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8/9/2019 Comparative Study of Marketing Field in (Icici)
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SUMMER TRAINING PROJECT REPORT
ON
COMPARATIVE STUDY OF MARKETING FIELDIN (ICICI)
Submitted for the partial fulfillment of the requirement
For the award of degree
Of
MASTER OF BUSINESS ADMINISTRATIONDegree programme of U.P. Technical University, Lucknow
(2008-2010)
SUBMITTED BY
MRIGESH KUMAR ARYA
M.B.A. 3rd Sem
Roll No: - 0827170051
Submitted To
Bharat Institute Of Technology
Partapur By Pass Road, Meerut
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(Approved by AICTE, Recognised by u.p.Govt. & Affiliated to U.P. Technical
University, Lucknow)
BYE-PASS ROAD, PARTAPUR, MEERUT -250103
Phone : off . (0121) 6531892, 6533991, 3263721, Fax : 0121-2967001
E-mail : dg@bitmeerut.edu.in , website : www.bitmeerut.edu.in
TO WHOME IT MAY CONCERN
This is to certify that Mr. /Ms. MRIGESH KUMAR ARYA is a bonafide
Student of MBA third semester in our institute. He/She has submitted this project
report titled COMPARATIVE STUDY OF MARKETING FIELD IN
(ICICI)to fulfill the requirement of UPTU.
Teacher Guide Prof R.C.Shard
(Director Management)(MISS SARIKA SOM)
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CONTENTS
INDEX PAGE NO.
1. DECLARATION
2. ACKNOWLEDGEMENT
3. PREFACE
4. EXECUTIVE SUMMARY
5. LEARNING OF PROJECT
6. COMPANY PROFILE
7. OBJECTIVE OF STUDY
8. RESEARCH METHODOLOGY
9. DATA ANALYSIS & INTERPRETATIONS
10. FINDING & SUGGESTION
11. LIMITATION
12. CONCLUSION
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13. BIBLIOGRAPHY
14. ANNEXURE
DECLARATION
I, MRIGESH KUMAR ARYA, student ofBHARAT INSTITUTE OF TECHNOLOGY
MEERUT hereby declare that project on COMPARATIVE STUDY OF MARKETING
FIELD IN (ICICI)has been completed by me on the basis of my summer training at
during 10th June to 25th July, 2009 under the guidance of MS. SARITA SINGH as
part of the course curriculum for the partial fulfillment of the Master of Business
Administration course for the academic session 2008-10. I further declare that the
contents of the report are authentic and specific references have been quoted along
with the secondary data for better cross check and verification. The primary survey
had been done in DELHI as a part of the project and the results of the survey can
not be transferred or copied without prior approval. It is also declared that this work is
original and has not been published or presented earlier.
DATE-MRIGESH KUMAR ARYA.
PLACE-MBA- 3rd, SEM.
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ROLL NO. - 0827170051
ACKNOWLEDGEMENT
It gives me immense pleasure to introduce my project work entitled
COMPARATIVE STUDY OF MARKETING FIELD IN ICICI,, Prudential Life
Insurance Company Ltd. New Delhi. I sincerely thank my esteemed guide Mrs.
SARITA SINGH (Sr. AGENCY MANAGER) for his valuable guidance and co-
operation rendered to me through out the project report. It would not have been
possible for me to complete this project without. there meticulous guidance and
suggestions. I give my thanks to MS. SARIKA SOM (PROJECT GUIDE) and
DR. D. K. MAHESWARI (H.O.D, MANAGEMENT) for their valuable contribution,
co-operation and guidance from time to time for completion of this project.
Last but not the least I would like to thank my parents, friends, Colleagues and
the staff of ICICI Prudential Life Insurance Company Ltd. New Delhi, who directly or
indirectly help me during the course of project without which project would have
been a Herculean task.
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PREFACE
Marketing is indeed an ancient art. It has been practices in one form or other
since time immemorial. Its imminence as a management discipline, however is
of relatively recent origin. But, during the later held of the 20th century a great
deal of importance . in face today most management thinkers and practitioners
the world over regard making as the most important of all management
functions in any business activity. My purpose of undergoing MBA in BIT,
Meerut is to become apart and parcel of marketing management where as
the cause in the institute provides us with conceptual knowledge field training
as a part of the curriculum, helps us gave in valuable practical experiment in
real organization setting. This project report aims at providing real picture of
the market position of ICICI Prudential Life Insurance in the organized insurance
market, along with awareness level, prescription pattern and indication wise
study of ICICI Prudential life Insurance company limited.
MRIGESH KUMAR ARYA
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M.B.A. 3rd SEM
ROLL NO.- 0827170051
EXECUTIVE SUMMARY
The following topic, COMPARATIVE STUDY OF MARKETING FIELD IN (ICICI),
related to Comparative analysis of insurance sector and market survey with special
reference to ICICI prudential life insurance.
A well-developed and evolved insurance sector is needed for economic development
as it provides long term funds for infrastructure development and the same time
strengthens the risk taking ability.
Life insurance is also now being regarded as a versatile financial planning tool in
India. India being a country having a huge population of around one billion people with
only 22% of the insurable population in India possessing life insurance the country has
a vast potential which has been left untapped till now.
Therefore what this has led to is the flooding of the life insurance market with a
number of private players which in collaboration with recognized foreign companies
promise to deliver the best of services at the least price. But will these companies be
able to survive in the future is the question we have tried to answer.
This report is an effort made by us to study the Indian insurance market. This report
sheds light on the impact and the prospects of private life insurance companies in
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India, which mainly has been measured through the responses we got in our
questionnaires.
The aspects covered in this project are meaning of life insurance and why we need
them, history of insurance in India (pre and post liberalization), types of life insurance
polices, their meanings & benefits and a checklist while buying right life insurance
policy. In this finding we have undertaken five major private life insurance companies
in India i.e., HDFC, ICICI, AVIVA, BIRLA SUNLIFE & MAX NEWYORK LIFE. Under
this we have written a brief about these companies, their insurance policies and its
comparative analysis. Based on the market survey and in-depth interview a statistical
analysis of the prospects of private life insurance companies in India is done and
represented in the form of statistical diagram.
Thus by going through this report one will get to know about the private life insurance
companies in India and their future prospects.
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LEARNING OF PROJECT
I learnt how the insurance company works,
What are the channels of distribution and elements in distribution network of
the company,
What are eligibility criteria to become a financial advisor.
I studied what are the factors & components in life insurance sector like as
ICICI Prudential, RELIANCE insurance, AVIVA insurance, BIRLA SUN LIFE,
HDFC insurance.
I studied overall working of Insurance companies.
I came to know about channels of distribution network used by Insurance
companies.
I studied the policies and process of appointing financial advisor for ICICI
Prudential Life Insurance Company.
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COMPANY PROFILE
INSURANCE
In this age of uncertainties nothing can be called as safe, a small accident can end
our life business home vehicle therefore it is necessary to insure the things including
our life so that if incident occurs the loss can be reimbursed .insurance is a promised
given by one to another where by the promissory undertakes to pay a sum of money
to the promise on the happening of the event insured against.
Types of insurance :-
1. Term life insurance.
2. Car insurance.
3. Health insurance.
4. Long term care insurance.
5. Burial insurance.
6. Business insurance.
7. Home owners insurance.
8. Group health insurance.
9. Disability insurance
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10. Whole life insurance.
11. Home improvement insurance.
12. Others: motorcycle, boat, flood insurance etc.
LIFE INSURANCE:
Life insurance is promise to perform in future when the obligation is met i.e. the
insured event takes place ,the money ,whose presence can be felt replaces the
promise his helps the insured person or in case of his death his dependences will get
the assured amount of money with which they can obtain the necessities of life.
