Final Report 2
Content
ICICI Pru Life Insurance Company Ltd.
2010
1.INTRODUCTION
INSURANCE:
Insurance is a promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance.
NEED FOR INSURANCE:
1. Superior to an ordinary savings plan as it provides full protection against risk of death. 2. Encourages and forces compulsory savings unlike other saving instruments, wherein the saved money can be easily withdrawn. 3. Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan. 4. Offers tax relief to policyholders. 5. Hedges risk against uncertainty.
SDM PG Centre, Mangalore
Page 1
ICICI Pru Life Insurance Company Ltd.
2010
6. For a policy taken under the MWP Act 1874, (Married Women's Property Act), a trust is created for wife and children as beneficiaries.
7. Based on the concept of sharing of losses, the society will
benefit as catastrophic losses are spread globally.
LIFE INSURANCE:
Life Insurance is an agreement that guarantees payment of a stated amount of monetary benefits at the end of a specified term or on the death of the life insured.
NEED FOR LIFE INSURANCE:
Life brings with it many surprises, some pleasant and some not so and a Life Insurance Plan ensures that you are better prepared to face uncertainties. In a number of ways:
1. Protection:
You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. That is a good reason. Suppose you are suffered by an injury that keeps you away from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected.
2. Retirement:
Life insurance makes sure that have regular income after retire and also helps to maintain standard of living. It can
SDM PG Centre, Mangalore
Page 2
ICICI Pru Life Insurance Company Ltd.
2010
ensure that your post-retirement years will be spent in peace and comfort.
3. Savings and Investments:
Insurance is a means to Save and Invest. The periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your child’s education or marriage! Besides, it can be used as supplemental retirement income.
4. Tax Benefits:
Life insurance is one of the best tax saving options today. Tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned.
SDM PG Centre, Mangalore
Page 3
ICICI Pru Life Insurance Company Ltd.
2010
2.INDUSTRY PROFILE
INSURANCE IN INDIA:
The insurance sector in India has come to 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. With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It is a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 Billion. Together with banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. In addition, this part of the population is subject to weak social security and pension systems with hardly any old age income security. This is an indicator that growth potential for the insurance sector is immense.
SDM PG Centre, Mangalore
Page 4
ICICI Pru Life Insurance Company Ltd.
2010
A
well-developed
and
evolved
insurance
sector
is
necessary for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability. It has estimated that, over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. Insurance is a federal subject in India. Two legislations govern the sector- The Insurance Act- 1938 and the IRDA Act1999. The insurance sector in India has come to 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.
HISTORICAL
PERSPECTIVE
ABOUT
LIFE
INSURANCE IN INDIA:
The history of life insurance in India dates back to 1818 when it was considered as a means to provide for English Widows. Interestingly in those days, a higher premium was charged for Indian lives than the non-Indian lives, as Indian lives were considered more risky for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company established in 1880. The General insurance business in India, on the other hand, can trace its
SDM PG Centre, Mangalore Page 5
ICICI Pru Life Insurance Company Ltd.
2010
roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Until the end of nineteenth century, insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938, there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized Corporation because it monopoly (LIC) would was corporation born. and Life was funds Insurance justified rapid for Nationalization
create
much-needed
industrialization. This was in conformity with the Government's chosen path of State lead planning and development. The (non-life) insurance business continued to thrive with the private sector until 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. India Assurance Company, Oriental Insurance Company and United India
SDM PG Centre, Mangalore Page 6
ICICI Pru Life Insurance Company Ltd.
2010
Insurance Company are subsidiaries of the General Insurance Company (GIC).
Important
milestones
in
the
life
insurance
business in India:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian, foreign insurers and provident societies were took over by Central government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crores from the Government of India.
Important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up- the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory
Page 7
Committee set up.
SDM PG Centre, Mangalore
ICICI Pru Life Insurance Company Ltd.
2010
1972: The general insurance business in India nationalized through The General Insurance Business (Nationalization) Act, 1972 with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies- the National Insurance Company Limited, the New India Assurance Company Limited, the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
INSURANCE SECTOR REFORMS:
In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N. Malhotra- formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was setup with the objective of complementing the reforms initiated in the financial sector. The reforms was aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:
1. Structure: Government stake in the insurance Companies
must brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies must have greater freedom to operate.
SDM PG Centre, Mangalore
Page 8
ICICI Pru Life Insurance Company Ltd.
2010
2. Competition: Private Companies with a minimum paid up
capital of Rs.1bn should allow entering the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies were allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance was allowed to operate the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state.
3. Regulatory Body: The Insurance Act should be
changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent.
4. Investments: Mandatory Investments of LIC Life Fund in
government securities to was reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time)
5. Customer Service: LIC should pay interest on delays in
payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. In insurance industry, Computerization of operations and updating of technology are to be carried out. The committee emphasized that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was
SDM PG Centre, Mangalore
Page 9
ICICI Pru Life Insurance Company Ltd.
2010
decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 Cores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body- The Insurance Regulatory and Development Authority. A reform in the Insurance sector was 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. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA 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. The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 per cent equity cap
SDM PG Centre, Mangalore Page 10
ICICI Pru Life Insurance Company Ltd.
2010
for foreign partners in an insurance company. There is a proposal to increase this limit to 49 per cent. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001.
THE
INSURANCE
REGULATORY
AND
DEVELOPMENT AUTHORITY:
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 launched 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.
SDM PG Centre, Mangalore Page 11
ICICI Pru Life Insurance Company Ltd.
2010
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.
