Summer Training Report On INSURANCE SALES & MARKETING & ADVISOR HIRING OF LIFE INSURANCE CO. LTD., ALLAHABAD UTTAR PRADESH Submitted By DEVESH MOHAN DWIVEDI Roll No. 3510930045, MBA Batch 2009-2011 In Partial Fulfillment of the Requirements of the Degree of Master of Business A dministration Submitted To Corporate Guide Academic Guide Mr. Sunil Pandey f. Ms. Swaati Bhatt Branch manager University ICICI Prudential Ltd -Meerut Road Modinagar SRM UNIVERSITY, GAZIABAD CAMPUS Date -
Pro SRM Delhi
DECLARATION I Devesh Mohan Dwivedi Registration No.-3510930045,MBA programme, SRM University , batch of 2009-2011 do hereby solemnly declare that this dissertation is an ori ginal work of mine and this has not been submitted to any other institute/unive rsity towards any other degree/diploma. dateDevesh Mohan Dwivedi
ACKNOWLEDGEMENT There is always a sense of gratitude which one express to other for the helpful so needy services they render during all phases of life. I would like to express my gratitude towards all those who have been helpful to me in getting this migh ty task of preparing project to a successful end. First of all, I consider it a pleasant duty to express my heartfelt appreciation , gratitude and indebtedness to my guide for her keen interest, invaluable pain taking & excellent guidance, patience, endurance, encouragement & thoughtful adv ice throughout the project work duration. I would take this opportunity to thank all my family members for their helps & s uggestions during the course of project work. I am also thankful to all my frien ds who gave me constant & continuous inspiration to complete this project. DEVESH MOHAN DWIVEDI
CERTIFICATE To Whom It May Concern: This is to certify that Mr. DEVESH MOHAN DWIVEDI Roll No. 3510930045 of MBA (M&H R) is a bonafide regular student of SRM University NCR Campus, Modinagar for th e session 2009-2011. He has completed the project report entitled “INSURANCE SALES & MARKETING & ADVISO R HIRING” in the organization ICICI Prudential Life Insurance Co. Ltd. for the Int ernship Project Report MBA degree The research report is satisfactory. __________________ Ms. Swaati Bhutt Project Supervisor _________________
CONTENTS Page No. 1. 2. 3. 4. 82 5. 86 6. 7. 8. 9. 10. Data Analysis 94 Findings of the Study 97 Recommendations 100 References/Biblography 109 Appendics 111 Data Collection & Presentation Company profile 06 Introduction/Statement of the problem Objective of the Study 80 Research Methodology
ICICI PRUDENTIAL LIFE INSURANCE LTD. It is a joint venture between ICICI bank, a premier financial powerhouse and pru dential Plc, a leading international financial services group headquartered in t he United Kingdom. ICICI Prudential was amongst the first private sector insuran
ce companies to begin operations in December 2000 after receiving approval from insurance regulatory development authority (IRDA). ICICI and Prudential came tog ether 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 to gether two of the strongest financial service brands in Asia, known for their pr ofessionalism, excellent quality of service and long term commitment to you. Rid ing on the success of this relationship, the two companies joined hands once mor e in 2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading-edge life insurance solutions. ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of March 31, 2010) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 1, 2009 to March 31, 2010, the company has garnered total premium of Rs 16,532 crores and has underwritten over 10 million policies since inception. The company has assets held over Rs. 57,000 crores as on March 31, 2010. For the past nine years, ICICI Prudential Life has retained its leadership position in the life insurance industry with a wide range of flexible products that meet the needs of the Indian customer at every step in life. Board of Directors The ICICI Prudential Life Insurance Company Limited Board comprises reputed peop le from the finance industry both from India and abroad. Ms. Chanda D. Kochhar, Chairperson Mr. N. S. Kannan, Director Mr. K. Ramkumar, Director Mr. Barry Stowe, Director Mr. Adrian O’Connor, Director Mr. Keki Dadiseth, Independent Director Prof. Marti G. Subrahmanyam, Independent Director Ms. Rama Bijapurkar, Independent Director Mr. Vinod Kumar Dhall, Independent Direct Management Team Mr. Sandeep Bakhshi, Managing Director & CEO Mr. Puneet Nanda, Executive Vice President Mr. Madhivanan B., Executive Vice President Dr. Avijit Chatterjee, Appointed Actuary PRUDENTIAL PLC. : It is a leading international financial services company in the UK, with around 25 million customers worldwide. Prudential has brought to market an integrated r ange of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. • Started operations in 1848 and is now one of the largest life insurance companie s in the world. • Presence in UK, Europe, US and throughout Asia. • Insurance and investment funds under management exceed Rs. 11,00,000 crores. • Solid reputation built over 150 years. • Already established as one of the biggest private sector mutual fund companies i n India (prudential ICICI AMC). India is one of three countries in Asia where prudential is the leading private insurer the other two being Vietnam and Indonesia. It is the second largest insu
rer in Malaysia and third largest in Singapore. It helps people to enhance and protect their own and their dependants’ financial w ell being by providing them with appropriate savings and protection products. It has strong positions in three of the largest and most attractive markets in the world, where rising global wealth and changing demographics are fuelling demand for long-term savings. Their strategy is to build sustainable, profitable businesses in each of these m arkets, and thereby maximize returns to our shareholders over time. In the UK Pr udential is a leading life and pensions provider with around seven million custo mers. M&G was acquired by Prudential in 1999 and is the Group s UK and European fund manager, responsible for managing over £111 billion of funds (as at December 2003). Launched by Prudential in 1998, Egg is an innovative financial services c ompany, with over three million customers, with nearly six per cent of UK credit card balances. In Asia, Prudential is the leading European life insurer with 23 life and fund m anagement operations in 13 countries serving some fifteen million customers. In the US, Prudential owns Jackson National Life, a leading life insurance compa ny, and has more than 2.8 million policies and contracts in force. DISTRIBUTION ICICI Prudential has one of the largest distribution networks amongst private li fe insurers in India, having commenced operations in over 2100 cities and towns in India, stretching from Bhuj in the west to Guwahati in the east, and Amritsar in the north to Trivandrum in the south. The company has 7 bancassurance partners having tie-ups with ICICI Bank, Ratanag iri District Central Co-op Bank, Ballia Kshetriya Co-operative Bank, Renuka Nagr ik Sahakari Bank, Bhandara Urban Co-operative Bank, Balasinor Nagarik Sahakari B ank Limited, Arvind Co-op Bank. It has also tied up with NGOs, MFIs and corporat es for the distribution of rural policies and organisations like Dhan for distri bution of Salaam Zindagi, a policy for the socially and economically underprivil eged sections of society. ICICI Prudential has recruited and trained more than 290,000 insurance advisors to interface with and advise customers. Further, it leverages its state-of-the-a rt IT infrastructure to provide superior quality of service to customers VISION : To make ICICI Prudential the dominant life and pensions player built o n trust by world-class people and service Hope to achieve by: • Understanding the needs of customers and offering them superior products and ser vice. • Leveraging technology to service customers quickly, efficiently and conveniently . • Developing and implementing superior risk management and investment strategies t o offer sustainable and stable returns to our policyholders. • Providing an enabling environment to foster growth and learning for our employee s. • And above all, building transparency in all our dealings. The success of the company will be founded in its unflinching commitment to 5 co re values: – • Integrity. • Customer First. • Boundary less. • Ownership. • Passion. ACHIEVEMENTS : The no.1 private life insurance company with : – • Maximum number of policies sold. • Largest premium income. • Largest agency force.
