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PROJECT TRAINING REPORT ON

BRAND AWARENESS & UNDERSTANDING THEMARKET POTENTIAL OFFER PRODUCTAT

JAIPUR

Submitted in the partial fulfillment of the requirement for the award ofdegreeofBachelorof Business Administration (B.B.A.)

SUBMITTED BY: SUBMITTED TO:

BHARTI SHARMA

BBA PART-3rd

University maharanis college

JAIPUR (RAJ)

(2007-2010)


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PREFACE

In the insurance Industry, there are two channel of distribution Alternate Distribution and

Tied Agency. Advisor Recruitment is the part of Tide Agency.

My project is about BRAND AWARENESS and channel distribution of ICICI Prudential

Life Insurance. It means company is recruiting advisors for expanding its business. Company

adopts chain marketing as a methodology for expansion.

In this project, I have to make some sort of cold calling, seminars for the target market,

get the appointment with them, convince them and close the sale positively. The queries, which

are asked by the client, should be solved by the discussion with the company guide.

ICICI Prudential Life Insurance is concentrating on the agency recruitment. It has around

2 lac force of advisors and it is planning to extend it 5 lac in the next coming years.

For recruiting advisors, ICICI Prudential holds many activities like they do direct marketing for

recruiting advisors, they also recruit the management trainees for recruiting advisors, they also

hold seminars and also includes stall activities.

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ACKNOWLEDGEMENT

Achieving a milestone for any person is extremely difficult. However, there are motivations

which come across the curvaceous path like twinkling stars in the sky and make our task much

easier. It becomes my humble and foremost duty to acknowledge all of them.

I am deeply indebted to and express my sincere appreciation and gratitude to Mr.

MUKESH of ICICI Prudential Life Insurance Co. Ltd. for providing their valuable guidance and

encouragement throughout the summer training for keeping my morale up and making it possible

to complete and submit this project of mine in time. In addition to allowing me to study the

insurance sector and recruit the advisors. They provided me many in depth details enlightened me

in the preparation of the study report.

It would be unfair on my part if I do not thank my heart fully thanks for their unstinting help

without which this work could never have been accomplished. They made me realize the

importance of a team, team work and also the leadership skills. I am grateful to all of them for

standing with me and supporting me in this project.

Words cannot adequately express my sense of gratitude and indebtedness to RCERT for

giving me an opportunity.

Bharti sharma

BBA 3rd yr.

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TABLE OF CONTENTS

CHAPTER CONTENTS PAGES

1. INDIAN INSURANCE INDUSTRY 6-11

2. COMPANY PROFILE 12-31

3. ABOUT ICICI PRUDENTIAL LIFE INSURANCE 32-44

4. RESEARCH METHODOLOGY 45-80

4.1. Process of marketing research 46

4.2.

Duration of the project 47

4.3.

Objective of the study 48

4.4.

Research design 49

4.5.

Sampling method 50

4.

6.Awareness & marketing 51-52

4.7.

Data collection 53

4.8.

Limitations of the study 54-55

4.9.

Review of literature 56

4.10.

ANALYSIS & INTERPRETATION 57-68

4.

11.

SWOT ANALYSIS 69-72

4.12.

CONCLUSION 73

4.13.

RECOMMENDATIONS & SUGGESTIONS 74

4.14.

FUTURE POSSIBLITIES 75

4.15.

Questionnaire 76-77

4.16.

BIBLIOGRAPHY 78

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INDIAN

INSURANCE

INDUSTRY

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1. INSURANCE IN INDIA

The insurance sector in India has come a full circle from being an open competitive market to

nationalization and back to a liberalized market again. Tracing the developments in the Indian

insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

1.1. A brief history of the Insurance sector:

The business of life insurance in India in its existing from started in India in the year1818

with the establishment of the Oriental Life Insurance Company in Calcutta.

1.2. DEFINITION OF INSURANCE

Insurance is a contractual type financial intermediary that offers the public protection

against the financial costs associated with the loss of li9fe, health, or property in exchange for

premiums.

An agreement that guarantees the payment of a stated amount of monetary benefits upon

the death of the insured.

Risk insurance intended as protection against the financial consequences of the death of

the insured person, which takes the form of payment of previously agreed lump sum or pension to

a beneficiary, if the insured person dies during the term of insurance. In the case of pure life

insurance, without any endowment insurance component, no payments are due if the insured

person survives the term of insurance.

Insurance is that which provides protection against the economics loss caused by the

death of the person insured.

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1.3. Need for Life Insurance?

Today, there is no shortage of investment options for a person to choose from. Modern day

investments include gold, property, fixed income instruments, mutual funds and of course, life

insurance. Life insurance is a unique investment that helps you to meet your dual needs - saving

for life's important goals, and protecting your assets.

1.4. Asset Protection

From an investor's point of view, an investment can play two roles - asset appreciation or

asset protection. While most financial instruments have the underlying benefit of asset

appreciation, life insurance is unique in that it gives the customer the reassurance of asset

protection, along with a strong element of asset appreciation. The core benefit of life insurance is

that the financial interests of ones family remain protected from circumstances such as loss of

income due to critical illness or death of the policyholder. Simultaneously, insurance products alsohave a strong inbuilt wealth creation proposition.

1.5. Goal based savings

offered to the customer reflect the needs of the Each of us has some goals in life for which

we need to save. For a young, newly married couple, it could be buying a house. Once, theydecide to start a family, the goal changes to planning for the education or marriage of their

children. As one grows older, planning for one's retirement will begin take precedence. Clearly, as

your life stage and therefore your financial goals change, the instrument in which you invest

should offer corresponding benefits pertinent to the new life stage. Life insurance is the only

investment option that offers specific products tailor-made for different life stages. It thus ensures

that the benefits customer at that particular life stage, and hence ensures that the financial goals

of that life stage are met.

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1.6. Human Life Value

Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can be attributed

to the financial support you offer your parents, spouse or children. This worth is referred to as

Human Life Value (HLV). In the future, if your family does not have the protective blanket of your

presence, they will no longer be able to enjoy the benefits of the income you earned. Put simply,

Human Life Value is the present value of your future earnings.

As a thumb rule, if you are 30 years of age, you should insure yourself for an amount

approximately 8 times your annual income. At 35, your investment should be close to 6 times your

income. Of course, the exact amount of your investment should be determined by the number of

people who depend on you, your existing investments and your life stage. For example, if you are

30 years of age and have two children and parents to provide for, the amount you invest should be

reflective of your requirements

1.7. Life Stage Profiler

All through your life, several significant events the birth of your child, moving to a larger

home, his or her education and wedding, buying a new car, retiring from work will occur at various

stages and demand your financial commitment. If you plan in advance for these events, you will

quite naturally be prepared when they occur. Life insurance is an effective tool that assists you toplan for your future such that you are financially equipped to meet all your goals.

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1.8. Which important goals should you plan for in advance?

1.8.1 Your family's protection- so that your loved ones are secure should an

unfortunate event happen to you. Life insurance can guarantee that your family receives a

lump sum that safely tides them over any financial crises that might occur in your absence.

1.8.2 Child's education: As parent, your primary responsibility is to guarantee

your children's future. Our Education Insurance plans ensure your child receives money at key

stages of his or her education even in your absence.

1.8.3 Savings: Savings plans allow you to steadily save towards a pre-decided

goal in a secure manner. These plans provide you with a host of benefits. You can

choose the premium, the underlying fund in which you want to invest your money, the

ratio between protection and investment as per your requirements.

1.8.4Retirement:Retirement plans help you secure guaranteed income for your

retired life. During the Accumulation phase, you systematically save while you are

working. When you retire, the Payout stage of the plan begins. You then purchase an

annuity, which will serve as a steady stream of income, for the rest of your life.