INSURANCE MARKET IN INDIA:
The India Insurance market despite having a highly elaborate history spanning almost two centuries, has come of age only in last 50 years after the formation of the Life Insurance Corporation (LIC) of India in 1956 and the entry of private companies into the market in 2000. Traditionally the Indian Insurance Market had centred on the life insurance until recently, a host of other insurance policies covering a diverse range of issues and objects like Medical Insurance, Accident Insurance, Fire Insurance, Automobile Insurance and other policies which fall under the category of general insurance are being provided by various private insurance companies.
PERFORMANCE
OF
THE
INDIAN
INSURACE
MARKET-A REPORT:
The following points will provide you an insight into the insurance market in India and its fast expanding prospects. The report is well supported by data based on detailed analysis that would help investors, financial service providers and global banking players to venture into the Indian insurance market.
SDM PG Centre, Mangalore
Page 12
ICICI Pru Life Insurance Company Ltd.
2010
Taking
into
account
the
changing
socioeconomic
demographics rate of GDP growth, behaviour of consumers, and occurrences of natural calamities at regular intervals the market of Life Insurance in India is expected grow to the value around US $ 41.44 billion by the year 2009. The Market is expected to grow at a compounded annual growth rate (CAGR) of more than 200% year over year (YOY) from year 2006 onwards. • 65% of the general insurance market is controlled by private house that already exists in the market. • However in automobile insurance, public sector covers a substantial 68% of the total market value. • Among individual companies that are worthy of
mentioning, ICICI Lombard enjoys a whopping 53% market share in Accident Insurance while the remaining 47% is shared by New India Assurance and United India Insurance both belonging to the public sector The other key players of the market include:
1. In Public Sector:
Life insurance Corporation(LIC) of India, National Insurance Company Limited, Oriental Insurance Limited, New India Assurance Company Limited and United India insurance Company Limited.
2. In Private Sector:
ICICI prudential Life Insurance, Bajaj Allianz, SBI Life, HDFC Standard, Birla Sun life, Aviva Life Insurance, Kotak Mahindra
SDM PG Centre, Mangalore Page 13
ICICI Pru Life Insurance Company Ltd.
2010
old mutual, Max New York Life and Met life, Tata AIG Life, ING Vysya. Thus, the ever increasing population of the country will ensure constant boom in the India Insurance market in the distant future.
3.COMPANY PROFILE: ICICI PRUDENTIAL
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India’s foremost financial service companies and Prudential plc. - A leading international financial service group headquartered in the United Kingdom. Total capital infusion stand at Rs 47.80 billion, with ICICI Bank holding a stake of 74% and prudential plc. Holding 26%. They began operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2000 branches (inclusive of 1,100 micro offices), over 2,58,000 advisors; and 24 banc assurance partners. ICICI prudential is the first Insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch rating. For three years in a row, ICICI Prudential has been voted as India’s Most Trusted Private Life Insurer, by the Economic times – AC Nielsen ORG Marg survey of “Most Trusted Brand‟.
SDM PG Centre, Mangalore Page 14
ICICI Pru Life Insurance Company Ltd.
2010
ICICI PRUDENTIAL EDGE:
The ICICI Prudential edge comes from our commitment to our customer, in all that we do-be it product development, distribution, the sales process or servicing...
I.
The products have been developed after a clear and through understanding of customer’s need. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee the child’s education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the fund you might need to recover from dreaded disease.
II.
Having the right product is the first step, but it’s equally important to ensure that, the customer can access them easily and quickly. To this end, ICICI prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute the products
III.
Robust risk management and underwriting practices form the core business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claim process.
IV.
Entrusted with helping our customer meet their long-term goals, they adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term.
V.
Last but definitely not the least, our 32000 plus strong team is given the opportunity to learn and grow, every day in multitude of ways. We believe this keeps them
SDM PG Centre, Mangalore
Page 15
ICICI Pru Life Insurance Company Ltd.
2010
engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life.
OUR VISION AND VALUES OUR VISION:
“To be the dominant life, Health and Pension player build on trust by world class people and service” This we hope to achieve by: • Understanding the need of customers and offering them superior products and service • Leveraging technology to service customer quickly, efficiently and conveniently. • Developing and implementing superior risk management and investment strategies to offer sustainable and stable return to the policyholders. 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.
OUR VALUES:
Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.
PROMOTERS:
SDM PG Centre, Mangalore Page 16
ICICI Pru Life Insurance Company Ltd.
2010
ICICI Bank Limited:
ICICI Bank(NYSE: BSE) is India’s largest private sector bank and the second largest bank in the country, with consolidated the total assets of $121 billion as of September 30, 2008.
PRUDENTIAL PLC:
Established in London in 1848, Prudential Plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 21 million customers, policy holder and unit holders and manages over £256 billion of funds worldwide (as of June 30, 2008). In Asia, prudential is the leading Europe-based life insurer with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms of overall assets sourced in Asia ex-Japan with £34.3 billion funds under management (as of June 30, 2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Emirates. Singapore, Taiwan, Vietnam and United Arab
MANAGEMENT PROFILE: BOARD OF DIRECTORS:
The ICICI Prudential life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad.
SDM PG Centre, Mangalore Page 17
ICICI Pru Life Insurance Company Ltd.
2010
1. Ms.Chanda D. Kochhar, Chairperson 2. Mr. N. S. Kannan, Director 3. Mr. K. Ramkumar, Director 4. Mr. Barry Stowe, Director 5. Mr. Adrian O’Connor, Director 6. Mr. Keki Dadiseth, Independent Director 7. Prof. Marti G. Subrahmanyam, Independent Director 8. Ms. Rama Bijapurkar, Independent Director 9. Mr. Vinod Kumar Dhall, Independent Direct 10. Mr. V. Vaidyanathan, Managing Director & CEO
MANAGEMENT TEAM:
The ICICI Prudential life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. 1. Mr.V.Vaidyanathan, Managing Director & CEO 2. Dr. Avijit Chatterjee, Appointed Actuary 3. Mr. Puneet Nanda, Executive Vice President
DISTRIBUTION:
ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has strong presence across India with over 2000 branches ( including 1,100 micro- offices) and an advisor base of over 2,58,000 (as on November 30,2008).