• Biggest pension player. CORPORATE OFFICE : ICICI Prudential Life Insurance Company ICICI Prulife Towers, 1089, Appasaheb Marathe Marg Prabhadevi, Mumbai-400025
PRODUCT LIFE STAGE : Life Stage Needs Solution Young Professional Protect loved ones & protection against liabilities d Saving / Investing for the future Traditional Save n Protect. CashBack. SecurePlus. CashPlus Unit Linked Insurance Solutions LifeTime II. LifeLink II. Retirement planning Traditional Forever Life. SecurePlus Pension. Unit Linked Insurance Solutions LifeTime Pension II. LifeLink Pension II. Tax Planning All Life Insurance plans - Sec 88 All Retirement plans - Sec 80CCC(1)
NEWLY MARRIED : Life Stage Needs Solution Newly Married Protect loved ones & protection against liabilities d Saving / Investing for the future Traditional • Save n Protect • CashBak • SecurePlus • CashPlus Unit Linked Insurance Solutions • LifeTime II • LifeLink II Retirement planning Traditional • Forever Life
Unit Linked Insurance Solutions • LifeTime Pension II • LifeLink Pension II Tax Planning All Life Insurance plans - Sec 88 All Retirement plans - Sec 80CCC(1) Health Concerns Major Surgical Assistance Rider Critical Illness Rider Additional Protection Waiver of Premium Rider Accident & Disability Benefit Rider
MARRIED WITH KIDS : Life Stage Needs
Married with Kids Protect loved ones & protection against liabilities LifeGuard Saving / Investing for the future • Save n Protect • CashBak • SecurePlus • CashPlus Unit Linked Insurance Solutions • LifeTime II • LifeLink II Retirement planning Traditional • Forever Life • SecurePlus Pension Unit Linked Insurance Solutions • LifeTime Pension II • LifeLink Pension II Tax Planning All Life Insurance plans - Sec 88 All Retirement plans - Sec 80CCC(1) Child s education Traditional
Health Concerns Major Surgical Assistance Rider Critical Illness Rider Additional Protection Waiver of Premium Rider Accident & Disability Benefit Rider
LIFE STAGE : Nearing Retirement : -
SmartKid Education Plans
Life Stage Needs Solution Nearing Retirement Protection against liabilities LifeGuard Retirement planning LifeLink Pension II LifeTime Pension II Tax Planning All Life Insurance plans - Sec 88
All Retirement plans - Sec 80CCC(1)
SWOT ANALYSIS The overall evaluation of a company’s Strengths, Weakness, Opportunities and Threa ts is called SWOT Analysis. ICICI Prudential Life Insurance Ltd: (1) STRENGTHS: The ICICI is a strong brand among its competitors. Wide reach in the urban areas and up growing in rural areas too. With the help of the tie up with the Prudential Plc it has accessed as major Ins urance player in India. Smart Kid, Life Time & Retirement Solutions are the major policies captured by I CICI Pru in the market than any other Insurance Players. (2) WEAKNESS: Although it has a tie up with the Prudential Plc the perception of the consumer in terms of insurance is still remain a bit doubtful compared to the giant LIC a nd with growing competitors like HDFC Standard Life etc. (3) THREATS: It is mainly facing stiff competition from the giant LIC and HDFC Standard Life and with other private insurance players like TATA AIG, BIRLA SUNLIFE, ING VYSYA etc. (4)OPPORTUNITIES: The present interest regarding the insurance and saving plans by customers in In dia is the biggest opportunity to capture more and more customers by consequentl y increasing customer base.
WORKING WITH ICICI PRUDENTIAL ICICI Prudential is India s leading private life insurance company. You could be a part of the growing ICICI Prudential family: • An advisor • An employee Be an advisor Being an ICICI Prudential advisor can be an enriching and exciting care er option. It’s an opportunity to associate with an industry leader, be in touch w ith the latest and finest insurance practices from around the globe, and grow bo th personally and professionally. Here are some of the benefits of being an ICICI Prudential Life Insurance Adviso r: • Unlimited earning potential
• A clear career path • All round support through exclusive advertising, your own in-house consultant, a nd world-class training • A comprehensive benefit package What does it take to be an ICICI Prudential advisor? At ICICI Prudential, we believe that our Advisors are our ambassadors t o the customers. They are a key source of business for the organization, and are the continuing link with our clients. That is why; we take a lot of care in rec ruiting and developing our advisor force, so that we continue to set higher stan dards of quality in service and salesmanship. To cater to the needs of the knowl edge-oriented marketplace, we look for graduates who are service-oriented, good communicators and enjoy meeting new people. Prior sales experience is an added b enefit. Some of the qualities we seek are: • Self motivator • A master communicator • A go-getter • A graduate Training At ICICI Prudential, we understand the importance of training in a dyn amic business environment. Our advisors go through both generic and specific, pr ofessional programs that help them remain well-informed and knowledgeable about the company’s products in the market. There is a further focus on soft skills such as communication, managing long-term relationships and selling skills, which ar e very relevant in a service-driven industry like life insurance. State of the art infrastructure training facilities coupled with an excellent fa culty, guarantee an exceptional learning environment. For advisors who might be occupied with their daily business/professional routines, ICICI Prudential also offers convenient training options such as online and self-learning are also pro vided by the organization. A 17-day training schedule covers the mandatory IRDA training requirements and I CICI Prudential product-training module. Revision session ensure that the candid ates thoroughly understand the course contents and are well prepared for the lic ensing examination. Theoretical training is interspersed with practical appointm ent settings with potential customers, giving advisors a feel of how their busin ess will work from the very first day. All through, the Unit Manager and the man agement provide continuous support to the advisors in achieving independence tow ards garnering business. Career At ICICI Prudential, career development is emphasized upon from the very day the advisor joins the system. Though individual meetings with his or h er manager, the advisor can discuss various issues related to business developme nt and career enhancement. Expectations from the organization in terms of chalki ng a career in the insurance industry are also discussed. Tiger Team: ICICI Prud ential offers the “Tiger Team” program for identified high potential advisors. Handp icked by the management, these advisors are placed on a fast-track career path a nd recognized as ‘Tiger trainers’. The advisors can participate in this program, sub ject to certain criteria being fulfilled. Pinnacle Program: Absorption into the management is another career enhancement option provided at ICICI Prudential thr ough the Pinnacle Program. This program helps advisors build a full time career as a unit manager in the organization, offering great potential for managing a t eam of advisors and personal development. ‘Fast track Pinnacle’ program is also avai lable to advisors who are able to meet the performance criteria within the stipu lated time. Rewards and Recognition ICICI Prudential advisors are constantly recognized and rewarded f or their performance. Numerous contests all year round promote healthy competiti on amongst advisors and recognition for their efforts. Depending on the level of business the advisor achieves in a year, he or she can become a member of vario us clubs such as the President’s club, ICICI Pru Star International and the ICICI
Pru Star India club. Each of these clubs have specific performance criteria for qualification and members of these clubs are entitled to attend seminars held at exotic international and domestic locations each year. Advisors can also qualif y for the renowned MDRT (Million Dollar Round Table), an exclusive international insurance advisors club. An Employee ICICI Pru offers exciting career opportunities for people from a variety of stre ams. You can apply for jobs at ICICI Prudential Life Insurance through our e-rec ruitment section. 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 ti ed agency lies in an aggressive strategy of expanding and procuring quality busi ness. With focus on sales & people development, tied agency has emerged as a rob ust, predictable and sustainable business model. Banc assurance and Alliances ICICI Prudential was a pioneer in offering life insurance solutions through bank s and alliances. Within a short span of two years, and with nearly a large numbe r of partners, B & A has emerged as a vital component of the company s sales and distribution strategy, contributing to approximately one third of company s tot al business. The business philosophy at B&A is to leverage distribution synergies with our pa rtners and add value to its customers as well as the partners. Flexibility, adap tation and experimenting with new ideas are the hallmarks of this channel. Customer Service & Operations The Operations department oils the work processes between the customer and the c ompany to ensure consistent and quality service to the customer. To streamline t he operations, the Operations department interfaces between the clients and the agents, the branches and the underwriters, and manages work processes. The Vision at Customer Service is to deliver World Class Service at every oppo rtunity. Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution Unit are all committed to providing effective solutio ns to over lakhs of customers across the country IT The Information Technology function at ICICI Prudential is committed to enable b usiness through the use of technology. It is segmented into 4 groups to enable h ighest levels of delivery to the customers: Life Asia Solutions Group that provi des flexibility in designing better product offerings to end-users, the Solution s Group- Web that provides real-time information to customers and is responsible for customer relationship management, IT Architecture & Corporate Solutions Gro up is in charge of developing and maintaining a blueprint for the IT architectur e for the enterprise as a whole. This team works as an in house R&D Solution Gro up, exploring new technological initiatives and also caters to information needs of corporate functions in the organization. IT Infrastructure group is responsi ble for providing hardware, software, network services to the whole organization . This group runs the Digital Nervous System of the Enterprise at the highest levels of efficiency and provide robust, scalable and highly available platform for deployment of business application. Marketing The Marketing function at ICICI Pru covers an array of activities - brand and me dia management, channel support, direct marketing and corporate communications. The Brand and Communications team is in charge of advertising, consumer research , media planning & buying and Public Relations; that helps develop and nurture I CICI Prudential s corporate identity while effectively communicating its varied product offerings to the customer. Channel marketing provides support to the sal es force by streamlining the design and development of collaterals and sales too ls across distribution channels. The Direct marketing team was set up to generat
