A Study on Consumer Behaviour

And Customer Satisfaction

AT

ICICI Prudential Life Insurance Service

A.JAGAN

Reg. No. 40908631017 Of KARPAGA VINAYAGA COLLEGE OF ENGINEERING AND TECHNOLOGY Submitted to the FACULTY OF MANAGEMENT STUDIES In partial fulfillment of the requirements For the award of the degree Of MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY

CHENNAI – 600 025

KARPAGAVINAYAGACOLLEGE OF ENGINEERING AND TECHNOLOGY

DEPARTMENT OF MANAGEMENT STUDIES G.S.T. Road, Chinna Kolambakkam, Palayanoor Post, Madhuranthagam (T.K.), Kancheepuram – 603 308.

Phone : 044 27565486, 27598232

BONAFIDE CERTIFICATE

This is to certify that the project report entitled as “A STUDY OF CUSTOMER SATISFACTION” is a bonafide work done by MR.A.JAGAN of Reg.No.40908631017, who carried out study under my supervision certified further that to the best of my knowledge the work reported here in doesn’t from part of any other summer training report on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidates.

Prof. C.V.Rajagopalan

Mr.N.Elanchaezhian

Head of the Department Guide in charge

DECLARATION BY THE STUDENT

This is to state that the training report titled “A Study on

Consumer Behaviour and Customer Satisfaction at ICICI

Prudential Life Insurance Service in Tiruvarur Dist”is

based on the original work carried out by me towards the partial

fulfillment of requirement for the M.B.A program of the Anna

University Chennai. This report has not been submitted to any

other University for the award of any Degree or Diploma.

Date:

Place: A.JAGAN

ACKNOWLEDGEMENT

I give my deepest thanks to the Lord Almighty for giving me all the wisdom, the knowledge and strength to carry out this project in a successful manner.

I am immensely thankful and profoundly grateful to Smt. MEENAKSHI ANNAMALAI,DIRECTOR, KVCET, for having me this amply opportunity to do this professional course in this campus.

I express my sincere gratitude and thanks to Professor. T.RANGARAJULU, PRINCIPAL, KVCET, for facilitating to conduct research study.

I am deeply indebted to Professor. C.V.RAJAGOPALAN, HEAD OF THE DEPARTMENT OF MANAGEMENT STUDIES, KVCET, Whose timely suggestion and encouragement helped and me to complete this project successfully.

I express my sincere and profound thanks to my project guide Mr.N.Elanchaezian, whose guidance, induced information, timely suggestions and encouragement help me to complete this project successfully.

It is my great respect to express my heartiest gratitude to Mr.D. RAMANKUMAR, manager. A Study on Consumer Behaviour and Customer Satisfaction at ICICI Prudential Life Insurance Service in Tiruvarur Dist ., for having devoted much of their precious time in giving me valuable guidance and explaining the details parting to my project work.

I am thankful to all my MBA faculty members, my mother Mrs.S.Sandhiya, my sister S.Harini and all my friends for helping and encouraging me during the period of my project.

D.RAMAN KUMAR ICICI Bank LimitedBranch Manager Tiruvarur Dist…_____________________________________________________________________________________

CERTIFICATE

This is to certify that Mr. A.JAGAN , Final year MBA student of Karpaga vinayaga college of engineering & Technology, Chennai- 600119, has successfully completed his 3 week project work on “ A Study on Consumer Behaviour and Customer Satisfaction at ICICI Prudential Life Insurance Service in Tiruvarur Dist ” from 25.06.2009 to 24.07.2009 under my supervision at District Branch office , ICICI Bank , Tiruvarur - 614101.

Date:Place: D.RAMANKUMAR

Branch Manager

CONTENTS

CHAPTER NO.

TITLE PAGE NO.

1 INTRODUCTION 1 - 23

1. INDUSTRY PROFILE

2. COMPANY PROFILE

3. PRODUCT /SERVICE PROFILE

2 REVIEW OF LITERATURE 24

3 RESEARCH METHODOLOGY 25-40

1.STATEMENT OF THE PROBLEM

2.OBJECTIVE OF THE STUDY

3. SIGNIFICANCE OF THE STUDY

4 FINDINGS AND RECOMMENDATION 41-42

BIBLIOGRAPHY 43

ANNEXURE

LIST OF TABLES

S.NO TITLE PAGE NO.

1. Table showing Age group of respondents 18

2. Table showing Qualification of respondents 20

3. Table showing Benefits of choosing the product 22

4. Table showing Disadvantages in insurance plans 24

5. Table showing Investment avenues 26

6. Chi - Square Test 28

LIST OF FIGURES

S.NO TITLE PAGE NO.

1. Age group of respondents 192. Qualification of respondents 213. Benefits of choosing the product 234. Disadvantages in insurance plans 255. Investment avenues 29

INTRODUCTION

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

death of the insured covered in the policy. Essentially, a life insurance policy

is a contract between the named insured and the insurance company wherein

the insurance company agrees to pay an agreed upon sum of money to the

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

With a large population and the untapped market area of this population

insurance happens to be a very big opportunity in India. Today it stands as a

business growing at the rate of 15-20% annually. Together with banking

services, it adds about 7 percent to the countries GDP. In spite of all this

growth statistics of the penetration of the insurance in the country is very

poor. Nearly 80% of Indian populations are without life insurance cover and

the health insurance. This is an indicator that growth potential for the

insurance sector is immense in India.

