-70% in
Debt Funds.It will balance the portfolio in the long run for getting
better returns from Equity as well as Debt funds.
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FLEXI GROWTH
Objective:
To generate superior long term returns from diversified portfolio of
equity and equity related instruments of large mid and small cap
companies. These funds are more dependent on the market thats
why high fluctuation is also possible.
In flexi growth the share of equity fund is 83% the share of debt
fund is 17% .This shows that as share market increases there is
more returns & vice-versa. Hence in this superior long term returns
will be generated. These funds are more dependent on the market
thats why high fluctuation is also possible.
In this fund there is also a proportion debt fund through which
there is surety of returns.
FLEXI BALANCED
Objective:
To achieve a balance between capital appreciation and stable
returns by investing in a mix of equity related instruments of large,
mid and small cap companies and debt and debt related
instruments
In flexi growth the share of equity fund is 53% the share of debt
fund is 47%.
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This shows that as share market increases there are moderate
returns. The level of risk is less in comparison of flexi growth.
Therefore to achieve a balance between capital appreciation and
stable returns by investing in a mix of equity related instruments of
large, mid and small cap companies and debt and debt related
instruments.
MAXIMISER
OBJECTIVE:
To generate long term capital appreciation through investment
primarily in equity & equity- related instruments. There is a main
objective of this fun is to appreciate the investment of investor
The maximiser fund has average return of 35.36%
This shows that the maximiser fund generates a long term capital
appreciation through investment primarily in equity & equity-
related instruments. In this fund all the money is invested in equity
instrument which are fully dependent on the market. There is also
no surety for returns in short term but gives higher returns in long
run.
Therefore it is preferred by young & adult persons because of this
reason
PROTECTOR
Objective:
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To generate a steady stream of income through investment in
various fixed income securities. We would seek to generate
adequate capital appreciation as well while maintaining suitable
balance between returns, safety and liquidity.
In this whole protector fund is managed in debt fund and invested
in
a) Debentures / Bonds
b) Government Securitiesc) Deposits With Banks
d) Accrued Interest / Cash / Call / Money At Short Notice /
Other Net Current Assets.
There Is No Investment In equity market thats why there is less
risk as well as less return in long run. It is more preferable by old
people.
PRESERVER
Objective:
To provide suitable returns through low risk investments in debt
and money market instruments while attempting to protect the
capital deployed in the fund.
In this whole preserver fund is managed in debt fund and invested
in
a) Debentures / bonds
b) Deposits with banks
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c) Accrued interest / cash / call / money at short notice / other
net current assets.
This shows that the maturity period of this fund is more for one
year & less for 1- 5 years
Therefore, to provide suitable returns through low risk investments
in debt and money market instruments while attempting to protect
the capital deployed in the fund. It is having a very short time
period & does not give better returns because low risk low return
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Extract the maximum from investment!
ICICI Prudential presents LifeLink Super a unique, single
premium market-linked investment-cum-insurance solution thatenables you to extract the maximum from your investment.
LifeLink Super offers attractive premium allocation along with
flexible investment options to give you the opportunity to enjoy
potentially high returns on your investments, without compromising
on the protection of your family.
Further, the Flexi Growth & Flexi Balanced funds invest their
equity component in companies across market capitalization
(large-cap, mid-cap & small-cap) and can freely swing allocation
between the various market caps, thus giving you superior long-
term returns.
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Choice of investment funds
Death Benefit
In case of the unfortunate event of death, your nominee will get the
higher of the fund value or Sum Assured (less any withdrawals
made).
You can choose amongst 2 options of the Sum Assured,
expressed as a multiple of the single premium :-
1). 500% Sum Assured (i.e. 5 times the single
premium)
2). 125% Sum Assured (i.e. 1.25 times the single
premium)
Survival / Maturity Benefit
On survival / maturity, the value of the units as on that date
will be paid to the policyholder.
Maximum allocation
You get 100% allocation for premium of Rs.5 lakhs and
above (i.e. no entry load).
