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INTRODUCTION
The business of insurance is related to the protection of the economic values
of assets. Every asset has a value; the assets would have been created through
the efforts of the owner. The asset is valuable to the owner, because he expects
to get some benefits from it. The benefit may be an income or something else.
It is a factory or a cow, the product generated by is sold and income generated.
In the case of a motor car, it provides comfort and convenience in
transportation. There is no direct income.
Every asset is expected to last for a certain period of time during which it will
perform. After that, the benefit may not be available. There is a life-time for a
machine in a factory or a cow or a motor car. None of them will lose for ever.
The owner is aware of this and he can so manage his affairs that by the end of
that period of life-time, a substitute is made available. Thus, he makes sure
that the value of income is not lost. However, the asset may get lost earlier. An
accident or some other unfortunate event may destroy it or make it non
financial. In that case, the owner and those deriving benefits there from, would
be deprived of the benefit and the planned substitute would not have been
ready. There is an adverse or unpleasant situation. Insurance is a mechanism
that helps to reduce the effect of such adverse situation.
BRIEF HISTORY OF INSURANCE
The business of insurance started with marine business. Traders, who used to
gather in the Lloyds coffee house in London, agreed to share the losses to
their goods while being carried by ships. The losses used to occur because of
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pirates who robbed on the high seas or because of bad weather spoiling the
goods or sinking the ship. The first insurance policy was issued in 1583 in
England. In India, insurance began in 1876 with life insurance being
transacted by an English company, the European and the Albert. The first
Indian insurance company was the Bombay Mutual Assurance Society Ltd,
formed in 1870. This was followed by the Oriental Life Assurance Co. in
1874, the Bharat in 1896 and the Empire of India in 1897.
Later, the Hindustan Cooperative was formed in Calcutta, the United India in
Madras, the Bombay Life in Mumbai, the National in Calcutta, the New India
in Mumbai, the Jupiter in Mumbai and the Lakshmi in New Delhi. These were
all Indian companies, started as a result of the swadeshi movement in the early
1900s. By the year 1956, when the life insurance was nationalized and the Life
Insurance Corporation of India (LIC) was formed on 1st September 1956, there
were 170 companies and 75 provident fund societies transacting life insurance
business in India. After the amendment to the relevant laws in 1999, the L.I.C.
did not have the exclusive privilege of doing life insurance business in India.
By 31.3.2002, eleven new insurers had been registered and and had begun to
transact life insurance business in India.
PURPOSE AND NEED OF INSURANCE
Assets are insured, because they are likely to be destroyed, through accidental
occurrences. Such possible occurrences are called perils, Fire, floods,
breakdown, lightning, earthquakes, etc, are perils. If such perils can cause
damage to the asset, we say that the asset is exposed to that risk. Perils are the
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events. Risks are the consequential losses or damages. The risk to a owner of a
building, because of the peril of an earthquake, may be a few lakhs or few
crores of rupees, depending on the cost of the building and the contents in it.
The risk only means that there is a possibility of loss or damage. The damage
may or may not happen. Insurance is relevant only if there are uncertainties. If
there is no uncertainty about the occurrence of an event, it cannot be insured
against. In the case of a human being, death is certain, but the time of death is
uncertain, In the case of a person who is terminally ill, the time of death is not
uncertain, though not exactly known. He cannot be insured.
Insurance does not protect the asset. It does not prevent its loss due to the
peril. The peril cannot be avoided through insurance. The peril can sometimes
be avoided, through better safety and damage control management. Insurance
only tries to reduce the impact of the risk and the owner of the assets and those
who depend on that asset. It only compensates the losses and that too, not
fully.
Only economic consequences can be insured. If the loss is not financial,
insurance may not be possible. Examples of non economic losses are love and
affection of parents, leadership of managers, sentimental attachments to family
heirlooms, innovative and creative abilities, etc.
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INDIAN INSURANCE SECTOR
The Insurance sector in India governed by Insurance Act, 1938, the Life
Insurance Corporation Act, 1956 and General Insurance Business
(Nationalisation) Act, 1972, Insurance Regulatory and Development
Authority (IRDA) Act, 1999 and other related Acts.
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) was formed in September, 1956 by
an Act of Parliament, viz., Life Insurance Corporation Act, 1956, with
capital contribution from the Government of India. The then Finance
Minister, Shri C.D. Deshmukh, while piloting the bill, outlined the
objectives of LIC thus: to conduct the business with the utmost economy,
in a spirit of trusteeship; to charge premium no higher than warranted by
strict actuarial considerations; to invest the funds for obtaining maximum
yield for the policy holders consistent with safety of the capital; to render
prompt and efficient service to policy holders, thereby making insurance
widely popular.
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Since nationalisation, LIC has built up a vast network of 2,048 branches,
100 divisions and 7 zonal offices spread over the country. The Life
Insurance Corporation of India also transacts business abroad and has
offices in Fiji, Mauritius and United Kingdom. LIC is associated with
joint ventures abroad in the field of insurance, namely, Ken-India
Assurance Company Limited, Nairobi; United Oriental Assurance
Company Limited, Kuala Lumpur and Life Insurance Corporation
(International) E.C. Bahrain. The Corporation has registered a joint
venture company in 26th December, 2000 in Kathmandu, Nepal by the
name of Life Insurance Corporation (Nepal) Limited in collaboration with
Vishal Group Limited, a local industrial Group. An off-shore company
L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001 to tap
the African insurance market.
General Insurance:
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General insurance business in the country was nationalised with effect from
1st January, 1973 by the General Insurance Business (Nationalisation)
Act, 1972. More than 100 non-life insurance companies including
branches of foreign companies operating within the country were
amalgamated and grouped into four companies, viz., the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd., and the United India Insurance
Company Ltd. with head offices at Calcutta, Bombay, New Delhi and
Madras, respectively. General Insurance Corporation (GIC) which was
the holding company of the four public sector general insurance
companies has since been delinked from the later and has been approved
as the "Indian Reinsurer" since 3rd November 2000. The share capital of
GIC and that of the four companies are held by the Government of India.
All the five entities are Government companies registered under the
Companies Act.
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The general insurance business has grown in spread and volume after
nationalisation. The four companies have 2699 branch offices, 1360
divisional offices and 92 regional offices spread all over the country. GIC
and its subsidiaries have representation either directly through branches or
agencies in 16 countries and through associate/ locally incorporated
subsidiary companies in 14 other countries. A wholly- owned subsidiary
company of GIC, i.e. Indian International Pte. Ltd. is operating in
Singapore and there is a joint venture company, viz. Kenindia Assurance
Ltd. in Kenya. A new wholly owned subsidiary called New India
International Ltd., UK has also been registered.
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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 customerss perceived benefits
(economic, functional and psychological) and the resources
(momentary, time, effort, psychological) used to obtain those benefits.
Customer satisfaction: Customer satisfaction is the individuals
perception of the performance of the product or service in relation to his
or her expectations.
Motivation: The processes that account for an individuals intensity,
direction, and persistence of effort toward attaining a goal.
Personality : Personality can be described ad the psychological
characteristics that both determine and reflect how person responds to
his or her environment.
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Perception is defined as the process by which an individual selects,
organizes, and interprets stimuli into a meaningful and coherent picture
of the world.
Consumer learning is the process by which individuals acquire the
purchase and consumption knowledge and experience they apply to
future related behavior.