SDM PG Centre, Mangalore Page 18
ICICI Pru Life Insurance Company Ltd.
2010
The company has 24 banc assurance partners having tie-ups with ICICI Bank, Bank of India, South Indian bank, Shamrao Vitthal Co-Op bank, Jalgaon peoples Co-Op bank, Ernakulam district Co-Op bank, Idukki District Co-Op Bank, Ratnagiri Sindhudurg Gramin Bank, Jharkhand Gramin Bank, Solapur Gramin Bank, Narmada Malwa Gramin bank, Wainganga Kshetriya Gramin Bank, Ratnagiri District Central Co-Op Bank, Seva Vikas Co-Op bank, Sangli Urban Co- Operative bank, The Haryana State Co- Operative Bank, Renuka Nagrik Sahakari Bank, Amanath Co-Operative Bank, Arvind Sahakari Bank, Bhandara Urban Co Operative Bank.
PRODUCTS: INSURANCE SOLUTION FOR INDIVIDUALS:
ICICI Prudential Life Insurance offers a range of innovative, customer-centric product that meets the needs of customers at every stage.
1. LIFE INSURANCE PLANS: • Education Insurance Plans • Wealth Creation Plans • Protection Plans 2. PENSION & RETIREMENT SOLUTIONS • Life Time Pension Maxima • Life Stage Pension Advantage
SDM PG Centre, Mangalore Page 19
ICICI Pru Life Insurance Company Ltd.
2010
3. HEALTH PRODUCTS SUIT
•
Hospitalisation Plans
1. 2.
MediAssure Hospital Care II Crisis Cover
•
Critical Illness Pans
1.
SDM PG Centre, Mangalore
Page 20
ICICI Pru Life Insurance Company Ltd.
2010
AWARDS AND RECOGNITIONS: 1. AWARDS:
• ICICI Prudential Life was awarded the Life Insurance Company of the Year at the 12th Asia Insurance Industry Award 2008.
• ICICI Prudential Life won the Award for Brand Excellence in the Banking and Financial services category at the Asia Brand Congress 2008.
SDM PG Centre, Mangalore Page 21
ICICI Pru Life Insurance Company Ltd.
2010
• Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance Co. Ltd. was adjudged the Businesswoman of the year at The Economic Times Awards for Corporate Excellence, 2007-08.
• ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008 in three key categories for its marketing initiatives.
SDM PG Centre, Mangalore
Page 22
ICICI Pru Life Insurance Company Ltd.
2010
• Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was awarded the Outstanding Businesswoman of the Year at CNBC TV18's India Business Leader Awards 2007.
•
ICICI Prudential Life’s, retirement solutions campaign for the year 2006-07 was awarded the Bronze Effy trophy in the services category. It also won the Brand Equity Bravery Award 2007, instituted by Ad club.
SDM PG Centre, Mangalore
Page 23
ICICI Pru Life Insurance Company Ltd.
2010
• Innovation Award for launching Diabetes Care – Prudence Award 2006. People Award for excellence in training and people development - Prudence Award 2006. • Most Trusted Private Life Insurer. The Economic Times - A C Nielsen Survey of Most Trusted Brands – 2003, 2004 and 2005.
• Best Life Insurer 2003. Outlook Money Awards 2003 & 2004 • IMM Award for Excellence. Institute of Marketing & Management • Organization with Innovative HR Practices Indira Group of Institutes.
2. RECOGNITIONS:
• ICICI Prudential Life was recognized as the most trusted brand amongst private life insurers in the Economic Times-Most Trusted Brand survey 2008. • IMM Award for Excellence. Institute of Marketing & Management.
SDM PG Centre, Mangalore
Page 24
ICICI Pru Life Insurance Company Ltd.
2010
• Organization with Innovative HR Practices. Indira Group of Institutes. • Organization with Innovative HR Practices. Asia-Pacific H R Congress Awards for HR Excellence.
4.ORGANIZATION STRUCTURE
VICE PRESIDENT
REGIONAL MANAGER
BANC ASSURANCE & ALLIANCE MANAGER
AREA MANAGER
SALES MANAGER
SDM PG Centre, Mangalore
SENIOR FINACIAL SERVICE MANAGER
Page 25
ICICI Pru Life Insurance Company Ltd.
2010
ASSOCIATIVE FINACIAL MANAGER
FINANCIAL SERVICE CONSULTANT
5.RESEARCH METHODOLOGY
IMPORTANCE OF THE STUDY:
The main aim of the study can be summarized as a study into the consumer behaviour in the process of selling of insurance products and thus it is primarily based on the study of consumer behaviour i.e. how individuals make decisions to spend their available resources (time, money, effort) on various items. As marketers, it is important for them to recognize why & how individuals make their consumption decisions so that we can make better strategic marketing decisions, if marketers understand consumer behaviour they are able to predict how consumers are likely to react to various informational & their marketing decisions concerning product, price, promotion & distribution perceptions. can be altered according to consumer’s
OBJECTIVES:
The main objective of this project is to study the customer behaviour and various reactions of customers with reference to
SDM PG Centre, Mangalore Page 26
ICICI Pru Life Insurance Company Ltd.