e high quality leads for profitable business. The team achieves this through tar get database acquisition and communicating customised product information throug h e-mailers, telemarketing and innovative direct mailers. Finance Finance function in ICICI Prudential is committed to create an infrastructure th at is aligned to shareholder expectations. Finance basically comprises of four f unctions. . Corporate Planning and MIS provide feedback on business strategies. This includes driving the budgeting process, providing strategic inputs for deci sion-making and management reporting and analysis. The Accounts function include s preparation and maintenance of financial records, funds management, and expens e processing and treasury operations. Compliance ensures that every action is wi thin the regulatory framework. This includes reviewing compliance requirements a nd supporting the ethical framework of ICICI Pru life. Internal audit provides a ssurance to the management over the organizations control framework and include s process risk management, information security assessment and business continui ty assessment. HR The people strategy of ICICI Prudential is "To build a committed team with a cul ture of innovation, learning and growth. The Human Resource Function at ICICI Pr udential drives the people strategy of the business. With its initial focus on o perational excellence to deliver benefits and services to staff members, HR is n ow committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training arc hitecture enable it to deliver value to the organization. Business Excellence Excellence The Business Excellence function is committed to building a quality m indset across the organization. ICICI Prudential is the first organization in th e Insurance Industry that has adopted the Six Sigma Methodology for process effi ciency and measurement. The team is also driving the Malcolm Baldrige framework across the organization, an intervention that examines management of key inputs for Business Excellence. INTRODUCTION OF INSURANCE Insurance may be described as a social device to ensure protection of economic v alue of life and other assets. Under the plan of insurance, a large number of pe ople associate themselves by sharing risks attached to individuals. The risks, w hich can be insured against, include fire, the perils of sea, death and accident s and burglary. Any risk contingent upon these, may be insured against at a prem ium commensurate with the risk involved. Thus collective bearing of risk is insu rance. Insurance is a contract whereby, in return for the payment of premium by the ins ured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. The term "risk" is used to describe the possibility of adverse results flowing from any occurrence or the accidental hap penings, which produce a monetary loss. Insurance is a pool in which a large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfo rtunate few, due to accidental events, are made good. The sharing of risk among large groups of people is the basis of insurance. The losses of an individual ar e distributed over a group of individuals. It is used with reference to financial protection against a possibility, such as fire, accidental damage, theft, or medical expenses: motor insurance, house hol d insurance, travel insurance, health insurance. • It ensures protection of economic value of asset. • It is a joint venture • It is a social security tool • It is a risk transfer mechanism. The insurance institute of India was established in 1955 fro the purpose of impa rting insurance education to persons engaged or interested in insurance. The ins
titute conducts written examinations at various levels and arranges tuition serv ices, both oral and postal DEFINITIONS: General definition: In the words of John Magee, “Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to i ndividuals.” Fundamental definition: In the words of D.S. Hansell, “Insurance accumulated contributions of all parties participating in the scheme.” Contractual definition: In the words of justice Tindall, “Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency.”
CHARACTERISTICS OF INSURANCE • Sharing of risks • Cooperative device • Evaluation of risk • Payment on happening of a special event • The amount of payment depends on the nature of losses incurred. • The success of insurance business depends on the large number of people insured against similar risk. • Insurance is a plan, which spreads the risk and losses of few people among a lar ge number of people. • The insurance is a plan in which the insured transfers his risk on the insurer. • Insurance is a legal contract, which is based upon certain principles of insuran ce which includes utmost good faith, insurable interest, contribution, indemnity , causes proximal, subrogation, etc. • The scope of insurance is much wider and extensiv IRDA (The Insurance Regulatory And Development Authority) A critical element, of financial sector reforms is the development of a pool of human resources having right skill and expertise in each segment of the industry to provide quality intermediation to market participants. Quality intermediatio n requires personnel working in the industry need to – (1) Follow a certain code of conduct. (2) Have an understanding of business and skills to service different consti tuents in the market. In order to ensure this, the IRDA (hereinafter referred to as the “regulations”). Re gulation 6 of the regulations requires that a person desiring to obtain or renew a license to act as an insurance agent or a composite insurance agent shall pas s the pre-recruitment examination in life or general insurance business, or both , as the case may be, conducted by the insurance institute of India, Mumbai or a ny other examination body “duly recognized by the authority” Accordingly, the institute has developed pre-recruitment examinations in both li fe and general insurance business. These examinations are administrated all over the country manually by the institute and electronically by the national stock exchange of India ltd., mumbai (hereinafter referred to as the “NSE”). The national stock exchange of India ltd. A company registered under the companies act, 1956, provides a testing and certification mechanism called NSE’s certification in finan cial markets (NCFM) to test practical knowledge and skills that are required for operations in financial markets in a secure and unbiased manner. NCFM is design ed to administer tests in a modular fashion. It offers a comprehensive range of
modules that cover many different areas of finance. It is an on-line nation –wide testing and certification system where the entire process from generation of que stion paper to certifying is fully automated. Insurance industry is at a threshold of a major change. With the deregulation of the insurance sector, doors of the Indian market have opened up to private sect or and foreign companies. Around 30 companies have shown interest for stating th e business. Many foreign companies have also entered into alliance with Indian companies. Mo st of these companies have many years of experience in the financial and insuran ce sector. The entry of such private companies is regulated by IRDA.IRDA has put rules and guidelines to govern private participation (Indian or with a tie-up w ith a foreign company) in the sector. IRDA has granted license for life insurance to the following companies: ICICI prudential life insurance company ltd. • HDFC standard life insurance company ltd • Om kotak Mahindra life insurance company LTD • Max New York life insurance company ltd • Birla Sun life insurance company ltd • Tata Aig life insurance company ltd • SBI life insurance company ltd • Ing Vysya life insurance company ltd • Aviva life insurance company ltd • Etc. Mechanism : The basic mechanism of insurance works with the principle where people exposed t o the risks come together and pool funds to protect each and individual against risk. Therefore, risk is spread out .The insurance companies collect money in ad vance and creates a fund from which losses are paid. Risk is defined as the possibility of adverse results flowing from any occurrenc e. Insurance reduces the impact of risk on the owner and those who depend on the asset .It must however be noted that, only economic or financial losses can be compensated. For example, the emotional support that the breadwinner provides ca n neither be evaluated nor compensated. However, the financial support can be ev aluated and compensated. Role of insurance in economic development : Insurance premium collected by insurance companies are invested in various devel opment projects. They provide the much – needed cash for economic development and growth. LIC (Life Insurance Corporation Of India) used this money to invest in i nfrastructure development e.g. housing loans, sewage systems and electricity. Role of insurance in nation building : Insurance benefits society by :• Providing relief to the insured from any mishap. • Reducing the burden of the government in providing relief to old citizens. • Placing large sums of money at the disposal of the government for development of the economy. Insurance company operations : The process of creating a product, making it available to consumers, ensuring cu stomer satisfaction is integral to an insurance company. CREATING THE PRODUCT : The functional areas that are involved in the creation of a product are : 1. Actuarial. 2. Accounting. 3. Marketing. 4. Agents, brokers & sales representatives. 5. Information systems. 6. Investment. 7. Legal. 8. Underwriting. 9. Policy owner services.