Choosing of best investment fund
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One can choose to invest their money amongst 4 unit funds,
to suit their risk-return objectives. The following Table gives
details of the 4 funds :
FundMaximum
InvestmentMinimum
InvestmentPotential
Risk-Reward
FLEXI GROWTH III FUND High
Equity and Equity relatedsecurities
100% 80%
Debt, Money Market andCash
20% 0%
MAXIMISER III FUND High
Equity and Equity relatedsecurities
100% 75%
Debt, Money Market andCash
25% 0%
FLEXI BALANCED III FUND Moderate
Debt, Money Market andCash
100% 40%
Equity and Equity relatedsecurities
60% 0%
BALANCER III FUND Moderate
Debt, Money Market andCash
100% 60%
Equity and Equity relatedsecurities
40% 0%
PROTECTOR III FUND Low
Debt Instruments, Money 100% 100%
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Market and Cash
PRESERVER III FUNDCapital
Preservation
Debt Instruments 50% 0%
Money market 100% 50%
And depending on how the market performs, you have the
flexibility to switch between these funds to maximize your
gains, up to 4 times a year - absolutely FREE.
Claims
Overview
At ICICI Prudential Life every claim is a fulfillment of a promise that
we have made to our policyholder and we do our best to process
the claim in the most transparent and quick manner. We are
committed towards securing the future of your loved ones,
particularly in the time of need.
With Customer First being one of our core values, we periodically
review our claim processes and continue to invest towards
understanding our customer needs. We have developed and
implemented our claims processes to ensure the payment of
genuine and legitimate claims at the earliest with a prudent risk
philosophy that protects policyholder's interest at all times.
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In line with our philosophy of easing the financial burden on the
policyholder and their nominees, ICICI Prudential Life will make a
claim payment within 10 working days from receipt of the last
requirement.
They have a 4 step claim process
Intimation of claim to ICICI Prudential Life
ICICI Prudential Life to help the claimant to complete the
documentation
Claimant to submit the required documents
ICICI Prudential Life to take decision on the claim
They truly believe that a hassle free claims settlement is the
ultimate service that can provide to their customers.
Parameters to be considered by the company
The company considers the cause, circumstances of claim and
duration of the policy while asking for requirements e.g. For
accidental death, specific proofs such as post-mortem and police
report are required whereas for death due to an illness, the
company calls for records from hospital, test reports etc.
Claim be intimated to the company
Claim can be communicated through
Written Intimation
Nearest ICICI Prudential Life branch/Corporate Claims Cell
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E-mail at [email protected]*
Verbal Intimation*
SMS IClaim8 digit policy no to 56767
Toll free number 1800-22-2020
* Kindly note that claim will be formally registered only after receipt
of written intimation at branch/ Corporate Claims Cell
4. Why is it essential to produce all the records/ documents as
required by the company?
Claims are examined and settled by the company on the basis of
all records and proofs in connection with the claim. On notification
of a claim, the company informs the claimant about the required
documentation. For faster claims processing, we advise early and
complete submission of required documents.
Our officials can be contacted for any clarification/ assistance with
regard to the claim.
5. Where can a claimant get claim forms and list of documents
required for submission?
The claimant can get the claim intimation form
In the policy document as a part of our welcome kit
At the nearest ICICI Prudential Life Insurance Co. branch
From our advisor
In our website under claims section
6. Where can the claimant submit claim documents?
The claimant can submit the documents at
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Nearest ICICI Prudential Life Insurance Co. branch
Corporate Claims Cell
ICICI Prudential Life Insurance Company Ltd,Stanrose House, 4th floor,
Appasaheb Marathe Marg,
Prabhadevi, Mumbai 400 025.
7. What is the time frame within which the claim has to be reported
to the company?
A claim must be reported as soon as possible to enable the
company to process the claim, however, for disability claim the
company has stipulated period of 120 days from the date of
disability and for critical illness and major surgery claim the
company has a stipulated period of 60 days from the date of
diagnosis/ surgery respectively.
8. Once all the requirements are submitted, how long does it take
for the company to settle the claim?
The company settles the claim within 10 working days after all the
records, documents and necessary forms are submitted and the
documentation is completed. In case the claim warrants further
verification, the company keeps the claimant informed of the
same. Subsequently, when a decision is taken, it is communicated
to the claimant by means of a letter.
9. Who is entitled to receive the claim benefit?
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The nominee or the appointee (in case of minor nominee)
last recorded under the policy in case of policy on own life
The proposer in case the policy is not on own life
Assignee in case the policy is assigned
Life Assured himself/ herself in case of policy on own life for
living benefit claims i.e. claims under disability, critical illness
and major surgery rider
10. Procedure when there is no nomination or in case of pre-
deceased nominee at the time of death claim?
In such circumstances, it is termed as Open Title situation. The
company would require the proof of title/ succession certificate
issued by the competent court. The claim would be paid to the
person specified in the said proof. If the company has accepted
the claim but is waiting for such proof, then the company holds the
money till the proof is submitted and pays the interest as directed
by the IRDA from time to time.