2010
ICICI prudential life insurance co., and suggest ways to improve its marketing efforts. • To Study the tends in Life Insurance Market • To Study the profile of ICICI Prudential Life Insurance Co., • To Study the investors behaviour with respect to ICICI life insurance
•
To Analyse insurance
the investors’ perceptions about
ICICI life
SCOPE:
The study is confined to the life insurance market, about the investor preferences towards life insurance and a specific focus on the ICICI Prudential Life Insurance has been made. • To understand the psychology of customer behaviour and the reactions of the customers when they are approached. • To develop an overall view of the insurance sector in the company. • To understand the selling in the mechanism marketing and of various techniques products • To understand customers perceptions regarding for opting of life insurance. involved insurance
RESEARCH METHODOLOGY:
SDM PG Centre, Mangalore Page 27
ICICI Pru Life Insurance Company Ltd.
2010
Methodology selected in order to realize the research objective of the present study of survey by interview and through telephone.
RESEARCH DESIGN:
The study conducted is exploratory in nature. It involves a survey of consumers for understanding consumer behaviour and various reactions of customers in reference to ICICI Prudential Life Insurance Co.
DATA SOURCE:
The primary data was collected from the consumers.
RESEARCH INSTRUMENT:
The research instrument used was a structured closed questionnaire backed by personal interview and through telephone for data collection.
SAMPLE SIZE:
110 CONSUMERS
SAMPLING PROCEDURE:
Convincing Sampling Method - Sample size of 110 consumers is covered from Gokulum, Siddartha Layout & Yadovgiri , Mysore. The completed questionnaire were compiled, tabulated and analysed so as to understand and find solutions, which will guide on reaching the objectives of the study.
SDM PG Centre, Mangalore Page 28
ICICI Pru Life Insurance Company Ltd.
2010
LIMITATIONS
• Only life Insurance market has been studied • Only few investors were considered for the study
•
The study was carried out in Mysore only, hence the results cannot be extended to National level. Few respondents are not cooperative enough owing to their busy Schedule.
Time constraint had become a hindrance to go for large sampling.
•
•
6.SWOT ANALYSIS
This part of the study is based on the industry and company analysis of Company LTD. Strength
•
ICICI Prudential Life Insurance
ICICI Prudential is the 1st life insurance company to introduce UNIT LINKED, PENSION PRODUCTS AND LIFE TIME it can get the pioneer advantage.
•
Prudential is the 156 year old company founded in 1848 so it has full fledge experience in this industry.
• Company has created a brand name.
Weaknesses
SDM PG Centre, Mangalore Page 29
ICICI Pru Life Insurance Company Ltd.
2010
• It has to do operation within the boundary of IRDA. • No option in rural area. • Yet to build a strong distribution network in the market.
Opportunity
• Today ICICI Prudential covers 40% Market so yet there is a great potentiality to increase market share. • Insurance plan like pension plan, child plan and investment plan of ICICI Prudential go good response from the market. So in future company can take benefit for it. • The brand name that creates ICICI Prudential and awareness level of it is comparatively quite higher than competition. So it will be helpful in future while lunching new innovation products. • Untapped market of India.
Threats
• It is private company so there is a doubt about solvency and liquidity among the general people.
•
Change in the environmental factors will affect the company. Large distribution network of LIC and trust of people in LIC. ( competition)
•
SDM PG Centre, Mangalore
Page 30
ICICI Pru Life Insurance Company Ltd.
2010
7.DATA ANALYSIS AND INTERPRETATION
1. RESPONDENTS MONTHLY INCOME DETAILS QUANTUMN OF MONTHLY INCOME 5000-10000 10000-15000 15000-20000 ABOVE 20,000 39 45 16 10 35% 41% 15% 9% 100% TOTAL RESPONDENTS PERCENTAGE
T 110 OTAL
SDM PG Centre, Mangalore
Page 31
ICICI Pru Life Insurance Company Ltd.
2010
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 5000-10000 10000-15000 15000-20000 ABOVE 20,000
INFERENCE: 41% of the respondents earning 10000/- to 15000/- income, 35% are 5000/- to 10000/-, 15% are 15000/- to 20000/- and 9% of the respondents earning more than 20000/-. 2. PERCENTAGE OF AMOUNT RESPONDENTS WOULD LIKE TO SAVE FROM THEIR MONTHLY INCOME PERCENTAGE OF AMOUNT RESPONDENTS LIKE TO SAVE FROM MONTHLY INCOME 5% 5%-10% 10%-20% 20%-30% ABOVE 30% TOTAL 14 33 47 9 7 110 13 31 42 8 6 100 TOTAL RESPONDEN TS PERCENTAGE %
SDM PG Centre, Mangalore
Page 32
ICICI Pru Life Insurance Company Ltd.
2010
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% PERCENTAGE % 5% 5% -10% 10% -20% 20% -30% ABOVE 30%
FINDINGS: This is clear from the above figures that out of 110 respondents 42% would like to save 10-20% from their monthly income, 31% of them would like to save 5-10%, 13% want to save 5%, 8% want to save 20-30% and 6% want to save above 30% of their income. 3. RESPONDENTS OPINION ON ICICI PRUDENTIAL LIFE INSURANCE COMPANY OPINION ON ICICI PRUDENTIAL COMPANY GOOD BAD NO OPINION TOTAL TOTAL NO OF RESPONDE NTS 105 5 0 110 96 4 0 100 PERCENTAGE %
SDM PG Centre, Mangalore
Page 33
ICICI Pru Life Insurance Company Ltd.
