Annu Project

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Customer Satisfaction on ICICI PRUDENTIAL

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ASUMMER INTERNSHIP PROGRAMME 2010-2012

CUSTOMER SATISFACTION SURVEY ONINSURANCE PRODUCTS OF ICICI

PRUDENTIAL

Submitted To: Submitted By:Mr.Ravi Singh Selvaraj.SwarnaProject Guide (10019), PGDM

Submitted InINDIRA GLOBAL BUSSINESS SCHOOL

2010-2012

Indira Global Business School


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Gat No-276,Sr No 64/65,Parandwadi,Pune-410506Website: www.indiraglobal.edu.in Tel: 02114-2377

Acknowledgement

I wish to place on record my deep sense of gratitude to ICICI, Swargate, Pune. For providing

me an opportunity to take up this project and giving me a platform which is the first step of

my professional career.

This summer project, From the very beginning to the tail end has been carried out under the

guidance ofMr.Sachin, ICICI Senior Sales Manager. I am indebted to my guide Mr.Ravi

Singh for extending her untiring guidance to me, discussing the project matter and helping me

in clarifying my thinking in several pertinent issues and providing a meaningful insight into

the subject.

In the end, I would like to thank many unknown individuals, whom I interacted with for end

number of my needs. All of them with their due cooperation and at times with detachment

taught me the real lessons of the business world.

Selvaraj.Swarna

(Roll No 10019)


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DECLARATION

I hereby declare that the project titled Customer satisfaction survey on insurance

products of ICICI PRUDENTIAL is an original piece of research work carried out

And The information has been collected from genuine & authentic sources. The work

has been submitted in INDIRA GLOBAL BUSSINESS SCHOOL

Place:

Date:

Selvaraj.Swarna


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CERTIFICATE

This is to certify that Mr. Selvaraj Swarna is a bonafide fulltime student of Indira GlobalBusiness School, Pune. He is pursuing his Post Graduation Diploma Management course

affiliated to AICTE on the academic year 20010-2012.

He submitted the project titled Customer Satisfaction Survey on Insurance

products of ICICI PRUDENTIAL.. Undertaken at ICICI, Swargate, Pune under the

guidance of Prof.RAVI SINGH as his Internal Guide.

To the best of our knowledge no part of this work has been submitted towards fulfillment of

requirement of any degree or has been published before.

Mr. Pranav Vyas Prof. Ravi singh

Dean - PGDM Internal Guide

IGBS IGBS


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CONTENT

Executive Summary ....1

Chapter-1INTRODUCTION

1.1 Industry Overview3

1.2Conceptual Background...7

1.3Customer satisfaction.10

Chapter-2COMPANY PROFILE

2.1 Company profile...13

2.2 Vision & Values....16

2.3 Brand Values....19

2.4 Distribution....21

Chapter-3PRODUCT PROFILE

3.1 Product Profile..24 3.2 Protection Solution..25

3.3 Stages in Policy Insurance.30

Chapter-4 Research Methodology

4.1 Statement of Problem..33

4.2Research Design..34

4.3Sampling Technique354.4Sample Size..36

4.5Limitations of Study.38


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Chapter-5 Data Analysis40

Chapter-6 Findings.52

Chapter-7 Conclusion54

Chapter-8 Suggestions & Recommendations...56

Chapter-9 SWOT Analysis ..59

Bibliography65

Annexure 66

Questionnaire67


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EXECUTIVE SUMMARY

ICICI Prudential Life Insurance is one of the largest Insurance networks in the

country, and 2nd Life Insurance Company in India. The ICICI Group has been in

existence since 1955 when ICICI Ltd., was created. ICICI Prudential started in 2002

as subsidiary of ICICI Ltd., Today ICICI Life Insurance has a customer base of 4

million with total assets exceeding Rs.1,00,000 Cr. making it the 2nd largest life

insurance company in the country, next only to LIC.

The Insurance sector, after the opening up, provides greater opportunities. Several

global players have emerged and the market has changed significantly. In the


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changed scenario, the expectation is that the low Insurance premium as a percentage

of GDP prevailing in India will improve and will offer better opportunities to the

insurance players.

Life Insurance sector is one of the key areas where enormous business potential

exists. In India currently the life insurance premium as a percentage of GDP is 1.3 per

cent against 5.2 per cent in the US, but in the liberalized scenario, the life insurance

premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998-

99 to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life

premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in

2009-10 and personal line non-life from Rs 4 billion to Rs 51 billion.

In the life Insurance segment the Life Insurance Corporation of India (LIC) is the

major player. The LIC has 2050 branches. It is constituted in to seven Zones.

Currently there are 5,60,000 LIC agents in India. General Insurance is another

segment, which has been growing at a faster pace.


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INTRODUCTION

INTRODUCTION

1.1 Industry Overview

Life insurance is a form of insurance that pays monetary proceeds upon the death of

the insured covered in the policy. Essentially, a life insurance policy is a contract

between the named insured and the insurance company wherein the insurance

company agrees to pay an agreed upon sum of money to the insured's named


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beneficiary so long as the insured's premiums are current.

With a large population and the untapped market area of this population insurancehappens to be a very big opportunity in India. Today it stands as a business growing

at the rate of 15-20% annually. Together with banking services, it adds about 7

percent to the countrys GDP. In spite of all this growth statistics of the penetration of

the insurance in the country is very poor. Nearly 80% of Indian populations are

without life insurance cover and the health insurance. This is an indicator that growth

potential for the insurance sector is immense in India.