THE CONSUMER ADOPTION PROCESS
The consumer adoption process is the process by which customers learn
about new products, try them, and adopt or reject them. Today many
marketers are targeting heavy users and early adopters of new products
recognizing that specific media can reach both groups and tend to be
opinion leaders. The consumer adoption process is influenced by many
factors beyond the marketers control, including consumers and
organizations willingness to try new products, personal influences and
the characteristics of the new products or innovations
STAGES OF ADOPTION PROCESS
An innovation refers to any good, service, or idea. That is perceived by
someone as new. The idea may have long history, but it is an innovation
to the person who sees it as new. Innovation takes time to spread
through the special system. The consumer adoption process focuses on
the mental process through which an individual passes from first hearing
about an innovation to final adoption. Adopters of new products have
moved through the following five stages.
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AWARENESS: The consumer becomes aware of the innovation but
lacks information about it.
INTEREST: The consumer is stimulated to see the information about
the innovation.
EVALUATION: The Consumer considers whether to try the innovation
or not.
TRIAL: The consumer tries the innovation to improve his estimate of
its value.
ADOPTION: The consumer decides to make full and regular use of theinnovation.
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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 find out the Consumer Behaviour about life insurance.
2. To find out whether people were really aware of life insurance.
3. To find out how people think about private life insurance.
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NEW INSURANCE SCHEMES
UNIVERSAL HEALTH INSURANCE SCHEME
The Universal Health Insurance policy is available to groups of 100 or more
families. The policy provides for reimbursement of medical expenses upto
Rs.30000/- towards hospitalisation floated amongst the members of the
family, death cover due to an accident for Rs.25000 to the earning head of
the family and compensation due to loss of earning head of the family @
Rs.50/- per day upto a maximum of 15 days, after a waiting period of
three days, when the earning head of the family is hospitalised. The
premium under the policy is Rs.1/- per day (i.e. Rs.365/- per annum) for
an individual, Rs.1.50 per day for a family of five limited to spouse and
children (i.e. Rs.548 per annum), and Rs.2/- per day (i.e. Rs. 730 per
annum) for covering dependent parents within the overall family size of
seven. A subsidy of Rs. 100 per year towards annual premium for "Below
Poverty Life" families is also provided under the Scheme.
For purpose of this policy HOSPITAL means:
Any Hospital/Nursing home registered with the local authorities and under the
supervision of a registered and qualified Medical practitioner.
Hospital/ Nursing Home run by Government.
Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals with fixed
schedule of charges.
Hospitalisation should be for a minimum period of 24 hours. However, this
time limit is not applied to some specific treatments and also where due to
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technological advancement hospitalisation for 24 hours may not be
required.
Main Exclusions:
All pre-existing diseases.
Corrective, cosmetic or aesthetic dental surgery or treatment.
Cost of spectacles, contact lens and hearing aid.
Primarily diagnostic expenses not related to sickness/injury.
Treatment for Pregnancy, Childbirth, Miscarriage, abortions etc.
Age Limitations:
This policy covers people between the age of 3 months to 65 years.
Floater Basis:
The benefit of family will operate on floater basis i.e. the total
reimbursement of Rs. 30,000/- can be avalied of individually or
collectively by members of the family.
For further details please refer the Prospectus or the Policy Document
issued by the Insurance Company.
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Varishtha Pension Bima Yojana
Scheme
Indian citizens aged 55 years (last birthday) and above are eligible (no upper
age ceiling).
Pension will be paid during the lifetime of the pensioner.
In the event of unfortunate death of the pensioner, purchase price will be paid
to the nominee/ legal heir of the pensioner.
Mode of payment of pension : Monthly, Quarterly, Half Yearly or Yearly.
Minimum pension is Rs. 250/- per month
Maximum pension is Rs. 2000/- per month.
Only one person from a family can apply. The family for this purpose shall
comprise of the pensioner, his/ her spouse and dependants.
Age proof will be required. Where age is to be admitted on declaration basis,declaration on a stamp paper, signed in front of a notary shall be required.
Premium
Only single premium (purchase price) is payable i.e. premium is to be
paid in one lump sum. Further, premium shall be accepted by cheques/
drafts payable on the Branch of the bank which is the member of the local
clearing house.
Exit Option
Exit option to be provided after 15 years.
Availability of Loan
Availability of loan to the extent of 75% of Purchase Price after 3 years.
Interest rate on loan to be decided by LIC from time to time. At present,
the rate of interest would be 10.5%.
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MAJOR POLICY CHANGES
Reforms In Insurance Sector
Insurance sector has been opened up for competition from Indian private
insurance companies with the enactment of Insurance Regulatory and
Development Authority Act, 1999 (IRDA Act). As per the provisions of
IRDA Act, 1999, Insurance Regulatory and Development Authority
(IRDA) was established on 19th April 2000 to protect the interests of
holder of insurance policy and to regulate, promote and ensure orderly
growth of the insurance industry. IRDA Act 1999 paved the way for the
entry of private players into the insurance market which was hitherto the
exclusive privilege of public sector insurance companies/ corporations.
Under the new dispensation Indian insurance companies in private sector
were permitted to operate in India with the following conditions:
Company is formed and registered under the Companies Act, 1956;
The aggregate holdings of equity shares by a foreign company, either by itself
or through its subsidiary companies or its nominees, do not exceed 26%,
paid up equity capital of such Indian insurance company;
The company's sole purpose is to carry on life insurance business or general
insurance business or reinsurance business.
The minimum paid up equity capital for life or general insurance business is
Rs.100 crores.
The minimum paid up equity capital for carrying on reinsurance business has
been prescribed as Rs.200 crores.
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The Authority has notified 27 Regulations on various issues which include
Registration of Insurers, Regulation on insurance agents, Solvency
Margin, Re-insurance, Obligation of Insurers to Rural and Social sector,
Investment and Accounting Procedure, Protection of policy holders'
interest etc. Applications were invited by the Authority with effect from
15th August, 2000 for issue of the Certificate of Registration to both life
and non-life insurers. The Authority has its Head Quarter at Hyderabad.
INSURANCE COMPANIES
IRDA has so far granted registration to 12 private life insurance
companies and 9 general insurance companies. If the existing public
sector insurance companies are included, there are currently 13
insurance companies in the life side and 13 companies operating in
general insurance business. General Insurance Corporation has been
approved as the "Indian reinsurer" for underwriting only
reinsurance business. Particulars of the life insurance companies and
general insurance companies including their web address is given
below:
LIFE INSURERS Websites
Public Sector
Life Insurance Corporation ofIndia
www.licindia.com
Private Sector
ICICI Prudential Life InsuranceCo. Limited
www.iciciprulife.com
Allianz Bajaj Life InsuranceCompany Limited
www.allianzbajaj.co.in
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Birla Sun-Life InsuranceCompany Limited
www.birlasunlife.com
HDFC Standard Life InsuranceCo. Limited
www.hdfcinsurance.com
ING Vysya Life InsuranceCompany Limited
www.ingvysayalife.com
Max New York Life InsuranceCo. Limited
www.maxnewyorklife.com
MetLife Insurance Company
Limited www.metlife.com
Om Kotak Mahindra LifeInsurance Co. Ltd.
www.omkotakmahnidra.com
SBI Life Insurance CompanyLimited
www.sbilife.co.in
TATA AIG Life InsuranceCompany Limited
www.tata-aig.com
AMP Sanmar AssuranceCompany Limited
www.ampsanmar.com
Dabur CGU Life Insurance Co.Pvt. Limited
www.avivaindia.com
GENERAL INSURERS
Public Sector
National Insurance CompanyLimited
www.nationalinsuranceindia.com
New India Assurance CompanyLimited
www.niacl.com
Oriental Insurance CompanyLimited
www.orientalinsurance.nic.in
United India InsuranceCompany Limited
www.uiic.co.in
Private Sector
Bajaj Allianz General InsuranceCo. Limited
www.bajajallianz.co.in
ICICI Lombard General www.icicilombard.com
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Insurance Co. Ltd.