11. How will the claimant receive the claim amount?
The company honours claim payments through cheque or ECS as
per the convenience of the claimant.
Cheque Payments:
A cheque is drawn on ICICI Bank
It is dispatched directly to the claimant at the address
mentioned in the intimation form/ claimants statement
In non-serviceable areas the cheque is sent to the local
branch with an instruction to forward it to the claimant
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Electronic Clearing Service:
ECS mandate along with cancelled cheque needs to be
submitted Funds will be transferred directly to the claimants bank
account
12. Under what circumstances is a claim declined by the
company?
A claim will be declined if the claim made does not comply to
Declaration & Authorization agreed at the proposal stage in
the application form
Terms & Conditions provided in the policy document
INSURANCE REGULATORY DEVELOPMENT AUTHORITY
Insurance Ombudsman
Insurance Ombudsman has been established through a
Government notification for quick disposal of the grievances of
insured customers. There are 12 offices in the country and
approaching an Insurance Ombudsman is cost free. The
Ombudsman is empowered to give award (decision) for insurance
contracts up to Rs.20 lakhs. Once the grievance is lodged, the
office of Ombudsman arranges a hearing which is attended by the
claimant and the representatives of the Insurer. Usually the award
of the Ombudsman is expected within three months of the hearing.
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The addresses of the Ombudsman offices are available on our
website and also on IRDA website (www.irdaindia.org).
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY:
Research refers to the systematic method consisting of
enunciating the problem formulating a hypothesis, collecting the
facts or data, analyzing the facts and reaching a certain
conclusions either in the form of solutions towards the concerned
problem or in certain generalizations for some theoretical
formulation. It is a tool used to measure the characteristics of the
market to obtain the information needed for forecasting to evaluate
new product ideas & to assist the management in better decision-
making. With the passage of time and shifting of market from the
producer to consumer and his needs, the consumer is becoming
more involved in market. The necessitates the information on the
need preference and the evaluation of the consumers.
The purpose of methodology is to describe the research procedure
in solving the marketing problems effective research involves
following major steps, which we are going to discuss one at a time.
Defining the problem and research objectives.
Developing research plan.
Collecting information.
Analyzing the information.
Presenting the finding.
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OBJECTIVES:
To know the factors which increase the market potential of
ICICI Prudential life insurance ltd.?
To know customers perception about different products and
services provided by ICICI Prudential Life Insurance.
RESEARCH APPROACH:
This phase includes the preliminary groundwork for the actual
research process which is carried out. It includes under standing of
project scope , research objectives, study of relevant materials
from various source.
Research approach can be of two types:
Quantitative approach,
Qualitative approach
Since this research involves plenty of primary data collection and
survey method where a sample of population is studied, the
research approach is quantitative one.
RESEARCH DESIGN:
Research design is a conceptual structure within which research is
conducted. Purpose of research design is to provide the collection
of relevant evidence with minimum expenditure of effort, time &
money. Research purpose may be grouped into four categories:
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Exploratory
Descriptive
Diagnosis and
Experimental
We are following an exploratory and descriptive research design
because it provides opportunity for considering many different
aspects of a problem or study.
In the study, our purpose was to explore the as much investment
option as much possible to customer in insurance sector.
Objective of investing in insurance vary from customer to
customer, these objectives can be:
Long term capital gain, short term capital gain, tax benefit, high
return and high risk, medium return and low risk etc. And to satisfy
all these objectives there are various option available to invest ininsurance market.
DEFINING THE RESEARCH PROBLEM:
A research problem of our study is Market Potential of ICICI
Prudential life insurance ltd.
FORMULATION OF PROJECT HYPOTHESIS
This step involved formulating the expected outcome of the project
study, which would be tested for its validity during analysis and
interpretation. If the organizational assumption (null hypothesis)
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turns out to be different than our beliefs, it would be substantiated
else; the alternative hypothesis would become valid.
HYPOTHESIS TESTING
It involves testing the validity of the project hypothesis that was
made initially. If it turns to be true than the null hypothesis is
proved to be correct or else alternative hypothesis will be true
Null Hypothesis
The ICICI PRUDENTIAL LIFE INSURANCE COMPANY enjoys a
good market value and follows effective strategies.
Alternate Hypothesis
The ICICI PRUDENIAL LIFE INSURANE COMPANY does not
enjoy a good market value and follows poor strategies.