It was due to this immense growth that the regulations were introduced in the

insurance sector and in continuation Malhotra Committee was constituted by the

government in 1993 to examine the various aspects of the industry. The key element

of the reform process was participation of overseas insurance companies with 26%

capital. Creating a more competitive financial system suitable for the requirements of

the economy was the main idea behind this reform.

Since then the insurance industry has gone through many changes. The liberalizationof the industry the insurance industry has never looked back and today stand as one

of the most competitive and exploring industry in India. The entry of the private

players and the increased use of the new distribution are in the limelight today. The

use of new distribution techniques and the IT tools has increased the scope of the

industry in the longer run.

Insurance is the business of providing protection against financial aspects of risk,

such as those to property, life health and legal liability. It is one method of a greaterconcept known as risk managementwhich is the need to mange uncertainty on

account of exposure to loss, injury, disadvantage or destruction.

Insurance is the method of spreading and transfer of risk. The fortunate many who

are exposed to some or similar risk shares loss of the unfortunate. Insurance does

not protect the assets but only compensates the economic or financial loss.


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In insurance the insured makes payment called premiums to an insurer, and in

return is able to claim a payment from the insurer if the insured suffers a defined type

of loss. This relationship is usually drawn up in a formal legal contract.

Insurance companies also earn investment profits, because they have the use of the

premium money from the time they receive it until the time they need it to pay claims.

This money is called the float. When the investments of float are successful they may

earn large profits, even if the insurance company pays out in claims every penny

received as premiums. In fact, most insurance companies pay out more money than

they receive in premiums. The excess amount that they pay to policyholders is the

cost of float. An insurance company will profit if they invest the money at a greater

return than their cost of float.

An insurance contract or policy will set out in detail the exact circumstances under

which a benefit payment will be made and the amount of the premiums.

Classification of insurance

The insurance industry in India can broadly classified in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:

Life insurance can be defined as life insurance provides a sum of money if the

person who is insured dies while the policy is in effect.

In 1818 British introduced to India, with the establishment of the oriental life insurance

company in Calcutta. The first Indian owned Life Insurance Company; the Bombay

mutual life assurance society was set up in 1870.the life insurance act, 1912 was the

first statuary measure to regulate the life insurance business in India. In 1983, the

earlier legislation was consolidated and amended by the insurance act, 1938, with

comprehensive provisions for detailed effective control over insurance. The union


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government had opened the insurance sector for private participation in 1999, also

allowing the private companies to have foreign equity up to 26%. Following the

opening up of the insurance sector, 12 private sector companies have entered the lifeinsurance business.

Benefits of life insurance

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

Thus insurance is found to be very useful in the lives of the person both in

short term and long term.

Fundamental principles of life insurance contract;

1) Principle of almost good faith:

A positive duty to voluntary discloses, accurately and fully, all facts, material to

the risk being proposed whether requested or not.

2) Principle of insurable interest:

Relationships with the subject matter (a person) which is recognized in law and

gives legal right to insure that person.


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2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be

established in India in 1850, whose shares were mainly held by the British. The first

general insurance company to be set up by an Indian was Indian mercantile

insurance co. Ltd., which was stabilized in 1907. There emerged many a player on

the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of

General Insurance Corporation (GIC) OF India undertook the post-nationalization

general insurance business.

1.2. CONCEPTUAL BACKGROUND

Satisfactionis defined as . . .

A persons feeling of pleasure or disappointment resulting from comparing a

products perceived performance (oroutcome) in relation to his or her expectations.Customer Satisfaction can be defined as supplying or gratifying all wants or wishes,

fulfilling conditions or desires, or the state of the mind anything that makes a

customer feel pleased or contented.

Consumer Behavior:


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Consumer behavior is defined as the behavior that consumers display in

searching for, purchasing, using, evaluating and disposing of products and services

that they expect will satisfy their needs.

The study of the processes involved when individuals or groups select, purchase,use, or dispose of products, services ideas, or experiences to satisfy needs and

desires

Customer value: The ratio between the customers perceived benefits (economic,

functional and psychological) and the resources (momentary, time, effort,

psychological) used to obtain those benefits.

Customer satisfaction:Customer satisfaction is the individuals perception of the

performance of the product or service in relation to his or her expectations.

Motivation:The processes that account for an individuals intensity, direction, and

persistence of effort toward attaining a goal.

Personality can be described ad the psychological characteristics that both

determine and reflect how person responds to his or her environment.

Perception is defined as the process by which an individual selects, organizes, and

interprets stimuli into a meaningful and coherent picture of the world.

Consumer learning is the process by which individuals acquire the purchase and

consumption knowledge and experience they apply to future related behavior.

THE CONSUMER ADOPTION PROCESS

The consumer adoption process is the process by which customers learn

about new products, try them, and adopt or reject them. Today many marketers are


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targeting heavy users and early adopters of new products recognizing that specific

media can reach both groups and tend to be opinion leaders. The consumer adoption

process is influenced by many factors beyond the marketers control, includingconsumers and organizations willingness to try new products, personal influences

and the characteristics of the new products or innovations

STAGES OF ADOPTION PROCESS

An innovation refers to any good, service, or idea. That is perceived by someone as

new. The idea may have long history, but it is an innovation to the person who sees it

as new. Innovation takes time to spread through the special system. The consumer

adoption process focuses on the mental process through which an individual passes

from first hearing about an innovation to final adoption. Adopters of new products

have moved through the following five stages.