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

the insurance sector and in continuation the government in 1993 to examine

the various aspects of the industry constituted “Malhotra Committee”. The

key element of the reform process was participation of overseas insurance

companies with 26% capital. Creating a more competitive financial system

suitable for the requirements of the economy was the main idea behind this

reform.

Since then the insurance industry has gone through many changes.

The liberalization of the industry the insurance industry has never looked

back and today stand as one of the most competitive and exploring industry

in India. The entry of the private players and the increased use of the new

distribution are in the limelight today. The use of new distribution

techniques and the IT tools has increased the scope of the industry in the

longer run.

Insurance is the business of providing protection against financial aspects of

risk, such as those to property, life health and legal liability. It is one method

of a greater concept known as risk management –which is the need to mange

uncertainty on account of exposure to loss, injury, disadvantage or

destruction.

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

many who are exposed to some or similar risk shares loss of the unfortunate.

Insurance does not protect the assets but only compensates the economic or

financial loss.

In insurance the insured makes payment called “premiums” to an insurer,

and in return is able to claim a payment from the insurer if the insured

suffers a defined type of loss. This relationship is usually drawn up in a

formal legal contract.

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

of the premium money from the time they receive it until the time they need

it to pay claims. This money is called the float. When the investments of

float are successful they may earn large profits, even if the insurance

company pays out in claims every penny received as premiums. In fact, most

insurance companies pay out more money than they receive in premiums.

The excess amount that they pay to policyholders is the cost of float. An

insurance company will profit if they invest the money at a greater return

than their cost of float.

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

under which a benefit payment will be made and the amount of the

premiums.

Classification of insurance

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

are.

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:

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

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

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

life insurance company in Calcutta. The first Indian owned Life Insurance

Company; the Bombay mutual life assurance society was set up in 1870.the

life insurance act, 1912 was the first statuary measure to regulate the life

insurance business in India. In 1983, the earlier legislation was consolidated

and amended by the insurance act, 1938, with comprehensive provisions for

detailed effective control over insurance. The union government had opened

the insurance sector for private participation in 1999, also allowing the

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

up of the insurance sector, 12 private sector companies have entered the life

insurance business.

Benefits of life insurance

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

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

short term and long term.

Fundamental principles of life insurance contract;

1) Principle of almost good faith:

“A positive duty to voluntary disclose, accurately and fully, all facts,

material to the risk being proposed whether requested or not”.

2) Principle of insurable interest:

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

and gives legal right to insure that person”.

2) Non-life (general) Insurance:

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

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

The first general insurance company to be set up by an Indian was Indian

mercantile insurance co. Ltd., which was stabilized in 1907. There emerged

many a player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of

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

nationalization general insurance business.

CONCEPTUAL BACKGROUND

Satisfaction is defined as . . .

“A person’s feeling of pleasure or disappointment resulting from comparing

a product’s perceived performance (or outcome) in relation to his or her

expectations.”

Customer Satisfaction can be defined as supplying or gratifying all wants

or wishes, fulfilling conditions or desires, or the state of the mind anything

that makes a customer feel pleased or contented.

Consumer Behavior:

Consumer behavior is defined, as the behavior that consumers display in

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

services that they expect will satisfy their needs.

The study of the processes involved when individuals or groups select,

purchase, use, or dispose of products, services ideas, or experiences to

satisfy needs and desires

Customer value: The ratio between the customers’s perceived benefits

(economic, functional and psychological) and the resources (momentary,

time, effort, psychological) used to obtain those benefits.

Customer satisfaction: Customer satisfaction is the individual’s perception

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

expectations.

Motivation: The processes that account for an individual’s intensity,

direction, and persistence of effort toward attaining a goal.

Personality can be described ad the psychological characteristics that both

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

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

organizes, and interprets stimuli into a meaningful and coherent picture of

the world.

Consumer learning is the process by which individuals acquire the

purchase and consumption knowledge and experience they apply to future

related behavior.

1. INDUSTRY PROFILE

1.1 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.

1.2 A Brief history of the Insurance Sector

The business of life insurance in India in its existing form started in India in

the year 1818 with the establishment of the Oriental Life Insurance

Company in Calcutta.

Some of the important milestones in the life insurance in India are;

1912: The Indian Life Assurance

For over 50 years, life insurance in India was defined and driven by only one

company- the Life Insurance Corporation of India (LIC). With the Insurance

Regulatory and Development Authority (IRDA) Bill 1999 paving the way

for entry of private companies into both life and general sectors there was

bound to be newfound excitement- and new success stories. Today, just three

years since their entry, their cumulative share has crossed 13% (source:

IRDA), far exceeding expectations. Clearly insurance is on a growth path.

The percentage of premium income to GDP, which was just 2.3% in 2000-01

rose to 3.3% in 2002-03; and life insurance has emerged as the dominant

contributor to this growth.

The industry presented a huge opportunity. Life insurance penetration, for

instance, was at an abysmal 22% of the insurable population. However,

private players have had to rise to many challenges. They were faced with

attitudinal barriers towards the category and the perception that insurance

was only a tax saving tool. Insurance per se had lost it basic rationale:

protection. It was’t surprising then that its potential lay frozen and

unexploited. The challenge for private insurance players was to change the

established category driver and get customers to evaluate life insurance as an

investment-cum-protection tool.

