venkatesh murthy

8/9/2019 venkatesh murthy

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ORGANIGZATION STUDY


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Presentation Sketch

India Economy & IndustryIndia Life Insurance Industry

ICICI Prudential Life Insurance Market

Introduction

Standing

GrowthRecognitions and awards

Need of the hour

SWOT Analysis

Suggestions


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0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00% China

India

Singapore

Hong Kong

Malaysia

Korea

US

UK

Japan

ONE OF THE FASTEST GROWING ECNOMIES


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CONTRIBUTION TO INDIAN ECONOMY

(i)Life Insurance is the only sector which garners

long term savings

(ii)Spread of financial services in rural areas and

amongst socially less privileged

(iii)Long term funds for infrastructure

(iv)Strong positive correlation between

development of capital markets and insurance/

pension sector

(v)Employment generation


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India life Insurance: An overview

COUNTRY

INDUSTRY

PRELIBERALIZATION

POPULATION : 1.12 Bn

LIFE INSURANC

E PENETRATION: 4.1%Pre 2000: Public monopoly

Market deregulated in 2000

ICICI entered in 2000 through partnership with

Prudential Plc, UK

Distribution through agency only; 2000 offices, 0.8

mn agentsPush' sales approach: Tax saving objective

Traditional product offerings

Pensions: Small part of savings


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Players in the insurance industryPlayers in the insurance industry

Public sectorlife insurance company:Public sectorlife insurance company:

Life InsuranceCorporation of IndiaLife InsuranceCorporation of India a state owned leviathana state owned leviathan

having a majority market share in the countryhaving a majority market share in the country

Private sectorlife insurance companies:Private sectorlife insurance companies:

ICICI Prudential Life InsuranceCompanyICICI Prudential Life InsuranceCompany

Birla Sun Life InsuranceCompanyBirla Sun Life InsuranceCompany

OK Kotak Mahindra Life InsuranceCompanyOK Kotak Mahindra Life InsuranceCompany Max New York Life InsuranceCompanyMax New York Life InsuranceCompany

Aviva Life InsuranceCompanyAviva Life InsuranceCompany

Metlife InsuranceCompanyMetlife InsuranceCompany

SBI Life Insurance CompanySBI Life Insurance Company

ING Vyaysya Life InsuranceCompanyING Vyaysya Life InsuranceCompany

HDFC Standard Life InsuranceCompanyHDFC Standard Life InsuranceCompany


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Why insurance???Why insurance???

PRIMARY REASONPRIMARY REASON

Life is fullofuncertaintiesLife is fullofuncertainties

Provides the muchrequiredProvides the muchrequiredRISK COVERRISK COVER Serves as afinancialbufferinthe wake ofanyunServes as afinancialbufferinthe wake ofanyun--favorable andunfavorable andun--foreseenforeseen

circumstancescircumstances

Ensures thatnearanddearones are notleftinfinancialdoldrums due toanyEnsures thatnearanddearones are notleftinfinancialdoldrums due toany

exigencyexigency

The riskcoverthatinsurance provides has noparallels inthe financial worldThe riskcoverthatinsurance provides has noparallels inthe financial world

SECONDARY REASONSECONDARY REASON

Moneybackplans provides an elementofliquiditybyreturningaportionofMoneybackplans provides an elementofliquiditybyreturningaportionof

the sumassuredatregularintervals. This is inadditiontothe riskcoverthe sumassuredatregularintervals. This is inadditiontothe riskcover

Unitlinkedplans investapercentage ofthe premiums inmarket securitiesUnitlinkedplans investapercentage ofthe premiums inmarket securities

andprovide returns. This combines marketlinkedreturns along withriskandprovide returns. This combines marketlinkedreturns along withrisk

covercover


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INTRODUCTION TO ICICI PRUDENTIAL

Pre 2000: Public monopoly

Market deregulated in 2000

ICICI entered in 2000 through partnership with Prudential Plc, UKVisionOur vision is to make ICICI Prudential Life InsuranceCompany the

dominant new insurer in the life insurance industry. This is to achieve

through our commitment to excellence, focus on service, speed and

innovation, and leveraging our technological expertise.

Mission

Building transparency in all our dealings can play a significant role

in redefining and reshaping the sector. Given the quality of their

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

be no limits to their growth


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Integrity

Customer First Boundary less

Ownership

Passion

ICICI Prudential is currently the No. 1 private life insurer in the country.

For the financial year ended March 31, 2009, the company garnered

Rs1584 corer of new business premium for a total sum assured of

Rs13, 780 corers and wrote nearly 615,000 policies.

ICICI Prudential was the first life insurer in India to receive a National

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

Values


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Premier Life Plan offered by ICICI Pru. Life Insurance CoPremier Life Plan offered by ICICI Pru. Life Insurance Co..