Marketing approach to life insurance:-
Life insurance is a personalize service oriented industry, therefore providing the
service that should match the needs and wants of the customer should be a basic
objective of life insurance company. The marketing approach in relation to life
insurance involves following four steps.
1. Research to determine customers insecurity.
2. Designing new policies or innovate old ones.
3. Market services to the customer for whom they where researched and
designed at profit.
4. In doing so satisfy the customers needs.
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14
Identify the customers
future needs
Forecasting and
research on future
market needs for
insuranceDevelop appropriate
insurance plans
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MARKETING APPROACH TO LIFE INSURANCE
HISTORY OF ICICI
15
Identify the customers
future needs
Forecasting and
research on future
market needs for
insuranceDevelop appropriate
insurance plans
Determine the premium
for each plan developed
Personal selling
through agents;
Advertising
Opening of
branches,
appointing agents
and development
officers
Policy servicing
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1955: The Industrial Credit and Investment Corporation of India Limited (ICICI)
incorporated at the initiative of the World Bank, the Government of India and
representatives of Indian industry, with the objective of creating a development
financial institution for providing medium-term and long-term project financing to
Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI
Limited.
ICICI emerges as the major source of foreign currency loans to Indian industry.
Besides funding from the World Bank and other multi-lateral agencies, ICICI also
among the first Indian companies to raise funds from International markets.
1956: ICICI declared its first Dividend at 3.5%.
1958: Mr.G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd.
1960: ICICI building at 163, Back bay Reclamation was inaugurated.
1961: The first West German loan of DM 5 million from Kredianstalt was obtained by
ICICI.
1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1972: Second entity in India to set-up merchant banking services.
1977: ICICI sponsors the formation of Housing Development Finance Corporation
Managed its first equity public issue.
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1978: Mr. James Raj appointed as the fourth Chairman of ICICI.
1979: Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI.
1982: Becomes the first ever-Indian borrower to raise European Currency Units.
1984: Mr. S. Nadkarni appointed as the sixth Chairman of ICICI.
1985: Mr.N.Vaghul appointed as the seventh Chairman and Managing Director of
ICICI.
1986: ICICI first Indian Institution to receive ADB Loans. First public issue by an
Indian entity in the Swiss Capital Markets. ICICI along with UTI sets up Credit Rating
Information Services of India Limited, (CRISIL) Indias first professional credit rating
agency. ICICI promotes Shipping Credit and Investment Company of India Limited.
(SCICI).
1987:ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in India.
1988: ICICI promotes TDICI - Indias first venture capital company.
1993: ICICI sets-up ICICI Securities and Finance Company Limited in joint venture
with J. P. Morgan.
1994: ICICI sets up ICICI Bank.
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1996: ICICI becomes the first company in the Indian financial sector to raise GDR.
Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.
1997: ICICI was the first intermediary to move away from single prime rate to three-
tier prime rates structure and introduced yield-curve based pricing. The name The
Industrial Credit and Investment Corporation of India Limited was changed to ICICI
Limited.
1998: Introduced the new logo symbolizing a common corporate identity for the ICICI
Group.
1999: ICICI launches retail finance - car loans, house loans and loans for consumer
durables. ICICI becomes the first Indian Company to list on the NYSE through an
issue of American Depositary Shares.
2000: ICICI Bank becomes the first commercial bank from India to list its stock on
NYSE. ICICI Bank announces merger with Bank of Madura.
2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with
ICICI Bank.
2002: Moodys assign higher than sovereign rating to ICICI.
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PRUDENTIAL PLC.
It is a leading international financial services company in the UK, with around us$250
billion funds under management, and more than 16 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 through out 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
in India (prudential ICICI AMC).
India is one of three countries in Asia where prudential is the leading private insurer
the other two being Vietnam and Indonesia. It is the second largest insurer 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. It has
strong positions in three of the largest and most attractive markets in the world, where
rising global wealth and changing demographics are fuelling demand for long-term
savings.
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Their strategy is to build sustainable, profitable businesses in each of these markets,
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 European fund manager,
responsible for managing over 111 billion of funds (as at December 2003). Launched
by Prudential in 1998, Egg is an innovative financial services company, with over
three million customers, with nearly six per cent of UK credit card balances.
In Asia, Prudential is the leading European life insurer with 23 life and fund
management operations in 12 countries serving some five million customers.
In the US, Prudential owns Jackson National Life, a leading life insurance company,
and has more than 1.5 million policies and contracts in force.
Sir David Clementi Chairman, Prudential Plc.
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VISION: -
To make ICICI Prudential the dominant life and pensions player built on trust by world-
class people and service.
Hope 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.
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ACHIEVEMENTS: -
The no.1 private life insurance company with :
Maximum number of policies sold.
Largest premium income.
Largest agency force.
Biggest pension player
ABOUT ICICI
ICICI bank is Indias second largest bank with an asset base of Rs. 2513.89 billion
As on march 31, 2006.ICICI bank provides a broad spectrum of financial services to
indices and companies. This includes mortgages, car and personal loans, credit and
debit cards, corporate and agricultural finance the bank services a growing customer
base for more than 17 million customers through multi-channel network which
includes over 620 branches and extension counters, 2200 ATMs, call centers and the
retail customers through a Varity of delivery channels through its specialized
subsidiaries and affiliates in areas of investment banking, life and non-life Insurance,
venture capital, asset management and information Technology, ICICI banks equity
shares are listed on stock exchange of Chennai, Delhi, Kolkata and Vadodara , The
Stock Exchange and The National Stock Exchange of India Ltd. and American
Depositary Receipts (ADRs) are listed on The New York Stock Exchange (NYSE).
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ABOUT PRUDENTIAL PLC
Prudential PLC was established in London in 1948, Prudential PLC, through its
businesses in the UK and Europe, the US and Asia, provides retail financial services
to more than 16 million customers, policyholders and unit holders worldwide. As of
Dec. 31, 2005, the company has over US $ 400 billion in fund management.
Prudential has brought to market an integrated range of finance services products that
now includes life assurance, pensions, mutual funds, banking, investment
management and general insurance. In Asia, Prudential is leading European life
Insurance Company with a vast network of 23 life and mutual fund operations in
twelve countries
1. China.
2. Hong Kong
3. India.
4. Japan.
5. Korea
6. Malaysia.
7. Philippines.
8. Singapore.
9. Taiwan.
10. Indonesia
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11. U.K.
JOINT VENTURE ICICI PRUDENTIAL
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential PLC, a leading international financial
services group headquartered in the U.K. ICICI prudential was amongst the first
private sector insurance companies to begin operations in Dec. 2000 after receiving
approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudentials capital base stands at Rs. 1335 Crores with ICICI Bank and
Prudential PLC holding 74% and 26% stake respectively. For the year ended March
31, 2006, the company garnered Rs. 2,412crore of weighted new boniness premiums
and wrote 837,963 policies. The sum assured in force at over Rs. 56,000 crore.
ICICI Prudential is also the only private Life Insurer in India to receive a national
Insurer Financial Strength rating of AAA (Ind.) from Fitch rating. The AAA rating ids
the highest rating, and is a clear assurance of ICICI Prudentials ability to meet its
obligations to customers at the time of maturity or claims.
For the past five year, ICICI Prudential has retained its position as the No. 1 private
Life Insurer in India, with a wide range of flexible products that meet the needs of the
Indian customer at every step in life. ICICI Prudential has one of the largest
distribution networks amongst private Life Insurers in India with network of over
83,000 advisors, and having commenced operations in 207 cities and towns in India,
stretching from Bhuj in west to Guwahati in The east, Jammu in the North to
Trivanprum in the south.