PREMIUM UNDERWRITTEN BY LIFE INSURERS

The life insurance industry recorded a premium income of Rs.82854.80 crore during the financial year 2005-06 as against Rs.66653.75 crore in the previous financial year, recording a growth of 24.31 per cent. The contribution of first year premium, single premium and renewal premium to the total premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 percent), respectively. In the year2000-01, when the industry was opened up to the private players, the life insurance premium was Rs.34, 898.48 crore which constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening up, single premium had declined from Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shift with the single premium income rising to Rs. 10336.30 crore showing 74.11 per cent growth over 2003-04.

(Rs. lakh)

Insurer 2004-05 2005-06

First year premium including

Single premium

LIC* 1734761.74 2065306.36

(6.34) (19.05)

Private Sector 244070.58 556457.34

(152.74) (127.99)

Total 1978832.32 2621763.70

(14.68) (32.49)

Renewal Premium

LIC 4618580.96 5447422.62

(19.47) (17.95)

Private Sector 67962.05 216293.48

(343.12) (218.26)Total 4686543.01 5663716.10

(20.75) (20.85)

Total Premium

LIC 6353342.70 7512728.98

(15.63) (18.25)

Private Sector 312032.63 772750.82

(178.83) (147.65)

Total 6665375.33 8285479.80

(18.91) (24.31)

1.3 Brief Review of Scenario – Insurance

Insurance in India started without any Regulation in Nineteenth century.

It was story of a typical colonial era. A few British companies dominated

the market mostly in large urban centers.

Insurance was nationalized mainly on 3 counts First, Indian lives were

not insured. Second, even if they were insured, they were treated as

substandard lives and extra premium was charged. Third, there were

gross irregularities in the functioning of Life insurance was nationalized

in the year 1956, and then general insurance was nationalized in the year

1972. In 1999, the private insurance companies were allowed back again

into insurance sector with maximum cap of 26 percent foreign holding.

1818 The British introduce to India, with the establishment of the

Oriental Life Insurance Company in Calcutta.

1850 Non life insurance debuts, with Triton Insurance Company.

1870 Bombay Mutual life Assurance Society is the first Indian-owned

life insurer

1907 Indian mercantile Insurance is the first Indian non-life insurer.

1912 The Indian life assurance companies’ act enacted to regulate the life

insurance business.

1938 The insurance act, which forms the basis for most current insurance

laws, replaces earlier act.

1956 Life insurance nationalized, government takes over 245 Indian and

foreign insurers and provident societies.

1956 Government sets up LIC

1972 Non life insurance nationalized, GIC set up.

1993 Malhotra committee, headed by former RBI governor

R.N.Malhotra, set up to draw up a blue print for insurance sector

reforms.

1994 Malhotra Committee recommends re-entry of private players,

autonomy to PSU insurers.

1997 Insurance regulator IRDA (Insurance Regulatory and Development

Authority) set up.

2000 IRDA starts giving licensed to private insurers

2001 ICICI Prudential Life Insurance came into the market to sell a

policy.

2002 Banks were allowed to sell insurance plans, as TPAs enter the

scene, insurers start settling non-life claims in the cashless mode.

1.4 The Insurance Regulatory and Development Authority (IRDA):

Reforms in the Insurance sector were initiated with the passage of the IRDA

Bill in Parliament in December 1999. The IRDA since its incorporation as a

statutory body in April 2000 has fastidiously stuck to its schedule of framing

regulations and registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems

to the insurance sector and in particular the life insurance companies were

the launch of the IRDA’s online service for issue and renewal of licenses to

agents.

The approval of institutions for imparting training to agents has also ensured

that the insurance companies would have a trained workforce of insurance

agents in place to sell their products, which are expected to be introduced by

early next year.

Since being set up as an independent statutory body the IRDA has put in a

framework of globally compatible regulations. In the private sector 12 life

insurance and 6 general insurance companies have been registered

2. COMPANY PROFILE

ICICI Prudential Life Insurance Company Limited (‘the Company’) a

joint venture

Between ICICI Bank Limited and Prudential plc of UK was incorporated

on July

20, 2000 as a company under the Companies Act, 1956 (‘the Act’). The

Company

Is licensed by the Insurance Regulatory and Development Authority

(‘IRDA’) for carrying life insurance business in India.

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

(UK). The company brings together the local market expertise and financial

strength of ICICI Bank and Prudential’s International life insurance

experience. The company was granted a certificate of Registration by the

IRDA on November 24, 2000 and eighteen days later, issued its first policy

on December 12. ICICI Prudential was amongst the first private sector

insurance companies to begin operations in December 2000 after receiving

approval from Insurance Regulatory Development Authority (IRDA).

From its early days, ICICI Prudential seemed to have the wherewithal for a

large-scale business. By March 31, 2002, a little over a year since its launch,

the company had issued 100,000 policies translating into premium income

of approximately Rs. 1,200 million on a sum assured of over Rs.23 billion.

When the company began its operations, the need was to build a brand that

was relatable to, symbolized trust and was easily recognized and understood.

It launched a corporate campaign ICICI Prudential also made using the

theme of ‘Sindoor’ to epitomize protection, trust, togetherness and all that is

Indian; endearing itself to the masses. The success of the campaign, ‘the

calling card of the company’ saw the brand awareness scores almost at par

with its 40-year-old competitor. The theme of protection was also extended

to subsequent product and category specific campaigns –from child plans to

retirement solutions –which highlight how the company will be with its

customers at every step of life.