IFFCO-Tokio GeneralInsurance Co. Ltd.
www.itgi.co.in
Reliance General Insurance Co.Limited
www.ril.com
Royal Sundaram AllianceInsurance Co. Ltd.
www.royalsun.com
TATA AIG General InsuranceCo. Limited
www.tata-aig.com
Cholamandalam GeneralInsurance Co. Ltd.
www.cholainsurance.com
Export Credit GuaranteeCorporation
www.ecgcindia.com
HDFC Chubb GeneralInsurance Co. Ltd.
REINSURER
General Insurance Corporationof India
www.gicindia.com
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PROTECTION OF THE INTEREST OF POLICY
HOLDERS:
IRDA has the responsibility of protecting the interest of insurance
policyholders. Towards achieving this objective, the Authority has taken
the following steps:
IRDA has notified Protection of Policyholders Interest Regulations 2001 to
provide for: policy proposal documents in easily understandable
language; claims procedure in both life and non-life; setting up of
grievance redressal machinery; speedy settlement of claims; and
policyholders' servicing. The Regulation also provides for payment of
interest by insurers for the delay in settlement of claim.
The insurers are required to maintain solvency margins so that they are in a
position to meet their obligations towards policyholders with regard to
payment of claims.
It is obligatory on the part of the insurance companies to disclose clearly the
benefits, terms and conditions under the policy. The advertisements issued
by the insurers should not mislead the insuring public.
All insurers are required to set up proper grievance redress machinery in their
head office and at their other offices.
The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the
insurance contract.
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Insurance Company Market Share (Fig. in
%)LIC 71.44
ICICI Prudential 11.35
Bajaj Allianz 7.06
HDFC Standard Life 2.37
SBI Life 1.81
Birla Sun Life 1.49
Max New York Life` 0.98
TATA AIG 0.79
Aviva 0.89OM Kotak Mahindra 0.86
ING Vyasa 0.57
Reliance 0.37
MetLife 0.24
Market Share of Life Insurance Companies as of May 2008.
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COMPANY PROFILE
ABOUT ICICI PRUDENTIAL
ICICI Prudential Life Insurance Company is a joint venture
between ICICI Bank, a premier financial powerhouse and Prudential
Plc, a leading international financial services group headquartered in
the United Kingdom. This joint venture is formed in the year Dec, 2000
and ICICI Prudential was amongst the first private sector Insurance
companies to begin operation in Dec, 2000 after receiving approval
from the Insurance Regulatory Development Authority (IRDA).
For the year ended March 31, 2008, the company garnered Rs
24.12 billion of weighted new business premium and wrote 837,963
policies. The sum assured in force stands at Rs 458.88 billion. The
company has a network of over 72,000 advisors; as well as 9 banc
assurance partners and over 200 corporate agent and broker tie-ups. It
is also the only life insurer in India to be assigned AAA credit rating
from Fitch Ratings. For the past five years, ICICI Prudential has
retained its position as the No. 1 private life insurer in the country,
with a wide range of flexible products that meet the needs of the Indian
customer at every step in life. ICICI Bank and Prudential Plc hold 74
percent and 26 percent stake respectively.
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PARTNERS
ICICI and Prudential came together in 1993 to form Prudential
ICICI Asset Management Company, which has today emerged as one
leading mutual funds in India. Riding on the success of this
relationship, the two companies joined hands ones more in 2000, to
form ICICI Prudential Life Insurance, with a commitment to provide
leading edge life insurance solutions.
ABOUT ICICI BANK
ICICI Bank is India's second-largest bank with total assets of
about Rs. 2,513.89 bn (US$ 56.3 bn) at March 31, 2008 and profit after
tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March 31, 2008
(Rs. 20.05 bn (US$ 449 mn) for the year ended March 31, 2005). ICICI
Bank has a network of about 614 branches and extension counters and
over 2,200 ATMs. ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries
and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. ICICI Bank set up its
international banking group in fiscal 2002 to cater to the cross border
needs of clients and leverage on its domestic banking strengths to offer
products internationally. ICICI Bank currently has subsidiaries in the
United Kingdom, Russia and Canada, branches in Singapore, Bahrain,
Hong Kong, Sri Lanka and Dubai International Finance Centre and
representative offices in the United States, United Arab Emirates,
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China, South Africa and Bangladesh. Our UK subsidiary has
established a branch in Belgium. ICICI Bank is the most valuable bank
in India in terms of market capitalization.
ICICI Bank's equity shares are listed in India on the Bombay Stock
Exchange and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York
Stock Exchange (NYSE).
ICICI Bank has formulated a Code of Business Conduct and Ethics for
its directors and employees
At June 5, 2006, ICICI Bank, with free float market capitalization
of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst
all the companies listed on the Indian stock exchanges.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an
Indian financial institution, and was its wholly-owned subsidiary.
ICICI's shareholding in ICICI Bank was reduced to 46% through a
public offering of shares in India in fiscal 1998, an equity offering in
the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in
fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at
the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to
create a development financial institution for providing medium-term
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and long-term project financing to Indian businesses. In the 1990s,
ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group
offering a wide variety of products and services, both directly and
through a number of subsidiaries and affiliates like ICICI Bank. In
1999, ICICI become the first Indian company and the first bank or
financial institution from non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the
context of the emerging competitive scenario in the Indian banking
industry, and the move towards universal banking, the managements of
ICICI and ICICI Bank formed the view that the merger of ICICI with
ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group's
universal banking strategy. The merger would enhance value for ICICI
shareholders through the merged entity's access to low-cost deposits,
greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking
services. The merger would enhance value for ICICI Bank shareholders
through a large capital base and scale of operations, seamless access to
ICICI's strong corporate relationships built up over five decades, entry
into new business segments, higher market share in various business
segments, particularly fee-based services, and access to the vast talent
pool of ICICI and its subsidiaries. In October 2001, the Boards of
Directors of ICICI and ICICI Bank approved the merger of ICICI and
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two of its wholly-owned retail finance subsidiaries, ICICI Personal
Financial Services Limited and ICICI Capital Services Limited, with
ICICI Bank. The merger was approved by shareholders of ICICI and
ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmedabad in March 2002, and by the High Court of Judicature at
Mumbai and the Reserve Bank of India in April 2002. Consequent to
the merger, the ICICI group's financing and banking operations, both
wholesale and retail, have been integrated in a single entity.
ABOUT PRUDENTIAL PLC
Established as the Prudential Mutual Assurance and Loan Association in 1848,
today it is an international financial services company with a product range
which extends from personal banking insurance, pensions and retail
investments, to institutional fund management and property investments.
Its portfolio of well-known and respected brands, including Prudential, M&G
Investments, Jackson National Life, Prudential Corporation Asia and Egg, has
attracted more than 19 million customers (and policy holders and unit holders)
worldwide. Across the Group it has 234 billion of funds under management
(at 31 December 2008).