2010
4%
96%
FINDINGS:
It is clear from the above sample size of 110
respondents 96% of the respondents are having good opinion on ICICI prudential life insurance company, 4% are having bad opinion on the company. 4. RESPONDENTS VARIOUS OPTIONS GENERALLY
CONSIDER FOR RESPONDENTS OPTIONS OF INVESTMENTS FIXED DEPOSITS MUTUAL FUNDS INSURANCE SHARES CHIT FUNDS TOTAL
INVESTMENT TOTAL NO RESPONSES 29 20 32 25 4 110 PERCENTAGE % 26 18 29 23 4 100
SDM PG Centre, Mangalore
Page 34
ICICI Pru Life Insurance Company Ltd.
2010
4% 23%
26%
29%
18%
FINDINGS:
It is clear from the above sample that out 110
respondents 29% like to invest in insurance, 26% like to invest in fixed deposits, 23% like to invest in shares, 18% like to invest in mutual funds and 4% like to invest in chit funds. 5. RESPONDENTS OPINIONS ON FACTORS CONSIDER WHILE INVESTING THEIR MONEY FACTORS PROFITS LIQUIDITY SAFETY TAX BENEFITS TOTAL TOTAL NO OF RESPONSES 37 6 57 10 110 PERCENTAGE % 34 5 52 9 100
SDM PG Centre, Mangalore
Page 35
ICICI Pru Life Insurance Company Ltd.
2010
9% 34%
52%
5%
FINDINGS: 52% of the respondents consider safety while investing the money, 34% return, 9% tax benefits and 5% of the respondents consider liquidity while investing the money. 6. RESPONDENTS OPINION ON IMPACT ON THEIR SAVINGS WITH THE CURRENT BUDGET-2010 IMPACT ON SAVINGS WITH CURRENT BUDGET-2010 YES NO TOTAL
37%
TOTAL RESPO NSES
PERCENTAGE %
69 41 110
63%
63 37 100
SDM PG Centre, Mangalore
Page 36
ICICI Pru Life Insurance Company Ltd.
2010
7.
RESPONDENTS
PREFERED
TIME
HORIZON
FOR
INVESTMENT (INYEARS) TIME HORIZON OF INVESTMENT (IN YRS) MINIMUM 1-2 YEARS MINIMUM 1-3 YEARS MINIMUM 1-4 YEARS ABOVE 5 YEARS TOTAL 20 110 18 100 23 21 34 31 33 TOTAL RESPONSES PERCENTAGE % 30
18%
30%
21% 31%
FINDINGS:
It is clear from the above sample of 110
respondents, 31% of the respondents preferred 1-3 years as time horizon to invest, 30% are 1-2years, 21% are 1-4years and 18% are more than 5years as time horizon to investment.
SDM PG Centre, Mangalore
Page 37
ICICI Pru Life Insurance Company Ltd.
2010
8. RESPONDENTS AWARE ABOUT CAPITAL GUARANTEE SCHEMES COMPANY AWARENESS ABOUT ICICI PRULIFE SCHEMES YES NO TOTAL 58 52 110 TOTAL RESPONSES PERCEBTAGE % 53 47 100 OF ICICI PRUDENTIAL LIFE INSURANCE
47%
53%
FINDINGS:
It is clear from the above sample of 110
respondents 53% of the respondents are aware of ICICI PRUDENTIAL LIFE INSURANCE COMPANY schemes and 47% are not aware of the company schemes.
9. RESPONDENTS KNOW ABOUT THE SCHEMES THROUGH DIFFERENT MARKETING CHANNELS
SDM PG Centre, Mangalore Page 38
ICICI Pru Life Insurance Company Ltd.
2010
RESONDENTS KNOW ABOUT THE SCHEMES
TOTAL RES PO NSE S
PERCENTAGE %
ADVISORS OF COMPANY/EMPLOYEE MANAGEMENT TRAINEES ADVERTISEMENTS OTHERS TOTAL
29
26
16 40 25 110
15 36 23 100
MANAGEMENT TRAINEES OTHERS 23% 15%
ADVISORS /EMPLOYESS 26%
ADVERTISEMENTS 36%
FINDINGS: 36% of the respondents came to know about the capital guarantee schemes through Advertisements, 26% through Advisors/Employess,15% through Management Trainees and 23% from others. 10. RESPONDENTS INTERESTED ORGANIZATIONS FOR INVESTING THEIR MONEY
SDM PG Centre, Mangalore Page 39
ICICI Pru Life Insurance Company Ltd.
2010
INTRESTED ORGANIZATIONS FOR INVESTMENTS LIC ICICI PRU LIFE SBI LIFE INSURANCE HDFC OTHERS TOTAL
TOTAL RESPONSES 58 32 6 5 9 110
PERCENTAGE % 52.72 29.09 5.45 4.54 8.18 100
RESPONDENTS INTRESTED ORGANZATIONS FOR THIER INVESTMENTS
60.00% 50.00% E G 40.00% A T N 30.00% E C R E 20.00% P 10.00% 0.00%
52.72%
29.09%
5.45%
8.18% 4.54%
1
LIC ICICI PRULIFE SBI INSURANCE HDFC OTHERS
FINDINGS:
52.72% of the respondents are interested for
investing their money in LIC, 29.09% in ICICI, 5.45% in SBI, 4.54% in HDFC and 8.18% in others. 11. RESPONDENTS OPINION ON THE BENEFITS OF THE SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY RESPONDENTS ON
SDM PG Centre, Mangalore
TOTAL
PERCENTAGE
Page 40
ICICI Pru Life Insurance Company Ltd.
2010
BENEFITS OF ICICI SCHEMES REASONABLE NOT REASONABLE CAN NOT SAY TOTAL
RESPONSES 62 8 40 110
% 56 7 37 100
60% 50% 40% 30% 20% 10% 0% REASONABLE NOT REASONABLE CANNOT SAY
FINDINGS: 56% of the respondent’s opinion on the benefits of the schemes of ICICI prudential life insurance company are reasonable, 7% is not reasonable, 37% of the respondents can’t say. 12. RESPONDENTS OPINION ON INCREASE OF MARKET SHARE WITH THESE SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY RESPONDENTS OPINION ON INCREASE OF MARKET SHARE YES
SDM PG Centre, Mangalore
TOTAL RESPONSES
PERCENTAGE %
67
61
Page 41
ICICI Pru Life Insurance Company Ltd.