From day one, the company has unflinchingly focused on being mass-market

player, developing products, creating a distribution network and deploying

resources that would further its goal. Apart from ramping up thoroughly

training its advisors, the company has twelve ‘Bancasurance’ partners –the

largest in the country. It swiftly revised and added to its initial range of

products, pioneering market-linked products and pension plans, to offer

customers the most flexible life insurance policies in the country. In

February 2004, ICICI Prudential increased its capital base by Rs. 500

million, its ninth capital hike, bringing the total paid –up equity capital to

Rs. 6,750 million. With the authorized capital of the company standing at

Rs. 12 billion, ICICI Prudential continues to have the highest capital base

amongst all life insurers in the country. The challenge ICICI Prudential now

faces is to retain its top-notch position and continues to deliver the finest life

insurance and pension solutions to its ever-growing customer base.

ICICI Prudential’s equity base stands at Rs. 1185 crore with ICICI Bank and

Prudential plc holding 74% and 26% stake respectively. For the year ended

March 31, 2006, the company garnered Rs.2, 412 crore of weighted new

business premium and wrote 837,963 policies. The sum assured in force

stands at Rs.45, 888 crore. The company has a network of over 72,000

advisors; as well as 9 bancasurance partners and over 200 corporate agent

and broker tie-ups.

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

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

The AAA rating is the highest credit rating, and is a clear assurance of ICICI

Prudential’s ability to meet its obligations to customers at the time of

maturity or claims.

For the past five years, ICICI Prudential has retained its position as the No.1

private insurer in the country, with a wide range of flexible products that

meet the needs of the Indian customer at every step in life.

Beginning operations in December 2000, ICICI Prudential’s success has

been meteoric, becoming the number one private life insurer within months

of launch. Today, it has one of the largest distribution networks amongst

private life insurers in India, with branches in 54 cities. The total number of

policies issued stands at more than 780,000 with a total sum assured in

excess of Rs.160 billion.

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

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

premium income of Rs.4.20 billion. New business premium income shows a

106% growth at Rs. 7.5 billion, driven mainly by the company’s range of

unique unit-linked policies and pension plans. The company’s retail market

share amongst private companies stood at 36%, making it clear leader in the

segment. To add to its achievements, in the year 2003/04 it was adjudged

Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand

Survey’ by AC Nielsen ORG-MARG). It was also conferred the ‘Outlook

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

is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work,

not life’ campaign. Notably, ICICI Prudential was also short-listed to the

final round for its ‘Sindoor campaign in EFFIES 2002.

ICICI Prudential’s success is rooted in its philosophy to always offer the

customer a choice. This has been the driving force behind its multi-channel

distribution strategy, which includes advisors, banks, direct marketing and

corporate agents. In fact, ICICI Prudential was the first life insurer to invest

in multiple channels and offer the customer choice and access; thus reducing

dependency on any one channel, great strides in the retirement solutions and

pensions market.

The Company’s penetration of the retirement market was driven by the

focused approach towards creating awareness through sustained campaign;

‘Retire from work, not life’. Within six months, the campaign rewarded

ICICI Prudential with an increased share of 23% of the total pensions market

and 78% amongst private players. ICICI Prudential has one of the largest

distribution networks amongst private life insurers in India, having

commenced operations in 132 cities and towns in India, stretching from

Bhuj in the west to Guwahati in the east, and Jammu in the north to

Trivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements

with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord

Krishna Bank, and some co-operative banks, as well as over 200 corporate

agents and brokers, it has also tied up with NGOs, MFIs and corporate for

the distribution of rural policies.

ICICI Prudential has recruited and trained more than 72,000 insurance

advisors to interface with and advise customers. Further, it leverages its

state-of-the-art IT infrastructure to provide superior quality of service to

customers.

PRUDENTIAL plc, Established in London in 1848, 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, policy holder and

unit holders world wide. As of December 31, 2005, the company had over

US$ 400 billion in funds under management. Prudential has brought to

market an integrated range of financial services products that now includes

life assurance, pensions, mutual funds, banking, investment management

and general insurance. In Asia, Prudential is the leading European life

insurance company with a vast network of 23 life and mutual fund

operations in twelve countries –China, Hong Kong, India, Indonesia, Japan,

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

Promotion:

ICICI Prudential is a case study in how advertising and marketing can play a

vital role in re-shaping an industry. It has demonstrated how an industry

where the customer was nothing more than a policy number has changed to

one where ‘customer preference’ rules the roost.

Brand-building in a complex category like life insurance is an uphill and

multi-faceted task. At the time of launching operations, the communications

task was to build credibility, so as to give the customer the confidence that it

was ‘a company that could be trusted to invest funds with’. The aim was to

encourage people to view insurance not as a compulsory tax saving

instrument, but as a means to lead a worry-free, secure life and in the

process, create the differentiator for brand ICICI Prudential.

The brand proposition for all the campaigns was reflected in the line:

‘Suraksha: Zindagi ke har kadam par’. The campaign featured a significant

competitive advantage, the sound financial backing and credentials of ICICI

Prudential, and showcased products from different segments. The

advertising idea was encapsulated in the symbol of protection –the

‘Sindoor’. This campaign contributed extensively to raising brand awareness

and creating a distinctive identity for the company.

The Company recently tied up with the Forbes Six Sigma rated Dabbawalla

organization in Mumbai for a direct marketing exercise. In a Unique effort to

create awareness about a tax saving product, the company attached a

creative of a bitten apple to Mumbai’s ubiquitous lunchboxes. It worked

wonderfully with Mumbai’s office-goers and one that translated into

substantial business for the company.