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ICICI Prudential was registered on Nov. 24, 2000. with registration No. 105.
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed
people from financial industry both from India and abroad.
Mr. K.V. Kamath, Chairman
Mr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. Kalana Morparia
Mrs. Chanda Kochhar
Mr. H T Hong
Mr. M.P. Modi
Mr. R Narayanan
Mr. Keki Dadiseth
Ms.Shikha Sharma, M.D.
Mr.N.S. Kannan, Executive Director
Management Team
Ms.Shikha Sharma, M.D. & CEO
Mr.N.S. Kannan, Executive Director
Mr. N.S. Kannan, Executive Director
Mr. V Rajagopalan, Chief- Actuary
Mr. Sandeep Batra, Chief Financial Officer & company Secretary
Ms. Anita Pai, Chief - Customer Service and Technology
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Mr.Puneet Nanda, Chief - Investments
ICICI Prudential introduces capital-linked ULIPs
2 June 2005
Mumbai: ICICI Prudential Life Insurance Company has introduced a range of unit-
linked products with capital protection combined with market-linked profits. Christened
Invest Shield, these plans are ideal for people who are keen to buy a unit-linked life
insurance plan, but ultimately purchase a traditional policy, as they are apprehensive
about the risks the markets present.
"Our research has shown us that for most people, life insurance is the ultimate
protection tool it is amongst the safest financial instruments one can have," says
Shikha Sharma, managing director and CEO, ICICI Prudential Life Insurance.
"Certainly, protection through insurance is a necessary part for sound financial
planning, and with the introduction of ULIPs we find that many people are keen to see
their money grow. However, they are wary that a market investment could erode their
principal. Based on this insight, we launched InvestShield, a unit-linked plan that will
help people not only secure the future of their families, but protect them from the dips
in the market as well".
These unit-linked capital guarantee insurance plans come in four variations:
Invest Shield Life gives the customer the value of the policy at the end of the
term.
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Invest Shield Cash, which gives customers liquidity benefits during the policy
term and the policy value at the end.
Invest Shield Gold, a policy for those want a limited premium-paying term, but
want the protection and savings benefits over a longer tenure.
Invest Shield Pension, a retirement solution.
The plans are structured so that the invested premius are invested in a market-linked
unit fund to provide potentially higher returns over a long period. A maximum 30 per
cent of the fund (in case of Life, Gold and Pension) is invested in equities and the
balance is invested in debts or bonds. While the market-linked unit-fund offers the
opportunity to get the upside of the markets, the risk on investments due to the
downsides in the market, is protected by a guarantee, which keeps increasing every
year.
Other features of the InvestShield plans include:
Extended life cover :
Apart from the insurance cover during the term of the plan, InvestShield Life also
offers an additional insurance protection of 50 per cent of the sum assured for 10
years after the maturity of the plan.
Guaranteed Additions of up to Rs.13, 500, which is paid in lump sum on death or
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maturity (the higher the premium and term of the plan, the higher will be the amount of
guaranteed additions).
ICICI Pru Life Links capital base by Rs100 crore :
11 February 2005
Mumbai: ICICI Prudential Life Insurance Company has increased its capital base by
Rs100 crore, taking its total paid-up equity capital to Rs925 cr. This is the eleventh
equity hike since the company was incorporated in December 2000. The two partners,
ICICI Bank and Prudential plc, have been issued 10 crore equity shares of Rs10 each,
in their existing proportions of 74:26 respectively.
22 September 2004
Mumbai: ICICI Prudential Life Insurance (IPLI), a joint venture between ICICI Bank
and Prudential plc, has become the first private life insurer to cross the one million
policies milestone. The corresponding sum assured stands The authorized capital of
the company stands at Rs1,200 crore. ICICI Prudential claims to have the highest
capital base amongst all life insurers in the country.
The company grew nearly 127 per cent in April-December 2004 over the same period
last year, to notch up a new business received premium of over Rs860 crore. ICICI
Prudential's total market share amongst private life insurers stood at 31 per cent, and
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its share in the retail business was 35 per cent. Its total market share for the same
period is 9.2 per cent.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank and
Prudential plc.
ICICI Prudential Life Insurance crosses one million-policies milestone:
at about Rs22,500 crore and the new business premium income is Rs1,700 crore.
Speaking at the occasion, K V Kamath, chairman IPLI said, "The life insurance sector
has seen tremendous growth in the last few years, fuelled by product and service
innovation. It has also created several opportunities for employment and generated
long-term savings to fund development of the economy in the future.
We see pensions as a high-growth segment for the industry. We are pleased with the
progress made by ICICI Prudential thus far, and remain committed to the sector."
Dan Bardin, managing director, South Asia & Greater China, Prudential Corporation
Asia, said, "India is a very important part of Prudential`s Asian strategy, and the
success of ICICI Prudential is testament to the faith we have in the talent available
and growth potential of this country. With its reputation for quality and strong track
record of innovation, I am sure we can continue to expect more impressive
achievements from ICICI Prudential Life Insurance."
The company's CAGR has been 148 per cent over the past three financial years. To
commemorate the one million-policy milestone, ICICI Prudential has launched a
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programme called 'dil se', under which the company gifted 10 LifeLink insurance
policies to underprivileged children, each with a value of Rs20, 000.
The company will altogether gift 50 such policies, totaling a symbolic Rs1 million, to
underprivileged children in Mumbai, Delhi, Kolkata, Chennai and Bangalore.
According to Shikha Sharma, managing director and CEO, ICICI Prudential Life, said,
"Our complete focus on the customer right from day one has enabled us to touch this
landmark in less than four years of operations. It was a leap of faith that our early
customers took when they decided to place their trust in ICICI Prudential in early
2001. I am happy to say that today; we have over a million such customers, each of
them a testament to the progress made by not only the company, but life insurance as
a whole."
ICICI Prudential extends range of unit-linked products :
17 August 2004
Mumbai: Spurred by the excellent response to its unit-linked products, ICICI
Prudential Life Insurance, India's leading private life insurance company, has
launched two new products Lifetime II and Premier Life. While Lifetime II is a more
cost-efficient but less flexible form of the company's earlier flagship offering, Premier
Life is a limited premium paying policy.
"Based on our customer interactions, we realized that there was a need for a variety of
products that would offer slightly varied premium payment options and flexibilities.
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Premier Life, for instance, offers stability and protection for a long time to individuals,
even while they pay premium for a short period.
Such flexibilities and options make it an ideal product for people who might otherwise
have an irregular income - be it artists, professionals, businessmen or sportspersons,"
said Shikha Sharma, CEO and MD, ICICI Prudential Life Insurance.
The company's funds under management stand at Rs1,800 crore, with the funds
under its unit-linked products crossing the Rs1,000-crore level. Of the Rs1,000-crore
funds under ULIPs, nearly half is invested in income funds, 31 per cent in balanced
funds, 19 per cent in growth funds and a small portion in short-term debt.
Premier Life allows policyholders to choose between premium-payment terms of
three, five, seven and ten years, and offers cover to the life assured up to the age of
75 years.
One of the unique features of the product is that it allows the policyholder to decrease
the premium contribution at any time, subject to a minimum of Rs 60,000 p.a. and also
offers guaranteed financial benefits in the form of bonus units at specific intervals.
Quarter 1 results :
ICICI Prudential witnessed yet another period of triple-digit growth in the quarter
ended April-June 2004 (Q1FY05). Its new business premium income grew to Rs242
crore, an increase of 244 per cent over the corresponding period last year (Q1FY04).
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Over 1,00,000 new policies were added in that same period and sum assured grew
more than 250 per cent to nearly Rs20,000 crores.
The company also witnessed a huge growth in its group business, adding Rs30 crore
through group gratuity, superannuation and term policies. The company's combined
market share stands at 34 per cent among private players.