10. Claim administration. The creation of a product involves the following stages : 1. Idea generation. 2. Comprehensive business analysis. 3. Technical designing. 4. Implementation. 5. Product introduction. 6. Sales monitoring and review. Basically the various elements, which can upset human plans, are : • Burglary. • Death. • Accidental permanent disability. • Sickness. • Critical illness. Events that must occur at some time, such as death, are provided for by assuranc e. There are two different branches of insurance : • Life insurance. • Non-life or General insurance. Life Insurance : It insures the life of a person. Human life is an income-generating asset. This asset can be lost through unexpected death or made non-functional through sickne ss or disability caused by an accident. There is no certainty that an accident w ill happen. On the other hand there is a certainty that death will happen, but i ts timing is uncertain. Life insurance is a branch of insurance in which compensation is made available to designated survivors of a deceased person, or to a person on their own surviv al after a fixed term of years, in return for payments, or premiums. Life assura nce is based on the mathematics of probability, which determines the level of pr emium to be paid, and on compound interest, which determines the growth over tim e, through investment, of the fund constituted by the intake of premiums. The two t ogether ensure an adequate fund to provide the compensation required. Life insurance protects against loss of income of an individual. Life Insurance : • Does not protect the asset. • Does not prevent its loss. • It is not a contract of indemnity. • It cover depends on the paying capacity of an individual. Insurance reduces the impact of risk on the owner and those who depend on the as set. It must however be noted that, only economic or financial losses can be com pensated not emotional support. Life insurance products provide for: • Risk cover. • Investment. • Health cover. Four main types of insurance policies: • Term assurance (Only in the term). • Whole-life assurance (Whole-life). • Pure endowment (Only on the survival of the selected term). • Annuity. (A form of pension in which an insurance company makes a series of peri odic payments to a person (annuitant) (or) his (or) her dependents over a no. Of years. (Term) in the return for the money paid to the insurance company either in a lump sum (or) in installments. Non-Life (Or) General Insurance : It insures everything except life. i.e. vehicle, electronic, furniture, medical, home (or) building, industry etc.
Functions of insurance Primary functions : 1. Provide protection : Insurance cannot check the happening of the risk, b ut can provide for the losses of risk. 2. Collective bearing of risk : Insurance is a device to share the financia l losses of few among many others. 3. Assessment of risk : Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. 4. Provide certainty : Insurance is a device, which helps to change from un certainty to certainty. Secondary functions : 1. Prevention of losses : Insurance cautions businessman and individuals to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions. 2. Small capital to cover large risks : Insurance relives the businessman f rom security investment, by paying small amount of insurance against larger risk s and uncertainty. 3. Contributes towards development of larger industries. Other Function : Means of savings and investment: Insurance companies are business houses. The product they sell is financial prot ection. To succeed and survive, they must cover their costs, which include payme nts to cover the losses of policyholders, as well as sales and administrative ex penses, taxes and dividends. Insurance companies have two sources of income for covering these costs : premiu ms and investment income. The premiums are collected on a regular basis and invested in Government Bonds, Gilt, stocks, mutual funds, real estates and other conservative avenues. However , investment income depends on market conditions, interest rates, economy etc. a nd varies from year to year. Because of the uncertainty associated with the inve stment income, insurance companies must generate enough income from premiums to cover the bulk of their expenses. The risk becomes insurable if the following requirements are complied with: • The insured must suffer financial loss if the risk operates. • The loss must be measurable in money, • The object of the insurance contract must be legal. • The insurer should have sufficient knowledge about the risks he accepts. Fundamentals of Insurance The fundamental Principles of the Insurance are as follows: • Insurable Interest : Insurable interest means the legal right to insure. Insurab le Interest is a must and only then the insurance contract is enforceable at law . This principle differentiates a Contract of insurance from wager. Lack of insu rable interest renders the contract null and void. For Insurable Interest to exi st there must be Property, Rights, Interest, Life or Liability; this must be ins ured and the Insured should have a legally recognizable relationship thereto. Th e Insured should be benefited by the safety of the property or is prejudiced by its loss. Insurable Interest may arise in the following manner: 1. Ownership: Absolute ownership entitles the owner to insure the property. This is the commonest method whereby Insurable Interest arises. 2. Partial Interest is also insurable e.g. a mortgagee. A creditor can also insu re the life of his debtor but only to the extent of his loan. 3. Administrators and executors i.e. officials appointed by a court of law to ta ke care of a property may also insure the property. 4. Relationship does not automatically constitute insurable interest. The o nly relationship recognized by law for this purpose is the one between a husband and wife. 5. An employer can insure his employee under a Personal Accident Policy as h
e has insurable interest in them. • Proximate cause: Generally, the claims are payable under insurance policies if t hey arise out of events which are proximately caused by the insured perils. In o ther words, the proximate cause of the event has to be peril covered by the poli cy, so as to constitute a valid claim. • Contribution: An insured may have several insurance on the same subject matter. If he recovers his loss under all these insurance, he will obviously make a prof it out of loss. This will be an infringement of the principle of indemnity. Comm on Law has, therefore, evolved the doctrine of contribution whereby the insured is prevented from recovering more than his loss, despite his having several insurance on the subject matter. • Subrogation: The principle of indemnity seeks to prevent the insured from making profit out of loss. However, it may so happen that that the insured may recover his loss under his policy and he may also have rights against third parties. If , after the insurance claim is settled, the insured is allowed to enforce his ri ghts against third parties and to retain whatever damages he receives from them, he will certainly make a profit and the principle of indemnity will be infringe d. Common Law has therefore, evolved the doctrine of subrogation as corollary to th e principle of indemnity. Subrogation may be defined as the transfer of rights a nd remedies of the insured to the insurers who have indemnified the insured in r espect of the loss. The Common Law right of subrogation is implied an all contra cts on indemnity, as it arises only after payment of loss. • Utmost Good Faith: In all General Insurance contracts we know that a property or interest or liability or life is offered for insurance and the insured has to t ake decisions on the acceptance of the proposal. If he decides to accept the pro posal a premium commensurate with the risk has to be charged. To enable him to t ake necessary decision in this regard, the insurer must have certain facts about the risk offered. These facts influence the judgment of the insurer in deciding about the acceptance or otherwise of the risk and the rate of premium to be cha rged, if accepted. Such facts are known as material facts. NATURE OF INSURANCE CONTRACTS: When the insured pays the premium and the insurers accept the risks, the contrac t of insurance is concluded. The policy issued by the insurers is the evidence o f the contract. The contract of insurance, like any other contract, for example a contract for the sale of goods, is subject to the general law of contract as e mbodied in the Indian Contract Act, 1872. According to this Act, a contract must have certain essential features in order to make it legally valid and enforceable. The following are the essential elemen ts: a) Offer and acceptance: Usually, the offer is made by the propose, and acceptan ce made by the insurer. b) Consideration: This means that the contract must involve some mutual benefit to the parties. The premium is the consideration from the insured and the promis e to indemnity is the consideration from the insurers. c) Agreement between the parties: Both the parties should agree to the same thin g in the same sense. d) Capacity of the parties: Both the parties to the contract must legally compet ent to enter into the contract. For example, minors cannot enter into insurance contracts. e) Legality: The object of the contract must be legal and the contract should no t violate any legal requirements. E.g. no insurance can be had for smuggled good s. RISK Reasonable or not, risks are inescapable in business. Every business venture is something of a gamble, because the possibility of loss is as real as the prospec ts for profits. And even though managers do everything possible to ensure that t heir business succeeds, they cannot guard against every conceivable form of risk
. Pure Risk versus Speculative Risk: • Pure Risk: Events representing the kind of risk that no business can predict or escape, known as Pure Risk, it is the threat of a loss without the possibility o f gain. In other words, a disaster such as avalanche or fire is costly for the b usiness it strikes, but the fact that no disaster occurs contributes nothing to a firm s profit. • Speculative Risk: It is the type of risk that offers the prospect of making prof it - and prompts people to go into business in the first place. Every business a ccepts the possibility of losing money in order to make money. Approaches to Risk Management Risk Management is the process of reducing the threat of loss due to uncontrolla ble events. Steps in selecting a risk management approach: • • To identify all the things those can possibly go wrong. • • To consider the probability that an event will occur. Techniques of Risk Management are: 1. Avoiding the Risk: When a company avoids risk, it eliminates the possibility that a particular event will occur. To avoid the possibility of a suit, for exam ple, not to produce any products -which would, of course, eliminate both the thr eats of a lawsuit and the opportunity to profit. With rare exceptions, avoiding risk entirely is extremely difficult. 2. Reducing Risk: A more practical approach is to reduce the risk by taking prec autions. Risk reduction is an important element in most companies approach to r isk management. Typical precautions include putting safety locks on doors to pre vent robberies, installing overhead sprinklers to minimize fire damage, and peri odic checking motor vehicles to prevent accidents. 3. Assuming risk: Many companies draw on current revenues or set aside a "Contin gency Fund" to cover unexpected losses. Setting aside money on regular basis cou ld be cheaper than purchasing insurance. Moreover, the company can earn interest on the reserved cash. Such assumption of risk is also called self-insurance or risk retention. 4. Transferring the risk: Most companies still rely on outside insurance firms f or financial protection against catastrophic losses. In buying insurance, compan ies transfer the risk of loss to an insurance firm, which agrees to pay for cert ain types of losses. In exchange, the insurance firm collects a fee known as a p remium.