SAMPLE DESIGN
Sample design is a plan for obtaining a sample from a givenpopulation. It is a technique or procedure for selecting items for
sample. It lay down the number of items or respondent to be
included in the sample.
Type of universe:
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First step in developing any sample design is to clearly define the
set of object called universe. Universe can be finite or infinite or
finite. In this research, universe is set of people who interested in
investing into insurance.
SAMPLE FRAME
It was based on the database provided by ICICI Prudential Life
Insurance ltd., Sriganganagar branch out of which prospective
candidates for insurance products were selected.
SAMPLING TECHNIQUE
Sampling technique is a technique to be used in selecting theitems from the sample. There are two types of sampling technique
probability sampling and non probability sampling technique.
Probability sampling:
Simple random sampling
Systematic random sampling
Stratified sampling cluster sampling etc.
Non probability sampling
In this research study we following simple random sampling
technique in which each and every respondent have equal
opportunity to get selected into sample.
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SAMPLE TECHNIQUE
Its a probabilistic sampling because 100 customers were chosen
from the population where each customer had an equal chance of
being selected.
SAMPLING UNIT
Sampling unit is a geographical location such as city state district
village etc. where research is conducted. In our research study
sampling unit is Sriganganagar.
SAMPLE SIZE
It refers to number of items to be selected from universe to
constitute sample. In this research sample size is of 100
respondents who interested in investing into insurance.
DATA COLLECTION
Data collection method is the method to be used for collecting data
for study. Method for collecting primary data and secondary data
differ since primary data are to be collected originally while
secondary data are already available. This step involved
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designing, means for requisite information collection and the
responses were sought out on the various aspects of the products
and services provided by the company.
METHOD OF DATA COLLECTION
1) PRIMARY DATA:
Primary data are the fresh data that can be collected either by
experiment or through survey. In this research survey method is
used to collect the primary data for the research. There is various
ways for collecting primary data these are:
By observation method
Through personal interview
Though telephone interview
By questionnaire
Through schedules
In this research primary data are collected through personal
interview method with the help of structured questionnaire was
adopted, taking into consideration the availability of time and other
resources.
The questionnaire was prepared in such a manner that the
investor had to fill it in order to give the relevant information about
the customer satisfaction at their relative issuance company.
The primary data collected through the questionnaires was
analyzed to rank the factors that contributed to the customer
satisfaction as per the insurance company.
2) SECONDARY DATA:
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Secondary data consists of information that exists somewhere,
that has been collected for purpose of helping in the project. The
secondary sources of data were the various websites and
insurance manuals. This mainly provided information about the
insurance sector and the companys profile. These helped in
gaining knowledge about the industry. These sources are listed in
references.
DESIGNING OF QUESTIONNAIRE:
A questionnaire is the most common research instrument. Aresearch instrument should avoid bias and also develop a
device, which will facilitate effective communication. A
questionnaire is the set of questions or with or without blank
space for recording answers. These questions can secure the
relevant facts or opinions from informed and interested
respondents included in the sample survey. While preparing thequestionnaire almost attention was given to sex, age,
occupation & social contacts. The questionnaire includes close-
ended questions and proper care was taken to minimize
ambiguity. In order to get the information through questionnaire,
we adopted personal interview method s it helped both purpose
o getting the information, which was mentioned, in the
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questionnaire and some vital additional information with the
respondents expressed while talking to them.
DATA ANALYSIS AND INTERPRETATION:
After the data was collected it was compiled, classified and
tabulated manually. Then the task f drawing inferences was
accomplished. Finally the result and follow up suggestions are
given.
1. RATING SCALES: By providing alternatives within a
question so as to keep the study within the frame and
also letting the investor compare an select various
alternatives in a question.
2. COMPARATIVE ANALYSIS Of TRENDS: On the basis of
answers given by the investors comparison charts of
different alternatives were prepared so as to compare and
predict objects like future requirement of funds, invest
able surplus etc.
3. GRAPHICAL ANALYSIS AND INTERPRETATION: The
obtained data was put into pie charts so as to depict the
exact trends in an easily absorbable manner.
LIMITATIONS OF THE STUDY
Although sincere efforts were made to collect maximum and
accurate information from the available sources. And study is
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carried out with full devotion, even this report is subjected to
following limitation and constraints:
1) Time Constraint: due to shortage of time a deep and
detailed study could not be taken of.
2) Companys Private: some data relating to the company
was not available because of privacy and security policy
of the insurance company.