ICICI Pru to infuse Rs 50 crore :
5 December 2003,
Chennai: In line with the capital adequacy and solvency norms issued by the
Insurance Regulatory and Development Authority (IRDA), ICICI Prudential Life
Insurance has decided to increase its equity base by Rs 50 crore to Rs 575 crore this
fiscal. The company retains nearly 95 per cent of the risk in its books.
Based on the industry trend, the company has seen good sales of its unit-linked
savings and investment, child and retirement policies. The quarter (July-September
2003) saw these products contributing Rs 86.5 crore-premium income. On the
distribution side, ICICI Prudential Life has 60 branches in 44 cities and 26,000 agents.
For the first six months, the company booked a premium income of Rs 184 crore.
Rs 70-crore income for ICIC Prudential : -
26 July 2003,
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Mumbai: Private life insurer ICICI Prudential has earned a new business premium
income of Rs 70 crore during the first quarter of this fiscal. The company issued over
50,000 policies.
The total premium income, including renewal business stands at Rs 100 crore for the
period under review. The first quarter also saw the company expanding its reach to 29
locations and adding 500 more frontline staff.
ICICI Pru Life crosses Rs 500 crore-premium income mark : -
10 April 2003,
Mumbai: ICICI Prudential Life Insurance has crossed the Rs 500-crore premium
income mark on 31 March 2003, having issued nearly 3,50,000 policies, for a sum
assured of Rs 8,700 crore, since its inception. The last fiscal had seen significant
growth for ICICI Prudential across all segments, with 2,46,827 policies issued in the
period April 2002-March 2003, and Rs 348 crore premium from new business in the
same period, a 200-per cent growth over the previous fiscal (April 2001-March 2002).
The company had also met all its rural and social sector obligations. The growth been
driven by pensions and unit-linked products. It has garnered 23 per cent of pensions
premium among all players for the period April 2002-February 2003 and 34 percent in
February 2003 alone.
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PRODUCT LINE:-
ICICI Prudential is currently having a wide range of products which could meet the
existing demand of the customer this products are the various plans which are flexible
in nature which can be enhanced with up to 6 riders to provide a customized to each
policy holder.
SAVING & WEALTH CREATION SOLUTIONS:-
Cash plus is a transparent, feature-packed saving plan that offers 3 levels of
protection as well as liquidity options.
SavenProtect is a traditional endowment savings plan that offers life insurance
along with adequate returns.
Cash Bak is an anticipated endowment policy ideal for meeting milestone
expenses like a childs marriage, expenses for childs higher education or
purchase of an asset. It is available for terms of 15 and 20 years.
Lifetime Super & lifetime plus are unit linked plans that offers customers the
flexibility control to customize the policy to meet the changing needs at different
life stages. Each offer 4 fund functions: Preserver, Protector, Balancer and
Maxi miser.
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Life link Super is a single premium unit linked insurance plan which combines
life insurance cover with opportunity to stay invested in the stock market.
Premier Life Gold is a limited premium paying plan specially structured for long-
term wealth creation.
Invest Shield Life new is a unit linked plan that provides premium guarantee on
the investment premiums and ensures that the customer receives only the
benefits of fund appreciation without any of the risk of depreciation.
Invest Shield Casbak is a unit linked plan that provides premium guarantee on
the investment premiums along with flexible liquidity operations.
PROTECTION SOLUCTIONS:-
Lifeguard is a protection plan, which offers life insurance covers at very low cost.
Itis available in 3 options: Level term assurance, Level term assurance with
return of premium an single premium.
Home Assure is a mortgage reducing term assurance plan designed specially to
help customers cover home loans in a single and cost effective manner.
CHILD PLANS:-
Educational insurance under the Smart Kid brand provides guaranteed
educational benefits to a child along with life insurance cover for parent who
purchases the policy. The designed to provide money at important millstones in
the childs life. Smart Kid plans are also available in Unit-linked form, both
single premium and regular premium.
RETIREMENT SOLUTION:-
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Forever life is a traditional retirement product that offers guaranteed returns for
the first 4 years and then declares bonuses annually.
Life Super Pension is a single premium unit linked pension plan.
HEALTH SOLUTION:-
Health Assure and Health Assure Plan : Health assure is regular premium plan
which provide long term cover against 6 critical illnesses by providing
policyholder with financial assistance, Irrespective of the actual medical
expenses. Health Assure Plus offers the added advantages of equivalent Life
Insurance Cover.
Cancer Care: is a regular premium plan that pays cash benefits on diagnosis
as well as at different stages in the treatment of various cancer conditions.
GROUP INSURANCE SOLUCTIONS:-
ICICI Prudential also offers Group Insurance Solution for the companies seeking to
enhance benefits to their employees.
Group Gratuity Plan: ICICI Prus group gratuity plan helps employers fund
their statutory gratuity obligation in scientific manner. The plan can also be
customized to structure schemes that can provide benefits beyond the statutory
obligations.
Group Superannuation Plan : ICICI Pru offers both defined contribution (DC)
defined benefits (DB) Superannuation schemes to optimize returns for the
members of the trust and rationalize the cost .members have the potion of
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choosing from various annuity options or opting for a partial commutation of
the annuity at the time of retirement.
Group Immediate Annuities: in addition to the annuities offered to existing
superannuation customers, we offer immediate annuities to superannuation
funds not managed by us.
Group Term plan: ICICI prus flexible group term solution helps provide
affordable cover members of a group .the cover could be uniform or based on
designation/rank or a multiple of salary. The benefit under policy is paid to the
beneficiary nominated by the member on his/her death.
FLEXIBLE RIDER OPTIONS :-
ICICI pru life offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
Accident of disability benefit; if death occurs as the result of an accident
during the term of the policy, the beneficiary receives an additional amount
equal to the rider sum assured under the policy .if the death occurs while
traveling in an authorized mass transport vehicle. The beneficiary will be
entitled to twice the sum assured as additional benefit.
Critical illness benefit: protects the insured against financial loss in the event
of 9specified critical illnesses, benefits are payable to the insured for medical
expenses prior to death.
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Income Benefit: This rider pays the 10 % of the sum assured to the nominee
every year, till maturity. In the event of the death the life assured. It is available
on smart kid and cash plus
Waiver of premium: in case of total and permanent disability due to an
accident, the future premiums continue to be paid by the company till the time
of maturity.
This rider is available with life time super, life time super pension and cash plus.
(Source: - Finance Community CACLUBINDIA.COM)
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Market Shares of Insurance Companies in India
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VISION:-
To make ICICI pru the dominant life and pension layer built on trust by world class
people and service.
This we hope to achieve by;
1. Understanding the needs of the customer and offering them superior products
and services.
2. Leveraging technology to service the customer quickly, efficiently and
conveniently.
3. Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to policyholders.
4. Providing and enabling environment to faster growth and learning for our
employees.
5. Building transparency in all our dealings.
VALUES:-
The success of the company is to be achieved in its unflinching commitment to 5 core
values.
1. Integrity.
2. Customer first.
3. Boundary less.
4. Ownership.
5. Passion.
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Each of the above values described what the company stands for, the qualities of our
people and the way we work.
We aim at unlimited growth coupled with higher quality of customer satisfaction by
providing the quality products and services.
ACHIVEMENTS:-
1. The New Delhi branch office stood 8 th, in terms of its business achievements,
amongst 103 branches of ICICI prudential.
2. Record Created 05 06;
Total income till date: 5000cr.
Total Business; 2410cr.
New Business; 1584cr.
Commission paid; 284cr.
Plans issued; 6lac.
Total plans issued: 1.4million.
Only in march; 97000.