1.8.5 Health:An integral part for financial planning is protecting oneself against any

medical emergencies as well. Hence, a very prudent decision would be to choose a

combination of plans that look after your finances and offer you a protective health

cover to ensure your financial planning is in track despite any major illnesses.

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1.9. What is Life Insurance?

Life insurance is a guarantee that your family will receive financial support, even in your

absence. Put simply, life insurance provides your family with a sum of money should something

happen to you. It thus permanently protects your family from financial crises. In addition to serving

as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you

to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life

insurance also triples up as an ideal tax-saving scheme. To know more, read the Key Benefits of

Life Insurance Key Benefits of Life Insurance Life insurance, especially tailored to meet financial

needs

All the human beings on the earth know that they will die in future but they dont want to die. They

want to fulfill all the dreams, which they had thought, but there are times when all these dreams

can`t come true.

Death is inevitable and yet we live our lives obvious to reality that may strike-when we have

no idea. And when it happens, all the dreams come crashing down.

In the words of D S Hansel Insurance may be defined as a social device providing

financial compensation for the effects of misfortune, the payment being made from the

accumulated contributions of all the parties participating in the scheme

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2. COMPANY PROFILE

2.1. HISTORICAL BACKGROUND OF ICICI Prudential Life Insurance Pvt. Ltd.

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

Prudential Plc, a leading international financial series group which has its headquarters in U.K.

ICICI Prudential was amongst the first private sector companies to being operations in December

2000 after receiving approval from Insurance Regulatory Development Authority (IRDA), ICICI

Prudential's total equity is 6.75 Bn with ICICI Bank & Prudential Plc. In the end of year 2003-04,

ICICI Prudential had issued over 7.8 policies, for a total sum assured of over 16000 cr. and

premium collection is over 951 cr.

The company has a network of about 33000 advisors: as well as 12 banc assurance tie-ups.

Today the company stands first in private life insurance in India with a market share of nearly

40%.

2.2. ICICI (Industrial Credit and Investment Corporation of India) :

The work Bank, the Government of India and the Indian Industry, to promote industrial

development of India by providing project and corporate finance to Indian industry, established

ICICI LTD in 1955.

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ICICI Has thus far financed all the major sectors of the economy, covering 6,848 companies and

16,851 projects. As of March 31, 2000, ICICI had disbursed a total of s. 111,070 crores, since

inception.

Year 1 Year 2 Year 3

Number of Policies sold 50 75 100

Average premium (Rs.) 16,000 16,000 16,000

Total premium earned (Rs.) 8,00,000 12,00,000 16,00,000

Average commission (including

bonus estimated @ 22.5%)

1,80,000 2,70,000 3,60,000

Earning from new business (Rs) 1,80,000 2,70,000 3,60,000

Commission on renewal premium

@ 6%

48,000 72,000

For year 2, 3 & 3% after that 48,000

Earning from renewal business (Rs) 48,000 1,20,000

Total earning (Rs) 1,80,000 3,18,000 4,80,000

* Depending upon the product mix commission can go up to 35% in the first year, 7.5% in the 2nd

year & 3rd year & 5% for the 4th year onwards.

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2.3. ECONOMIC

Insurance as we have already discussed is very essential for every person on this fact of earth.

Being an insurance company, the responsibility of the company also increases by many multiples

as they have to keep an eye on ach & every happening going around & provide better & fast

service to customers. Along with this, insurance is also very important for building up the

infrastructure of any country. The

money collected from the people is invested in many sectors to develop the infrastructure & hence

ultimately make the life of the citizens better.

2.4. TECHNOLOGICAL

ICICI Prudential Life Insurance Company Limited uses latest technology for their operations

which gives them an edge over the competition.

2.5. PROMOTERS

The promoters of ICICI Prudential Life Insurance Pvt. Ltd.

ICICI Prudential Life Insurance Company are ICICI Bank and Prudential Plc. ICICI and Prudential

came together in 1993 to form Prudential ICICI Asset Management Company which has today

emerged as one of the leading mutual funds in India. The two companies bring together two of the

strongest financial service brands in Asia, known for their professionalism, excellent quality of

service and long term commitment to their customer.

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ICICI bank has 74% stake in the company, and Prudential Plc has 26%.

2.6. BANK ASSURANCE

ICICI Bank is India's second larges bank with total sales of about Rs. 1, 32,780 crores at

September 30, 2004 and Profit after tax of Rs. 873 crores in half year ended September 30,

2004 (Rs. 1,637 crores in fiscal 2004).

ICICI Bank has a network of about 540 branches and extension counters and over 1800

ATMs.

ICICI Bank offers a wide range of banking products and financial services to corporate and

retail customers through a variety of banking products and financial services to corporate

and retail customers through a variety of delivery channels and through its specialized

subsidiaries and affiliates in the areas of investment banking, life and non-life insurance,

venture capital and asset management.

2.7. VISION

The company's vision is "to make ICICI Prudential the dominant life and Pensions player built on

trust by world-class people and service."

They hope to achieve this by:

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

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Leveraging technology to device customers quickly, efficiently and conveniently.

Developing and implementing superior risk management and investment.

Providing an enabling environment to foster growth and learning for their employees.

And above all, building transparency in all their dealings.

The access of the company is due to its unflinching commitment to 5 core values

o Integrity,

Customer First,

Boundary Less,

Ownership,

Passion

Each of the core values describe what the company stands for, the qualities of their people and

the way they work.

ICICI Bank set up its international boundary in fiscal 2002 to cater to the cross-bascules needs of

client and leverage on products internationally.

ICICI Bank currently has subsidiaries n United Kingdom and Canada, Branches in Singapore and

Behrin and reprehensive offices in United States, China, United Arab Emirates and Bangladesh.

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ICICI Banks equity shares are listed in India on the stock exchange, Mumbai and the National

Stock Exchange of India Limited and its American Depository Receipts (ADRs) are listed on the

New York stock Exchange (NYSE).

2.8. Shared vision and purpose

The company focuses on having the organizations striving towards a common goal, which is

easily don't through the effective communication and work channel. Large scale interactive

process at the organization and group level helps in getting the employee know of what is

expected of them and how has been achieved. This factor encompasses through all the critical

intervention by the team members or the mentor of the team.

2.9. The working environment

The company is in a continuous search for the best of talents in the market, which align with the

vision and mission of the organization. The company states out its working culture in certain

important factors for the interested incumbents.

Urge from the incumbent to be a part of a world class sales steam.

The freedom of working from his/her own office/residence.

The flexibility of working hours, full time or part time.

Opportunity to earn commission, bonus and incentives.

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Unlimited earnings directly proportional to your efforts.

Most important the change of flexible career.

The company is aware of the current trends in the market and the essential factors of increasing

the personal and human feeling to business. Thus, the company has got some underlying facts

and reasons for the working in a specific manner.

The company gives the space and time required to grow, achieve and to seek new domains and

opportunities. The changing dynamics of business makes it evident that the new opportunities will

come from the gaps and needs in the market.

Therefore, the need is to be alert enough to notice these new happenings and tap them as and

when they arise. The people in the company are its most important assets but the real focus

should be on deriving on the promises undertaken.

The company also stresses out that the incumbents should have that urge and self-belief so

that they are confident enough of driving the innovations and change drives that they think are

essential. The company believes in being innovative and tenacious enough to open a new

domains and horizons of business and hence regularly in the process of developing new products

and offering state of art services to all its clients, brokers and agents in the business. Further, with

the growing symbiosis of technology in the business the company also focuses on their aspect in

the sense that it takes e-commerce and technology in a very high priority with increasing resource

being targeted at the new business economy and the internet.

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2.10. PRUDENTIAL PLC

Established in London in 1848, Prudential PLC, through its business 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 hold worldwide.