Prudential has significant operations in the UK, the US and Asia, contributing
to a diversity of earnings. Worldwide it employ more than 20,000 people and
our shareholders number 60,942 (at 31 December 2008). We are listed on the
London and New York stock
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In Asia, Prudential Corporation Asia has 23 operations in 12 countries. These
include strategic partnerships with some of the regions leading players,
including CITIC Group (for life business in China), ICICI Bank (for life and
mutual fund business in India) and Bank of China International (for
Mandatory Provident Fund business in Hong Kong). Prudential Corporation
Asia offers a wide range of savings, protection and investment products
tailored to the needs of our customers in each of the 12 markets in which
itoperate. In addition to its life insurance operations Prudential has asset
management businesses in India, Hong Kong, Japan, Taiwan, Malaysia,
Singapore, Korea, Vietnam and China managing over 26 billion (as of 30
June 2008).
VISION
OUR VISION:
To make ICICI Prudential the dominant Life and Pensions player built on trust
by world-class people and service.
This we hope to achieve by:
Understanding the needs of customers and offering them superior
products and service
Leveraging technology to service customers quickly, efficiently and
conveniently
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Developing and implementing superior risk management and
investment strategies to offer sustainable and stable returns to our
policyholders
Providing an enabling environment to foster growth and learning for
ouremployees
And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to
5 core values -- Integrity, Customer First, Boundary less, Ownership and
Passion. Each of the values describes what the company stands for, the
qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity,
where we can play a significant role in redefining and reshaping the sector.
Given the quality of our parentage and the commitment of our team, there are
no limits to our growth.
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PRODUCT OF ICICI PRUDENTIAL
SAVINGS PLANSICICI Prudential offers a variety of policies that give you the benefits of
protection and the opportunity to save for important assets or events, like a
home, a car or a wedding.
NEW
A regular premium unit-linked insurance plan with an assurance of Capital
Guarantee* and the facility of extended insurance cover.
*The capital guarantee is applicable only on the invested premium and the
declared bonus interests.
A regular premium unit-linked insurance plan with an assurance of Capital
Guarantee* along with flexible liquidity options.
A unit-linked insurance plan with an assurance of Capital Guarantee*, which
offers you the benefit of a limited premium payment and coverage term.
A market linked insurance plans that meets your Investment and Protection
needs.
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Complete market-linked insurance plans that adapt itself to your changing
protection and investment needs, throughout a lifetime.
An insurance plan that gives added protection savings and multiple options, all
in one!
An insurance plan that gives added protection savings, multiple options, plus
the power of liquidity.
A traditional endowment savings plan that offers both high returns and
protection.
An endowment savings plan that allows you to get back substantial survival
benefits without having to wait till the maturity date.
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PROTECTION PLANS
ICICI Prudential Life Insurance offers LifeGuard - a set of pure protection
plans. Choose from amongst three different product structures to insure your
life and provide total security to your family, at a very affordable cost.
Level Term Assurance with return of premium
On death the entire sum assured will be paid.
On maturity, all the premiums paid will be returned.
Level Term Assurance without return of premium
On death the entire sum assured will be paid.
No survival or maturity benefits.
You can also enhance the above two policies by adding Accident & Disability
Benefit Rider and Waiver of Premium Rider (WOP).
Level Term Assurance - Single premium
On death the entire sum assured will be paid.
No survival or maturity benefits
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CHILD PLANS
As a responsible parent, you will always strive to ensure a hassle-free,
successful life for your child. However, life is full of uncertainties and even
the best-laid plans can go wrong. Heres how you can give your child a 100%
safe and assured tomorrow, whatever the uncertainties. SmartKid is especially
designed to provide flexibility and safeguard your childs future education and
lifestyle, taking all possibilities into account. For further information on our
SmartKid Education Plans
1. SmartKid regular premium
2. SmartKid unit-linked regular premium
3. SmartKid unit-linked regular premium II
4. SmartKid unit-linked single premium II
All these plans offer you:
Financial Benefits: Regular payments at critical stages in your childs
life, like Board examinations, Graduation and Post-graduation.
Total peace of mind, even if you are not around
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o Sum Assured is paid immediately: Ensures that your loved
ones stay financially secure, even in your absence
o All future premiums are waived: Ensuring that your family is
not financially burdened in your absence
o Policy benefits continue: The educational benefits of the
policy continue, ensuring that your child can realize his or her
dreams without any hassles.
Development Allowance: SmartKid guarantees regular income to
secure your childs educational career and also ensures his or her all-
round development, for a nominal additional amount. The Income
Benefit Rider takes care of this through an annual payment of 10% of
the sum assured, to your child, till the maturity of the policy, in the
unfortunate event of the death of the parent.
All SmartKid plans can be enhanced with the Accident & Disability
Benefit Rider and Income Benefit Rider.You can also an Accident
Benefit Rider to a SmartKid Regular Premium policy,and a Waiver of
Premium Rider (WOP) to SmartKid unit-linked regular premium
policy.
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RETIREMENT PLANS
Life Expectancy has been rising rapidly and today you can expect to live
longer than your earlier generations. For you, this increase will mean a longer
retirement life, stretching into a couple of decades. ICICI Prudential presents
Retirement Solutions that combine the best of insurance and investment.
These solutions are developed to ensure your peace of mind for the years to
come.For further information on our Retirement Solutions
Choose from amongst 6 retirement plans:
A flexible unit-linked retirement solution that offers flexibilities during the
accumulation as well as payout phase.
A regular premium unit-linked pension plan with an assurance of Capital
Guarantee*
*The capital guarantee is applicable only on the invested premium and the
declared bonus interests
A regular premium linked pension plan that gives you the freedom to choose
the amount of premium, and invest in market-linked funds, to generate
potentially higher returns.
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A single premium linked pension plan that gives you the freedom to choose
the amount of premium, and invest in market-linked funds, to generate
potentially higher returns.
A regular premium pension plan that gives you the flexibility to choose
between 3 levels of sum assured for the same level of total annual contribution
A regular premium pension plan that helps you save for your retirement while
providing you with life insurance protection.
Choose from 5 Annuity options at the time of vesting
1. Life Annuity
2. Life Annuity with return of purchase price
3. Life Annuity guaranteed for 5, 10, 15 years
4. Joint Life, Last Survivor without return of purchase price
5. Joint Life, Last Survivor with return of purchase price
HEALTH PLANS
Comprehensive Cancer Protection Plan
A Long-term Critical Illness Protection Plan.
A Long-term Critical Illness Protection Plan with Life Cover.
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INVESTMENT PLANS
Lifelink Super is a unique single premium plan that combines the security of a
life insurance policy with the opportunity to enjoy potentially high returns on
your investments.
Low Allocation Charges: The premium allocation charges are amongst the
lowest across products. Allocation charge for single Premium of Rs 500,000
or more is 0%.
Death Benefit: There are 2 options for sum assured - 500% of the single
premium or 125% of the single premium. In the event of an unfortunate death,
the beneficiary will receive higher of the value of units or the initial death
benefit (adjusted for partial withdrawals*).
Liquidity: In order to meet liquidity requirements, one can make partial
withdrawals from the accumulated value of the policy after completion of
three policy years.
Flexibility:Choose from four fund options, based on your investment
objective and risk appetite. If at a later stage your financial priorities change,
you can switch between the various fund options, absolutely free, 4 times a
year.
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GROUP SOLUTIONS
In an era of competitive parity, the only asset that makes a decisive difference
between corporate success and failure is the quality
of human capital. Employee benefits have proven to be an excellent tool to
optimize the retention of talent and improve an organisations bottomline.
The quality of an organisations employee benefits establishes and maintains a
company's image as a caring employer. Optimum care of employees is a long-
term investment that results in a sustained competitive advantage for an
organisation in the times to come.
ICICI Pru Group Solutions Advantage
An integrated basket of employee benefit solutions that offer
incomparable flexible benefits.
Sound investment management that focuses on safety, stability and
profitability of the portfolio.