No of service transaction: 14lac.
Communication sends out: 65lac.
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ORGANIZATIONAL STRUCTURE OF A BRANCH OFFICE
42
TerritoryManager
Assistant Sales
Manager
SeniorAgencyManager
Channel Development
Manager
Agency Manager
Manager
Unit Manager
AssistantUnit
Manager
Manager
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INTRODUCTION
Life Insurance Corporation Of India till few years ago used to enjoy a complete
monopoly in the life insurance sector of the country. Because of the monopoly it used
to offer the consumers its products at unjustifiable rates and the services were also
not up to the mark.
But because of the changes which were and are being brought about in the Insurance
Act the life insurance sector has seen the emergence of many private players. With
the emergence of these private players the Life Insurance Corporation Of India is
facing a stiff competition from them not only in terms of price but also in terms of the
services provided.
The big question which arises is that will the old horse be able to survive the
competition or will the new players emerge victorious. How will these players
differentiate their products? Will these private players be able to survive in the future
or is it just a temporary phase of flooding of the Indian life insurance market with
products in quantity and not in quality? What are the prospects of these private
players in the insurance market in future and how much impact they have created on
Indian consumer?
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TYPES OF INSURANCE POLICIES
Though there are a lot of policies available in the market under different names and by
different companies, the policies can broadly be classified into the following
categories:
Term Insurance Policy
Whole Life Policy
Money Back Policy
Endowment Policy
Pension Plans Or Annuities
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TERM INSURANCE POLICY
Term insurance provides life insurance coverage for a specific period of time.
Presently one year, five year, ten year, and fifteen year, are the periods one
can buy term life insurance policy. If the insured person dies during the period
the insurance is in force, the insurance company pays off the face value of the
policy. If the insured lives longer than the term of the policy, the policy is no
longer in effect and nothing is paid.
Term insurance is the least expensive form of life insurance. It is commonly
used when the insured needs temporary protection or cant afford the
premiums for the other forms of life insurance. The other reason an insured
may want term insurance is to purchase life insurance and invest the difference
between the term policy and cash value policy elsewhere.
Term insurance comes in several forms. There is renewable & non
renewable. Non renewable means that on the expiry of your policy you must
go under another physical test and filling out another questionnaire. On the
other hand, with renewable policy you dont need to undergo these formalities
again and you automatically re qualify to continue your policy.
Then there is convertible & non convertible policy. Convertible policy is the
one which can be converted into a permanent policy,
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whereas non convertible is the one which cannot be converted into a permanent
policy or in other words the policy cannot be converted to any other form of life
insurance policy.
WHOLE LIFE POLICY
The whole life policy provides insurance coverage for the entire life of the insured
regardless of how many years the insurance is paid. Premiums may be paid
throughout the insureds entire life or for a portion of his life. Additionally, the premium
can be paid in one lump sum when the policy is taken out. This is referred to as a
single premium whole life policy.
When the premium is paid through out the life it is known as straight life policy, but
when the premium is paid for a specified period of time it is known as limited life
policy.
The premiums are higher for Whole life insurance as opposed to term insurance. The
reason for this is that the policy has investment features as well as death benefits. The
cash value portion of the whole life insurance belongs to the insured. One can take it
out in the form of policy loans or can cash the policy in. Another advantage of whole
life insurance is that the premiums are fixed, i.e. regardless of your age, you pay the
same amount for the coverage each year.
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Universal Life Insurance Policy
Universal life insurance is a variation of Whole Life. The difference is that with
Universal Life the insurance part of the policy is separated from the
investment portion of the policy. The cash value portion of the policy is treated
as an accumulation fund and investment income is credited to the
accumulation fund.
MONEY BACK POLICY
Money back policies provide for periodic payments of partial survival benefits during
the term of the policy, as long as the policy holder is alive.
An important feature of this type of policies is that in the event of the death at nay time
within the policy term, the death claim comprises the full sum assured, without
deduction of nay of any of the survival benefit amounts, which may have already been
paid as money back components. Similarly the bonus is also calculated on the entire
sum assured.
ENDOWMENT POLICY
An endowment policy covers the risk for a specified period, at the end of which the
sum assured is paid back to the policy holder, along with the bonus accumulated
during the term of the policy. This feature of payment of endowment to the policy
holder when the policys term is complete is responsible for the popularity of
endowment policies.
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The amount received on maturity can either be utilized either to buy an annuity policy
to generate a monthly pension for the rest of the life, or put it into any other suitable
investment of our choice. This is one important benefit which the endowment policy
offers over a whole life insurance policy.
Overall, endowment policies are the most suitable of all insurance plans for covering
the risks to a family breadwinners life. Not only do these policies provide financial risk
cover for the family, were the policy holder to die prematurely but the insurance
amount is also repaid once this risk is over. The endowment amount can then be used
for meeting major expenditures such as childrens education and marriage, etc.
Alternately, the endowment sum is available for a suitable investment geared to
providing an income for the remainder of ones own life. These type of plans are
particularly suitable to those who other than having a risk cover are also interested in
a savings component simultaneously.
PENSION PLAN OR ANNUITIES
An annuity is an investment that we make, either in a single lump sum or through
installments paid over a certain number of years, in return for which we receive a
specific sum every year, every half year or every month, either for whole life or a
fixed number of years.
After the death of an annuitant, or after the fixed annuity period expires for annuity
payments, the invested annuity fund is refunded, perhaps along with a small addition,
calculated at that time.
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Annuities differ from all the other form of life insurance in one fundamental way an
annuity does not provide any life insurance cover but, instead offers a guaranteed
income either for life or a certain period.
Typically annuities are bought to generate income during ones retired life, which is
why they are also called pension plans. Annuity premiums and payments are fixed
with reference to the duration of human life.
EVOLUATION OF LIFE INSURANCE
Basically the insurance was started by the Greeks and Romans, were in case of a
death of a member the cost of burial was contributed by the other members of the
community. This was an early concept of Insurance.
In seventeenth century, Tontine Annuity system came into existence where as
associations of individuals were formed without any consideration of age. A fund was
created in which each member contributed equal sum of money this fund was
invested and at the end of each year the obtained interest was equally divided among
the survived. The person who survived to the last received the interest as well as the
principle amount.
The first insurance company was formed in 1759 in Philidelphi, North America. Since
then over the past three centuries numbers of insurance companies are formed. And
today insurance is the fastest growing industry in the service sector because people
have accepted insurance as a protection coupled with investment.
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INSURANCE IN INDIA
In India the insurance business started in the beginning of the 19 th century.
Marine insurance was the earliest form of insurance that was transacted in India.
Marine insurance was followed fire insurance. Many foreign companies established
their branches in India, looking at the business prospects. In 1907, the India
mercantile insurance company was established as the first company of India origin.
The nationalization of insurance business was a major milestone in the development
of insurance in India.
Life insurance business was nationalized in 1956 by taking over 245 private insurance
businesses. The General Insurance Corporation (GIC) was established in 1972 by
taking over the business of 107 insurers.
OTHER COMPETITORS IN LIFE INSURANCE:-
1. Bajaj Allianz life insurance company Ltd.
2. Birla sunlife insurance Co. Ltd
3. HDFC standard life insurance Co, Ltd.
4. ING Vysya life insurance Co. pvt. Ltd
5. life insurance corporation of India
6. MAX New York life insurance co Ltd
7. MET life India insurance co pvt Ltd
8. OM Kotak Mahindra Life insurance Ltd.
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9. SBI life insurance co Ltd,
10.TATA AIG life insurance co. Ltd
11.AMP sunmar life insurance Ltd
12.AVIVA life insurance co .India Pvt .Ltd
13. Sahara India life insurance co. Ltd
Market Share of the Competitors:-
On the basis of first year premium of life insurance for year ended March 2008.