A of December 2003, 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 UK's largest life insurance company with a vast network of 23 life and

mutual funds operations in twelve countriesChina, Hong Kong, India, Indonesia, Japan,

Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam.

Solid reputation built over 150 years.

Insurance and investment funds under management exceed Rs. 11, 00,000 crores.

Already established as one of the biggest private sector mutual fund companies in India.

(Prudential ICICI AMC).

A truly global brand.

Prudential is the largest life insurance company in the United Kingdom (Source: S & P's UM Life

Financial Digest, 1998). Asia has always been an important region for Prudential and it has had a

presence in Asia for over 75 years. In fact Prudential's first overseas operation was in India, way

back in 1923 to establish Life and General Branch agencies.

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2.11. SALES CHANNEL

ICICI Prudential Life Insurance Com. Ltd. in India's No. 1 Pvt. Insurance Company Ltd. All the

insurance company provides its policies through sales force or advisor or agents. Main work of

agent's is to sale the policies. Policies are the concept product.

Role of an advisor in this industry is to presents and sales the concepts in the market. An advisor

wants healthy management support and professional environment. So in this project a searching

the suitable profile for insurance sales.

2.12. The principle of channel development

The company in its vision out the urge to become the dominant players in the players in the

industry. The company believes that a high level of self-motivation and a coherent teamwork for

the organization can only achieve this on the whole. The company stresses great emphasis on its

core values, which are:

Integrity

Customer first

Boundary less

Ownership

Passion

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These are the foundation on which the organization works and the base for the overall business

environment of the company, based on the above mentioned 'pillars' of the company the

management has devised the basic principles for the program as a whole which are as following.

2.13. Recruit the best

Experts in knowing what exactly their customers wants is well versed in spotting the talents from

the pools and recruiting only those who have the intellect, energy, drive and the passion to initiate

new beginnings and even a lot of changes if the feel so. The incumbents are treated as winners

and the 'custom hiring' principle necessitates the factor of having the right person at the right

place with the right work. And definitely no compromises on expertise and competencies.

2.14. Personal Responsibility

The company believes that it is the prerogative of the company to create the team that it

wants. Therefore it aims at providing the learning and development conduits to employees to

enhance the domain of knowledge the important leadership and team skills.

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2.15. Empowered Teams

Each employee is a stakeholder in the organization and it is the one of the important specialty

here that the responsibility comes with a degree of autonomy and accountability. The area of

operation and growth is to be decided by theindividuals himself. But the communication is across

the channels and ranks where by the targets are sent and the corrective measures and rewards

also come to them. The most important factor is the employee participation and empowerment.

2.16. Rewards and Recognition

The rewards in the company are directly proportional to the work and targets achieved and gone

beyond. You work hard you earn more. The contributions done are recognized in the most

objective and transparent manner and on the demonstrated competence level. But yeast there is

certainly an extra for the people who go beyond then what is expected from them.

2.17. Advisors

2.17.1. The importance of Advisors

ICICI Prudential Life Insurance Co. Ltd. Aspires to provide state of the art of customer's service

and opportunities and avenues for enterprising people to grow and prosper. The company wish to

grow exponentially that is backed by the latest technology. Hence offering its customer.

Complete and diversified product portfolio.

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Faster and more accurate service.

Multi-channel distribution systems

Highly trained professional sales people offering quality pre and post sales service.

It is in the above mentioned areas of personal specialization where the importance of an advisor

clearly stands out the advisor not only contribute in brining in new business for the company but

also plays an important part in offering world-class pre and post sales service to the clients to the

clients with the supports of the organization. But the company in its principles clearly states out

that an advisor to means "much more than a salesman or salesmen, we at ICICI Prudential

recognize our advisors as the ambassadors of our organization in the market place & we consider

the advisor force would be our biggest differentiating factor in the coming years." The advisor is

an important asset not only for the organization from the business point of view but also to the

society on the whole as he/she is someone who provide valuable service to the community be

helping people attain financial security & build funds for their future needs thereby assisting them

in getting the financial freedom.

If looked from the other side of the business where the company is operating the competitive

Indian market 7 more so in the business of life insurance where the customers looks for self-belief

& faith them the advisor certainly holds the vital link in the overall business proposition. They

represent the company's face & words on which the customers can trust because the customer

knows that face. The advisor helps to create a web from the business to grow & driving the

customer to come to the company with complete trust and faith.

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2.17.2 THE PROFILE AN ADVISOR

2.17.2.1 Qualifications

1. Age should be ideally between 25-60 years.

2. Minimum education qualification is 10+2.

3. Good & convincing communication skills.

4. Capacity to build an impressive network.

5. Engaged in gainful business or corporation.

6. Willing to undergo extensive training 7 development programs.

7. Pleasing personality.

2.17.2.2 Skills and Competencies

As quoted by Mr. Shubro Mitra, Head HR, ICICI Prudential Life Insurance the company is always

on a look out for people who have the following the skills & competencies that we require in

business are:

Actuarial skills.

Investment management skills

Core operation skills.

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Core underwriting skills.

Relationship management skills.

Project management skills.

2.17.2.3 Leadership & Team Skills

A passion for achieving results

High energy levels & infectious enthusiasm

Open ideas

Strong team players

High caliber & ability

And above all, unyielding integrity

2.17.2.4 Job Profile

As an advisor for the company, the role of the individual is no way limited to sell the policies of the

company. But the role basically starts from basics of explaining the life insurance aspects & the

potential benefits to the customers. Further he is required to assist them in deciding upon the plan

that suits them the best in terms of finance and security provided. Therefore the opportunity

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provided to the advisor is unlimited in no way and the typical benefits can be mentioned as

followings:

There is absolutely no need of a startup capital

There is the benefit of flexible working hours.

The freedom to work from anywhere and being ones won boss.

The unlimited earning benefits in form of remuneration & incentives.

And the privilege of being a part of a world class sales team.

The role of an advisor is multifaceted in the sense that his work scope is in no way limited. But in

a nut shell the expectations from an advisor has been laid down by the management in the

following manner under two main headings:

1. Providing continuous financial advice to clients.

identifying prospective clients

Making appointments

Conducting reviews with the prospective/existing clients.

closing the sales contracts

Getting more referrals so as to increase the network.

Providing pre & post sales services to clients

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2. The advisor is also required to regularly follow the internal sales and the internal reporting

system so as to get the feed back & further leads for the prospective areas of business &

improvement.

2.17.2.5 Benefits & Support Provided

The benefits have already been mentioned very often in the previous section but it's necessary to

look into them as a comprehensive criterion. The main benefits & supports than an advisor would

be availing of are the distinct ICICI Prudential life advantages:

2.17.2.6 Rewarding career

The job profile as mentioned earlier is unlimited & an advisor will help people realize their dreams

& provide them the financial & psychological security & faith. The ultimate rewards will be the

differences made to all these lives & that would be most satisfying in the real sense.

2.17.2.7 Successful Team

Being at ICICI gives the opportunity to be a part of India's best team of life insurance advisors.

The company is numerous union among the private players in the industry & has won numerous

recognition & awards that give it the international edge.

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2.17.2.8 Attractive remuneration

ICICI often the most competitive remuneration benefits at person in the industry, which proves to

be very useful from long term perspective of financial security. There is absolutely no limit to one's

earnings & the added incentives just help as advisor to get more than what he / she expects.

2.17.2.9 Independence

At ICICI, the advisor is a boss in himself & in the real sense. There is the freedom to choose the

workplace, the work timings & the amount of earnings one wants to have. Moreover there is no

need of any initial capital investment, yet one can become entrepreneurs in the most unexpected

manner.