Personalised financial planning for your employee that takes care of
his/her changing financial needs at every stage of life.
Quality service initiatives and transparency across all operations,
promising superlative operational efficiency.
Group Term Insurance : Helps provide affordable cover to members of a
group.
Group Gratuity Plan : Helps employers fund their statutory gratuity
obligation in a flexible and hassle-free manner.
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Group Superannuation Plan : A flexible scheme (defined benefit and
defined contribution) to provide a retirement kitty for each member of the
group.
Group Term Insurance
ICICI Prudential'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, and can be extended to all employees
between the ages of 18 and 65 years. The benefit under the policy is paid on
the event of the members death to the beneficiary nominated by the member.
It is a one-year renewable policy where one master policy covers all proposed
employees comprising the group, with a minimum group size of 25 persons.
New members can join the group and outgoing members can leave the group
at any point during the policy term.
Highlights include:
Greater convenience for the employees with relaxed underwriting and
medical requirements.
"Free Cover Limits" with simplified underwriting depending upon
the number of employees in the group and the level of cover chosen.
Guaranteed benefit : On death during the term of the contract (while
in service), the sum assured will be paid to the beneficiary of the
employee.
Choice of additional coverage in form an Accident and Disability
Benefit Rider and Critical Illness Cover
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Premium is viewed as a business expense in the year of payment.
Group Gratuity Plan
ICICI Prudential's group gratuity plan helps employers fund their gratuity
obligation in a scientific manner. Employers can avail of the tax benefits as
applicable to approved gratuity funds. The plan can also be customized to
structure schemes that can provide benefits beyond the statutory obligations.
Highlights include:
Wider choice of investments with Market Linked Plans - to meet
the diverse financial goals. We offer the following investment options
(short-term debt, debt, balanced, growth and capital guarantee on
the short-term debt plan) where investments will be made in
accordance with the fund objectives
Transparency through Daily disclosure of Unit Value and regular
disclosure of the portfolio of each of the investment option
Flexibility through switching and contribution redirection option to
enable reshuffling of portfolio
Bundled Life Cover greater value to the employee by packaging life
insurance cover with the gratuity, with minimal amount of
underwriting.
Actuarial services to provide a scientific estimation of the gratuity
liability.
Low explicit charge structure with the conditions for exit specified
upfront.
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Enhanced service levels through faster claim settlement, easier access
to information and regular statements
Complete end to end solution in the legal and regulatory approval
process for scheme set up or transfer
Employee Benefits
The contribution made by the employer is not included in the value of
taxable perquisites in the hands of the employee.
Gratuity received up to Rs 350000 is exempt from Income tax under
Sec 10(10)
Employer Benefits
Annual contribution up to 8.33% of salary bill in a financial year is
allowed a deduction for the purpose of computation of profits and
gains of business.
Contribution towards past service liability is allowed as deduction as
per the Income Tax rules.
Group Superannuation Plan
ICICI Prudentials Superannuation Scheme (for both Defined Benefit and
Defined Contribution funds) offers substantial benefits to both employers and
employees. The employer and employee can avail of tax benefits applicable to
an approved superannuation trust. The scheme will provide for a retirement
fund for each participating employee. An employee would be able to choose
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from various annuity options or opt for partial commutation of corpus at
retirement.
Highlights include:
Wider choice of investments with Market Linked Plans - to meet
the diverse financial goals.We offer the following investment options
(short-term debt, debt, balanced, growth and capital guarantee
options on short-term debt, debt and balanced)where investments
will be made in accordance with the fund objectives.
Control - Each member/employer can exercise greater control over
investments by choosing one or more of the investment options.
Multiple Annuity Options - 5 annuity options and open market option
Transparency - Transparency through Daily disclosure of Unit Value
and regular disclosure of the portfolio of each of the investment option.
Flexibility - Flexibility through switching and contribution redirection
option to enable reshuffling of portfolio
Low explicit charge structure with conditions for exit specified
upfront.
Enhanced service levels through faster claim settlement, easier access
to information and regular statements.
Complete end to end solution in the legal and regulatory approval
process for scheme set up or transfer
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RURAL PLANS
ICICI PrudentialLife Rural Products are designed to meet the needs of the
rural consumers. These products offer the following features:
1. Low and Affordable Premiums
2. Life Cover
3. Savings Option
4. Hassle free procedure
ICICI Prudential offers 2 specially designed rural plans.
1. ICICI Pru Mitr Endowment Plan
2. ICICI Pru Suraksha - Regular Premium
ICICI Pru Mitr Endowment Plan
ICICI Pru Mitr offers the following features:
Life Cover and Savings
Regular Premiums
Age at entry : 18 - 45 Yrs
Premium Mode : Half Yearly / Yearly
Term : 5,10,15 Yrs
Sum Assured : Rs.5,000 -20,000
Premium / Year : Rs. 507 - 553 ( SA: Rs.10,000)
Maturity/Death benefit : Sum Assured
ICICI Pru Suraksha - Regular Premium
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ICICI Pru Suraksha is a regular premium policy with the following features:
Individual policy
Only Life cover
Term - 3 & 5 Yrs
Age independent premium
Age at entry : 18 - 45 Yrs
Sum Assured : Single
Premium / Year : Rs 50 200
Maturity/Death benefit : Rs.5,000 - 20,000
Death Benefit : Sum Assured
NRI PLANS
Being away from India doesn't mean you have to compromise the safety and
security of your loved ones. In fact, your savings from your time overseas can
be easily channelised to meet your family's needs - now and in the future. So,
whether its your dream to retire in your hometown; to secure
funds for your children's education; or to build assets, ICICI Prudential has a
range of solutions that can be customized to meet your needs.
Investment Plans
Savings Plans
Retirement Plans
Child Plans
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Investment Plans
You can hedge your investments with investment like LifeLink Super vehicles
that provide you with a diversified portfolio.
Savings Plans
Endowment policies are a good way of putting aside your savings today for a
future goal - whether it's to buy a house in India or fund your entrepreneurial
vision. Our savings-oriented policies are designed to make your savings grow
and have them available to you at the end of a fixed number of years or
through the term of the plan.
SecurePlus - an insurance plan that gives added protection savings and
multiple options, all in one!
CashPlus - an insurance plan that gives added protection savings,
multiple options, plus the power of liquidity.
LifeTime II - a complete market-linked insurance plan that adapts
itself to your changing protection and investment needs, throughout a
lifetime.
Save'n'Protect - a traditional endowment savings plan that offers both
high returns and protection.
CashBak - an endowment savings plan that allows you to get back
substantial survival benefits without having to wait till the maturity
date.
Premier Life - A market linked insurance plans that meets your
Investment and Protection needs.
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Retirement Plans
Many of us picture ourselves enjoying the fruits of our labour after retirement
- going on a dream vacation, or helping our child's career take wing. Financing
all this will depend on our personal savings and investments, so its important
to save for the future from today. Our retirement plans are designed to help
you systematically save, so that you can enjoy all the things you have dreamed
of when you retire.
LifeTime Pension II: A regular premium linked deferred pension
plan that gives you the freedom to choose the amount of premium, and
invest in market-linked funds, to generate potentially higher returns.
SecurePlus Pension : A regular premium deferred pension plan that
gives you the flexibility to choose between 3 levels of sum assured for
the same level of total annual contribution.
LifeLink Pension II : A single premium linked deferred pension plan
that gives you the freedom to choose the amount of premium, and
invest in market-linked funds, to generate potentially higher returns.