(PROVISIONAL)
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IRDA
52
. Sr.No
Insurer Market share based on
Premium Policy
1 TATA AIG 1.18 0.87
2OM KOTAK MAHINDROM KOTAK MAHINDRA 1.48 0.24
3 BIRLA SUNLINE 2.45 0.76
4 MAX NEW YORK 0.89 0.83
5 ING VYSTA 1.11 0.42
6 HDFC STANDERD 1.92 0.79
7 MET LIFE 0.22 0.18
8 BAJAJ ALLIANZ 3.39 1.10
9 ICICI PRUDENTIAL 6.25 2.34
10 SBI 1.91 0.49
11 AVIVA 0.79 0.32
12 AMP SANMAR 0.36 0.13
13 AHARA LIFE 0.01 0.04
14 LIC 78.07 91.50
GRAND TOTAL 100.0 100.0
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IRDA refers to Insurance Regulatory Development Authority. It is formed to regulate
and develop the insurance sector. It keeps check on the activities of the various Life
Insurance companies. All these companies are bound to follow the rules and
regulation laid down by IRDA.
MISSION:
To protect the interests of the policy holders, to regulate to promote and ensure
orderly growth of the insurance industry and for matters connected there with or
incidental there to.
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OBJECTIVE OF THE STUDY
The Objective of the study was to get an understanding of the life insurance segment
of the insurance industry. The Scope of the study involves
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Comparison between ICICI pru and other insurance companies in the Indian
market.
Measuring the impact of the private life insurance companies in the Indian
market and on Indian consumers.
Figure out the prospects of the private players in the Life insurance market.
Familiarizing oneself with various products available and the additional features
or the riders attached to them.
Analyzing the schemes offered by the private sector players.
Comparison of the private Life Insurance Companies products.
To approach the people for becoming a financial advisor
To study about the potential customer in the market.
To hire the new financial advisor for the company so that the business of
the company should grow faster.
To study about the marketing strategy of company.
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RESEARCH METHODOLOGY
We have conducted our research taking into consideration only 4 private players
existing in the market namely HDFC STANDARD LIFE INSURANCE, ICICI
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PRUDENTIAL LIFE INSURANCE, AVIVA LIFE INSURANCE, BIRLA SUN LIFE
INSURANCE and On the basis of their performance we have drawn conclusions for
the whole sector.
The information for the project of finance on life insurance industry has been collected
from both primary as well as secondary sources.
In case of primary sources the information was retrieved directly from the concerned
people and the authorities. We have conducted our research mainly with the help of
the invaluable inputs provided by the consumers of products of the private players in
the form of a questionnaire drafted by us. The questionnaire method was used as it is
more versatile than any other method and further a questionnaire is pre planned and
thus less time is wasted since a planned set of questions are available. We have
taken a sample size of 200 people. Our analysis is completely based on the
responses given to us by the respondents and the result for the same has been
presented in the form of pie charts and graphs.
While there was some information, which could not be obtained through
questionnaires, for that purpose we resort to personal interviews. A total of six In
depth interviews were also taken of the agents and managers of these private players.
Since secondary data are information published by others and the companies they
were easily available and not much effort was required in obtaining the information.
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SOURCES OF DATA
PRIMARY SOURCES
Questionnaires.
In depth interviews with the agents and managers of private life insurance
companies.
SECONDARY SOURCES
Newspapers.
Magazines.
Internet sites.
DATA COLLECTION
PRIMARY DATA
The primary data are those data which are collected afresh and for the first time and
happen to be original in character. The primary data to be collected for the study are-
By Structured Questionnaire (Customer)
SECONDARY DATA
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Secondary data are those data which have already been collected by someone else
and which already had been passed through the statically process. The secondary
data to be collected for the study are-
> Publication of the company
> Periodical of the company
> By Internet Websites
RESEARCH INSTRUMENT
STRUCTURED QUESTIONNAIRE:
A Questionnaire consist of a number of questions printed or typed n a definite order
on a form or set of forms. It is the set of questions presented to the retailers for their
answers. When the questions have only two alternatives or of multiple choice, then it
is known as closed-end questionnaire, which is hence used the given study.
TIME SCOPE : 45 DAYS
SCOPE OF THE PROJECT:
The scope of project was all about recruiting the financial advisors for the company
on commission basis. I was suppose to generate the leads then meet those people,
telling them the concept of financial advisor and convincing them to join the company
and finally get the undertaking forms filled and thus closing the leads.
RANDOM SAMPLING:
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In random sampling methods, the sample units are selected at random. Random
sampling follows a precisely specified system where there is no scope for biased
selection of sample units take place by sheer chance of being selected.
SAMPLE PLAN:
This is called for three decisions:-
1. Sample unit:- who is to be surveyed?
The target population that is defined.
ICICI Prudential was surveyed in this project.
2. Sample size: - the refers to the number of items 200 that is to be selected from the
universe to constitute a sample-
3. Sample Procedure: - How the respondent be chosen.
CENSUS SURVEY: - Data is collected from each and every unit in the population;
it is termed as census survey.
To overall census population of questionnaire survey hence proper sampling design
is done so that particular sample represents that census.
UNIVERSE:- Universe sampling accounts for no. of sample size upon which project
data has been collected here to gather that data my sample size was 200 which is
universe sample size.
DATA COLLECTION INSTRUMENTS:
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1. Questionnaires
2. Personal Interviews.
PERSONAL INTERVIEWS:
Personal interview is mostly commonly used method of data collection. Two purposive
communications between interviewer (researcher) and the respondent (subject) aimed
at obtaining and recording information pertinent to the subject matter of study. The
interviewer resents oral, verbal and written stimuli and receives oral resonances.
Interview may be used as the main method of data collection, or may be used as a
supplement to observation experiments or other technique.
People are more willing to speak rather than write. It also provides an opportunity to
note the body language of the respondent this is called as Personal Interview.
FIELD WORK:
I visited various places like Connaught place, Nirala Bazar, Osmanpura, Jyoti Nagar,
etc. an meet the shop keepers, housewives, student etc. I gave them information
about the concept. I got the questionnaire forms filled the people. People who were
interested in becoming financial advisor were supposed to fill the form and pay Rs.
1,000/- as their training fees. My job was getting these people motivating them and
gets them to my unit manager.
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PROBLEMS IN DATA COLLECTION:
1. People hesitated in giving personal information.
2. People dont listen and pay attention to the things they are not interested in .
3. People dont like to fill the questionnaire because of the mind set against the
surveys.
INSURANCE COMPANIES & THEIR POLICY SCHEME
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RELIANCE LIFE INSURANCE
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading
private sector financial services companies, and ranks among the top 3 private sector
financial services and banking companies, in terms of net worth. Reliance Capital has
interests in asset management and mutual funds, stock broking, life and general
insurance, proprietary investments, private equity and other activities in financial
services.
Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)
registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of
India Act, 1934.
Reliance Capital sees immense potential in the rapidly growing financial services
sector in India and aims to become a dominant player in this industry and offer fully
integrated financial services.
Reliance Life Insurance is another step forward for Reliance Capital Limited to offer
need based Life Insurance solutions to individuals and Corporates.