2.17.2.10. World Class Team

The company leverages on the international linkages that it has got to provide the best timing

available in the industry at the present. The company aims to impart the necessary skills &

competencies to all even if there is no previous experience with the individual. The presence of

trained in-house trainers & professionals provide the necessary aspects of training required.

Moreover, the training is being provided with the help of professional institutions & centers like the

RNIS College.

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2.17.2.11. Career Agency System

ICICI's commitment to Career Agency System imparts supports to the advisors at every stage of

the business. The company believes in encouraging the advisors to the highest level of success

all through their career. One of the distinct factor is the opportunity & the option of a management

career option for the successful performers.

2.18. Best Infrastructure

The huge investments that the company has made to develop the state of art infrastructure

throughout the business. The infrastructure provides the necessary tools, technology & human

support that enable to build a profitable long term relationship.

2.19. Extensive Product Portfolio

The company has got more than four hundred policies for the customers. This consists of the

unique individuals, groups & rider policies. The extensive, diversified and comprehensive range

provides the competitive edge that no other advisor would be having in the market.

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2.20. Sales & Marketing Support

The company has got unique sales & marketing tools to help & support the advisors at every

stage of the career. The sales, promotions & marketing collaterals that the company posses help

to achieve just that.

2.21. Financial Strength

ICICI Prudential offers the advisors & the customers unmatched financial strength & solidity. The

huge amount of paid up capital & growing revenues are an indicator of the same.

2.22. Support provided by the Unit Manager

Field visits for the incumbents

Training on products & selling skills

Regular business reviews to monitor the progress

The UM act both as a coach & mentor

The UM recognizes the high performers

Helps in becoming financially independent

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2.23. Put The expectations from the team

To achieve the sales targets given

To participate in all the meetings being placed

Attending all the training programs being arranged

Report for the weekly reviews at the office

Regularly following the sales process

And the advisors are also required to follow the weekly reporting process

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3. ICICI Prudential Life Insurance

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 company to begin operation in December 2000 after receiving approval

from Insurance Regulatory Authority of India (IRDA). ICICI Prudentials equity base stands at Rs.

2100 corer with ICICI Bank and Prudential plc holding 74% and 26% stake respectively.

For the past six years, ICICI Prudential has retained its position as the NO 1 Private life

insurer in the country, with a wide range of flexible product that meant the needs of the Indian

customer at every step in life. 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 is the highest credit rating and is a clear assurance of ICICI Prudentials ability to meet its

obligation to customers at the time of maturity or claims.

For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private

Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'.

As it grows its distribution, product range and customer base, it continues to tirelessly uphold

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

3.1. ABOUT THE PROMOTERS

3.1.1. ICICI Bank

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

over 50 years presence in financial services and with assets of over Rs 3446.58 bn (USD 79

billion) as on March 31st 2007. The Bank offers a wide range of banking products and financial

services to corporate and retail customers through a variety of delivery channels and through itsspecialized subsidiaries in the areas of investment banking, life and non-life insurance, private

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equity and asset management. ICICI Bank is a leading player in the retail banking market and

services its large customer base through a network of over 950 branches and extension counters,

3300 ATMs, call centers and internet banking (www.icicibank.com) to ensure that customers have

access to its services at all times.

3.2. VISION AND MISSION

3.2.1 Vision

To be the dominant life, pension and life player built on world class people and

services.

This they hope to achieve through their commitment to excellence, focus on service, speed

and innovation, and leveraging our technological expertise. The success of the organization will be

founded on its strong focus on values and clarity of purpose. These include:

Understanding the needs of customers and offering them superior products andservice

Building long lasting relationships with their partners

Providing an enabling environment to foster growth and learning for their

employees

They believe that they can play a significant role in redefining and reshaping the sector.

Given the quality of their parentage and the commitment of their team, they feel that there will be

no limits to their growth. Sponsors ICICI Ltd was established in 1955 by the World Bank, the

Government of India and the Indian Industry, to promote industrial development of India by

providing project and corporate finance to Indian industry. Since inception, ICICI has grown from a

development bank to a financial conglomerate and has become one of the largest public financial

institutions in India. ICICI has financed all major sectors of the economy, covering 6,848

companies and 16,851 projects. In the fiscal year 2000-2001, ICICI had disbursed a total of Rs

319.65 billion.

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3.2.2 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.

Customer First Own the customer and deliver the value.

Boundary less Never say its not my Job.

Integrity Be honest and fair in what you say and do.

Passion Boundless energy and enthusiasm.

Ownership If it is to be, it is up to me.

3.3. Board of Directors:

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from

the finance industry both from India and abroad.

Mr. K.V. Kamath, Chairman

Mr. Barry Stowe

Mrs. Kalpana Morparia

Mrs. Chanda Kochhar

Mr. HT Phong

Mr. M.P. Modi

Mr. R Narayanan

Mr. Keki Dadiseth

Ms. Shikha Sharma, Managing Director

Mr. N. S. Kannan, Executive Director

Mr. Bhargav Dasgupta, Executive Director

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The ICICI Prudential Life Insurance Company Limited Management team comprises reputed

people from the finance industry both from India and abroad.

Ms. Shikha Sharma, Managing Director and CEO

Mr. N. S. Kannan, Executive Director

Mr. Bhargav Dasgupta, Executive Director

Ms. Anita Pai, EVP Customer Service & Technology

Mr. Azim Mithani, Chief Actuary

Mr. Puneet Nanda, Chief Investments Officer

Mr. Binayak Dutta, Chief Sales and distribution

3.4. Competitors of ICICI Prudent Life Insurance

1) Life Insurance Corporation Of India

2) Bajaj Allianz Life Insurance Company Limited

3) Birla Sun Life Insurance Company Limited

4) HDFC Standard Life Insurance Company Limited

5) ING Vysya Life Insurance Company Private Limited

6) Max New York Life Insurance Company Limited233a

7) Met Life India Insurance Company Private Limited

8) Kotak Mahindra Old Mutual Life Insurance Limited

9) SBI Life Insurance Company Limited

10)Tata AIG Life Insurance Company Limited

11)Aviva Life Insurance Company India Private Limited

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12)Reliance Life Insurance Company India Private Limited

13)Sahara India Life Insurance Company Limited

14)Shriram Life Insurance Company Limited

15) Bharti AXA Life Insurance Company Limited

3.5. Distribution and Channel Development

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

in India. As of January 31, 2007 the company has over 580 offices across the country and over

234000 advisors.

The company has over 22 bancassurnace partners, having tie-ups with ICICI Bank,

Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative

Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank and 9

Bank of India sponsored Regional Rural Banks (RRBs). It has also tied up with NGOs MFIs and

corporate for the distribution of rural policies

3.6. Core Competency

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

be it product development, distribution, the sales process or servicing. Here's a peek into what

makes us leaders.

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

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

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

a hedge against inflation and yet promise a fixed income after you retire, or Health

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insurance that arms you with the funds you might need to recover from a dreaded

disease.

2) Having the right products is the first step, but it's equally important to ensure that our

customers can access them easily and quickly. To this end, ICICI Prudential has anadvisor base across the length and breadth of the country, and also partners with

leading banks, corporate agents and brokers to distribute our products

3) Robust risk management and underwriting practices form the core of our business.

With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure

a smooth and hassle-free claims process.

(4) Entrusted with helping our customers meet their long-term goals, we adopt an

investment philosophy that aims to achieve risk adjusted returns over the long-term.

5) Last but definitely not the least, our 25,000 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.

3.7. Insurance Plans - At a glance

Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail

of both segments ULIPs have gained high acceptance due to attractive features they offer. These

include:

3.7.1. Flexibility

Flexibility to choose Sum Assured.

Flexibility to choose premium amount.

Option to change level of Premium /Sum Assured even after the plan has started.