INSURANCE MARKETING: A marketing mix is a combining of these four variables in a way that will meet o r exceed organizational objectives. A separate marketing mix is usually crafted for each product offering. When constructing the mix, marketers must always be t hinking of who their target markets are. Mix coherency refers to how well the co mponents of the mix blend together. A strategy of selling expensive luxury produ cts in discount stores has poor coherency between distribution and product offer ing. In the long term, all four of the mix variables can be changed, but in the short term it is difficult to modify the product or the distribution channel. Therefo re in the short term, marketers are limited to working with only half their tool kit. This limitation underscores the importance of long term strategic planning . Some commentators have increased the number of p s in the mix to 5, 6 or even 8. "People" is sometimes added, recognizing the importance of the human element in all aspects of marketing. Others include "Partners" as a mix variable because
of the growing importance of collaborative channel relationships.
7 – P’s of ICICI Prudential
TARGETING A target market is the market segment, which a particular product is marketed to . Age, gender and/or socio-economic grouping often define it. Targeting strategy is the selection of the customers you wish to service. The decisions involved i n targeting strategy include: How many segments to target? Which segments to target? How many products to offer? Which products to offer in which segments? There are three steps to targeting: Market segmentation. Target choice. Product positioning. Targeting strategy decisions are influenced by: Market maturity. Diversity of buyer’s needs and preferences. The company s size. Strength of the competition. The volume of sales required for profitability. 5 – Patterns Of Target Market Selection Single - Segment Concentration. Through concentrated marketing, the firm gains a strong knowledge of the segment’s needs and achieves a strong market presence. Selective Specialization. The firm selects a number of segments, each objectively attractive and a ppropriate. Product Specialization. The firm makes a certain product that it sells to several segments.
Market Specialization. The firm concentrates on serving many needs of a particular customer gro
Full Market Coverage. The firm attempts to serve all customer groups with all the products the y might need. Single - Segment Concentration Single - Segment Concentration. Through concentrated marketing, the firm gains a strong knowledge of the segment’s needs and achieves a strong market presence.
Selective Specialization Selective Specialization. The firm selects a number of segments, each objectively attractive and a ppropriate. -
Product Specialization Product Specialization. The firm makes a certain product that it sells to several segments.
Market Specialization Market Specialization. The firm concentrates on serving many needs of a particular customer gro up.
Full Market Coverage Full Market Coverage. The firm attempts to serve all customer groups with all the products the y might need.
Major Segmentation Variable For ICICI Prudential Life Insurance Pvt. Ltd. Geographic Segmentation : Region : Eastern, Western, Northern, Southern Parts of India. Density : Urban, Suburban, Rural. City Or Metro Size. Demographic Segmentation : Age : For All Ages. Family Size : 1-2, 3-4, 5 + Family Life Cycle : Young, Single, Married, Married with children, Older. Gender : Male & Female. Income : Low, Medium, High. Occupation : Any.
Education : Any. Religion : Any. Generation : Present & Future. Nationality : Indian. Social Class : Upper Lowers, Working Class, Middle Class, Upper Middles, Lower U ppers, Upper Uppers. Psychographic Segmentation : Life Style : Any Personality : Any Behavioral Segmentation : Benefits : Quality Service. Loyalty Status : None, Medium, Strong. Readiness Stage : Unaware, Aware, Informed, Interested, Desirous. Attitude Toward Product: Positive, Indifferent, Negative, and Enthusiastic. POSITIONING OF ICICI PRUDENTIAL LIFE INSURANCE PVT LTD. Attribute Positioning. - Positioned as 5 years of existence in India as started their operations in 200 0. Benefit Positioning. Positioned as the leader in Life Time, Retirement Solutions & Smart Kid. Use or Application Positioning. - Positioned as best for Insurance Services. User Positioning. - Positioned as best for all age groups according to their requirements. Competitor Positioning. - Positioned as to be 2nd and 3rd in couple of years in terms of quality insuran ce services than LIC & HDFC. Product Category Positioning. - Positioned as the leader in a certain services like Smart Kid, Life Time & Ret irement solutions category. Quality or Price Positioning. Positioned as offering the best value for their services. ROLE OF AN ADVISOR: 1. Identify future clients/prospect 2. Making appointment. 2. Conduct financial review meeting with prospect. 4. Close sale. 5. Get referral 6. Provide service to clients/prospect. 7. Follow internal sales and reporting system. After analyzing the quality (which the company is looking for), back office serv ice (which the company is giving to that person). functions to be performed. rol e to be played . I used to describe the benefits which the advisor can get out o f his/her joining as an advisor in ICICI Prudential Life Insurance Company. OPPORTUNITIES: 1. No start up capital is required to becoming an advisor. 2. Flexible working environment. 3. Be his/her own boss. 4. Unlimited earning potential. 5. To be part of world class team. Besides these ICICI Pru has given the following benefits to the individual those who are willing to join as an advisor in our company. PROCESS OF INSURANCE ADVISOR First of all a questionnaire was made. Cold calling and f ind which person have been interested became an advisor was done and the questio
nnaire was made to be filled by the respondents there. Data are also collected t hrough personal references, websites, tata yellow pages, newspapers, phone direc tories, etc. After this I fixed the meeting and explain the process of the plan and after tha t his/her queries were answered. If he/she gets satisfied with the plan then cer tain questions were asked from him in order to satisfy the criteria of Q- SCORE SHEET .Q – SCORE SHEET consist of 5 criteria. Out of the five criteria if minimum three are satisfied then only the respondent can became a advisor. Now if it is found that this person is a right according to the Q – SCORE SHEET th en he/she filled his/her information. After this he/she submitted the foam with the important documents. These documents includes: 1. 10TH MARKSHEET 2. MARKSHEET OF THE GRADUATION 3. PHOTOGRAPHS 4. A DEMAND DRAFT OF RS 1000 IN FAVOUR OF ICICI PRUDENTIAL LIFE INSURANCE. The companiy provides a 100 hours training with the help of IRDA. This training is finished in 15-20 days. After this the company gives the date of examination. A center was told to them where the examination took place. In the exam the minimum pass marks were 45 out of 100. If they clear the examination then th e company issues a certificate to them declaring that they had now become a lega l advisor of the company. But if any person were not able to clear the exam then he give the re-examination by submitted the fees. After this they become a advisor then the company give an agent code. W ith the help of this code an advisor open the zero balance in the ICICI BANK. Th is was the whole study during the summer training. Instructions • • 1) 2) Please answer the below question in yes/no. In case of Q score is less than 3, approval from either Territory manager or above. Sales manager-channel development.