3) Technical constraints: the use of deeper statisticaltechniques like analysis of variance, multiple regression
analysis could not be adopted due to lack of time and
expertise.
4) Limited study: insurance is a very vast area and it was not
possible to study each and every aspect of insurance
within this time.
5) Questionnaire contains some personal questions such as
what is the average investments per month, which
respondents found difficult to answer hence sometimes
they were not much co-operative to fill the full
questionnaire.
6) The market was limited to the operations in the market as
specified by the project guide of the company.
7) The information collected was limited to the selected
customers.
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8) Getting the appointment with the people was difficult as
most of the people were busy and it was difficult to
contact them again & again.
9) As on telephone calling to get appointments, people do
not respond properly and refused to give appointments.
10) Some of the telephone numbers that were being provided
by the company were outdated, wrong or had changed.
11) Even other fixations of appointments of personal interview
were found unavailable for interview and for filling the
agency form.
12) People provided false data, as they were scared about
providing actual data such as their telephone number,
age, etc.
13) Some persons contacted assumed me as insuranceagents &thus does not entertained for the actual purpose
of the research
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AGE COMPOSITION:-
In this market survey most of the people are between the age
group of 25 to 55 yrs, which indicates that this report has most ofthe emphasis (84%) on those people who are well established in
their related field i.e. business, profession, job etc.
AGE COMPOSITION NO. OF PEOPLELess than 25 Years 25
26 years 45 years 2546 years 55 years 4056 years and above 10
TOTAL 100
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OCCUPATION SCENARIO:-
In this market survey more than half of the people are
businessman(53%) and rest of the people belongs to profession
and service. It indicates that this report has total emphasis (98%)on those people who are well established, experienced, decision
makers.
OCCUPATION NO. OF PEOPLEBusiness 53
Profession 23Service 22
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Student 02
TOTAL 100
COMPANIES BRAND IMAGE:-
A study found that out of 100 people about 50% people know
about LIC, 25% people know about ICICI PRUDENTIAL, 5%
people know about HDFC standard Life Insurance, 10% people
know about BAJAJ Allianz Life Insurance & 10% know about SBI
Life Insurance.
COMPANY NO. OF PEOPLE
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LIC 50ICICI PRUDENTIAL life 25HDFC Standard Life 5BAJAJ Allianz Life 10
SBI Life 10TOTAL 100
INCOME SCENARIO:
More than half of the people have annual income below 1.5Lakh
and rest of the people belongs to high level of income group
(48%). It includes that this report has balanced research and
findings without focusing on any specific income group. People of
diverse income group helped us to study the absolute picture of
life insurance as a tool of investment.
ANNUAL INCOME PERCENTAGE (%)Less than Rs.60000 30Rs.60000- Rs.1.5Lakh 20
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Rs.1.5Lakh - Rs.2.5Lakh 35More than 2.5Lakh 13
TOTAL 100
MOST PEFERABLE INVESTMENT AREA:-
According to this market survey we have found out that most of
people go for Life Insurance & post Office schemes for long term,
safe & high Return investment (58%). It indicates that report has
proved now people are much aware of life insurance & investment
& invest their hard earned money into it.
MOST PREFERABLE INVESTMENTAREA
PERCENTAGE (%)
Bank F.Ds 16NSCs/ Post office schemes 22
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Mutual fund 20Share market/ Equities 6Life Insurance Plans 36
TOTAL 100
MOST IMPORTANT CRITERIA WHILE INVESTMENT:-
Now a days people are concerned for tax benefits, insurance,
security, liquidity & high returns. Hence life insurance is the only
source of investment which covers all these criteria so now people
are getting aware of life insurance sector & gradually it will be thetop most priority for the general public to invest.
MOST IMPORTANT CRITERIAWHILE INVESTMENT
PERCENTAGE (%)
High returns 14Liquidity 20
Security 20Insurance cover 22
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Tax benefits 26TOTAL 100
AWARENESS IN LIFE INSURANCE:-
The market research depicts that most of the people (89%) are
aware of the various plans, procedures, benefits, & working of life
insurance sector in todays economy in this region.
AWARENESS IN LIFEINSURANCE
PERCENTAGE (%)
Low 11
Medium 61High 28
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TOTAL 100
MOST IMPORTANT CRITERIA IN LIFE INSURANCE:-
As about 90%people of this region are aware of life insurance
sector hence they have certain important criteria in life insurance
to satisfy their needs. In this survey half (50%) of the people want
insurance policies for childrens & education. The second
important criteria for them are to create wealth & assets through it
as it gives more flexibility options & higher amount of rate of
returns. People buy retirement solutions just to save tax under
section 80cc, as it is apart to section88limit of Rs.1Lakh.