ForeverLife : A regular premium deferred pension plan that helps you
save for your retirement while providing you with life insurance
protection.
Child Plans
As a responsible parent, you want to ensure a hassle-free, successful life for
your child. However, life is full of uncertainties and even the best-laid plans
can go wrong. SmartKid Education Plans are designed to provide flexibility
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and to safeguard your child's future education and lifestyle, taking all
possibilities into account.
SmartKid Child Plans has a bouquet of three products which can help you
secure your childs education.
Unit-linked Regular Premium
Unit-linked Single Premium
Regular Premium SmartKid
KEYMAN INSURANCE PLANS
A keyman is an individual who directly affects the profitability and the
continuity of a business and whose absence may have an adverse effect on the
health and continuity of the business. Keyman insurance is a life insurance
policy taken by the company on the life of such a key person.
The objective of the keyman insurance is to provide the company with money
so that the financial losses to the company can be protected, in absence of the
keyman. The aim is to indemnify the company of these losses and to allow
business continuity.
All premiums paid for securing a keyman life insurance policy are treated as
business expenditure u/s 37 (1).
Our Lifeguard plan is ideally suited for the purpose of keyman insurance
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RIDERS
ICICI Prudential gives you the freedom to form your very own comprehensive
insurance policy by adding the rider benefits to the basic life insurance policy.
Add from the following list of benefits to increase the scope of your policy, at
a nominal cost.
Critical Illness Rider
Accident & Disability Benefit Rider
Accident Benefit Rider
Income Benefit Rider
Waiver of Premium Rider (WOP)
Critical Illness Benefit Rider
This rider provides protection against 9 critical illnesses, namely: Major organ
transplants, complete renal failure, Stroke, Paralysis, Heart attack, Valve
replacement surgery, Major surgery of the aorta, CAGS (Bypass) and Cancer.
Benefits paid on contracting the illness:
Accelerated benefits (available with Save n Protect and
CashBak) : If the policyholder is diagnosed with any of the specified
illnesses, then the policyholder is paid the entire sum assured under the
rider. The policy along with all the riders (to the extent of the Rider
Sum Assured) is then terminated. However, the remainder of the base
policy continues till the end of the term. The policyholder will have to
continue paying his premiums for the remainder of the policy.
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Accelerated benefits (available with SecurePlus, CashPlus and
SecurePlus Pension) : If the policyholder is diagnosed with any of the
specified illnesses, then the policyholder is paid the entire sum assured
under the rider. The life cover along with all the riders is then
terminated. However, the policy value accumulation continues till the
end of the term or death, whichever is earlier.
Standalone benefits (available with Golden Years, PremierLife,
LifeTime, LifeTime II, ForeverLife, Group Term Plan,
InvestShield Life, InvestShield Cash and InvestShield Gold) : If the
policyholder is diagnosed with any of the specified illnesses, he/she is
paid the rider Sum Assured and the rider terminates. However, the base
policy continues till maturity.
Premiums paid under this rider are eligible for tax benefits under Section 80D.
Accident & Disability Benefit Rider
1. Benefits payable on death due to an accident
If the policyholder dies due to an accident, 100% of the rider
sum assured is paid in addition to the basic sum assured.
In case the policyholder dies in a land surface, mass public
transport system wherein the policyholder was traveling as a
fare-paying passenger, then 200% of the rider sum assured is
paid.
2. Benefits payable in case of permanent disability due to an accident
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If the policyholder survives an accident but becomes permanently
disabled then the premium for the basic plan is completely waived
off to the extent of the rider sum assured.
Plus, 10% of the rider sum assured is paid for the next 10 years,
which helps in providing that extra money and takes care of sudden
financial set back that occurs after a tragic disability.
Accident & Disability Benefit rider is available with Save n Protect, Cashbak,
SmartKid Child Plans, Golden Years, PremierLife, LifeTime, LifeTime II,
LifeTime Pension II, ForeverLife, SecurePlus, CashPlus, SecurePlus Pension,
LifeGuard ROP, LifeGuard WROP, Group Term Plan, InvestShield Life,
InvestShield Cash, InvestShield Gold and InvestShield Pension . In case of
Golden Years, PremierLife, Lifetime II, Lifetime Pension II, SecurePlus,
CashPlus, LifeGuard ROP and LifeGuard WROP, the waiver of premium
benefit is not available.
Premiums paid under this rider are eligible for tax benefits under Section 80C.
Accident Benefit Rider
If the policyholder dies due to an accident, 100% of the rider sum assured is
paid in addition to the basic sum assured.
Accident Benefit rider is available with SavenProtect, CashBak, SmartKid
regular premium, ForeverLife, SecurePlus, CashPlus and SecurePlus Pension.
Premiums paid under this rider are eligible for tax benefits under Section 80C.
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Income Benefit Rider
In case of death of the life assured during the term of the policy, 10% of the
rider sum assured is paid annually to the beneficiary, on each policy
anniversary till maturity of the rider.
Income Benefit rider is available with SmartKid Child Plans, SecurePlus and
CashPlus
Premiums paid under this rider are eligible for tax benefits under Section 80C.
Waiver of Premium Rider (WOP)
On total and permanent disability due to an accident, all future premiums for
both the base policy and rider(s) will be waived till the end of the term of the
rider or death of the life assured, if earlier.
Waiver of Premium rider is available with SecurePlus, CashPlus, LifeGuard
ROP, LifeGuard WROP, SmartKid Unit-linked regular premium II, Lifetime
II, LifeTime Pension II, SecurePlus Pension, InvestShield Life, InvestShield
Cash and InvestShield Pension.
Premiums paid under this rider are eligible for tax benefits under Section 80C.
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RESEARCH METHODOLOGY
The approach to the research is considered in this chapter, from the theoretical
underpinning to the collection and analysis of the data. It begins with the
extent of the research to provide the specific guidelines of studying. The next
part is concerned with the method of the research that refers to the data
collection and analyzing which is used in the research.
CONCEPTUAL CONTEXT OF THE RESEARCH
As the objective of the research focuses on the search of potential Insurance
Advisor with special emphasis of ICICI Prudential. It will help the company to
increase its sales, which is prime objective of the company at this time. The
research attempts to generate an awareness among the people of Kushi Nagar
regarding the agency of ICICI Prudential.
METHODS
PRIMARY DATA
Data collection of this research was done primarily through filling up of
questionnaires. The sample for the research including different individuals of
various age groups and having different profession and qualification. Data was
collected through the interview of individuals. The questionnaires was
containing questions regarding the personal details of individuals and then
some light question regarding their primary knowledge related to private
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insurance companies. Then there were questions related to their interest in
being the Insurance Advisor of the company.
SECONDARY DATA
A large amount of secondary data has been collected from secondary sources.
Some of the sources are:-
Report on Insurance sector of India.
Articles from newspapers and magazines.
Various web sites of the insurance companies and related sites.
DATA ANALYSIS
There are some features of analyzing data that need to be borne in mind when
choosing the method for analyzing the research. The questionnaires were
prepared to explore the psychology of individuals about being associated with
ICICI Prudential as insurance advisor and to help the company grow by
increasing its sales. Instead of testing a hypothesis, a qualitative analyst may
demonstrate evidence showing that a theory, generalizing, or interpretation is
plausible.
SAMPLE SIZE
Various area ofKushi Nagar were covered in order to fill the questionnaire. I
interacted with 100 individuals in order to know about their interest of being
Insurance advisor of ICICI Prudential.
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Sample Size 111
SAMPLE COMPOSITION
I. Youth
II. Executive
III. Serviceman
IV. Business person
RESEARCH DESIGN
A research design provides the frame work to be used as a guide in collecting
and analyzing data.