Q SCORE SHEET Application No. Age above 25? Yes / No Married? Yes / No Are you a graduate? Yes / No Living in same city for more than 5 years? Household income above 2 lakhs? Yes / No Total score (Out of 5)
Yes / No
STATEMENT OF THE PROBLEM:The statement of the problem is getting the recruitment of the advisor who done job successfully and consistently. It is, of course, the one job must not delega te. Philosophy of high standards Philosophy of high standards and a success syndrome is the central point of main taining high standards. The presence of successful, high-performing Advisors in your organization attracts more of the same. A recent study revealed that nearly one-half of these individuals choose an insurance career because a successful a dvisor influences them. Our experience at ICICI Prudential supports this conclus ion. Atmosphere of Success Ideally, as prospective Advisors enter your office, they should find themselves surrounded by an atmosphere of success. They should see evidence of a positive a
nd dynamic environment. They should be aware of high quality men and women – high standards of production – high standards of the office neatness and arrangement – hi gh standards of income – high standards of business management. They should be mad e to feel to, taste it and senses it. As a result, they will have a natural incl ination to become a part of the winning sales organization you building . There is no question about it – it’s always easier to recruit successfully in an org anization that is on the move. You must contribute to an environment where thing s are obviously happening – one that has an atmosphere of success. This is the sta rting point if you are going to attract high – potential advisors. Attraction Power Second, Work at developing your “Attraction Power”. Strive to be the kind of person you want other to be. Be kind other want to emulate. You’ll have taken a giant ste no toward being an effective recruiter when you do. Be especially consociation about your appearance. You can’t judge a book b y its cover is a well-worn and accepted adage. However, most prospects and prosp ective advisors don’t believe it. They judge you by your overall appearance. Also, work consistently at doing the thing, which will cause you to be known for what you know. An active Involvement in social and civic organization will assist yo u in letting your reputation precede you. You’ll have taken another step toward be ing an effective recruiter when you do these things. Decide on the profile of the adviser Next, decide on the profile of the adviser who will fit and grow best in your op eration – the kind of person you can develop best. Experience, age, market, contac ts, income requirements, and a number of other factors should be considered in a nswering the big question – what kind of an advisor is best suited for you and you r organization. Constant need of advisors at ICICI Prudential Remember the need of quality advisors never diminishes at ICICI Prudential. It c ontinues in to the future as far as you can see. Thread of discount (TOD) Fifth, be reminded that there is no large, ready supply of high potential candid ates who are discontented with their present job. However, things do happen in i ndividual’s jobs, their lives or their family situation, which can cause them to b ecome prospects for you – some times, almost overnight. When the thread of discoun t surfaces, be sure they are thinking of you and the ICICI Prudential. Success determined by past performance Sixth, most successful advisor are highly competitive and generally come into ou r business from jobs where there success is determined by their performance. Con sistence search for prospective advisors among coaches, commission sales people and individual who have been in business for themselves. Build a weekly recruiting success formula Finally, build a weekly recruiting success formula. Our statistics show that to recruit one person, you’ll probably need at least 30 initial contacts. This will g ives you seven people who will pass the selection test. This is turn develops tw o advisor you will appoint. Understanding these ratio enable you, emotionally an d physically, to plan and achieve the necessary activity to reach your recruitin g goal each year.
OBJECTIVE OF STUDY OBJECTIVE
My objective is to maximize the recruitment number of good quality advisor by mi nimizing the relevant cost and comparative study of ICICI Prudential product wit h other insurance companies .There are more objectives regarding the research me thodology and these are stated below: 1. To increase the equity base of ICICI Prudential by increasing the number of good quality advisor who sell the more policy. 2. To hold the market share and also to increase the competitive edge over other. Then only ICICI Prudential will be able to the position as first rank. Ag ain this is possible only when the company recruiting good quality advisors thos e who are having much more contact with high or medium profile people those who are the potential customer for the company. With the aim to make comparative analysis among the various insurance companies with respect to their smart kids product is done considering following factor: • Entry Age & Maturity date • Premium value & Term • Death Benefit • Surrender Benefit • Withdrawal
RESEARCH METHODOLOGY Research design depends on type of research studies that we are going to make. M y research study is descriptive type. Research methodology is all of the techniq ues, methods and procedures adopted in terminology work to carry out terminology research. It is a way to systematically solve the research problem. DESCRIPTIVE RESEARCH STUDY:. In this type of research study the researcher must able to define clearly, what he/she wants to measure and must find adequate methods measuring it along with t he clear cut definition of population he/she wants to study. Since the aim of st udy is to obtain complete and accurate information, who must be interested in in surance company. The design in such studies must be rigid and rigid. For the stu dy I have taken a sample of about 100 customers, etc from each and every market in Delhi, Noida and Ghaziabad. In planning and designing a specific research project it is necessary to anticipate all the steps that must be under taken if the project is to be successful in collecting valid & reliable information. If i t were broken down into very small parts or activities, the marketing research p rocess would consist of a great no of steps ---Selecting a sample type. Specifying research objectives. Preparing a list of the needed information. Designing the data collection project. Determining a sample size. Organizing and carrying out the fieldwork. Analyzing the collected data and reporting the findings. 1. FORMULATION OF OBJECTIVE: Research Objective must be clearly defined (what the study is about and why it i s being done) then only, it can be achieved in a best way. With the aim to make comparative analysis between the Insurance companies we ana
lyze the data of different companies in various prospective: --Purpose of study: To study and evaluate various strategies of ICICI PRUDENTIAL for various section of society. 2. DATA SOURCES The second stage is the collection of data is the data sources Primary Data Sour ces and Secondary Data Sources. Primary Data Sources are collected specifically for the purpose of research study, which is to be done, and secondary data sourc e are already collected data, with some other objective. Primary Data Source: Questionnaire: A formal list of Questions is formulated and asking the questio ns from the people who are having the related information. Here the Questionnair e is Structured. Close end Questionnaire with Dichotomous and Multiple Choice Qu estions. Main aim is to compare the Customer Attitude and Loyalty towards SMART KIDS PLAN product of different companies. Secondary Data Source: Internal sources: On-Line Information, Report of IRDA( INSURANCE REGULATORY &DEV ELOPMENT AUTHORITY ), External data: Magazines like Business Standard, Books on insurance and journals . 3.SAMPLING PLAN Sampling Unit (Who Is Being Surveyed) All prospective who are interesting in investment cum insurance. Sampling Size (How Many People Should Be Surveyed) 100 customers in ALLAHABAD & AROUND Contact Method (How The Subject Should Be Contacted) Cold calling, Personal Contract, Through Internet After using contact method those person interested I meet them individual.
DATA ANALYSIS After analyzing the data the interpretation of the data can be done as follows. No of clients visited are 100 in the region of Delhi , Noida and G haziabad.
(1) he above pie-chart gives the split of the sample area-wise. The sample constituted 53% of the respondents from Ghaziabad, 33% from East-Delh i and 14% from Noida. (2) The above pie chart gives the age-group wise split of the sample. According to it there were 37% respondents belonging to group 15-25 years. 24% were of gro up 25-35 years. 22% were of group 35-45 years and finally 22%belonged to 45-55 y ears. (3) Out of the total appointments called for is 100,15 of them were finally conv erted. Hence the conversion rate turns out to be 15. %. (4) The above pie chart gives the income group wise split of the sample. According to this every person earn the different income. The income of the mostly people is >10000. (5) I found that those people who are between 30-35% are more serious for th is. Because every people want to earn more money for their family . So that the y are more interested in this area. (6) And if we analyze according to income then I found that those people who are having income less than 2 lakh is more serious about this. Because th ey have required of the money (7) And if we consider according to occupation then I found that those peopl e who are either businessmen or in private job they are more interested in this area. Because they want to secure their future. (8) Many People want to work as an advisor but they want to do it as a part time, not full time. (9) ICICI PRUDENTIAL LIFE INSURANCE and BAJAJ ALLIANZ is tough competitor to ea ch other. In this year the market share of BAJAJ ALLIANZ is more than ICICI PR UDENTIAL LIFE INSURANCE. The market ICICI PRUDENTIAL LIFE INSURANCE is than .8% to BAJAJ ALLIANZ (10) In this year BAJAJ ALLIANZ is collected the more premium than ICICI PRUD ENTIAL LIFE INSURANCE. (11) The parameters which effect the customer while going for the insurance poli cy the parameter rated most is Retirement Benefit that is 35% the next parameter is Tax Rebate with a share of 28% the other parameters are Saving & Investment and Tenure with 11% and 26% respectively.