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RECOMMENDATIONS TO COMPANY:Since ICICI Prudential Life Insurance co. ltd is the largest in terms
of FDI invested, in terms of work force, in terms of market share, in
terms of no. of customers. All these positive stands of the
company place at the number one position. On second aspect
whatever amount of money ICICI Prudential save, can be used to
increase the no. of policies, which will helpful to increase the
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MOST IMPORTANTCRITERIA IN LIFE
INSURANCEPERCENTAGE (%)
Creating wealth/ Assets 32Childrens education & Marriage 50Retirement 6Disability & illness accidents 12
TOTAL 100
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market share of the company. Since the customers think about the
companies in the industry, when they invest money in the life
insurance industry. So its necessary to increase the market share
of the company. There are some recommendations.
Open some more branches in semi urban and rural area.
ICICI Prudential has almost its branches in urban area or
metros. So in order to increase the no. of customer, ICICI
Prudential should increase the approach towards potential
customers. For that it has to increase the branches in the
semi urban cities like C, D grade cities. And the rural
marketing is the best option for ICICI Prudential to increase
its base in the market
Improve customer services.
In order to take the advantage of being industry leader in
private sector, ICICI Prudential has to improve its customerservices. According to my experience in the company, a
good number of customers forget to pay their premium at
time so it causes a big loss to the company. ICICI Prudential
has already collaborated with the ICICI bank for its
Bancassurance facility and then can include another feature
in it. ICICI bank can offer a bank account with the lifeinsurance policy in which an ATM card will be provided. This
card will have all the information regarding the policy as like
future premium payment dates, payment made, money value
of the policy at that date, value of the unit linked plan and all
other information what the customer want. This will help the
customer to pay premium on time and save their losses. This
will be mutually helpful for both sister companies, ICICI bank
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will get new account and ICICI prudential will be able to more
efficient services to their customers.
Bring some unit linked life insurance plans in the market.
Being a market leader doesnt ensure the leadership in the
future. Since after increment in FDI from 26% to 49% all
player will have the opportunity to capture the market share.
So in order to maintain its position ICICI Prudential should
Introduce some new market linked insurance plan, which will
give a competitive advantage to the ICICI Prudential against
its competitors.
Trained the financial advisors more efficiently.
In the changed scenario, more efficient training will be
needed, so ICICI Prudential should provide good and
efficient training to their financial advisors. Because they are
the one who interact directly with the customers. So goodtraining will give them the right way to deal with the potential
customers.
CONCLUSION
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GIST OF REPORT:-
Finance Is the Blood of Any Business
This is true, without finance no business will work in the market.
Proper use of finance will help in increasing money & vice versa.
Therefore efficient & effective use of finance will give better
returns.
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Doing project in ICICI PRUDENTIAL Life insurance helps me in
enhance my knowledge & skill. This was a very great experience
to do work practically.
The gists of report are as follows:-
ICICI PRUDENTIAL has one of the largest distribution
networks amongst private life insurers in India, having
commenced operations in 200 cities & towns in India.
They began their operations in December 2000 after
receiving approval from Insurance Regulatory Development
Authority (IRDA). Today, our nation-wide team comprises of
over 2000 branches (inclusive of 1,074 micro-offices), over
274,500 advisors; and 20 bancassurance partners.
The company is providing different products for different
customer according to the needs & requirement of the
customer. It will increase the profitability of the company by
attracting more & more customer for giving better services to
their investors.
This report explained about the different portfolio adopted in
different product by ICICI PRUDENTIAL Life Insurance
Company. So that, it will help the company to get better
return from their investment in Equity as well as Debt
instruments.
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In the report there is an analysis of the products actual
performance with the benchmark set by the company. If any
product not works above the benchmark then the portfolio is
again revised & set new benchmark.
In the report there is an analysis of the products actual
performance with the benchmark set by the company. If any
product not works above the benchmark then the portfolio is
again revised & set new benchmark.
The report also include the assets held with the company
which shows that in equity fund they have invested 55% of
the total investment & rest of the investment is in debt funds
i.e. 45%. These are varying with the market situations.
In this report there is investment allocation which shows that
according to the age & risk taking appetite product is to be
design &offer to the customer, which is very essential in the
competitive market.
The report also includes that choice of fund by taking the
different points into consideration while select