Descriptive Research: Market survey is one of the best examples of
descriptive research. This is a one shot research study at a given point of time,
and consists of a sample of the population of interest. Its advantages are that it
gives a good overall picture of the position at a given time. It can cover many
variables of interest, and is not affected by the movements of elements in the
sample, because other elements can be substitute for them.
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DATA ANALYSIS
After collection of data, the analysis of it was done through graphs.
RESPONSE OF QUESTIONNAIRE
1. What is your full time profession?
a) Business -31 b) Govt. Service -17
c) Private Jobs -42 d) Retired -14
e) Housewife -07
Private Jo
Business
2. According to you, the purpose of insurance is:
S. No. Parameters Order of preference
a. Pre-mature death 29
b. Living too long 12
c. Childrens future 33
d. Wealth creation 14
e. Tax saving 23
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Ch
Wealthcreation
13%
Tax saving
21%3. What efforts can be made to bring about more awareness amongst people?
a) Media Ads - 26 b) Banners - 04c) Newspaper - 15 d) Agents - 54e) Event Sponsorship - 07 f) Any Other - 05.
Event
Sponsorshi
6%
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4. You know how many names of private insurance company?a) Below 2 - 05 b) Between 2-4 - 61c) Between 4-6 08 d) Above 6 37
Between 4-6
7%
Above 65. You like to work in market/field and want to interact with people?
a) Yes - 47 b) No - 64
No
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6. From how many years you live in Kushi Nagar?
a) Below 6 months - 13 b) 6 months 1 year - 61c) 1 year- 2 year - 27 d) more than 2 years - 37
1 year- 2 year
20%
more than 2
ears
7. How many people do you know in Kushi Nagar?a) Less than 200 - 27 b) 200-500 - 53c) 500-1000 - 21 d) Above 1000 - 10
-
Above 1
9
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8. Do you like to earn some extra money?
a) Yes - 87 b) No - 14
9. Are you involved in Insurance Business?a) Yes - 28 b) No - 83
No
75%
If YES, than answer the following question:
A. Duration of working?a) Below 6 months 12 b) 6 months 1 year - 06
c) 1 2 years - 02 d) 2 3 years - 05e) Above 3 years -03
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6 months 1year
22%
1 2 years
7%
2 3 years
15%
Above 3 yea
11%
B. Annual Productivity given to company?a) Below 50,000 - 00 b) 50,000 1, 00,000 - 00c) 1, 00,000 2, 00,000 - 02 d) 2, 00,000 3, 00,000 - 02
e) 3, 00,000 4, 00,000 - 07 f) Above 3, 00,000 17
Above
3, 00,000
Below 5
0%
50,000
1, 00,0000%
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C. In which company are you working?
a) LIC - 16 b) ICICI Prudential - 04c) Other 08
ICICI
Prudential
14%
Other
D. Are you satisfied with your company?a) Yes - 19 b) No 09
No
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If NO, than answer the following question:
A. If given a choice, would you like to become a financial consultantof ICICI Prudential Life Insurance Company?
a) Yes - 55 b) No - 28
NoB. Which age group do you belong?
a) Below 25 - 41 b) 25 30 - 27c) 30 35 - 09 d) Above 35 -06
30 35
11%
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C. Are you married?a) Yes - 47 b) No - 36
No
43%
D. What is your Educational Background?a) 10+2 - 13 b) Graduation - 40c) Post Graduation - 14 d) Professional - 13e) Other - 03
Professiona
16%
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E. What is your Household income?a) Below 2 lacks - 53 b) 2 5 lacks - 21
c) 5 8 lacks - 09 d) Above 8 lacks - 00
2 5 lacks
25%
5 8 la
11
F. How much time you provide easily besides your job hours?a) 0-2 hrs - 22 b) 2-4 hrs - 37c) 4-6 hrs - 15 d) Time Full 09
4-6 hrs
18%
Time F
11%
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FINDINGS
People are becoming more and more money conscious as I find
very less person who doesnt want to earn extra money.
People are very much aware of ICICI Prudential among private
companies as they respond me first name of ICICI prudential
and then others.
The overall scenario is that still people trust on LIC more than
any other insurance company. Some time when I asked someone
to become an advisor of ICICI Prudential they misunderstood
with LIC. For them still life insurance means LIC.
Generally people are having leisure time of around 2-3 hours
and still want to utilize this time to earn extra money, if they
can.
Contrary to the prior thinking most of the people dont hesitate
in doing field work a roaming in the market for money. They
know that without hard work they cant earn money.
There were many respondents who were not interested in
attending seminar conducted by ICICI Prudential in their office,
because of low awareness of private insurance company.
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SUGGESTIONS AND
RECOMMENDATION
Need to create and effectively deploy differentiated strategies in
finding out more resources to recruit insurance advisors.
Right prospects identification and thus segmentation, which
need to be appropriate.
Design and manage sales force, which yields high performance.
More training of the employees can be done so that they produce
best result.
Recruitment process needs to be slightly fast, so that prospects
can retain some confidence as in starting.
Need to create better, differentiated detailed brochures for
advisors recruitment.
Increase advisors sales force quality as well as quantity by
employing some HR professional, who time to time take some
action for the improvement of insurance advisors.
More advertising strategies should be taken to grasp the
attention of those people who want to become insurance
advisors.
Make use of internet banking for increasing sales and also for
promotion.
There should be more incentives to insurance advisors they are
the backbone of the company in order to increase sales they
have to do mare efforts than others.
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Generate some innovative and alternative channels of distribution,
using the sources that can straight play with the emotion of the person
and influence so high that it forces the human being to go for insurance
and that to willingly. Recruit those individuals that really want to take
this job as a challenge.
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IMPORTANCE OF ADVISORS IN AN INSURANE
COMPANY
In the insurance industry the sales team following the typical
organization structure:
Hierarchy in Insurance Company
The sales team comprises of the Sales Manager superior to Area Sales
Manager, These ASMs (Area Sales Manager) have their own
individual team of Unit Manager and in turn Unit Managers their own
team of financial advisors.
SALES
MANAGER
AREA SALES
MANAGER
AREA SALES
MANAGER
AREA SALES
MANAGER
UNIT
MANAGER
UNIT
MANAGER
UNIT
MANAGER
ADVISORS ADVISORS ADVISORS
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Each team of ASMs competing with each other in surge of achieving
targets; each Unit Manager depends on their Advisors for their
business. So whats the use of unit manager, why are they getting paid?
There work is to manage their team of Advisors, extend them support
in what ever way possible including regular training of products,
closing big calls, database management.
But it is the advisor that carries the flag of the company in the market;
they bear the brunt in the field. They represent the company in the
market to the customers, so nobody can deny the importance of
Advisors in the whole system.
They providing the company with the business and help their
respective Unit Manager to achieve their targets. So a unit Manager has
to be really careful while recruiting their Advisors.
The most important responsibili ty is to achieve the f irst P or
Production growth its what staying in Business requires of an ICICI
Prudential Manager. Part of this growth is accomplished by improving
the productivity of the existing agency member. However, bringing
sufficient number of high quality new producers in to your sales
organization each year is an absolute must.
During the year of appointment, new Advisor usually account for a
relatively small proportion of the organizations total production.
These points to a particularly significant fact, one that causes to have a
natural tendency to neglect the recruiting responsibility. It is simply
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this the penalty for not recruiting, or for inadequate recruiting, is a
differed penalty.