Flexibility to change asset allocation by switching between funds

3.7.2. Transparency

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Charges in the plan & net amount invested are known to the customer

Convenience of tracking ones investment performance on a daily basis.

3.7.3. Liquidity

Option to withdraw money after few years (comfort required in case of exigency)

Low minimum tenure.

Partial / Systematic withdrawal allowed

3.7.4. Fund Options

A choice of funds (ranging from equity, debt, cash or a combination)

Option to choose your fund mix based on desired asset allocation

3.8. Traditional Plans

These are the oldest types of plans available. These plans cater to customers with a low risk

appetite. Some of the common features of traditional plans are:

3.8.1. Steady Investment

Major chunk of investible funds are in debt instruments

Steady and almost assured returns over the long term

3.8.2. Features

Death benefit is Sum Assured + guaranteed & vested bonus

Helps in asset creation as they are for a long tenure

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Premium to Sum Assured ratios are fixed for each plan and age.

3.9. Products and Services

3.9.1. Products

Insurance solution for individual ICICI Prudential Life Insurance offers a rage of innovative

customer-centric products that meet the needs of customer atevery life stages. Its product scan be enhanced with up to 5 riders, to create a customized solution for each policyholder.

3.9.2. Saving Solutions

3.9.2.1. Secure Plus: is a transparent and feature packed savings plan that offers

3 levels of protection.

3.9.2.2.Cash Plus : is a transparent , feature- packed savings plan that offers 3

level of protection along with adequate returns.

3.9.2.3. Saves Protect: is a traditional endowment saving plan that offers life

protection along with adequate returns.

3.9.2.4. Cash Bank:is an anticipated endowment policy ideal for meeting milestone

expenses like a childs marriage, expenses for a Childs higher education of purchase of an

asset.

3.9.2.5. Life Time & Life TimeII: offer customers his flexibility and control to

customize the policy to meet the changing needs at different life stages. Each offer 4 fund 4 fundoption? Preserver, Preserver Protector, Balancer and maxmiser.

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3.9.2.6. Golden Years:is a limited premium paying retirement solution that offer tax

benefits up to Rs 100000 u/s 80C with Flexibility in both the accumulation and payout stages.

ICICI Prudential also launchedSalaam Zindagia social sector group insurance

policy targeted at the economically underprivileged sections of the society.

3.9.2.7. Health Assure: Is a regular premium plan which provides long term cover

against 6 critical illnesses by providing by policyholder with financial assistance, irrespective ofthe actual medical expensed.

3.9.2.8. Health assure Plan : is regular premium plan which provides long term

cover against 6 illnesses by providing financial assistance , irrespective of actual medical

expenses ,as well as an equivalent life insurance cover.

3.10. Group Insurance Solution

ICICI Prudential also offers Group insurance solutions for companies seeking to

enhance benefits to their employees.

3.10.1. ICICI Pru Group Gratuity Plan: ICICI Prus group gravity plan helps

employers fund their statutory gravity obligation in a scientific manner. The plan can also be

customized to structure schemas that can provide benefits beyond the statutory obligations.

3.10.2. Life Link II: is a single premium market linked Insurance plan which

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

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3.10.3. Premier Life: is a limited premium paying plan that offers customers life

insurance cover till the age of 75.

3.10.4. Invest Shield:life is a marked linked plan that provides capital grantee

on the invested premium and declared bonus interest along with flexible liquidity options.

3.10.5. Invest Shield Gold: is a marked linked plan that provides capital grantee on

the invested premium and declared bonus interest along with limited premium payment terms.

3.11. Protection Solutions

3.11.1. Life Guard: is a protection plan, which offers life cover at very low cost. It

is available in three options? Level term assurance, level term assurance with return of

premium and single premium.

3.11.2. Home Assure:is a mortgage reducing term assurance plan designed specially to

the help the customers cover their home loans in a simple and cost-effective manner.

3.12. Child Plans

3.12.1. Smart Kid education Plans: 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 childs life. Smart kid plans are also available in

unit-link form? Both single premium and regular premium.

3.12.2. Smart Kid Unit Linked Regular Premium

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3.12.3. Smart Kid Unit Linked Single Premium

3.13. Retirement Solutions

3.13.1. Forever Life: is a retirement product targeted at individuals in their

thirties.

3.13.2. Secure Plus Pension: is a flexible pension plan that allows one to select

between three levels of cover.

3.14. Market-Linked Products

3.14.1. Life Time Super Pension: is a regular premium market-linked

pension plan.

3.14.2. Life Time super: is a regular premium market linked plan.

3.14.3. Life time Plus

3.14.4. Smart Kid New Unit Linked Regular Premium

3.14.5. Smart Kid New Unit Linked Single Premium

3.14.6.Life Stage Regular Premium

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3.14.7. Invest Shield Pension :is a regular premium pension plan with a

capital guarantee on the ingestible premium and declared bonuses

3.14.8.ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible

deigned contribution superannuation scheme to provide a retirement kitty for each member of

the group. Employees have the option of choosing from various annuity options or opting for a

partial commutation of the annuity at the time of retirement.

3.14.9.ICICI Pru Group Term Plan: ICICI Prus flexible group term solution

helps to provide affordable cover to members of a group. The cover could be uniform or based

on designation/rank or a multiple of salary. The benefit under the policy is to paid to the

beneficiary nominated by the member on the his/her death.

3.15.Flexible Rider Options

ICICI Pru Life offer flexible riders, which can be added to the basic policy at a marginal

cost, depending on the specific needs of the customer.

3.15.1. Accident & disability benefit: If death occurs as the result of an

accident during the term of 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.

3.15.2. Accident Benefit: This rider option pays the sum assured under the

rider on the death due to accident.

3.15.3. Critical Illness Benefit:protectsthe insured against financial loss in

the event of 9 specified critical illness prior of death.

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3.15.4. Income Benefit: this rider pays a 10% of the sum assured to the nominees every

year, till maturity, in the event of the death of the life assured. It is available on the Smart Kid,

Secure Plus and Cash Plus.

3.15.5. Waiver of Premium: in case of total and permanent disability due to an

accident, the premiums are waived till maturity. This rider is available with Secure Plus and

Cash Plus.

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4. RESEARCH METHODOLOGY

"Marketing Research" is a key to evolution of successful marketing strategy andprogrammes". It is an important tool to study buyer behavior, changes in consumer lifestyle and consumption patterns, brand loyalty and forecast market changes. Research isalso used to study competition and analysis the competitor product positioning.

4.1. PROCESS OF MRKETING RESEARCH

PROBLEM FORMULATION

DETERMINATION OFRESEARCH OBJECTIVE

PLANNING AND CONDUCTFORMAL INVESTIGATION

COLLECTION OF PRIMARY DATA

DATA PROCESSINGANALYSIS AND INTERPRETATION

REPORT WRITING

FOLLOW UP

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4.1.1. PROBLEM DEFINATION

This is the starting point in the marketing research exercise. There are several marketing issues

that may require examination, and invariably, energy decisions make perceive his information

need as being important.

how can be estimate market penetration

Where is the potential advisor.

Research refers to a search of knowledge. It is a scientific andsystematic search for pertinent information on a specific topic.

The main aim of the project was to find out the market share ofICICI and its customers with respect to Jaipur (Rajasthan). The opinions of

the customers were taken by visiting various places and information was

collected from the customers.

4.1.2. RESEARCH OBJECTIVE:

Objectives of research are:

promoting the concept of insurance from ICICI Prudential as a business opportunity.

is to determine the various improvements that can be done in ICICI Prudential's products

and satisfaction level of the advisors so as to improve the market share of the company.