2010
NO CAN’T SAY TOTAL
14 29 110
13 26 100
OPINIONS OF RESPONDENTS REGARDING THE INCREASING OF MARKET SHARE WITH THESE SCHEMES OF ICICI
NO 13% YES 61%
YES
NO
CANNOT SAY
CANNOT SAY 26%
FINDINGS: 61% of respondents opined that the benefits given by ICICI PRU are satisfied, 13% respondents are not satisfied and 37% can’t say. 13. RESPONDENTS OPINION ON THE CAPITAL GUARANTEE SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY
SDM PG Centre, Mangalore
Page 42
ICICI Pru Life Insurance Company Ltd.
2010
RESPONDENTS OPINION ON ICICI SCHEMES GOOD AVERAGE EXCELLENT GOOD POOR TOTAL FINDINGS: 12% Poor.
POOR 12%
TOTAL
PERECENTAGE % 60
AVERAGE 60%
RESPONSES 66 8 23 13 110
21%
7 21 12 100
EXCELLE NT 7%
60% of the respondents opined that capital
guarantee schemes are Average, 21% good, 7% Excellent and
14. AGE OF THE RESPONDENTS RESPONDENTS AGE BELOW 30 30-40 40-50 ABOVE 50 TOTAL PERCENTAGE % 18 39 33 10 100
SDM PG Centre, Mangalore
Page 43
ICICI Pru Life Insurance Company Ltd.
2010
10%
18%
1 2 3
33% 39%
4
FINDINGS: From the above sample of 110 respondents 18% are below the age of 30.From the above sample of 110 respondents 39% are the age group of 30-40.From the above sample of 110 respondents 33% are age group of 40-50.From the above sample of 110 respondents 10% are the age group of above 50.
8.FINDING AND SUGGESTIONS
OVERALL FINDINGS:
•Majority of the people (69%) know about ICICI PRU LIFE.
• Most
of the people (42.72%) have very good opinion about
ICICI PRU LIFE.
• By
this research it is clear that most of the respondents of the people (47.72%) are interested in saving 10%of the respondents take insurance to secure their
consider safety while investing their money.
• Most
20% from their monthly income for their future period.
• Majority
lives and for tax benefits and also for future profits.
SDM PG Centre, Mangalore
Page 44
ICICI Pru Life Insurance Company Ltd.
2010
• Most
of the people are not proper awareness regarding of the people are choosing LIC for their investments.
the schemes of ICICI PRU LIFE.
• Most
And less no of people are choosing ICICI PRU LIFE to invest their money. •Most of the respondents have given the reasonable opinion on the benefits given by ICICI PRU LIFE schemes and they had good opinion on the schemes. •Most of the respondents have given an opinion that they can invest their money up to a time horizon of 1-3 years.
SUGGESTIONS
•Most of the people are not having any proper awareness regarding the different products of the company so by educating and providing proper information to them we can easily attract them. •To create awareness in the people by conducting intensive customer contact and gathering programs. •Increase more no of capital guarantee schemes with low premiums so that middle class and rural customers can be attracted. •The schemes should be introduced according to the needs and profits of customers.
SDM PG Centre, Mangalore Page 45
ICICI Pru Life Insurance Company Ltd.
2010
•Along with the product, service has to be given ample opportunity to differentiate along the competitors as styling and services. •Company should maintain continuous relationships with the employees and customers to increase the market share. • Continuous maintenance of quality in services maintain the brand loyalty. •As technological improvements are increasing use the opportunities well and to help the customer a search facility should be include in order searching for key term from the website etc. to
9.CONCLUSION:
After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth ICICI in private sector, I come at the conclusion that • There is very tough competition among the private insurance companies on the level of new trend of advertising to lull a major part of Customers.
SDM PG Centre, Mangalore
Page 46
ICICI Pru Life Insurance Company Ltd.
2010
• The entries of more Pvt. Players in the Insurance Sector have expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers.
•
ICICI has vast market and very firm grip on its oldl customers and monopoly of life insurance products.
• Availability of ICICI is perfect. IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.
10.BIBLIOGRAPHY:
1. http://www.iciciprulife.com 2. http://www.google.com 3. http://www.wikipedia.com 4. http://business.mapsofindia.com
SDM PG Centre, Mangalore
Page 47
ICICI Pru Life Insurance Company Ltd.
2010
11.A Market Survey On Consumer Behavior on Capital Guarantee Schemes With Reference to ICICI Prudential Life Insurance Company
Respected Sir/Madam, I, Devnag G, pursuing MBA II year as part of the curriculum, I am undergoing summer project in ICICI Prudential Life Insurance Company. Hence, I request you to kindly extend your co-operation by filling this Questionnaire and the information provided will be kept confidential and used for only academic purpose.
SDM PG Centre, Mangalore
Page 48
ICICI Pru Life Insurance Company Ltd.
2010
Name: Age: Occupation: contact no: [
1) What is the Quantum of your Monthly Income? ] (A) 5000-10000 (B) 15000-20000 (B) 10000-15000 (D) ABOVE 20,000
2) What is the percentage of Amount you would like to save from Your income? [ (a) 5% Above 30% 3) Your opinion on ICICI Prudential Life Insurance Company? [ ] (a)Good (b) Positive (c) Negative (d) Better ] (b) 10% (c) 10%-20% (d) 20%-30% (e)
4) What are the various options generally you consider for Investment? [ ] (a)Fixed Deposits (b) Mutual Funds (c) Insurance (d) Shares (e) Chit Funds
SDM PG Centre, Mangalore Page 49
ICICI Pru Life Insurance Company Ltd.