FINDINGS OF STUDY
CONCLUSION Change is very important and one who goes with the changing environment always s ucceed, that is what I have learned from the study. The competition has grown to o much in the insurance sector with the opening of the sector. This is for the L IC to change their strategy on the basis of the competition. For many years it w as only LIC for life and GIC for general insurance companies available. In 1991 when the liberalization started, foreign investors become attracted towards the country. In 1993 government appointed Mr. R.N. Malhotra committee to suggest ref orms measures. In 1998 the New IRDA Bill was passed and became a law which paved the way for foreign insurance companies. Multinational insurance companies aligned with the Indian companies to step into this sector. LIC has the largest network of operation with 2148 offices, 124,00 0 employee and 750000 agents. ICICI Prudential is the largest private player in the insurance industry in Indi a. It is my great experience and pleasure working in a company like ICICI Pruden tial. It was a great learning experience about recruitment strategy of an adviso r, about the business, about the fulfillment of the business and so on. After go ing through the whole project for two months I have got different issues like mo tivation, encouragement from the senior. Career path and so on.It has sold over one lakh fifty thousand policies till date. So, It is my great experience and pleasure working in a company like ICICI Prude ntial. It was a great learning experience about recruitment strategy of an advis or, about the business, about the fulfillment of the business and so on. After g oing through the whole project for two months I have got different issues like m otivation, encouragement from the senior. It was also a great experience of meeting various kinds of people like CA, FD, L AWYER Service, persons etc. It was a great learning experience of how, to approa ch different kind of people. After this I find that mostly people believe in LIC. Because it is a government company. Thus it can say that these have been a great two months of learning and growth.
Suggestions and Recommendation The company is charging Rs. 1500 from person who wants to join the company as an advisor but the fees is too high for the freshers. They have to arrange the mon ey for it and if they fail to do so they are left in vain. The fees should be re duced to a considerable amount so that any person who wants to join the company can easily arrange it and be part of the prestigious group. Further it has been seen that the no. of the advisors joining the company is far more in the month o f May as compared to the other part of the year, when the fees is totally whippe d by the company. So if the fee is reduced the no. of advisors joining the compa ny will increase and this will help in capital gain to the company. The minimum age criteria set by the company for the person joining as an advisor
is 25 yrs. This age limitation should be reduced to 21 yrs. This is an ideal ti me for the fresh graduates to join the company as an advisor and achieve the pos itions they deserve. An advisor can easily reach to higher posts in the company with the span of time and showing their capabilities to do the work assigned to them at different levels. The company should try to hit this segment. Since the advisors can also became an employee of the prudential, starting from unit manag er, through the pinnacle program, and can go to more higher posts also, the stud ents finds it’s a great opportunity for themselves. The zeal to show good performa nce is also much high in them as compared to other segments people. The company should take proper care of the advertisements of the new schemes lau nched by it so that more and more people are attracted towards it and become a m ember of it. The advertisements give a way to the people about the benefits of t he scheme and to overcome the increasing competition with the other big names of the market. The company should gives an attractive gifts and packages to the advisors as per their work so that they can have faith in the company and works in more enthusi astic manner to earn more and more benefits. The company should provide an intensive training to the fresh advisors so that t hey can cope up with the increasing competition in the market and overcome the d ifficulties they faces during their work in a more effective manner. The commission provide to the advisors should be enhanced so that the existing e mployees and the interested candidates to join the company are attracted towards it. In addition to it a minimum monthly package should also be given to them an d the existing method of giving only the commission should be replaced. When the re is a monthly salary in addition to the commission the advisors will stick to their jobs and will give the company more profit with the increasing experiences . It has been seen that most of the branches of prudential are situated in the met ropolitans and the urban areas. But the life of India lives in the villages and the semi-urbans. The company should try to hit these areas so as to increase the opportunities. This will help in boosting the profit of the company and new sch emes should be launched to attract this segment of population. The company’s more sellable life time policy has a minimum premium of Rs. 18000/where as this premium is as low as to Rs. 10000/- of their competitors in the ma rket. If this premium is reduced by the company to a competitive amount than mor e people can be attracted towards the life term policies offered by the company and the loss can be adjusted by increasing the no. of customers. The low income group can also be attracted towards it by launching new schemes and policies wit h a low premium. PROMOTIONAL STRATEGIES Press publicity: Paper inserts Advertisements in newspaper (local and national). Interest cards distribution Mailers/personal invitations to selective section of the society Leaflets Outdoor publicity: Banners in commercial areas and prime sites. Air balloons at shopping complex. Bus stands shelters. Advertisements on Dividers and Railings. Media: Local channel advertisement (cable TV scrolls) Advertisements in news channels and business channels Face to face: Personal interaction of marketing executives through Meetings Detailing about schemes and updating them from time to time
Event sponsoring in local clubs and social gathering Road shows Contacting senior citizens in parks in morning and evening. Contacting office goers in the morning and evening at stop lights by distributio n of interest cards.
LIMITATIONS These are measured in terms of, Interest – Time – Cost – Human error. Interest : Most of people had a bad perception on insurance sector. As most of the people a re satisfied in their works they have very less interest to do a side-by-side bu siness and especially in insurance sector. Time : Professionals, Business Men, Employees etc don’t have time to do an extra business and even though they are interested they don’t have time to attend the training f or advisor ship due to their hectic schedule in their perspective works. As they don’t attend the training they might not be able to know about the process of ins urance sector and its product information. So time takes a major role in this se ctor. Cost : As concerned regarding cost, company is spending an approximate of 10,000 / - pe r head on training. They are spending this money by means of seminars, lectures, stationary, food etc. so company is charging 1500/ - per head earlier itself fo r the sake of insurance exam and for other formalities so that company have fait h on the candidate that he/she may not escape from company after taking training . Company had kept a motivation factor too, i.e.; actually by rule that 1500 / is non-refundable. But if the candidate can give 7 policies in first 3 months i t will be paid from the pockets of ICICI Pru. Human Error : Insurance is a type of industry that is fully 100% based on human feelings and t heir actions. Mainly every advisor should have patience in large amounts, should n’t have ego problems, have motivation skills, have enough confidence to go throug h in the market, have very good relationship skills and ability to maintain good society
QUESTIONNAIRE Respondent’s Profile NAME: AGE: CONTACT NUMBER: RESIDENCE: OCCUPATION: ADDRESS: 1. DO YOU THINK LIFE INSURANCE COVER IS IMPORTANT FOR YOU? a) YES b) NO
2. HAVE YOU TAKEN ANY LIFE INSURANCE POLICY? a) YES b) NO IF YES THEN WHAT AMOUNT? 3. DO YOU THINK THE POLICY YOU HAVE TAKEN IS ENOUGH TO COVER YOU R LIFE? a) YES b) NO 4. DO YOU HAVE VEHICAL (TWO WHEELER OR FOUR WHEELER) IS IT INSURED? a) YES b) NO 5.WHAT ARE YOUR FUTURE GOALS? a) MONEY b) GOING ABROAD c) CHILD EDUCATION d) HOUSE e) C AR SOME IMPORTANT INFORMATION ABOUT FOR AGENT 6. HAVE YOU HEARD ABOUT ICICI PRUDENTIAL COMPANY? a) YES b) NO 7. WHICH INSURANCE INDUSTRY IS BEST IN INDIA? a) ICICI PRULIFE b) LIC c) HDFC STANDARD d) BIRLA SUN LIFE 8.DO YOU HAVEB ANY FINANCIAL PRODUCT? a) BANK A/C b) HOME LOAN c) INSURANCE d) CREDIT CARD 9.WHAT IT IS YOUR ANNUAL HOUSE HOLD INCOME? a) 150000 b) 100000 c) 175000 d) MORE THAN 200000 10.HAVE YOU ANY EXPERIENCE IN INSURANCE INDUSTRY? a) YES b) NO 11.WHAT IT IS YOUR MARITAL STATUS? a) MARRIED b) UNMARRIED 12.ARE YOU GRADUATE? a) YES b) NO 13.ARE YOU LIVING IN SAME CITY FOR MORE THAN 5 YEARS? a) YES b) NO 14.AGE ABOVE 25? a) YES b) NO 15.TELL ME ABOUT YOUR OCCUPATION: a) STUDENT b) SELF EMPLOYED
BIBLIOGRAPHY BIBLIOGRAPHY BOOKS REFERRED: Marketing Management- Philip Kotler RESEARCH METHODOLOGY- (C.R.KOTHARI) BUSINESS WORLD INDIA TODAY WEBSITES VISITED: google.com www.icicibank.com www.iciciPrudentiallife.com www.asianinsurancereview.com www.bimaonline.com www.businessline.com Discussion with various employees of ICICI Prudential Life Insurance Company.