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4.2. DURATION OF THE PROJECT

It Is an opportunity to satiate your curiosity. There you are expected to actively participate and

take ownership for the internship, and to experience the professional environment, thus making

the internship meaningful to the company one works with and to oneself in ones careerprospects.

In 45 days ofSummer Training Program I understand companys products, learn how to

work under organizational pressure, also increase my financial and marketing skills and how to

manage time.

My Role

My role in ICICI Prudential Life Insurance is work as a project trainee for the 7 weeks. In that I

have to do:

1) Meet with the people to make them aware of insurance and tax saving.

2) I have done 5 policies and earn 8000 Rs.

Who are targeted clients?

Young professionals

Businessmen

Students

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Retired persons

Housewives

Brokers

4.3. OBJECTIVE OF THE STUDY

The market research was done with primary objective of promoting the concept of insurance fromICICI Prudential as a business opportunity and is to determine the various improvements that canbe done in ICICI Prudential's products and satisfaction level of the advisors so as to improve themarket share of the company. Major objectives of my survey were:

4.3.1. To know the consumer perception about the ICICI Prudential Life Insurance Company and

know the positive and negative aspects of organization.

4.3.2. To know what is own image of organization in the market.

4.3.3. To give suitable suggestions.

4.3.4. To know awareness of consumer about ICICI Prudential Life Insurance Company.

4.3.5. To find satisfaction o consumer with ICICI Prudential Life Insurance Company.

The insurance sector in India has experienced a 360-degree journey over a period of more

than a hundred years. Its transition from an open competitive sector to Nationalization and then

back to liberalized market characterizes then phenomenon. The insurance sector was brought

under the government wrap with in then years of independence. Since then, till the re-opening of

the sector in the 1990's, the stated-owned companies functioned under the deluge of bureaucracy

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and inefficiency but still had millions of policy holders, as there were no alternatives. During this

period, any suggestion regarding the opening up of the sector was met with harsh criticism and

agitation from insurance employees unions. The Congress government (1991-1996) that

introduced reforms in various sector of the economy could not bring about a change in the

insurance sector and it was left to the BJP led coalition to instate the present liberal structure,

despite criticism from some of its left support groups. The argument behind opening up of the

sector was consumer-centric, which claimed that opening up insurance would give better product

and service to consumer. The opponents of privatization argue that in a poor country like India

insurance need to have social objective

4.4. RESEARCH DESIGN :

A Specific framework used for data collection of scientifically conducted project is known research

design.

4.4.1. EXPLORATORY RESEARCH

Exploratory research is done to know why and how certain phenomenon occurs, how

consumer evaluates quality, tangible features, and replacement policy warranty. That's why I use

this research design in my market research.

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4.5. Sampling method: -

For research purpose of project researcher selected the probability sampling. The

population for our project was very large; it was not possible to meet every one soresearcher select simple random sampling. Researcher had covered the Jaipur city.

4.5.1. Sample size: -

As considering the coverage of researcher takes the sample size as about 50 consumers anddivided this sample in equal strength to give same weight age for all area.

4.5.2. AREAS COVERED

Any study that is conducted has a scope. The scope here signifies the geographical limits withinwhich the study will be carried discrepancies in the study due to a large number of extraneousvariables in the area.

The market survey was conducted on all the insurance companies in Jaipur

The study was under ICICI jaipur. The geographical scope of my study was limited to the area ofjaipur territory where by different area were covered.

Mansrovar

Jagatpura

Pratap Nagar

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Vaishali

4.6.AWARENESS AND MARKETING

For the awareness program we done meetings, seminars, gave presentations, ad campaigns and

pamphlets distribution.

4.6.1. Investment in Insurance sector

Agreed, insurance may not be the best place to invest your hard-earned money. But there

are sufficient reasons for one to believe that it can be a highly lucrative avenue to facilitate

savings. People often talk about yield on investment and tend to compare their values with those

available on various insurance schemes. This is particularly typical within the Indian sub-continent

where one conveniently forgets the element of risk covered by life insurance.

It is extremely unfair to compare the performance of insurance against other investments without

considering the core features of insurance. The very essence of insurance is to protect your family

from the uncertainty of your life. Hence it proves very logical to evaluate the costs involved

towards this feature. Ask yourself this question

When you pay insurance premium for your car, do you get anything if fortunately no mishap

happens? This means that you spent the amount to secure a valuable property.

Hence you must accept that out of the total amount paid by you for your life insurance, a certainamount is used for providing the risk cover and only the balance can be utilized as savings. In

other words, the total premium you pay minus the amount evaluated as the cost of insurance must

be considered as the amount invested to get the maturity amount. If you calculate the yield from

returns, you will be in for a surprise. Secondly, we tend to think very unrealistically about our life.

We often compare the results after say 10 years from an investment scheme, for instance PPF.

And then we try to convince ourselves that PPF is providing a better yield than an insurance

policy. For instance, if you invest Rs.10, 000/- in PPF after 1 year your money will grow to

Rs.11100/- accruing a return of 11 percent. But what if your death occurs in the first year itself?

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The Rs.10,000/- can give you an insurance cover up to an approximate sum of Rs.12 lakhs

(depending upon the plan, age, etc) and this amount shall become available to the nominee of the

policyholder as against the mere paltry Rs.11,100/- that PPF shall pay.

Now how do you compare the yield in such a situation? Is it 100 % or 1000 % or more?

4.6.2. Benefits of investing in ICICI Prudential Life Insurance Company :

4.6.2.1. Customer centric:

The company is customer centric understanding his expectations by keeping

him as the center point.

Listen actively

Understand customer needs and deliver solutions

Treat customer interest always supreme

4.6.2.2. Values of companies

Customer first.

Boundary less

Passion

Integrity

Ownership

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4.7. DATA COLLECTION

In this section of my project, the requirement is to describe the sources of collecting primary and

secondary data. For collecting primary data, method adopted was focus group method.

4.7.1. SOURCE OF PRIMARY DATA

4.7.1.1. Natural Market

Relatives

Friends

Neighbours

4.7.1.2. Survey

4.7.2. SOURCE OF SECONDARY DATA

4.7.2.1. Yellow pages

4.7.2.2. Telecalling leads

4.7.2.3. Database of different companies

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4.8. LIMITATIONS OF THE STUDY

As the movement throughout the city is not possible due to certain constraints so the

movement was quite restricted.

People are not ready to go for training. As the training period is of 17 days and it involves full

day, so it becomes difficult for them to leave their offices or shops for such a long time.

The compulsion of selling 12 policies in a year also restricts them from becoming advisors. If

they do not fulfill this target, then their license is cancelled after a year.

Lack of trust on any company of Private Sector.

Lack of knowledge about the products of ICICI Prudential and their total and blind faith on

LIC.

Sometimes, fresh graduates want to become advisors but the company denies making them

and advisor as they are very fickle-minded and also unreliable.

There is a problem in targeting Chartered Accountants ICAI, which is the governing body of

Chartered Accountants, does not allow them to become advisors. However, now they have

permitted some CA's who become advisors but these are only those one who; are doing

jobs somewhere and not allowed the ones who are doing their practice. So, still this decision

is very dicey.

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Sometimes, eve those people want to become advisors for the company who are not a

localities but then the major problem that they face is that they have got no natural market,

so they are very susceptible about their performance and whether they will be able to

generate business for the company or not, so they avoid to take up this challenge.

It was a great problem to get appointments from people in the month of March as most of

them were busy in filing their returns.

Some people ask about comparative analysis with LIC.

Some people consider IRDA fees of Rs. 1000 as a constraint.

Non-availability of part-time training.

All small towns are not open for doing this business.

One person cannot take Life Insurance agency of two different companies.

Time constraint is the biggest constraint in taking up the study.