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1. AWARENESS: The consumer becomes aware of the innovation but lacks

information about it.

2. INTEREST: The consumer is stimulated to see the information about the

innovation.

3. EVALUATION: The Consumer considers whether to try the innovation or not.

4. TRIAL: The consumer tries the innovation to improve his estimate of its value.

5. ADOPTION: The consumer decides to make full and regular use of the

innovation.

1.3. CUSTOMER SATISFACTION

What is customer satisfaction?

Customer satisfaction refers to how satisfied customers are with the products or

services they receive from a particular agency. The level of satisfaction is determined

not only by the quality and type of customer experience but also by the customers

expectations.

A customer may be defined as someone who:

Has a direct relationship with, or is directly affected by your agency and

Receives or relies on one or more of your agencys services or products.


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Customers in human services are commonly referred to as service users, consumers

or clients. They can be individuals or groups.

An organization with a strong customer service culture places the customer at the

centre of service design, planning and service delivery. Customer centric

organizations will:

determine the customers expectations when they plan

listen to the customer as they design

focus on the delivery of customer service activities

Value customer feedback when they measure performance.

Why is it important?

There are a number of reasons why customer satisfaction is important in Insurance

Sector:

Meeting the needs of the customer is the underlying rationale for the existence

of community service organizations. Customers have a right to quality services

that deliver outcomes. Organizations that strive beyond minimum standards and exceed the

expectations of their customers are likely to be leaders in their sector.

Customers are recognized as key partners in shaping service development

and assessing quality of service delivery.


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The process for measuring customer satisfaction and obtaining feedback on

organizational performance are valuable tools for quality and continuous service

improvement.


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COMPANY PROFILE

2. INTRODUCTIONS TO ORGANISATION

2.1. COMPANY PROFILE

About ICICI BANK:

ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion

(US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year

ended March 31, 2008. ICICI Bank is second amongst all the companies listed on the

Indian stock exchanges in terms of free float market capitalization*. The Bank has a

network of about 1,308 branches and 3,950 ATMs in India and presence in 18

countries. ICICI Bank offers a wide range of banking products and financial services

to corporate and retail customers through a variety of delivery channels and through


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its specialized subsidiaries and affiliates in the areas of investment banking, life and

non-life insurance, venture capital and asset management. The Bank currently has

subsidiaries in the United Kingdom, Russia and Canada, branches in United States,Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance

Centre and representative offices in United Arab Emirates, China, South Africa,

Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established

branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange (NYSE).

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. 42.72 billion, with ICICI Bank holding a stake of 74%and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of

over 2000 branches (inclusive of 1,095 micro-offices), over 261,000 advisors; and 24

banc assurance partners.


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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 TheEconomic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we

grow our distribution, product range and customer base, we continue to tirelessly

uphold our commitment to deliver world-class financial solutions to customers all over

India.

The ICICI Prudential Edge

The ICICI Prudential edge comes from our commitment to our customers, in all that

we do - be it product development, distribution, the sales process or servicing. Here's

a peek into what makes us leaders.

Our products have been developed after a clear and thorough understanding of

customers' needs. It is this research that helps us develop Education plans that offer

the ideal way to truly guarantee your child's education, Retirement solutions 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.


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1. Having the right products is the first step, but it's equally important to ensure

that our customers can access them easily and quickly. To this end, ICICI

Prudential has an advisor base across the length and breadth of the country,and also partners with leading banks, corporate agents and brokers to

distribute our products .

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 and hassle-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 28,000 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.

2.2 Vision & Values

Our vision:-

To be the dominant Life, Health and Pensions player built on trust by world-class

people and service.

This we hope to achieve by:

1. Understanding the needs of customers and offering them superior products

and service

2. Leveraging technology to service customers quickly, efficiently and

conveniently


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3. Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

4. Providing an enabling environment to foster growth and learning for ouremployees

5. 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.

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

can play a significant role in redefining and reshaping the sector. Given the quality of

our parentage and the commitment of our team, there are no limits to our growth.

Our values:-

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

Customer First, Boundary less, Ownership, and Passion. These values shine forth in

all we do, and have become the keystones of our success .

Promoters

ICICI BANK

ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank

with over 50 years of financial experience and with assets of Rs. 1812.27 billion as on

30th June, 2005. ICICI Bank offers a wide range of banking products and financial

services to corporate and retail customers through a variety of delivery channels and


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through its specialized subsidiaries and affiliates in the areas of investment banking,

life and non-life insurance, venture capital and asset management. ICICI Bank is a

leading player in the retail banking market and has over 13 million retail customeraccounts. The Bank has a network of over 570 branches and extension counters, and

2,000 ATMs.

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 16 million customers, policyholders and unit holders worldwide. As of June

30, 2004, the company had over US$300 billion in funds under management.

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. In Asia, Prudential is the leading European life

insurance company with a vast network of 24 life and mutual fund operations in

twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the

Philippines, Singapore, Taiwan, Thailand and Vietnam.

Fact Sheet

The Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse, and Prudential plc, a leading international financial

services group headquartered in the United Kingdom. ICICI Prudential was amongst

the first private sector insurance companies to begin operations in December 2000

after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 42.72 billion (as of June 30, 2008) with

ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the

quarter ended June 30, 2008, the company garnered Retail Weighted New Business

Premium of Rs. 1,174 crores as against Rs 810 crores for the quarter ended June 30,


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2007, thereby posting a growth of 45% and has underwritten over 6 lakh policies over

this period. The company has assets held over Rs. 30,600 crore as on August 31,

2008.