Unitlinkedinsurance planUnitlinkedinsurance plan

Minim

umcontri

butionis Rs.60,000 perann

umMinim

umcontri

butionis Rs.60,000 perann

um

Deathbenefitis higherofthe sumassuredorthe value inthe accumulationDeathbenefitis higherofthe sumassuredorthe value inthe accumulation

account whicheveris higheraccount whicheveris higher

Partial withdrawals are possible after3 years premiums are paid.Partial withdrawals are possible after3 years premiums are paid.

Flexibilitytochoose the premiumpayingtermFlexibilitytochoose the premiumpayingterm 3 year, 5 year, 7 yearor10 year3 year, 5 year, 7 yearor10 year

Minimum sumassuredis Rs.1,00,000. The multiple canbe aminimumof1 andaMinimum sumassuredis Rs.1,00,000. The multiple canbe aminimumof1 anda

maximumof25maximumof25

This planoffers the followinginvestmentoptionsThis planoffers the followinginvestmentoptions maximisermaximiser, protector, balancer, protector, balancer

andpreserverandpreserver

Minimumtopupis Rs.5,000Minimumtopupis Rs.5,000


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GROWTHAND STANDING


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AWARDS AND RECOGNISITONS

ICICI PruLife rankedas the Most TrustedPvtLife Insurance

brandinthe Brand Equity "Most Trusted Brands 2009" survey

ICICI PrudentialLife wona Goldawardfor

AboutULIPS.comand Health Savercampaign, innovationawardfor

www.taxguru08-09.comanda silverawardfor

its Insurance yogacampaignatthe ICICI

Group Marketing Excellence award


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ICICI PrudentialLife wonthe ICICI Group

Marketing Excellence Award 2008 inthree keycategories forits marketinginitiatives

ICICI PrudentialLifes website, www.iciciprulife.com wasawardedthe best website amongprivate life insurers at

the Web 18 and Frost & Sullivan Genius ofthe Web

Awards 2007 forcommendable workinthe online.


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RECOGNITIONS

ICICI PrudentialLife was recognizedas the mosttrustedbrandamongst

private life insurers inthe Economic Times-Most Trusted Brand survey 2008

IMM AwardforExcellence. Institute ofMarketing & Management

Organization with Innovative HR Practices. Indira GroupofInstitutes

Organization with Innovative HR Practices. Asia-Pacific H R CongressAwards forHR Excellence


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SWOTAnalysis

STRENGHTS

Brand equity of ICICI Bank.

ICICI Prudential is Indias No.1Pvt insurance company in terms of

market share. Since 2001.

Wide spread distribution network has helped to increase its

operation.

Two million policies, which is the highest ever done by Pvt Insurance

company in Asia is a very short span of time 4yrs from itsestablishment.

All categories can access its products.

High quality service delivered by the company.


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WEAKNESS

The products offeredare little expensive compare toLIC.

The products offeredare cannotbe affordable by

lowerincome group.

Lengthypre-offerformalities.

Huge employee turnover.

The operationofthe companyis limitedtomajorcitiesandtowns.


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OPPORTUNITIES

Indias tappedmarketis 4.6%, availabilityofuntappedpotentialmarketis huge.

Companycan extentits operations toruraland suburban

areas bydevelopingarequiredproducts.

Creatingaawareness program willhelps toknow the need

ofindividuals.

Strongbusiness ethics willhelptotapthe market.Analyzingcompetitors weakness, andmake use ofit.

Innovationofnew products basedonchanginglife styles.

Recruitingmore local expertise


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THREATS

Increasingnumberofprivate players inthe insurance market. Create ample choices, frequentand easymobilityforthe employees.

StiffcompetitionfromLIC andotherprivate players.

Restrictions andinterreference by IRDA.

Fluctuations inthe tax tariffhave directimpactonthe insurance.

Challenges fromnew companies enteringintomarket, like

Bharati Axa


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SUGGESTIONS

Due to the instance competition in the life of insurancemarket, the life insurance companys have to adopt better

strategies to attract more customers.

Keeping the cost, quality and return on investment intact is

necessary to tackle the competition.

Life insurance products are taken mainly by middle and higher

income groups. Hence they should regard as main targeted

income groups. Life insurance products which has suitable forlower income groups should also be released so that the market

shares increases.

Communication and coordination should be more effective.

Optimizing of machine, men-hours and money


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CONCLUTIONS

A number of factors like age, terms , sum assured, maturity

benefit, death benefit, withdrawal benefit, flexibility to increase thecontribution, surrender value, automatic premium payment,

additional credit, switching between funds, administrative

charges, top ups riders are taken in to consideration before

reaching a conclusion about the insurance policy.

Insurance is a unique feature i.e. risk cover for life. By the entry ofprivate insurance players in the market there are new products,

which also take care for the investment. Long term policies are

better than medium and short term policies. For better future

arrangements. Private life insurance companies are doing well in

the Indian market by providing innovative products and better

services to the customers


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Thankyou..

VenkateshaMurthy. N

Reg no: 08JPCM6067

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