2010
5) What are the factors you consider while choosing your Investment? [ (a) Profits ] (b) Liquidity (c) Safety (d) Tax Benefits
6) Do you feel that there is Impact on your Savings with the Current Budget? [ ]
(a) Yes (b) No 7) What is your preferred Time Horizon of Investment (in Years)? [ ]
Min 1- 2years (b) 1-3 years (c) 1- 4years ( d) Above 5years 8) Are you Aware of Capital Guarantee Schemes of ICICI ? [ ] (a)YES (b)NO ]
9) How you know about the Schemes? [
(a)Advisors/Employess (b) Management Trainees (c) Advertisements (d) others 10) Which organization ] will you choose for your
investments ? [
(a)LIC (b) ICICI PRU LIFE (c) SBI INSURANCE (d) HDFC (e) OTHERS
SDM PG Centre, Mangalore
Page 50
ICICI Pru Life Insurance Company Ltd.
2010
11) Your view on Benefits given by ICICI Schemes? ] (a)Reasonable (b) Not Reasonable (c) cannot say
[
12) Do you feel that Market Share of ICICI can be increased with these Capital guarantee Schemes? [ (a)Yes (b) No 13) What is the opinion on the Capital Guarantee Schemes of ICICI Prudential Life Insurance company [ a) goodb) excellent 14) Age of the respondents c) average [ ] ] d) poor ]
a) below 30 yearsb) 30 – 40 years c) 40 – 50 years d) above 50 years 15) Suggest any Measures to increase the Market Share: ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------SDM PG Centre, Mangalore Page 51
2010
1.INTRODUCTION
INSURANCE:
Insurance is a promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance.
NEED FOR INSURANCE:
1. Superior to an ordinary savings plan as it provides full protection against risk of death. 2. Encourages and forces compulsory savings unlike other saving instruments, wherein the saved money can be easily withdrawn. 3. Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan. 4. Offers tax relief to policyholders. 5. Hedges risk against uncertainty.
SDM PG Centre, Mangalore
Page 1
ICICI Pru Life Insurance Company Ltd.
2010
6. For a policy taken under the MWP Act 1874, (Married Women's Property Act), a trust is created for wife and children as beneficiaries.
7. Based on the concept of sharing of losses, the society will
benefit as catastrophic losses are spread globally.
LIFE INSURANCE:
Life Insurance is an agreement that guarantees payment of a stated amount of monetary benefits at the end of a specified term or on the death of the life insured.
NEED FOR LIFE INSURANCE:
Life brings with it many surprises, some pleasant and some not so and a Life Insurance Plan ensures that you are better prepared to face uncertainties. In a number of ways:
1. Protection:
You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. That is a good reason. Suppose you are suffered by an injury that keeps you away from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected.
2. Retirement:
Life insurance makes sure that have regular income after retire and also helps to maintain standard of living. It can
SDM PG Centre, Mangalore
Page 2
ICICI Pru Life Insurance Company Ltd.
2010
ensure that your post-retirement years will be spent in peace and comfort.
3. Savings and Investments:
Insurance is a means to Save and Invest. The periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your child’s education or marriage! Besides, it can be used as supplemental retirement income.
4. Tax Benefits:
Life insurance is one of the best tax saving options today. Tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned.
SDM PG Centre, Mangalore
Page 3
ICICI Pru Life Insurance Company Ltd.
2010
2.INDUSTRY PROFILE
INSURANCE IN INDIA:
The insurance sector in India has come to 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. With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It is a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 Billion. Together with banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. In addition, this part of the population is subject to weak social security and pension systems with hardly any old age income security. This is an indicator that growth potential for the insurance sector is immense.
SDM PG Centre, Mangalore
Page 4
ICICI Pru Life Insurance Company Ltd.
2010
A
well-developed
and
evolved
insurance
sector
is
necessary for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability. It has estimated that, over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. Insurance is a federal subject in India. Two legislations govern the sector- The Insurance Act- 1938 and the IRDA Act1999. The insurance sector in India has come to 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.
HISTORICAL
PERSPECTIVE
ABOUT
LIFE
INSURANCE IN INDIA:
The history of life insurance in India dates back to 1818 when it was considered as a means to provide for English Widows. Interestingly in those days, a higher premium was charged for Indian lives than the non-Indian lives, as Indian lives were considered more risky for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company established in 1880. The General insurance business in India, on the other hand, can trace its
SDM PG Centre, Mangalore Page 5
ICICI Pru Life Insurance Company Ltd.
2010
roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Until the end of nineteenth century, insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938, there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized Corporation because it monopoly (LIC) would was corporation born. and Life was funds Insurance justified rapid for Nationalization
create
much-needed
industrialization. This was in conformity with the Government's chosen path of State lead planning and development. The (non-life) insurance business continued to thrive with the private sector until 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. India Assurance Company, Oriental Insurance Company and United India
SDM PG Centre, Mangalore Page 6
ICICI Pru Life Insurance Company Ltd.
2010
Insurance Company are subsidiaries of the General Insurance Company (GIC).
Important
milestones
in
the
life
insurance
business in India:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian, foreign insurers and provident societies were took over by Central government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crores from the Government of India.
Important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up- the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory
Page 7
Committee set up.
SDM PG Centre, Mangalore
ICICI Pru Life Insurance Company Ltd.