ICICI Prudential Life is also the only private life insurer in India to receive a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating

is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its

obligations to customers at the time of maturity or claims.

For the past seven years, ICICI Prudential Life has retained its leadership position in

the life insurance industry with a wide range of flexible products that meet the needsof the Indian customer at every step in life.

2.3 Brand Values

Market Research reveals that the values people associate with ICICI Prudential are,

indeed, those that the company hopes to project: lifelong protection and value for

money. The core value is protecting your loved ones, throughout lifes ups and

downs. It is a powerful proposition; one, which ICICI Prudential, is taking into the

market place.

Achievements

Beginning operations in December 2000, ICICI Prudentials success has been

meteoric, becoming the number one private life insurer within months of launch.

Today, it has one of the largest distribution networks amongst private life insurers in


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India, with branches in 54 cities. The total number of policies issued stands at more

than 780,000 with a total sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total received

premium income of Rs. 9.9 billion; up 135% last years total premium income of

Rs.4.20 billion. New business premium income shows a 106% growth at Rs. 7.5

billion, driven mainly by the companys range of unique unit -linked policies and

pension plans. The companys retail market share amongst private companies stood

at 36%, making it clear leader in the segment. To add to its achievements, in the year

2003/04 it was adjudged Most Trusted Private Life Insurer (Economic Times Most

Trusted Brand Survey by ACNielsen ORG-MARG). It was also conferred the Outlook

Money-Best Life Insurer award for the second year running. The company is also

proud to have won Silver at EFFIES 2003 for its Retire from work, not life campaign.

Notably, ICICI Prudential was also short-listed to the final round for its Sindoor

campaign in EFFIES 2002.

In Keeping with its belief that a happy customer is the best endorsement, ICICI

Prudential has embraced the SIX SIGMA approach to quality, an exercise that

begins and ends with the customer from capturing his voice to measuring and

responding to his experiences. This initiative is currently helping the company

improve processes, turnaround times and customer satisfaction levels. Another Novel

introduction is the ICICI Prudential Lifestyle Rewards Club, Indias first rewards

programmed for Life Advisors; it allows ICICI Prudential Advisors to redeem points for

items ranging from kitchenware to gold, white goods, and even international holidays.


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2.4 DISTRIBUTION

ICICI Prudential Life has one of the largest distribution networks amongst private life

insurers in India. It has a strong presence across India with over 2000 branches

(including 1,095 micro-offices) and an advisor base of over 261,000 (as on August 31,

2008).

The company has 24 banc assurance partners having tie-ups with ICICI Bank, Bank

of India, South Indian Bank, Shamrao Vitthal Co-Op Bank, Jalgaon Peoples Co-op

Bank, Ernakulam District Co-op Bank, Idukki District Co-op Bank, Ratnagiri

Sindhudurg Gramin Bank, Solapur Gramin Bank, Wainganga Kshetriya Gramin Bank,

Aryawart Gramin Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank,

Baitarani Gramya Bank, Ratnagiri District Central Co-op Bank, Seva Vikas Co-op

Bank, Sangli Urban Co-Operative Bank, Baramati Co-operative Bank, Ballia Kshetriya

Co-Operative Bank, The Haryana State Co-Operative Bank, Renuka Nagrik Sahakari


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Bank, Amanath Co-Operative Bank, Arvind Sahakari Bank, Bhandara Urban Co

Operative Bank

SALES DISTRIBUTION

Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large

advisor force that targets various customer segments. The strength of tied agency lies

in an aggressive strategy of expanding and procuring quality business. With focus on

sales & people development, tied agency has emerged as a robust, predictable and

sustainable business model.

Bank assurance and Alliances

ICICI Prudential was a pioneer in offering life insurance solutions through banks and

alliances. Within a short span of two years, and with nearly a large number of

partners, B & A has emerged as a vital component of the companys sales and

distribution strategy, contributing to approximately one third of companys total

business. The business philosophy at B&A is to leverage distribution synergies with

our partners and add value to its customers as well as the partners. Flexibility,

adaptation and experimenting with new ideas are the hallmarks of this channel.


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PRODUCT/SERVICES PROFILE

3.1 PRODUCT/SERVICES PROFILE

1. Insurance Solutions for Individuals: ICICI Prudential Life Insurance offers a

range of innovative, customer-centric products that meet the needs of

customers at every life stage. Its products can be enhanced with up to 4 riders,

to create a customized solution for each policyholder.

Savings & Wealth Creation Solutions

1. Save'n'Protect is a traditional endowment savings plan that offers life protection

along with adequate returns.


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2. CashBak is an anticipated endowment policy ideal for meeting milestone

expenses like a child's marriage, expenses for a child's higher education or

purchase of an asset. It is available for terms of 15 and 20 years.3. Lifetime Gold is a unit-linked plan that offers customers the flexibility and control

to customize the policy to meet the changing needs at different life stages. It offers

7 fund options - Preserver, Protector, Balancer, Flexi Balanced Multiplier, R.I.C.H

and Flexi Growth.

4. Life Stage RP is unit linked plan that provides you with an option of lifecycle-

based portfolio strategy that continuously re-distributes your money across various

asset classes based on your life stage. This will help you achieve the right Asset

Allocation to meet your desired financial goals.

5. LifeLink Super is a single premium unit linked insurance plan which combines life

insurance cover with the opportunity to stay invested in the stock market.

6. Premier Life Gold is a limited premium paying plan specially structured for long-

term wealth creation.