Brand Values:

Market Research reveals that the values people associate with ICICI

Prudential are, indeed, those that the company hopes to project: lifelong

protection and value for money. The core value is protecting your loved

ones, throughout life’s ups and downs. It is a powerful proposition; one,

which ICICI Prudential, is taking into the market place.

CUSTOMER SERVICE AND OPERATIONS

 

The Operations department oils the work processes between the customer

and the company to ensure consistent and quality service to the customer. To

streamline the operations, the Operations department interfaces betweenthe

clients and the agents, the branches and the underwriters, and manages work.

The Vision at Customer Service is to deliver ‘World Class Service’ at every

opportunity. Units such as the 9 to 9 contact centres, Outbound Call Centre,

Customer Care and Query Resolution Unit are all committed to providing

effective solutions to over lakhs of customers across the country.

Information Technology

The Information Technology function at ICICI Prudential is committed to

enable business through the use of technology. It is segmented into 4 groups

to enable highest levels of delivery to the customers: Life Asia Solutions

Group that provides flexibility in designing better product offerings to end-

users, the Solutions Group- Web that provides real-time information to

customers and is responsible for customer relationship management, IT

Architecture & Corporate Solutions Group is in charge of developing and

maintaining a blueprint for the IT architecture for the enterprise as a whole.

This team works as an in house R&D Solution Group, exploring new

technological initiatives and also caters to information needs of corporate

functions in the organization. IT Infrastructure group is responsible for

providing hardware, software, and 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

media 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 ICICI Prudential's corporate

identity while effectively communicating its varied product offerings to the

customer. Channel marketing provides support to the sales force by

streamlining the design and development of collaterals and sales tools across

distribution channels. The Direct marketing team was set up to generate high

quality leads for profitable business. The team achieves this through target

database acquisition and communicating customized product information

through e-mailers, telemarketing and innovative direct mailers.

Finance

Finance function in ICICI Prudential is committed to create an infrastructure

that is aligned to shareholder expectations. Finance basically comprises of

four functions. . Corporate Planning and MIS provide feedback on business

strategies. This includes driving the budgeting process, providing strategic

inputs for decision-making and management reporting and analysis. The

Accounts function includes preparation and maintenance of financial

records, funds management, and expense processing and treasury operations.

Compliance ensures that every action is within the regulatory framework.

This includes reviewing compliance requirements and supporting the ethical

framework of ICICI Pru life. Internal audit provides assurance to the

management over the organizations' control framework and include process.

Human Resource

The people strategy of ICICI Prudential is “To build a committed team with

a culture of innovation, learning and growth. The Human Resource Function

at ICICI Prudential drives the people strategy of the business. With its initial

focus on operational excellence to deliver benefits and services to staff

members, HR is now committed to building capability through state of the

art processes. A robust performance management system, compensation

system and a segmented training architecture enable it to deliver value to the

organization.

Stages in Policy Issuance

1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At

this stage, the application form is received by COPS, but it is pending for

issuance due to further clarifications required from the customer.

2) Login

A proposal, which is complete i.e., duly filled with all necessary documents

attached to it & accepted by the Branch ops, is called a Login

3) Reject

An Application gets rejected at the Branch Ops level due to necessary details

not filled in the form or necessary documents not submitted are a Reject. It is

then sent back to the Advisor for completion.

4) Issuance

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

2.4 PRODUCT/SERVICES PROFILE

ICICI Prudential’s ultimate promise is financial security. A strong brand

certainly boosts sale, but without customer-friendly, innovative products,

even the best brand would not last long.

ICICI Prudential’s product range has been developed on the understanding

that different people have their own sets of needs at various stages of their

lives. It has thus built a flexible portfolio of products that can be customized

to cater to varying needs of people at each stage, and thus ensures protection

in every step of life. The company’s philosophy has been to help customers

understand their financial needs and work closely with them to customize a

product that would meet. Advisors can offer a complete range of products –

Savings plans, Child plans, Market-linked plans, Protection plans, and

Retirement plans – and tailor a flexible solution to meet customers’

changing needs at every stage of life. In fact, ICICI Prudential was the first

to un-bundle product benefits, pioneering the concept of ‘riders’ and soon

after introduce comprehensive market-linked and retirement plans.

ICICI Prudential has launched a handful of products that are analyzed

below:

ICICI Prudential's life insurance products may be loosely categorized under

three forms: pure life insurance products without an investment angle to

them; a product that is a mix of a cumulative investment scheme and an

insurance product; and, finally, standard products such as money-back and

endowment policies.

Single Premium Bond: The Single Premium Bond is the name of a policy

that combines the features of an investment in a cumulative deposit scheme

with that of an insurance product.

Policyholders are required to pay a one-time premium based on a target sum

assured. At maturity, the policyholder gets the sum assured and guaranteed

additions that work out to a compound return of 4.5 per cent the sum

assured.

The insurance part of the package comes in the form of death benefits that

are paid in the case of the demise of the policyholder. The size of the death

benefit is linked to the number of years left for the policy to expire. On

maturity date, the maturity value is also paid in addition to the death benefits

Life Guard policies: The company offers two pure life insurance products

that have an umbrella name, Life Guard. One of them involves a one-time

premium for which there are no maturity benefits. The other requires regular

premium payments that are returned at the end of the policy. Life Guard

offers absolutely no investment-related return and is suitable for individuals

looking for an unadulterated insurance package.