RELIANCE AUTOMATIC INVESTMENT PLAN
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The Key benefits of Reliance Automatic Investment Plan are as follows:
A smart plan which adapts to your changing risk profile with increasing age
Option to lower the average cost of units through systematic transfer of your
funds
Flexibility to switch between funds and plans
Options for additional Insurance cover available through riders
Key Features Reliance Automatic Investment Plan
Two plan options to choose from Ready-made and Tailor-made
Life Stage asset allocation to ensure automatic change in investment patterns,
under the Ready-made Plan option
Freedom to decide your own fund mix based on your risk profile under the
Tailor-made Plan
Regular, limited, single premium paying options
Unmatched flexibility through our Exchange Option
Liquidity in the form of partial withdrawal
Option to avail of Accidental Death Benefit, Accidental Total, Premium
Disability and Term Insurance riders
Reliance Automatic Investment Plan at a glance
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Basic Plan Minimum Maximum
Age at Entry 30 days 65 years last birthday
Age at Maturity 18 years last birthday 80 years last birthday
Premium Paying
Term
5 years 30 years
Min Sum
Assured
Regular / Limited Premium: Annualised Premium for 5 years or
Annualised Premium for half of the policy term, whichever higher
Single Premium 125% of the single premium amount
Max Sum
Assured
No Limit
HDFC STANDARD LIFE INSURANCE
HDFC Standard Life Insurance HDFC Standard Life Insurance Company is a joint
venture between India's largest housing finance provider, HDFC and Europe's largest
mutual life assurance company - The Standard Life Assurance Company (U. K).
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HDFC Standard Life Insurance Company Limited is the First Private Sector Life
Insurance Company to be granted a license.
FOREIGN PARTNER:
Standard Life, UK
Standard Life, UK, founded in 1825, has been at the forefront of the UK insurance
industry for 175 years by combining sound financial judgment with integrity and
reliability. It is the Largest Mutual Life company in Europe and has total assets of Rs.
5,50,000 crore.
It is one of the very few insurance companies in the world to have received 'AAA'
rating from two of the leading international credit rating agencies, Moody's and
Standard & Poor's. Standard Life was recently voted 'Company of the Decade' in U.K.
by the Independent Brokers called IFAs.
Incorporation of HDFC Standard Life Insurance Company Limited:
The company was incorporated on 14th August 2000 under the name of HDFC
Standard Life Insurance Company Limited.
Their ambition since October 1995, was to be the first private company to re-enter the
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life insurance market in India. On the 23rd of October 2000, this ambition was realized
when HDFC Standard Life was the only life company to be granted a certificate of
registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard
Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is
the maximum investment allowed under current regulations.
HDFC and Standard Life have a long and close relationship built upon shared values
and trust. The ambition of HDFC Standard Life is to mirror the success of the parent
companies and be the yardstick by which all other insurance company's in India are
measured.
1. Endowment Assurance Plan
This plan is a with profits saving plan and is well suited for saving money for your long
term financial goals. This plan also helps provide for the needs of your family in your
absence by paying out a lump sum in the event of your unfortunate death during the
term of the policy.
2. Money Back Plan
This plan helps you plan for future anticipated expenses by paying periodic cash lump
sums to you at regular intervals. This plan also helps provide for the needs of your
family in your absence by paying them the basic sum assured plus any bonus
additions in the event of your unfortunate death during the term of the policy.
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3. Single Premium Whole of Life Plan
Single Premium Whole Of Life Insurance Plan is well suited to meet your long term
investment needs. This participating (with profits) plan offers you the following
benefits:
A sound investment
Flexibility of term
Surrender value
In case of unfortunate death
No medical requirements
4. Term Assurance Plan
If you have a family that you care for, you should consider what would happen in case
of your unfortunate death. The emotional void cannot be filled, but financial insecurity
can be avoided. By taking this affordable life insurance plan, you can provide for the
well-being of your family in case of your unfortunate death. This plan comes to you at
a minimal cost and is well-suited for the value-conscious customer.
5. Loan Cover Term Assurance
If you are taking a loan to buy a house for your family, this plan can help you ensure
that life's uncertainties do not affect their shelter. It is an affordable plan that has been
designed to help your family repay the outstanding loan in case of your unfortunate
death.
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6. Personal Pension Plans
This participating (with profits) plan is basically a savings contract, which is designed
to provide an income for life from retirement. It does this by providing a notional lump
sum on retirement, comprising of sum assured plus any attaching bonus. Subject to
the prevailing regulations, part of this lump sum can be taken in form of cash and the
rest converted to an annuity at the rate then offered by HDFC Standard Life.
Alternatively, if it is permitted by the prevailing regulations, the notional lump sum can
be used to buy an annuity with any other insurance company
AVIVA LIFE INSURANCE
THE COMPANY
Aviva Life Insurance is a joint venture between Dabur and Aviva. Aviva Plc is UK's
largest insurance group. Today, with 25 million customers in over 50 countries and
assets under management in excess of US $300 billion AVIVA life insurance is the
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oldest company in the world and is a pioneer in its own field. It is the 3 rd largest Life
insurance company in the global. It has its root in U.K where it is the largest insurer.
Most lives in U.K are covered by AVIVA. The asset of AVIVA is over $300 billion. It
has got 25 million customers worldwide and reaping the benefit of the product. Around
64,000 people are working for AVIVA worldwide. It has 40 major partnerships with
leading banks across the globe.
In India it has tied up with well know and admired company DABUR. The joint venture
is form to cater the growing need of life insurance.
Founded in 1884, Dabur is one of India's oldest and largest groups of companies with
annual sales of Rs. 1,200 crores. It is the country's leading producer of traditional
healthcare products.
Together they have been looking after generations of customers, over hundreds of
years, and are committed to ensuring that we enjoy the very best financial health.
Aviva Life Insurance aims for superior long-term investment performance and has the
financial and management strength to deliver. Along with millions of customers
worldwide we can feel certain of our choice, whether we invest for the future or
provide against the unexpected.
PRODUCTS AND SERVICES
At Aviva Life Insurance, insurance plans are created keeping in mind the changing
needs of you and your family. Our individual life insurance plans are designed to
provide you with flexible options that meet both protection and savings needs.
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LIFE LONG
Life Long is a flexible whole life plan designed to suit your individual requirements, no
matter which life stage you are in and change as your needs change during your
entire life. For younger families, maximum protection can be provided at moderate
cost but as the need for protection in future reduces, the sum insured under the policy
may be reduced, thus increasing the savings content.
LIFESAVER
Life Saver is a flexible endowment plan designed to meet your specific long-term
savings needs such as education and wedding costs, with the added reassurance of
life cover to meet those costs should something untoward happen before the policy
matures.
LIFEBOND
Life Bond is a single premium savings plan designed by Aviva to provide you the
maximum benefit of investment return and the security of the investment to match
your medium term savings needs.
CORPORATE LIFE
Corporate Life is a product designed primarily for the corporate sector to provide life
cover to their employees. The product can also be targeted at other suitable groups.
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This is a group term insurance product, which provides cover against risk of death.
The Corporate is the master policyholder. It is a yearly renewable product. Additional
covers against accidental death and permanent total disability are also available, if
opted for by the master policyholder.
EASY LIFE PLUS
Easy Life Plus is designed to be a simple regular savings plan with the benefit of life
protection. By choosing an appropriate premium level and term, you can match the
maturity date of the policy to a specific savings need such as childrens education,
wedding, etc. Easy Life Plus is specially designed for members of select groups such
as Bank Customers, Employer-Employee, or any other similar recognized group.
CREDIT PLUS
Credit Plus is a product specially designed for Micro Finance Institutions who provide
loans to individuals in the rural and social sectors and who would also like to provide
some financial security to the families of these individuals (members).This is a yearly
renewable group term insurance scheme which provides death cover on group basis.
PENSION PLUS
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Pension Plus is a tax efficient personal pension plan that is designed to help you earn
a regular income even after you stop working. Through this plan, you build a fund till
you retire which provides you financial security on retirement.
SECURE LIFE
Secure Life is an ideal life insurance plan that helps you protect your familys future.