7. InvestShield Life New is a unit linked plan that provides premium guarantee on

the invested premiums and ensures that the customer receives only the benefits

of fund appreciation without any of the risks of depreciation.

8. InvestShield Cashbak is a unit linked plan that provides premium guarantee on

the invested premiums along with flexible liquidity options

3.2 Protection Solutions

1. LifeGuard is a protection plan, which offers life cover at low cost. It is available

in 3 options - level term assurance, level term assurance with return of

premium & single premium.

2. HomeAssure is a mortgage reducing term assurance plan designed

specifically to help customers cover their home loans in a simple and cost-

effective manner.

Education Solutions


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1. SmartKid New ULRP provides guaranteed educational benefits to a child

along with life insurance cover for the parent who purchases the policy. The

policy is designed to provide money at important milestones in the child's life.SmartKid plans are also available in traditional form.

Retirement Solutions

1. ForeverLife is a traditional retirement product that offers guaranteed returns

for the first 4 years and then declares bonuses annually.

2. LifeTime Super Pension is a regular premium unit linked pension plan that

helps one accumulate over the long term and offers 5 annuity options (lifeannuity, life annuity with return of purchase price, joint life last survivor annuity

with return of purchase price, life annuity guaranteed for 5, 10 and 15 years &

for life thereafter, joint life, last survivor annuity without return of purchase

price) at the time of retirement.

3. LifeStage Pension is a regular premium unit linked pension plan that provides

you with a unique lifecycle-based strategy that continuously re-distributes your

money across various asset classes based on your life stage, eventually

providing you with a customized retirement solution.

4. LifeLink Super Pension is a single premium unit linked pension plan.

5. Immediate Annuity is a single premium annuity product that guarantees

income for life at the time of retirement. It offers the benefit of 5 payout options.

6. Premier Life Pension is a unique and convenient retirement solution with a

limited premium paying term of three or five years, to suit professionals and

businessmen, especially those who require more flexibility and customization

while planning their finances.


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Health Solutions

1. Health Assure Plus: Health Assure is a regular premium plan which provides

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 advantage of an equivalent life insurance cover.

2. Cancer Care: is a regular premium plan that pays cash benefit on thediagnosis as well as at different stages in the treatment of various cancer

conditions.

3. Cancer CarePlus: is a wellness plan that includes all the benefits of Cancer

Care and also provides an additional benefit of free periodical cancer

screenings.


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4. Diabetes Care: Diabetes Care is a unique critical illness product specially

developed for individuals with Type 2 diabetes and pre-diabetes. It makes

payments on diagnosis on any of 6 diabetes related critical illnesses, and alsooffers a coordinated care approach to managing the condition. Diabetes Care

Plus also offers life cover.

5. Diabetes Care plus: is a unique insurance policy that provides an additional

benefit of life cover for Type 2 diabetics and pre-diabetics

6. Hospital Care: is a fixed benefit plan covering various stages of treatment -

hospitalization, ICU, procedures & recuperating allowance. It covers a range of

medical conditions (900 surgeries) and has a long term guaranteed coverage

upto 20 years.

7. Crisis Cover: is a 360-degree product that will provide long-term coverage

against 35 critical illnesses, total and permanent disability, and death.

8. Medias sure is a health insurance policy that provides assured insurability till

age 75 years, assured coverage for accepted pre-existing illnesses after 2

years and an assured price for 3 years.

Group Insurance Solutions

ICICI Prudential Life also offers Group Insurance Solutions for companies seeking to

enhance benefits to their employees.

1. Group Gratuity Plan: ICICI Prudential Life's group gratuity plan helps

employers fund their statutory gratuity obligation in a scientific manner and

also avail of tax benefits as applicable to approved gratuity funds.

2. Group Superannuation Plan: ICICI Prudential Life offers a flexible market

linked scheme that provides substantial benefits to both employers and

employees. Both defined contribution (DC) and defined benefit (DB) schemes


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are offered to optimise returns for members of the trust and rationalise cost.

Members have the option of choosing from various annuity options or opting

for a partial commutation of the annuity at the time of retirement.3. Group Immediate Annuities: ICICI Prudential Life realises the importance of

prudent retirement planning. With this in mind, we have developed a suite of

annuity products that not only give you an income for life but also provide you

options to match your needs. In addition to the annuities offered to existing

superannuation customers, we offer immediate annuities to superannuation

funds not managed by us.

4. Group Term Plan: ICICI Prudential Life's flexible group term solution helps

provide an affordable cover to members of a group. The cover could be

uniform or based on designation/rank or a multiple of salary. The benefit under

the policy is paid to the beneficiary nominated by the member on his/her death.

5. Flexible Rider Options: ICICI Prudential Life offers flexible riders, which can

be added to the basic policy at a marginal cost, depending on the specific

needs of the customer.

6. Accident & 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 an accident results in total

and permanent disability, 10% of rider sum assured will be paid each year,

from the end of the 1st year after the disability date for the remainder of the

base policy term or 10 years, whichever is lesser. If the death occurs while

travelling in an authorized mass transport vehicle, the beneficiary will be

entitled to twice the sum assured as additional benefit.


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7. Critical Illness Benefit: protects the insured against financial loss in the event

of 9 specified critical illnesses. Benefits are payable to the insured for medical

expenses prior to death.8. 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 SmartKid, LifeTime Plus, LifeTime

Super and LifeTime Super Pension.

9. Income benefit rider: In case of death of the life assured during the term of

the policy, 10% of the sum assured is paid annually to the nominee on each

policy anniversary till the maturity of the rider.