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative, customer-

centric products that meet the needs of customers at every life stage. Its

products can be enhanced with up to 5 riders, to create a customized solution

for each policyholder.

Savings Solutions

Secure Plus is a transparent and feature-packed savings plan that offers 3

levels of protection.

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

levels of protection as well as liquidity options.

Save ‘n’ Protect is a traditional endowment savings plan that offers life

protection along with adequate returns

CashBak is an anticipated endowment policy ideal for meeting milestone

expenses like a child’s marriage, expenses for a child’s higher

education or purchase of an asset.

Lifetime and Lifetime II offer customers the flexibility and control to

customize the policy to meet the changing needs at different life

stages. Each offers 4 fund options –Preserver, Protector, Balancer and

Maxi miser.

Lifeline Super is a single premium Unit Linked Insurance Plan, which

combines life insurance cover with the opportunity to stay, invested

Premier Life is a limited premium-paying plan that offers customers life

insurance cover till age of 75.

Invest Shield Life is a Unit Linked plan that provides capital guarantee

on the invested premiums and declared bonus interest.

Invest Shield Cash is a Unit Linked plan that provides capital guarantee

on the invested premiums and declares bonus interest along with

flexible liquidity options.

Invest Shield Gold is a Unit Linked plan that provides capital guarantee

on the invested premiums and declares bonus interest along with

limited premium payment terms.

Protection Solutions

Lifeguard is a protection plan, which offers life covers at very low cost.

It is available in 3 options –level term assurance with return of

premium and single premium.

Home Assure is a mortgage reducing term assurance plan designed

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

cost-effective manner.

Child Plans

Smart Kid education plans provide guaranteed educational benefits to a

child along with life insurance cover for the parent who purchases the

policy. The policy is designed to provide money at important

milestones in the child’s life. Smart Kid plans are also available in

unit-linked form – both single premium and regular premium.

Retirement Solutions

Forever Life is a retirement product targeted at individuals in there

thirties.

Secure Plus Pension is a flexible pension plan that allows one.

Market-linked retirement products

Lifetime Pension II is a regular premium market-linked pension plan.

Lifeline Pension II is single premium market linked pension plan.

Invest Shield Pension is a regular premium pension plan with a capital

guarantee on the investible premium and declared bonuses

Golden Years: is a limited premium paying retirement solution that offers

tax benefits up to Rs 100,000 u/s 80C, with flexibility in both the

accumulation and payout stages.

Health Solutions

Health Assure and Health Assure Plus: Health Assure is a regular

premium plan which provides long term cover against 6 critical

illnesses by providing policy holder with financial assistance,

irrespective of the actual medical expenses. Health Assure Plus

offers the added advantage of an equivalent life insurance cover

Cancer Care: is a regular premium plan that pays cash benefit on the

diagnosis as well as at different stages in the treatment of various

cancer conditions.

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies

seeking to enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps

employers fund their statutory gratuity obligation in a scientific manner.

The plan can also be customized to structure schemes that can provide

benefits beyond the statutory obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible

defined 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.

ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution

helps 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 paid to the beneficiary nominated by the

Member on his/her death.

Flexible Rider Options

ICICI Pru Life offers flexible riders, which can be added to the basic

policy at a marginal cost, depending on the specific needs of the

customer.

Accident and disability benefit: If death occurs as the result of an

accident during the term of the policy, the beneficiary receives an

additional amount equal to the rider sum assured under the policy.

If the death occurs while traveling in an authorized mass transport

vehicle, the beneficiary will be entitled to twice the sum assured as

additional benefit.

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

rider on death due to accident.

Critical Illness Benefit: Protects the insured against financial loss in

the event of 9 specified critical illnesses. Benefits are payable to

the insured for medical expenses prior to death

Income Benefit: This rider pays the 10% of the sum assured to the

nominee every year, till maturity, in the event of the death of the

life assured. It is available in Smart Kid, Secure Plus, and Cash

Plus

REVIEW OF LITERATURE

To get better understanding of research study it is needless to say that one has to concentrate on the empirical evidence. So a careful study has been made by the researcher to review the various studies, which have been conducted earlier in this regard. Given below are the brief reviews of related researcher work.

In the 2001 M. Mohamed Ibrahim conducted survey on market strategy of insurance policy in Trichy. Random Sampling selected hundred Respondents and Questionnaire were Administered to them. The study shows that Businessmen are in the top for using insurance. They are highly interested to invest in finance plan. These are the findings of the study.

In the year 2003 R. Kumar conducted the survey of insurance companies in Chennai. The sample size is two hundred respondents’ data collected is of primary questionnaire method. The findings were that the advertisement given by the company is not adequate for researching all the potential customers. Respondents were not satisfied with of private company. The Business people are using the insurance.

In the year 2005, J. Fayasudeen conducted study on customer satisfaction of insurance service in Chennai city. 50 respondents were selected by random sampling and questionnaires were administered to them. The study shows that 70% of respondents using insurance. Majority of the respondents are

satisfied with overall performance of the service provider.

RESEARCH METHODOLOGY

STATEMENT OF THE PROBLEM “To study the awareness of insurance sector and in particular the

Awareness of ICICI Prudential Life Insurance Co. among the people of

Tiruvarur District”

OBJECTIVE OF THE STUDY

For every problem there is a research. As all the researches are based

on some and my study is also based upon some objective and these

are as follows.