APPENDIXES APPENDIXES Comparative Study Between Various Policies of ICICI Pudential Life Insurance wit h Other Private Market Players, namely: 1. HDFC Standard Life Insurance 2. Birla Sun Life 3. Aviva Life Insurance ICICI Prudential Smart Kid Objective: It is a plan that provides guaranteed educational benefits to the chi ld along with life insurance cover and hence is suitable for parents (between 20 -60 years) with children in the age group of 0-12 years Salient Features • It is a money back plan where in sum assured is paid at regular intervals. The p olicy can be so designed that it provides money at important milestones of the c hild s education like secondary education, higher secondary, and graduation and post graduation. • On death of the life assured with in the term, full sum assured is paid immediat ely and all future premiums are waived. Death benefits are in additions to the b enefits that child is likely to get in the normal course of the policy i.e., chi ld will be eligible for amounts at important milestones of education, irrespecti ve of death of the life assured. • One has the flexibility to choose the exact age of the child (between 22 to 25 y ears), at which the policy is to mature. The term of the policy is determined by Age of the child on maturity - Age of the child on the date of proposal. Policyholder has the option to avail additional benefits such as Income benefit rider, Accident Disability benefit rider by paying additional premium On Survival: Lump sum amounts are payable at regular interval to meet the child s educational expenses. On Death during the term : Full sum assured is paid and future premiums are waiv ed. Death benefits are in additions to the benefits that child is likely to get in the normal course of the policy i.e., child will be eligible for amounts at i mportant milestones of education, irrespective of death of the life assured. Riders • Income Benefit Rider: Income Benefit Rider pays 10% of sum assured annually to t he child on each policy anniversary following an unfortunate demise, till maturi ty of the Rider. • Accident and Disability Benefit Rider: This provides cover against an unfortunat e death due to an accident. If the individual gets permanently disabled due to a n accident, it will also provide a regular income for the next 10 years or till maturity of the policy. All future premiums, in respect of Sum Assured under the basic plan equal to accident cover, will be waived. Other Conditions • Minimum age of the Parent : 20 years. • Maximum age of the Parent : 60 years. • Minimum premium: Rs. 8,000 per year. • Minimum Sum Assured:Rs.1,00,000. • Maximum Sum assured: Rs.30,00,000. • Maximum limit under Income Benefit Rider: Rs.10,00,000.
Children s Plan (HDFC) Objective :The plan is suitable for people who wish to provide for their childre
n s higher education/marriage Salient Features • This is a flexible endowment plan taken on the life of the parent for the benefi t of the child. • Policy is offered in three variants. Options available are o 1. Maturity Benefit Plan 2. Accelerated Benefit Plan 3. Double Benefit Plan • The policy provides financial security to the child in the future, by providing lumpsum amounts either on maturity or • Bonus is paid under the policy. • Premiums are payable till death or till maturity which ever is earlier. • The premiums paid will be eligible for tax relief under Section 88 of the Income Tax Act, 1961. The benefits received under the policy are eligible for tax reli ef under Section 10(10D) of the Income Tax Act, 1961. Premium can be paid either in yearly, half-yearly or quarterly modes, depending on your convenience. Benefits Option On the death of the insured parent during the policy term On matur ity Maturity-Benefit Plan Future premiums are waived and the policy continues till maturity. Sum assured + bonuses are paid. Accelerated-Benefit Plan Sum assured + bonuses are paid and the policy st ops. On the survival of the insured parent to the maturity date, sum assured + bonuses are paid. Double-Benefit Plan Sum assured is paid, future premiums are waived, and the policy continues till maturity Sum assured + bonuses are paid. Other Conditions • Minimum Age at Entry: 18 years • Maximum Age at Entry: 60 years • Minimum Age at Maturity : 75 years • Maximum Term : 10 years • Maximum Term : 25 years Young Scholar - Birla sunlife Objective: The plan is suitable for people who wish to provide for their childre n s higher education, since benefits under the policy are payable in last five y ears of term. Salient Features • This is a money back policy where in benefits are payable in the last five years of the term. • In the event of death of the life assured with in the term, double the sum assur ed + any amount in the holding account will be paid. In addition to the above, t he child will be eligible for scheduled benefits during the last five years of t he term. • Policy can be taken by parents having children aged below 8 years • Favourable terms : Favourable premium rates for female lives • Tax benefits: As per Sec 88 and Sec 10(10D) of the Income Tax Act. Benefits On Survival • If the age of the child is between 0 and 3 years on inception, then 30 % of sum assured is payable at the end of 16th, 17th, 18th and 19th policy year and at th e end of 20th policy year amount in the holding account will be paid. • If the age of the child is between 4 and 8 years on inception, then 20 % of sum assured is payable at the end of 11th, 12th, 13th and 14th policy year and at th e end of 15th policyyear, amount in the holding account will be paid. On Death during the term • On death of the parent during the term of the policy, double the sum assured is paid to the nominees. If the cause of death is an accident then triple the sum a ssured is paid. In case of total disablement sum assured is payable. These benef its are in addition to the scheduled benefits the child is likely to get during
the last five years of the term • In the event of death of the child, parent can continue the policy to receive th e benefits or surrender the policy and receive the surrender value. Riders : Riders are additional benefits that can be added to the policy by payin g additional premium. • Critical Illness Rider : Amount specified under this rider is paid in the event of the life assured contracting to any of the four critical illnesses specified under this rider. Critical illnesses covered under this rider are Heart Attack, Stroke, Cancer and Surgery to Coronary Arteries. However the rider amount is pai d provided the life insured survives the specified illness for a period of at le ast 30days from the date of diagnosis • Term Rider : By the virtue of this rider an additional amount equivalent to the amount specified under this rider paid on death with the term. Young Achievers - Aviva Life Objective: The plan is suitable for people who wish to provide for their childre n s higher education/marriage. Salient Features • Young Achiever is a regular premium fixed term, protection cum savings plan for your child. • The policy can be purchased on the life of any one of the parents with the child as the nominee. i.e. the parent is the insured. • Premiums can be paid in yearly, half-yearly, quarterly or monthly (direct debit or ECS only) intervals. • The policy offers two investment fund options: a With Profits Fund and a Unit Li nked Fund. . Benefits On Survival • On maturity, the policy value is payable. Policy value is the total number of in itial and accumulation units held in the unit account multiplied by the selling price of the units. • In case not wish to take the policy value on the policyholder does maturity, he has the option of continue the unit account for a maximum of five years after th e maturity date. The monthly administration charge will be reduced to 60% of tho se charged on policies before maturity On Death during the term • Two options are available: i. Sum insured plus the policy value is paid to the nominee and the policy is terminated. ii. The units can be held till the maturity date and these continue to earn investment returns. In this case, units are purchased for an amount equal to the sum insured. These are then added to the policy value and returns accrue on thi s higher sum. If the nominee is a minor, the beneficiary or the appointee has the option of ma king partial withdrawals as per the terms and conditions of the policy (subject to a minimum policy value. Other Conditions • The minimum age of the insured (parent): 21 years • The maximum age of the insured (parent): 55 years • The minimum age of the Child: 0 years • The maximum age of the Child: 17 years • The maximum age of the insured (parent) at maturity of the policy: 65 years.