3.3Stages in Policy Issuance

1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At this stage,the application form is received by COPS, but it is pending for issuance due to furtherclarifications required from the customer.

2) Login

A proposal which is complete i.e., duly filled with all necessary documents attached toit & accepted by the Branch ops, is called a Login


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3) Reject

An Application gets rejected at the Branch Ops level due to necessary details not

filled in the form or necessary documents not submitted is a Reject. It is then sentback to the Advisor for completion.

4) Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status

When a customer refuses to take a policy post login but before Issuance is called a

Decline

6) Cancellation

When the cheque given by the customer bounces, it amounts to cancellation of thepolicy.

7) Lapse

A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.

8) Free look

Post issuance of the policy, the policyholder has the option to turn down the policy

within 15 days from the date of issuance. This period of 15 days is called Free look

Period.

9) Surrender:

When a customer wants to discontinue with the policy.


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Research Methodology

Methodology

4.1 Statement Of Problem:

The research is carried on in a proper planned and systematic manner.

The research was particularly a telephonic research. We have to sell products

to list of people which include their names and contact numbers given by ICICI.


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During the telephonic we have to sell different products by explaining the

benefits of a particular product, but. The minimum amount for selling a policy to

a customer is equal to or more then Rs. 12000 only. Age limit for selling a product/policies was 1 month to 60 yrs this mean that a

policy can be sold to person between the age of 1 month to 60 yrs and not

anything exceeding or below it.

Objectives of this project are as follows:

To identify the insurance needs of the Indian population with respect to theiremotional, physical and financial conditions.

Comparative study of various insurance players in the market

To study the varied reasons of availing life insurance plans

4.2 Research Design:

The research design of this project is exploratory. Though each research study has its

own specific purpose but the research design of this project on ICICI is exploratory in

nature as the objective is the development of the hypothesis rather than their testing.


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METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically

solve the problem or attain its objectives. It is a very important guideline and lead to

completion of any project work through observation, data collection and data analysis.

According to Clifford Woody,

Research Methodology comprises of defining & redefining problems, collecting,

organizing &evaluating data, making deductions &researching to conclusions.

Accordingly, the methodology used in the project is as follows: -

1. Defining the objectives of the study

2. Framing of questionnaire keeping objectives in mind (considering the

objectives)

3. Feedback from the employees

4. Analysis of feedback

5. Conclusion, findings and suggestions.

4.3 Sampling Technique Used:

This research has used convenience sampling technique.

Convenience samplingtechnique:


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Convenience sampling is used in exploratory research where the researcher is

interested in getting an inexpensive approximation of the truth. As the name implies,

the sample is selected because they are convenient

4.4 Sample Size:

For the survey, a sample size of 50 has been taken into consideration.


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Sources of Data Collection:

Research will be based on two sources:

1. Primary data

2. Secondary data

1) PRIMARY DATA:

Questionnaire: Primary data was collected by preparing questionnaire for

customers. The questionnaire was filled through telephonic research.

2) SECONDARY DATA:

Secondary data will consist of different literatures like books which are published,

articles, internet, the company manuals and websites of company-

www.iciciprulife.com.

In order to reach relevant conclusion, research work needed to be designed in a

proper way.

This research methodology also includes:-

Familiarization with the concept of insurance and its various terms.

Thorough study of the information collected.

Conclusions based on findings.

Statistical Tools Used

The main statistical tools used for the collection and analyses of data in this project

are:


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Questionnaire

Pie Charts

Bar Diagrams

4.5 Limitations of study


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Due to the following unavoidable and uncontrollable factors the factors,the result

might not be accurate. Some of the problems faced while conducting the survey are

as follows:-

Time and cost constraints were also there.

Chances of some biasness could not be eliminated.

A Samples size of fifty has been use due to time limitations.

A majority of respondents show lack of cooperation and are biased towards

their own opinions.


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Data Analysis

Data Analysis


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Q1. Are you currently insured?

Particulars No. of Respondents Percentage

Yes 31 62%No 19 38%Total 50 100%

Q2. Are you satisfied with your current insurer?


No. of Respondents

31

19

Yes

No

ANALYSIS:

From the survey it was found that amongst 50 respondents

a) 62% of the respondents are already insured.b) 38% of the respondents are not insured.


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Yes 41 82%No 9 18%

Total 50 100%

Q3. Which one is your favored insurance company?


No. of Respondents

41

9

Yes

No

ANALYSIS:


a) 82% of the respondents are satisfied.b) 18% of the respondents are not satisfied.


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LIC 24 48%ICICI 7 14%

HDFC 5 10%Birla Sun Life 4 8%Bajaj Allianz 4 8%Others 6 12%Total 50 100%

Q4. Are you interested in the products offered by ICICI Prudential ?

0

0.1

0.2

0.3

0.4

0.5

0.6

LIC ICICI HDFC Birla Sun BajajAllianz

Others

Insurance companies

Sharein%

ANALYSIS:


a) 48% of the respondents like LIC.b) 14% of the respondents like ICICI.c) 10% of the respondents like HDFC.d) 8% of the respondents like Birla Sun Life.e) 8% of the respondents like Bajaj Allianz.f 12% of the res ondents like other com anies.


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Yes 30 60%

No 12 24%Cant Say 8 16%Total 50 100%

Q5. What is your main concern while taking an insurance policy ?