1. To understand the insurance business and products of ICICI Prudential life insurance co ltd.

2. To find out the people’s perception about life insurance.

3. To find out whether people were really aware of life insurance.

4. To find out how people think about private life insurance.

5. To find out what respondents expect from life insurance.

6. To understand Consumer buying behavior

7. To come out with conclusion and suggestions based on the analysis .

TABLE NO: 1

AGE OF THE RESPONDENTS:

PARTICTULARS NO.OF.RESPONDENT

PERCENTAGE

Less than 25 11 11%

25 – 35 40 40%35 – 45 20 20%

Above 45 29 29%TOTAL 100 100%

ANALYSIS:

From the survey it was found that amongst 100 respondents

11% of the respondents are less than 25 years old.40% of the respondents are between 25 and 35 years of age.20% of the respondents are between 35 and 45 years of age.29% of the respondents are more than 45 years of age.

GRAPH NO: 1

AGE OF THE RESPONDENTS

TABLE NO: 2

QUALIFICATION OF THE RESPONDENTS:

PARTICUALR NO.OF.RESPONDENT PERCENTAGE

Graduate 52 52%

Post Graduate 29 29%

Diploma 8 8%

Other discipline 11 11%

TOTAL 100 100%

ANALYSIS:

From the survey it was found that amongst 100 respondents

52% of the respondents were graduate29% of the respondents were postgraduate8% of the respondents were diploma11% of the respondents were other discipline

GRAPH NO: 2

QUALIFICATION OF THE RESPONDENTS:

TABLE NO: 3

BENEFITS OF CHOOSING THE PARTICULAR PRODUCTS

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Risk coverage 60 60%

Additional benefit 20 20%

Maturity date 12 12%

Sum Assured 8 8%

TOTAL 100 100%

ANALYSIS60% of the respondents are choosing for risk coverage.20%of the respondents are choosing for additional benefits.12%of the respondents are choosing for maturity date.8%of the respondents are choosing for sum assured.

GRAPH NO: 3

BENEFITS OF CHOOSING PARTICULAR PRODUCTS:

TABLE NO: 4

DISADVANTAGES IN INSURANCE PLANS

PARTICUALRS NO.OF.RESPONDENT PERCENTAGELiquidity 35 35%

Lapsation 20 20%Unable to decide premium

19 19%

High risk coverage 14 14%Fixed Term 12 12%

TOTAL 100 100%

ANALYSIS:From the survey it was found that amongst 100 respondents

35% of the respondents say that disadvantages in insurance plan are liquidity.

20% of the respondents say that disadvantages in insurance plan are lapsation.

19% of the respondents say that disadvantages in insurance plan is unable decide premium.

14% of the respondents say that disadvantages in insurance plan are high-risk coverage at high premium.

12% of the respondents say that disadvantages in insurance plan is fixed term

GRAPH NO: 4

DISADVANTAGES IN INSURANCE PLANS

TABLE NO: 5

INVESTMENT AVENUES PARTICUALRS NO.OF.RESPONDENT PERCENTAGE

Recurring Deposit 40 40%

Equity Fund 25 25%

Balanced Fund 10 10%

Mutual Fund 11 11%Debt Fund 5 5%Cash Fund 9 9%TOTAL 100 100%

ANALYSIS: From the survey it was found amongst 100 respondents

40% of respondents say that they want to invest in R.D25% of respondents say that they want to invest in equity 10% of respondents say that they want to invest in balanced fund11% of respondents say that they want to invest in mutual fund5% of respondents say that they want to invest in debt market9% of respondents say that they want to invest in cash

GRAPH NO: 5

INVESTMENT AVENUES:

CHI-SQUARE TEST

Aim:

This test aims to find out whether there is any difference between occupation and income of respondents for using life insurance.

Sample:

Sample size = 100

Hypothesis:

Ho: There is no significance difference between occupation and income of respondents for using life insurance. H1: There is a significance difference between occupation and income of respondents for using life insurance.

TABLEOCCUPATION/ INCOME

Up to1 lakh

1 lakh -3 lakh

3 lakhs -5 lakhs

5 lakhs &above

TOTAL

Business man 11 13 8 2 34

Professionals 6 8 3 1 18

Job holders 11 19 7 0 37

Others 5 3 2 1 11

TOTAL 33 43 20 4 100

CONTENGENCY TABLE:

Observed frequency

Expected frequency

(O-E)2 (O-E)2/E

10 11.2 1.44 0.128513 14.7 2.89 0.19658 6.8 1.44 0.21172 1.4 0.36 0.25716 5.94 3.60 0.60608 7.74 0.0676 8.73383 3.6 0.36 0.11 0.72 0.0784 0.108811 12.21 1.4641 0.1199

19 15.91 9.5481 0.60017 7.4 0.16 0.02160 1.48 2.1904 1.485 3.63 1.8769 0.51703 4.73 2.9929 0.63272 2.2 0.04 0.01811 0.44 0.3136 0.7127

TOTAL 14.4445

CALCULATION:Degree of freedom 5% level of significant (c-1)(r-1) =(4-1)(4-1)Degree of freedom = 9Calculated value = 14.4445Table value = 16.919

INTERPRETATION:

Since calculated is greater than table.

Hence null hypothesis rejected so there is significance difference between occupation and income of respondents.