Nonetheless, the penalty will be realized in due time. Again, the
number one job is to achieve consistent production increases. The most
promising means of successfully getting this job done is to induct a
sufficient number of quality advisors each year.
The most promising means of achieving profitable production growth
lies in your sales organizations capacity to give policy owners good
counsel and prompt, courteous serves to give them value for premium
paid. The best guarantee of having that capacity comes from retaining
large number of productive advisor, In turn retention and productivity
of advisor in your organization depends largely on the quality and
quantity of your recruiting efforts.
Consequently, the development needs of your sales organization call
for successful recruiting. Its a necessity. The induction of a sufficient
quantity of high potential advisor results in substantial, steady growth
in production. This is why manager who move to the top of ICICI
Prudential honor roll and stay there are always found to be manpower-
focused.
Before we move to the how to of recruiting, lets consider some
important philosophies relative to recruiting.
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FIVE PERSISTENT CONCERNS:
As an ICICI Prudential Manager, you are fully committed to
building a high performing, growing agency. This being true, it
follows those five concerns must be constant in your annual
planning.
The SEARCH for talent
The EVALUTION of potential advisors
The ATTRACTION of advisors
The RETENTION of advisors
The PRODUCTIVITY of advisors
Any manager who attains satisfying results in these five areas will
enjoy
Satisfying sales results
Outstanding persistency of business
Superior policy owner service capabilities
An enviable reputation as a ICICI Prudential agency builder
A momentum which comes from the synergistic benefit of
success
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THE BASICS
The basic principal is involved in getting the recruiting job done
successfully and consistently. It is, of course, the one job must not
delegate.
Philosophy of high standards
Philosophy of high standards and a success syndrome is the central
point of maintaining 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 advisor influences them. Our
experience at ICICI Prudential supports this conclusion.
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 and dynamic environment. They should be aware
of high quality men and women high standards of production high
standards of the office neatness and arrangement high standards of
income high standards of business management. They should be
made to feel to, taste it and senses it. As a result, they will have a
natural inclination to become a part of the winning sales organization
you building.
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There is no question about it its always easier to recruit successfully
in an organization that is on the move. You must contribute to an
environment where things are obviously happening one that has an
atmosphere of success. This is the starting 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.
Youll have taken a giant steno toward being an effective recruiter
when you do.
Be especially consociation about your appearance. You cant judge a
book by its cover is a well-worn and accepted adage. However, most
prospects and prospective advisors dont 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 you in letting
your reputation precede you. Youll have taken another step toward
being 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 operation the kind of person you can develop best. Experience,
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age, market, contacts, income requirements, and a number of other
factors should be considered in answering the big question what kind
of an advisor is best suited for you and your organization.
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Constant need of advisors at ICICI Prudential
Remember the need of quality advisors never diminishes at ICICI
Prudential. It continues 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
candidates who are discontented with their present job. However,
things do happen in individuals jobs, their lives or their family
situation, which can cause them to become prospects for you some
times, almost overnight. When the thread of discount 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 our business from jobs where there success is determined by
their performance. Consistence search for prospective advisors among
coaches, commission sales people and individual who have been in
business for themselves.
Build a weekly recruiting success formula
. This will gives you seven people who will pass the selection test. This
is turn develops two advisor you will appoint. Understanding these
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Finally, build a weekly recruiting success formula. Our statistics show
that to recruit one person, youll probably need at least 30 initial
contacts ratio enable you, emotionally and physically, to plan and
achieve the necessary activity to reach your recruiting goal each year.
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CONCLUSION
For every insurance company life insurance advisors are the life line and a
very huge asset so each company try to recruit and select a potential force of
life insurance advisors because this is the advisors who generate maximum
business for the insurance company. Insurance advisors provide a very strong
support to the insurance company and do all possible effort to generate huge
amount of profit to the company and for him.
In ICICI Prudential recruitment and selection procedure is really very
impressive. By the help of this process, company recruits a very good class of
advisors. A detail study is done before starting the recruitment and selection
procedure that help the company to select the best advisors. The recruitment,
selection and training process of insurance advisors is a slight long process
because of the training provided by the Insurance Regulatory and
Development Authority (IRDA).
Form the detailed study of recruitment and selection procedure of the
insurance advisors I come on the conclusion that it is a very impressive
process carried out by ICICI prudential. This study helps us to understand all
the possible aspects related to the ICICI Prudentials recruitment and selection
procedure.
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APPENDIX QUESTIONNAIRE
INSURANCE MARKET SURVEY QUESTIONARE:
Name: Contact No.: ..
Sex: ...Address:
1. What is your full time profession?
a) Business b) Govt. Service
c) Private Jobs d) Retired
e) Housewife
2. According to you, the purpose of insurance is:
S. No. Parameters Order of preference
a. Pre-mature death
b. Living too long
c. Living death
d. Childrens futuree. Wealth creation
f. Tax saving
3. What efforts can be made to bring about more awareness amongst people?
a) Media Ads b) Banners
c) Newspaper d) Agents
e) Event Sponsorship f) Any Other...
4. You know how many names of private insurance company?
.. ...
.. ...
5. You like to work in market/field and want to interact with people?
a) Yes b) No
6. From how many years you live in Kushi Nagar?
a) Below 6 months b) 6 months 1 year
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c) 1 year- 2 year d) more than 2 years
7. How many people do you know in Kushi Nagar?
a) Less than 200 b) 200-500
c) 500-1000 d) Above 1000
8. Do you like to earn some extra money?
a) Yes b) No
9. Are you involved in Insurance Business?
a) Yes b) No
If YES, than answer the following question:
D. Duration of working?
a) Below 6 months b) 6 months 1 year
c) 1 2 years d) 2 3 years
e) Above 3 years
B. Annual Productivity?
a) Below 50,000 b) 50,000 1, 00,000
c) 1, 00,000 2, 00,000 d) 2, 00,000 3, 00,000
e) 3, 00,000 4, 00,000 f) Above 3, 00,000
C. In which company are you working?
a) LIC b) ICICI Prudential
c) Other.
E. Are you satisfied with your company?.
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.
.
.
If NO, than answer the following question:
A. If given a choice, would you like to become a financial consultant
of ICICI Prudential Life Insurance Company?
a) Yes b) No
E. Which age group do you belong?
a) Below 25 b) 25 30
c) 30 35 d) Above 35
F. Are you married?
a) Yes b) No
D. What is your Educational Background?
a) 10+2 b) Graduation
c) Post Graduation d) Professional
e) Other
E. What is your Household income?
a) Below 2 lacks b) 2 5 lacks
c) 5 8 lacks d) Above 8 lacks
F. How much time you provide easily besides your job hours?
a) 0-2 hrs b) 2-4 hrs
c) 4-6 hrs d) Time Full
10. Please give references of two people those who might be interested.
i). Name: ..
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Address: ..
..
..
Phone No:
ii). Name: ..
Address: ..
..
..
Phone No:
Sign: Date:
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BIBLIOGRAPHY
Marketing Management : Philip Kotler.
Consumer Behavior : Leon G.Schiffman
IRDA Journal
ICICI Prudential Company magazines
Newspaper and Business magazines
WEBSITES
www.iciciprulife.com www.google.co.in/indian insurance
industry www.irdaindia.org
http://www.iciciprulife.com/http://www.google.co.in/indian%20insurance%20industryhttp://www.google.co.in/indian%20insurance%20industryhttp://www.irdaindia.org/http://www.iciciprulife.com/http://www.google.co.in/indian%20insurance%20industryhttp://www.google.co.in/indian%20insurance%20industryhttp://www.irdaindia.org/