No. of Respondents

3012

8

Yes

No

Can't Say

ANALYSIS:


a) 60% of the respondents are attracted towards ICICI products.

b) 24% of the respondents are not attracted towards ICICI

products.

c) 16% of the respondents cant Say about it.


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Tax Benefit 20 40%

Security 16 32%Investments/Savings 14 28%Total 50 100%

Q6.Does this policy satisfy your financial needs? (Please rate on thescale of 1 to 5 with 1 being least satisfied)

2016 14

0

5

10

15

20

25

TaxBe

nefit

Secu

rity

Inve

stment/S

avin

gs

No.

ofResp

ondents

Series1

ANALYSIS:


a) 40% of the respondents are concerned about Tax Benefit.b) 32% of the respondents are concerned about their Security.c) 28% of the respondents are concerned about

Investment/Savings.


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Rating No. of Respondents Percentage

1 9 18%2 9 18%3 8 16%4 10 20%5 14 28%Total 50 100%

Q7.Please express your opinion for the premiums paid for the above policy?

1

2

3

4

51

2

3

4

5

ANALYSIS:


a) 18% of the respondents are Highly unsatisfied.b) 18% of the respondents are Unsatisfied.

c) 16% of the respondents are Moderate.d) 20% of the respondents are Satisfied.e) 28% of the respondents are Highly satisfied.


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Very High 14 28%

High 11 22%Moderate 13 26%Low 8 16%Very Low 4 8%Total 50 100%

ANALYSIS:


a) 28% of the respondents think that Premium is Very High.

b) 22% of the respondents think that Premium is High.

c) 23% of the respondents think that Premium is Moderate.d) 15% of the respondents think that Premium is Low.

e) 12% of the respondents think that Premium is Very Low.

14

1113

8

4

No. of Respondents

Very High

High

Moderate

Low

Very Low


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Q8.How do you come to know about this policy?


Advertisements 10 20%Friends and Relatives 12 24%Direct Selling Agents 21 42%Others 7 14%Total 50 100%

ANALYSIS:


a) 20% of the respondents know about it from Advertisements.

b) 24% of the respondents know about it from Friends and

Relatives.c) 42% of the respondents know about it from Direct Selling

Agents.

d) 14% of the respondents know about it from Other Sources.

10

1221

7

No. of Respondents

Advertisements

Friends and Relatives

Direct Selling Agents

Others


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Q9. Are you satisfied with the incentives (tax benefits or Bonuses) associatedwith your policy?

Rating No. of Respondents Percentage

Highly satisfied 9 18%Satisfied 12 24%Moderate 10 20%Unsatisfied 11 22%Highly Unsatisfied 8 16%Total 50 100%

Q10. According to you, in what areas should the insurance companies work upon?


ANALYSIS:


a) 18% of the respondents are Highly Satisfied.b) 24% of the respondents are satisfied.c) 20% of the respondents are Moderate.d) 22% of the respondents are Unsatisfied.e) 16% of the respondents are Highly Unsatisfied.

9

12

10

11

8

No. of Respondents

Highly Satisfied

Satisfied

Moderate

Unsatisfied

Highly Unsatisfied


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Easy Procedures 14 28%Fewer premiums 10 20%

More Returns 9 18%Transparency 17 34%Total 50 100%

Q11. Do you think that services have improved after allowing private players ininsurance sector?

14

10 9

17

0

2

4

6

8

1012

14

16

18

Easy Returns Fewer

premiums

More Returns Transperancy

No.

ofRespondents

Series1

ANALYSIS:


a) 28% of the respondents want Easy procedures.b) 20% of the respondents want fewer premiums.c) 18% of the respondents want more returns.

d) 34% of the respondents want Transparency.


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Yes 40 80%No 10 20%Total 50 100%

80%

20%

Yes

No

ANALYSIS:


a) 80% of the respondents think that services have improved.b)20% of the respondents think that services have not improved.


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Findings

Findings


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According to my survey the noteworthy points are:

Most of the people buy life insurance as just a tax benefit tool or as a life cover

while only a few of the respondent take it as a saving option. The reason for

this is lack of knowledge of insurance benefits among the people.

A Majority of the respondent buy insurance products because of the need

reason while rest of the respondents buy for the brand purpose.

A Majority of the people come to know about the policies from the Direct

Selling Agents.

A Majority of the people are satisfied by the incentives associated with their

policies.

Most of the respondents are satisfied by the services offered by there

insurance company while some says that they are not satisfied by the services.

Most of the respondents want more Transparency from the side of the

company.


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Conclusion

CCOONNCCLLUUSSIIOONN


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After overhauling the all situation that boosted a number of Pvt. Companies

associated with multinational in the Insurance Sector to give befitting competition to

the established behemoth ICICI in private sector, we come at the conclusion that

There is very tough competition among the private insurance companies on

the level of new trend of advertising to lull a major part of Customers.

ICICI is not left behind in the present race of advertisement.

The entry of more Pvt. Players in the Insurance Sector has expanded the

product segment to meet the different level of the requirement of the

customers. It has brought about greater choice to the customers.

ICICI has vast market and very firm grip on its traditional customers and

monopoly of life insurance products..

IRDA is also playing very comprehensive role by regulating norms mandating to

private players in this sector, that increases the confidence level of the customers to

the private players.


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Suggestions & Recommendations


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Suggestions

The study has provided with the useful data from the respondents. There has a lot to

be recommended. Following are the recommendations:

There is a need for better promotion for the investment products & services.

The bank should advertise its products through television because it will

reach to the masses.

More returns should be provided on Insurance plans.