Chi-square table 2:

PARTICULARS Upto 1 lakh

1lakh-3lakh

3lakh-5lakh

5lakh&above TOTAL

Graduates 17 24 9 2 52Post-Graduate 10 12 7 0 29Diploma 2 4 2 0 8Other disciplines 4 3 2 2 11TOTAL 33 43 20 4 100

Contingency table:

O E (O-E)2 (O-E)2/E17 17.16 0.0256 1.491824 22.36 2.6896 0.12029 10.40 1.9600 0.18842 2.08 6.4000 3.076910 9.57 0.1849 0.019312 12.47 0.2209 0.01837 5.80 1.4400 0.24820 1.16 1.3456 1.16002 2.64 0.4096 0.15514 3.44 0.3136 0.09112 1.60 0.1600 0.10000 0.32 0.1024 0.32004 3.63 0.1369 0.03773 4.73 2.9929 0.63272 2.2 0.0400 0.01812 0.44 2.4336 5.5309TOTAL 13.2085

CALCULATION: Level of Significance 5%=0.05

Degree of Freedom= (c-1) (r-1) = (4-1) (4-1) = 9

Calculated Value = 13.2085

Table Value = 16.919

INTREPRETATION:

Since calculated value is lesser than the table value, Null hypothesis is accepted. Therefore there is no significant relationship between qualification and salary.

FINDINGS

FINDINGS:

1. On an analyse and evaluation of the data collected from the respondents the following findings were found.

2. Total 100 respondents have been approached out of which 40% of the respondents are between 25 to 35 years.

3. About 52% of the respondents are graduates.4. About 37% of the respondents are jobholders.5. About 43% of the respondents have an average annual income

RECOMMENDATIONS TO COMPANY:

Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI

invested, in terms of work force, in terms of market share, in terms of no. Of

customers. All these positive stand of the company place at the number one

position. On second aspect whatever amount of money ICICI Prudential

save, can be used to increase the no. Of policies, which will helpful to

increase the market share of the company. Since the customers think about

the companies in the industry, when they invest money in the life insurance

industry. So it’s necessary to increase the market share of the company.

There are some recommendations.

Open some more branches in semi urban and rural area.

ICICI Prudential has almost its branches in urban area or metros. So

in order to increase the no. Of customer, ICICI Prudential should

increase the approach towards potential customers. For that it has to

increase the branches in the semi urban cities like C, D grade cities.

And the rural marketing is the best option for ICICI Prudential to

increase its base in the market

Improve customer services.

In order to take the advantage of being industry leader in private

sector, ICICI Prudential has to improve its customer services.

According to my experience in the company, a good number of

customers forget to pay their premium at time so it causes a big loss to

the company. ICICI Prudential has already collaborated with the

ICICI bank for its Banc assurance facility and then can include

another feature in it. ICICI bank can offer a bank account with the life

insurance policy in which an ATM card will be provided. This card

will have all the information regarding the policy as like future

premium payment dates, payment made, money value of the policy at

that date, value of the unit linked plan and all other information what

the customer want. This will help the customer to pay premium on

time and save their losses. This will be mutually helpful for both sister

companies, ICICI bank will get new account and ICICI prudential will

be able to more efficient services to their customers

BIBLIOGRAPHY

PHILIP KOTLER,

Marketing management. Published by prentice, Hall of Indian

private Ltd., Tenth edition-2002.

KOTHARI. C.R

Research methodology, Published by V.S.Lobri for Whishwa prakash

Eighth Edition -2004.

GUPTA.S.C. and INDIRU GUPTA,

Business statistics, publishing house, sixth Edition - 2006.

Marketing Management by Philip Kotler, Pearson Education 2nd Ed

Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th Ed.

IRDA Journal

ICICI Prudential Company magazines

Newspaper and Business magazines

WEBSITES

www.iciciprulife.com

www.google.co.in/indian insurance industry

www.irdaindia.org

________________________________________________

“A study on consumer behaviour and customer satisfaction at icici

prudential life insurance service in Tiruvarur District.”

QUESTIONNAIRE

1. Name _________________________________2. Address _________________________________ _________________________________ _________________________________3. Age a. Less than 25 c. 35-45 b. 25 – 35 d. 45 and above

4. Qualification

a. Graduate c. Diploma b. Postgraduate d. Other discipline

5.occupation

a. Business c. Jobholder b. Professional d. Other

6. What is your average annual income?

a. Up to 1 lakh c. 3 lakhs to 5 lakhs b. 1 lakh to 3 lakhs d. 5 lakhs and more

7. Your family size

a. Below 5 members b. 5 – 10 members c. Above 10 members

8. According to you life insurance is,

a. A taxes saving plan d. Risk coverage b. A saving scheme with good return e. All the above c. A financial security for the family

________________________________________________

9.Have you taken any life insurance product of ICICI Prudential Life insurance?

YES NO If yes

Which are in these? a. Unit gains plan d. Children plan b. Invest gain plans e. Pension plan c. Whole life plan f. Others __________________ 10. Are you aware of the benefits in your policy? Yes No If yes what are they? a. Sum assured c. Additional benefits b. Maturity date d. Risk coverage 11. According to you what are the disadvantages in an insurance plan? a. Lapsation b. Liquidity c. Fixed term d. Unable to decide your premium e. Unable to decide the sum assured f. High risk coverage at high premiums g. Other disadvantages 12. In which of the following would you like to invest? a. Equity fund b. Debt fund c. Balanced fund d. Cash fund e. Mutual fund f. Recurring deposits

13. Any suggestion for ICICI Prudential Life Insurance ______________________________________________________ ______________________________________________________

Thank you for sparing your valuable time