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4.9. REVIEW OF THE LITERATURE

The basic project is promotion the concept of insurance from ICICI prudential as a business

opportunity. Because opportunity is in the form of being an advisor with the company. As the

company wants to grow in Rajasthan, this can be achieved through quality advisor who can bring

more business for the company. So the search of prospective advisor is done. The various

methods used to determine the prospective advisors are:

4.9.1. Personal contacts

4.9.2. Sales blitz

4.9.3. Tele-calling

For this, questionnaire is used which is filled by the prospective advisors. A sample size of

60 is taken out of data about 50 samples is being collected and analyzed.

The prospective advisors are told about the company and the business opportunity

wherein one can earn lots of money with flexible working hours. So one can adopt this as a part

time business without any investment.

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4.10. ANALYSIS & INTERPRETATION

4.10.1. The prime motives of investment by the investors as derived by the research are:

4.10.1.1. Relaxation in tax:generally all people invest to reap the tax benefits under

section 88.

4.10.1.2. Life insurance cover:nothing is eternal and life is unexpected so everyone

wants to save for future and left some amount for his or her beloved ones after his or her

sudden demise.

4.10.1.3.Fulfillment of future expenses (children education, higher studies,

their marriage etc):in the whole life of an individual there are a number of expenses but the

earning is not ever lasting. So to meet the future requirements as children education, marriage etc

hell have to secure his fund today because what is the present value of money is not going to

retain in the future.

4.10.1.4. Retirement planning: retirement is the phase which can never be excluded

from the life, so better if a person plan it earlier. If the current expenses of a person

are Rs 30,000 per month then after 20 years hell require Rs 80,000 to maintain the

same life style. So a person should invest today in those avenues which will meet

his future needs as well as secure his retirement, so that at that time he can enjoy

his life without tension.

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4.10.1.5. Other family obligations; it includes daily expenses, occasional expenses like

on festivals etc, visits and tours etc.

4.10.1.6. Medical emergencies: "health is wealth so a person plans his medical

expenses earlier so that in life these sudden expenses do not createhurdle. Also

some time the medical emergencies are so sudden and big that arrangement of

funds at that point of time can become a nuisance for the person.

4.10.1.7. To make money by money :for some people its all about money and they are

crazy to increase their wealth so they take risk and invest in the field where returns

as well as risk are maximum.

4.10.2. Factors on which investment depends:

4.10.2.1.Return:The investor is very keen about his returns. So hell select only those sectors

for investment where he sees growth opportunities and good returns on his investment withminimum risk.

4.10.2.2. Inflation: It is the second most important factor which a investor look up to before

investment. Because it not only reduces the value of your money but also sometimes prove your

investment nothing but vague.

It can become clearer from the below illustration:Impact of inflation on monthly expenses (inflation rate 5%)

4.10.2.2.1. If the monthly expenses today are Rs 30,000 then after

5 years it will be Rs 38,288.

15 years it will be Rs 62,368.

20 years it will be Rs 79, 599.

4.10.2.2.2. Impact of inflation on money (inflation rate 5%)Value of Rs 1 lakh after:

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5 years will be Rs 78,355



4.10.2.3. Risk: it is the most important factor because according to the class of investors, risk

averse goes for minimum risk portfolio and risk takers go for maximum risk portfolios. The risk

neutrals stay between the two and dont take risk at all.

4.10.2.4. Service:The investors also analyze the customer service provided by the concerned

company. If its reputation and goodwill is strong in the industry then hell not think a lot but invest

in that company. The services provided by the company, their utilities and timeliness play key role

in attracting the investor.

4.10.2.5. Partner: the company in which the investor is going to invest also matters for him.

This is because on the basis of its goodwill, its earlier returns, growth, reputation, future prospects

and customer orientation the investor will decide whether to invest, his hard earned money in that

company or not.

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CHART-I

Perception of Investors with

respcetive to returns

64%

15%21%

Safety of Principal

Earning return above inflation rate

Earning High returns

Safety of Principal 22Earning return above inflationrate 96Earning High returns 32

In the above table 22 surveyed investors gave more importance to safety of principal, 96

investors gave more importance to earning returns above inflation rate, 32 investors gavemore importance to earning high returns.15% of the surveyed investors had a primary motive of the safety of principal, 64% of thesurveyed investors were more concerned about earning returns above inflation rate. 21%of the surveyed investors were more concerned about earning high returns.

Nil 12Average 104Good 34

In the above table 12 investors were found with no knowledge about various investmentschemes, 104 investors were found with average knowledge about various investment

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schemes, 34 investors were found with good knowledge about various investmentschemes.In the above graph out of total surveyed investors 8% were found with nil investmentknowledge, 69% were found with average investment knowledge,23% were found with good investment knowledge.

CHART-II

Occupation Status of Various

Investors

Not Secured

19%

Doesn't affect

16%

Secured

65%

Secured Not Secured Doesn't affect

Secured 98Not Secured 28Doesn'taffect 24

In the above table out of the total surveyed investors 98 investors were found with jobsecurity, 28 investors were found with unsecured jobs & 24 investors were found in a noaffect status.In the above graph 65% of the investors were in a state of secured jobs, 19% of theinvestors were in the state of unsecured jobs & 16% of the investors were in the statewhere this factor doesnt affect them.

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CHART-III

Family Status of Various Investors

More than 266%

None

13%

1-2 dependents

21%

More than 2

1-2 dependents

None

More than 2 981-2 dependents 32

None 20

In the above table out of the total surveyed investors 98 investors were those who arehaving more than 2 dependents, 32 investors were those who are having 1-2 dependents,20 investors were those who didnt had any dependent.In the above graph 66% investors were those who are having more than 2 dependents, 21%investors were those who are having 1-2 dependents & 13% investors are those whohaving no dependents.

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CHART-IV

Investor's approach in making an

Investment decisions

Guess Work

37%

Educated View

15%

Friendly Advice

48%

Educated View Friendly Advice Guess Work

Educated View 22Friendly Advice 73Guess Work 55

In the above table out of the total surveyed investors 22 investors took educated viewbefore investment, 73 took friendly advice before investment & 55 made guess work.In the above graph 48% took friendly advice, 15% took educated view & 37% made guesswork.

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CHART-V

PEOPLE HAVING INSURANCEPOLICIES

26%

74%

Yes

No

In the survey 74%people say that they have not insurance policies & 26% people say that

they have insurance policies.

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CHART-VI

% OF INSURED POPULATION IN VARIOUS

COMPANIES

28%

32%

8%

11%

3%

6%

6%6%

ICICI

LIC

Max NewyorkHDFC

TATA AIG

Birla sun life

AVIVA

Metlife

Out of the 60 insurable people interviewed nearly 74% people have taken insurance policy.

Out of this population being interviewed nearly 32% had LIC policy, 28 % had ICICI

Prudential, followed by HDFC (11 %), Max New York Life (8 %) , TATA AIG (3%), Birla Sun

Life (6%), Aviva and Metlife having 6% shares each in the interviewed population.

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Chart: VII

FIRST PREFERENCE OF PEOPLE

AMONG PVT. LIFE INSURANCE

COMPANIES

47%

13%

30%

10%ICICI Prudential

Max New york

HDFC

AVIVA

Out of 60 people interviewed, 47% had ICICI Prudential as their first preference for a pvt.

Life Insurance Company followed by HDFC Standard Life having 30% preference

followed by Max New York Life having 13 % market share and lastly Aviva Lifeinsurance having 10% market share.

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Chart: VIII

PERCEPTION OF PEOPLE ABOUT SAFETYNESS

: LIC Vs PVT. LIFE INSURANCE COMPANIES

Yes

38%

No

62%

Yes

No

Out of 60 people being interviewed, 62 % of people do not find private life insurance

companies to be safe for buying a life insurance policy whereas 38 % people find them

safe for buying a life insurance policy from a private life insurance company.