As the bank provides the Insurance facility to its customers. It should provide

this facility by tie up with the other Insurance organizations as well. The main

reason is that, the entire customers do not want Insurance of only one

company. They should have choice while selecting a suitable Insurance

plans. This will definitely add to the goodwill & profit for the bank.


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RECOMMENDATIONS TO COMPANY:

Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested, in termsof 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 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 customer services. 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 life insurance policy in which an ATM card

will be provided. This card will have all the information regarding the policy as likefuture 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 will get new account and ICICI

prudential will be able to more efficient services to their customers.


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Bring some unit linked life insurance plans in the market.

Being a market leader doesnt ensure the leadership in the future. Since after incrementin 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 good training will give them the

right way to deal with the potential customers.


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SWOT ANALYSIS


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SWOT ANALYSIS

STRENGTHS:

1. ICICI Prudential is the largest private player in India, with a market share of

around 36% amongst the private players

2. ICICI Prudential has deposited a paid up capital of Rs 925 crore with IRDA

caution deposit, the highest among all the life insurance company in India

where as LIC has deposited Rs 60 crore so far.

3. ICICI Prudential is the first life insurance company to offer ECS debit facility.

4. ICICI Prudential is the first company to introduce unit link life insurance and

pension products. Presently the maximum numbers of ranges are under ULIP

life insurance, investment as well as pension plan.

5. Products

Flexibility to switch your fund value at your own discretion four times a year

viz. maximize, protector, balancer, preserver.

Greater transparency-policy holder knows what is happening to his money

and where the company has invested his money. Liquidity options-you can make complete or partial withdrawals any time

after 3 years.

Life insurance plans are eligible for deduction under sec 80.


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WEAKNESSES:

1. Industry in nascent stage.

2. Rural areas still not covered.

3. Not very known among Indian population.

4. Lack of credibility among the people because ICICI being a private player.

5. Premiums are high as compared to its competitors.

6. Very few branches in the country.

7. Products:

The policy doesnt have the surrenderoption before third year.

Plan does not offer any guarantee or assured return.

Product profile is not very comprehensive.

Mortality, management and administrative charges are sky scrapping

as compared to its competitors.


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OPPORTUNITIES

1. Liberalization of Indian economy.

2. As the industry is growing the whole market is virgin.

3. The whole private sector is opened to be trapped even though the competition

is fierce from government owned insurance companies.

4. Its a volume business that is even if the company has few good corporates the

turnover cease to increase by manifold.

5. Products:

Preserver funds look good due to comfortable liquidity in the economy

and there is little chance hike in short-term rate by RBI.

Finance minister unveiled a budget favoring consumer spending,

boosting demand and therefore higher economic growth.


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THREATS

1. The government players will become aggressive thus growth is going to be

tough.

2. Entry of other players is not ruled out.

3. Apprehension towards ICICI Prudential being a private life insurance company.

4. We expect the industry to rationalize in future that is mergers and acquisitions

will happen, which will impact the industry and ICICI Prudential fortunes.

5. Products:

Past performance of these plans is not indicative of the future

performance of the plan.

The sum invested in the funds is subject to market risks and there

can be no assurance that the objective of plan will be achieved.

All benefits payable under the policy are subject to tax laws and

other financial enactment, as they exist from time to time.


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Bibliography


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Bibliography

www.icicibank.com

www.iciciprulife.com

en.wikipedia.org/wiki/Main_Page

www.licindia.com

www.hdfcinsurance.com

www.maxnewyorklife.com

Brochures provided by the ICICI Prudential

Kothari C R, Research and Methodology- Methods &Techniques, New Age International (P) Ltd., 2004
http://www.google.com/http://www.google.com/


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ANNEXURE


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QUESTIONNAIRE

Name - _____________Age - _____________Occupation - _____________

Q1. Are you currently insured?

- Yes- No

If yes, please give the details of company, plan, premium etc.

Q2. Are you satisfied with your current insurer?

- Yes- No

Q3. Which is your favored insurance company?

- LIC

- ICICI

- HDFC

- Birla sun life

- Bajaj Allianz

- Others

Q4 Are you interested in the products offered by ICICI Prudential?

- Yes

- No

- Cant say


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Q5. What is your main concern while taking an insurance policy ?

- Tax benefit

- Security

- Investment/Savings

Q.6 Does this policy satisfy your financial needs? (Please rate on the scale

of 1 to 10 with 1 being least satisfied)

Q.7 Please express your opinion for the premiums paid for the above policy?

-Very high [ ]

-High [ ]

-Moderate [ ]

-Low [ ]

-Very Low [ ]


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Q.8 How do you come to know about this policy? (Please tick).

-Advertisements [ ]

-Friends and relatives [ ]

-Direct selling agents [ ].

- Others (please specify) _____________________.

Q.9 Are there any incentives (tax benefits or Bonuses) associated with this

policy? (Please give appropriate details about it).

- _________________________________________________________

_________________________________________________________

10. Are you satisfied with the incentives associated with your policy?

-Highly satisfied [ ].

-Satisfied [ ]

-Moderate [ ]

-Unsatisfied [ ]

-Highly Unsatisfied [ ].

Q11. According to you, in what areas should the insurance companies work upon?

- Less complicated procedures- Fewer premiums

- More returns

- Transparency


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Q12. Do You think that services have improved after allowing private players ininsurance sector?

- Yes

- No

Your comments on ICICI Prudential

__________________________________________________________________

__________________________________________________________________

Documents

Annu Project