Depending on your requirements, whether it be for your childs education or marriage,
loan repayments, etc., Secure Life ensures that your familys needs are met should
something unfortunate happen to you. What is more, the entire premium that you pay
during the policy term is returned to you on survival, at maturity.
BIRLA SUN LIFE INSURANCE
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The Aditya Birla Group consists of companies based at transnational locations,
comprising of some of the best-known companies in India. The group companies have
attained a leading position in a range of key core sector areas and rank among the
countrys largest, most profitable and fastest growing companies. At the Aditya Birla
Group, growth with excellence is a way of life. With a turnover of over Rs 280 billion
(US $6.01 billion), and fixed assets worth Rs 265 billion (US $5.7 billion), the group is
India's leading business house. The Group's employs around 72,000 people and has
700,000 share holders spread across 40 companies situated around the globe.
Sun Life Financial is a leading international financial services organization. With a
history that dates back to 1871, Sun Life Financial has evolved from a single mutual
life insurance to one of the most highly rated insurance and wealth management
institutions in the world. Sun Life Financial knows its value lies in more than assets
and history. It also lies in the culture of integrity and the pursuit of excellence that have
marked all of the organizations endeavors. Today, the Sun Life Financial Group of
companies and partners are represented globally in Canada, the United States, the
Philippines, Japan, Indonesia, India and Bermuda.
Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life
Financial of Canada to enter the Indian insurance sector.
INSURANCE PRODUCTS
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YOUNG SCHOLAR
Birla Sun Life Insurance, have specially designed the YOUNG SCHOLAR PACKAGE
for children aged 8 and below. Birla Sun Life's Young Scholar package not only
insures the parent, but also ensures the dream of your child becomes a reality.
Savings... Easily achievable Guaranteed 6% Returns
FLEXI LIFE LINE WHOLE LIFE PLAN
Flexi Life Line Whole Life Plan is an investment in the future which ensures that your
hard earned money gives you higher returns as well as security to your loved ones.
Unique Features:
Choice of Investment Options.
Automatic Premium Payment.
Free Look Period.
Access your funds during the duration of the plan.
Favorable premiums for Female Clients.
BIRLA SUN LIFE TERM PLAN
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This low cost plan is for those who would like to buy an insurance cover at a low cost.
The premium of this plan is low and offers high life coverage. This plan takes care of
the policyholder's financial commitment to his family if anything unfortunate happens
to him.
Eligibility:
The minimum eligibility age is 18 and maximum is 55 years.
Duration of the plan:
The duration of the plan can be 5,10,15,20 or 25 years. (The maximum age at
maturity is 70 i.e., a person aged 55 can buy a maximum benefit period of 15 years).
Premium Payment:
Premiums can be paid annually, semi annually or quarterly throughout the duration of
the plan or by a one time single premium. In case of non-payment of premiums on due
dates, a grace period of 30 days is given after which the policy will lapse.
Free plan Trial
This option called Free Look Period begins from the date of dispatch of policy
document. Under this trial the customer is allowed to review his decision for 14 days.
If the policyholder wishes to cancel his plan within this period, full refund of the
premium amount paid is offered.
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Description Birla Sun Life Term PlanEligibility 18 - 55 years
Minimum Face Amount
(Sum Assured)
Rs 2,50,000 in case of single premium and Rs 2 ,00,000
in case of annual premium for a person fulfilling the
eligibility criteriaDuration of the plan As per the policy terms - 5,10,15,20 or 25 yearsPremium Paying Period Single pay, or over the duration of the planPremium Payment
Frequency
Annually, semi-annually, quarterly, monthly or One-time
payment
Free Look PeriodReview your decision for 14 days from the date of
dispatch of the policy document.Amount due to nominee in
event of death of the life
insured
Face Amount ( Sum Assured)
Amount due on survival upto
maturityNil
Surrender Value Nil
RidersAccidental Death & Dismemberment and Critical Illness
riders but only at the time of purchase of policy
Tax Benefits As per Sec. 88 and Sec.10(10D) of the Income Tax Act
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DATA ANALYSIS AND INTERPRETATION
It may be noted that the pie charts and bar diagrams have been drawn on the basis of
the total number of questionnaires filled i.e. 200 and on the basis of the number of
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responses we have received for each question. The interpretation for the same has
been done in percentage form.
1. Thinking of insurance, what comes to your mind?
INSURANCE MEANS
50%
30%
20% LIC
SECURITY
TAX SAVING
Majority of the population(50%), when they think of insurance it means LIC where as
20% & 30% of the population think it as tax saving and security respectively. Thus it
can be seen that LIC is well based in the minds of the people
2. out of the following, you have an insurance policy of (put tick mark)
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LIC [ ] AVIVA [ ] NEW YORK MAXLIFE [ ] ICICI [ ]
BIRLA SUNLIFE [ ] HDFC [ ]
Others, specify
INSURANCE POLICY PEOPLE HAVE
40
94
20
7
18
0
1020
30
40
50
COMPANIES
No.OFPEOPLE
LIC
AVIVA
NEW YORK MAXLIFE
ICICI
BIRLA SUNLIFE
HDFC
Major part of the population has their insurance policy in LIC. And the private players
are only able to get few policies done after the insurance sector was privatized of
which, ICICI & HDFC have the majority of it.
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3. What type of policy do you have?
TYPES OF POLICIES PEOPLE HAVE
20 20
1214
28
0
5
10
15
20
25
30
POLICIES
No.OFPEOPLE
ENDOWMENT
WHOLE LIFE
MONEY BACK
SINGLE PREMIUM
TERM POLICY
Most of the people have term policies; endowment and whole life are on the same
platform. Money back and single premium are less desirable by the people.
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4. What do you look for, while opting for a Life Insurance Company?
PEOPLE LOOK FOR WHILE OPTING FORLIFE INSURANCE COMPANY
24%
33%9%
34% RETURN ONINVESTMENT
GOODWILL
ADDITIONAL
BENEFITS
SECURITY
When people opt for a Life Insurance Company, most of them look for security of their
money, goodwill of the company and return on their investment. Not many of them
look for additional benefits.
5. What do you look for, while opting for a Life Insurance policy?
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PEOPLE LOOK FOR WHILE OPTING FOR
LIFE INSURANCE POLICY
22%
24%
23%
31%TAX SAVING
INCOME
SECURITY
OLD AGE
BENEFITS
SAVINGS
In India most of people take insurance policy because it gives them tax benefits. It
plays a major role. Others such as income security, savings and old age benefits go
behind it.
6. Do you think insurance is superior to other forms of savings?
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INSURANCE SUPERIOR TO OTHER
FORM OF SAVINGS
84%
16%
YES
NO
Majority of the population believe that insurance is superior to other form of savings. It
provides tax benefits which are not provided in other forms of savings and to the more
it provides security for the future.
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7. Is price an important consideration while opting for an insurance
policy?
PRICE IS AN IMPORTANT CONSIDERATION
74%
26%
YES
NO
Most of the people when they opt for an insurance policy, price is an important
consideration for them. However, about 26% of the population do not consider price
as an important consideration while opting for an insurance policy.
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8. At any point of policy period, have you ever claimed your policy?
PEOPLE CLAIMED THEIR POLICIES
DURING THE POLICY PERIOD
24%
76%
YES
NO
Though only 24% of the population has claimed their policy during their policy period,
but they are not satisfied because the process has lots of hassles and time taking.
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9. Have you ever insured with LIC?
PEOPLE INSURED WITH LIC
92%
8%
YES
NO
The result for this question proved the fact that majority of the insured people in INDIA
has their faith in LIC. Around 92% of the surveyed population has insured with LIC.
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10. Any particular reason for opting ?
About 60% of the population does not have any reason for opting out of LIC. Howev
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