ICICI Prudential Life Insurance Company is quite a famous company because:

it is all due to the above mentioned reasons that ICICI Prudential Life Insurance

Company is a famous company.

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Market Share of ICICI Prudential Life Insurance Company in Life Insurance

Companies In India

COMPANIES % OF SHARE

1. ICICI PRU 36.22. HDFC STANDARD LIFE 9.4

3. BIRLA SUNLIFE 14

4. TATA AIG 65. ALLIANZ BAJAJ 8.76. MAX NEW YORK LIFE 6.27. OM KOTAK 5.78. AVIVA 3.7

9. ING VYASA 3.510.STATE BANK OF INDIA LIFE 4.111. METLIFE 1.112. AMP SAMNAR 1.2

ICICI PRU. LIFE INSURANCE SHARE OF

THE PIE

1

2

34

5

6

7

8

9

10

TOTAL MARKET SIZE: INR 205 BILLION

4.11. SWOT ANALYSIS OF ICICI

4.11.1. INTRODUCTION OF THE COMPANY STRENGTH

Big Financial Support

Goodwill of the company

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Best products and policies

Best Advisor Team Manager / Unit Manager

Assets in excess of Rs. 1,00,000 crores

Largest Private Player in Insurance sector in India.

Follow the six Sigma quality Standards

Motivating Working Environment

ICICI Prudential Life Insurance Company Limited is right now the market leader in Private Insurer

segment.

4.11.2. WEAKNESS:

Unsatisfied customer.

Operational Skill

Dispute or conflict in hierarchy

Low salary

New Experience in Indian market

The company right now has lesser number of agents (i.e. financial advisors) the LIC of India which

affects their sales in comparison to LIC of India.

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4.11.3. OPPORTUNITY

Large growing market

Information technology

Globalization

Growth rate

Government Policies

Some localized factor

ICICI Prudential Life Insurance Company Limited can give LIC of INDIA agents an opportunity to

join ICICI Prudential Life Insurance Company Limited as ICICI Prudential has got more incentive

packages & servicing quality better than LIC Of INDIA. Doing this they can reduce their cost of

training and can exploit their experience.

4.11.4. THREAT

Full of competition

Not faith of public on private companies

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High accident rate

Lower interest rate

Other big brand names like BIRLA, TATA, HDFC, SBI AND AVIVA etc.

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STRENGTHS

Strong Tie Up

Brand Equity

Strong Network

Huge Customer Database

Strong Financial Base

WEAKNESS

Low Customer Awareness

Less Promotion

Untouched Rural Population

OPPURTUNITIES

Large uninsured

Population

Network Building

THREATS

Competitors.

Customers belief in LIC

Faster Turnover of Employees

4.12. CONCLUSION

The research reveals the typical orthodox view of the Indian investors that still today

they preferably invest in government securities, gold and real estate. But the new generation of

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investors is clearly not going to follow the trend. But they believe in themselves and knowing the

market trend started investing in riskier sectors to reap maximum benefit in short span of time.

Through market survey & meetings I also found that today most of the people like to invest in that

field which gives them maximum returns. The trend of investing in real estates &gold has gone.They prefer in investing in insurance since it provides financial security along with good returns.

This sudden popularity of investment in shares and private sector can be attributed to the

following factors:

Increase in working population, larger family incomes and consequent higher savings.

Provision of tax incentives in respect of investment in specified channels.

Increase in tendency of people to hedge against inflation.

Availability of large and attractive investment alternatives.

Increase in investment related publicity.

Ability of investments to provide income and capital gains.

The main priorities of peoples are health, protection, child education, retirement and wealth

and most of investment of private sector in all the categories for good recovery of money.

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4.13. RECOMMENDATIONS & SUGGESTIONS

As a management trainee in ICICI Prudential Life Insurance Company my experience was

one of the best learning experiences. The companies working was very ethical but I

personally have some suggestions and recommendations to enhance companys

performance:

The company should go for more aggressive policies to capture the market. It should go for more publicity and ad campaigns in the rural and sub urban areas to

become a known brand name for them.

The policy document should be provided in Hindi language and the language should be

easy to understand. Usage of difficult words should be avoided.

The policy document should be provided to the clients so that they can go through the

document thoroughly.

All the conditions and clauses (like the hidden charges) should be clearly mentioned in thepolicy document and the client should be aware of these things.

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4.14.FUTURE POSSIBILITIES

Job opportunities are likely to increase manifold. The number of people working in theinsurance sector in India is the roughly the same as in the UK with a population that is 1/ 7 Indias;

the US with a population 1/4th the size of India has nearly 4 times the number. The liberalization or

the insurance sector promises new jobs opportunities for those employed in the finance sector

that are equipped with degrees in finance. There will be demand for marketing specialists,

finance experts, human resource professionals, engineers from diverse streams like the

petrochemical and power sectors, systems professionals, statisticians and even medical

professionals. There could be a huge inflow of funds into the country. Given the industrys huge

requirement of start-up capital, the initial year after opening up are bond to see a strong inflow of

foreign capital. Substantial shift in the distribution of insurance in India is likely to take place.

Initially, insurance is seemed as a complex product with a high advice and service component.

Buyers prefer a face-to-face interaction and place high premium on brand name and reliability.

Finally, some potential Indian entrant into insurance hope to ride their existing

distribution networks and customer bases.

For Example, financial organizations like, ICICI, HDFC, or Kotak Mahindra intend

to tap the thousands of customers who already buy their deposits, consumer loans or housing

finance. Other hopeful entrants anticipate specific alliances such as with hospitals to provide

health cover.

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4.15. Questionnaire

There were about 12 questions in the questionnaire on the basis of which the findings were

done and the analysis was made. The responses to the questions in the questionnaire are

presented in the form of statistical tools such as pie charts and bar charts. There were 40

people being interviewed from different income groups and age groups.

Tell us about your personal details:

Name :

Date of Birth :

Occupation :

Age :

Designation :

Sex :

Top priorities of your investment?

Health Child Education Retirement

Protection Wealth

What portion of your savings you invest?

List your five prominent investment objectives?

Where do you invest and currently invested in?

Do you have a life insurance policy? If yes, then of which company\companies?

Yes

No

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Do you see insurance policies as insurance or a security option?

Insurance .

Security option.

8. Which of following are your criteria/criterion to select a particular insurance company and a

scheme?

Security Time span

Market name Return

All of the above

9. Rank the following life insurance companies in the decreasing order of preference

Max New York Life Insurance

HDFC Standard Life Insurance

ICICI Prudential

Birla Sun Life

TATA AIG

OM Kotak

Aviva

10.Do you think that private life insurance companies are as safe as LIC for taking a policy?

Yes

No

11. Would you like to invest in ICICI Pru? Life Insurance Company? Why or why not?

Yes

No

12. ICICI Pru. Life Insurance Company is quite a famous company because:

Of its customers service

Of its policies

Of parent companies

Of its marketing and advertising strategies

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All of the above.

4.16. BIBILIOGRAPHY

4.16.1. Books referred:

C.R.Kothari, Research Methodology, New Delhi: Wishwa Prakashan, Inc.2001, 2nd Edition.

V.K.Bhalla, Investment Management, New Delhi: S.Chand Publication, Inc.2007, 13th

Edition.

Philip Kotlar, Marketing Management, New Delhi, Pearson Education (P) Ltd., IndianBranch, 2004.

4.16.2. News Papers:

Economic Times

Business Standard

4.16.3. Websites :

www.icici.com

www.irdaindia.org

www.wikipedia.com

www.marketresearch.com

4.16.4. MAGZINES:

INDIA TODAY

BUSINESS WORLD

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