2010
1972: The general insurance business in India nationalized through The General Insurance Business (Nationalization) Act, 1972 with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies- the National Insurance Company Limited, the New India Assurance Company Limited, the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
INSURANCE SECTOR REFORMS:
In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N. Malhotra- formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was setup with the objective of complementing the reforms initiated in the financial sector. The reforms was aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included:
1. Structure: Government stake in the insurance Companies
must brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies must have greater freedom to operate.
SDM PG Centre, Mangalore
Page 8
ICICI Pru Life Insurance Company Ltd.
2010
2. Competition: Private Companies with a minimum paid up
capital of Rs.1bn should allow entering the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies were allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance was allowed to operate the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state.
3. Regulatory Body: The Insurance Act should be
changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent.
4. Investments: Mandatory Investments of LIC Life Fund in
government securities to was reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time)
5. Customer Service: LIC should pay interest on delays in
payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. In insurance industry, Computerization of operations and updating of technology are to be carried out. The committee emphasized that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was
SDM PG Centre, Mangalore
Page 9
ICICI Pru Life Insurance Company Ltd.
2010
decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 Cores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body- The Insurance Regulatory and Development Authority. A reform in the Insurance sector was 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. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA 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. The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 per cent equity cap
SDM PG Centre, Mangalore Page 10
ICICI Pru Life Insurance Company Ltd.
2010
for foreign partners in an insurance company. There is a proposal to increase this limit to 49 per cent. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001.
THE
INSURANCE
REGULATORY
AND
DEVELOPMENT AUTHORITY:
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 launched 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.
SDM PG Centre, Mangalore Page 11
ICICI Pru Life Insurance Company Ltd.
2010
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.
INSURANCE MARKET IN INDIA:
The India Insurance market despite having a highly elaborate history spanning almost two centuries, has come of age only in last 50 years after the formation of the Life Insurance Corporation (LIC) of India in 1956 and the entry of private companies into the market in 2000. Traditionally the Indian Insurance Market had centred on the life insurance until recently, a host of other insurance policies covering a diverse range of issues and objects like Medical Insurance, Accident Insurance, Fire Insurance, Automobile Insurance and other policies which fall under the category of general insurance are being provided by various private insurance companies.
PERFORMANCE
OF
THE
INDIAN
INSURACE
MARKET-A REPORT:
The following points will provide you an insight into the insurance market in India and its fast expanding prospects. The report is well supported by data based on detailed analysis that would help investors, financial service providers and global banking players to venture into the Indian insurance market.
SDM PG Centre, Mangalore
Page 12
ICICI Pru Life Insurance Company Ltd.
2010
Taking
into
account
the
changing
socioeconomic
demographics rate of GDP growth, behaviour of consumers, and occurrences of natural calamities at regular intervals the market of Life Insurance in India is expected grow to the value around US $ 41.44 billion by the year 2009. The Market is expected to grow at a compounded annual growth rate (CAGR) of more than 200% year over year (YOY) from year 2006 onwards. • 65% of the general insurance market is controlled by private house that already exists in the market. • However in automobile insurance, public sector covers a substantial 68% of the total market value. • Among individual companies that are worthy of
mentioning, ICICI Lombard enjoys a whopping 53% market share in Accident Insurance while the remaining 47% is shared by New India Assurance and United India Insurance both belonging to the public sector The other key players of the market include:
1. In Public Sector:
Life insurance Corporation(LIC) of India, National Insurance Company Limited, Oriental Insurance Limited, New India Assurance Company Limited and United India insurance Company Limited.
2. In Private Sector:
ICICI prudential Life Insurance, Bajaj Allianz, SBI Life, HDFC Standard, Birla Sun life, Aviva Life Insurance, Kotak Mahindra
SDM PG Centre, Mangalore Page 13
ICICI Pru Life Insurance Company Ltd.
2010
old mutual, Max New York Life and Met life, Tata AIG Life, ING Vysya. Thus, the ever increasing population of the country will ensure constant boom in the India Insurance market in the distant future.
3.COMPANY PROFILE: ICICI PRUDENTIAL
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India’s foremost financial service companies and Prudential plc. - A leading international financial service group headquartered in the United Kingdom. Total capital infusion stand at Rs 47.80 billion, with ICICI Bank holding a stake of 74% and prudential plc. Holding 26%. They began operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2000 branches (inclusive of 1,100 micro offices), over 2,58,000 advisors; and 24 banc assurance partners. ICICI prudential is the first Insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch rating. For three years in a row, ICICI Prudential has been voted as India’s Most Trusted Private Life Insurer, by the Economic times – AC Nielsen ORG Marg survey of “Most Trusted Brand‟.
SDM PG Centre, Mangalore Page 14
ICICI Pru Life Insurance Company Ltd.
2010
ICICI PRUDENTIAL EDGE:
The ICICI Prudential edge comes from our commitment to our customer, in all that we do-be it product development, distribution, the sales process or servicing...
I.
The products have been developed after a clear and through understanding of customer’s need. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee the child’s education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the fund you might need to recover from dreaded disease.
II.
Having the right product is the first step, but it’s equally important to ensure that, the customer can access them easily and quickly. To this end, ICICI prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute the products
III.
Robust risk management and underwriting practices form the core business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claim process.
IV.
Entrusted with helping our customer meet their long-term goals, they adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term.
V.
Last but definitely not the least, our 32000 plus strong team is given the opportunity to learn and grow, every day in multitude of ways. We believe this keeps them
SDM PG Centre, Mangalore
Page 15
ICICI Pru Life Insurance Company Ltd.
2010
engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life.
OUR VISION AND VALUES OUR VISION:
“To be the dominant life, Health and Pension player build on trust by world class people and service” This we hope to achieve by: • Understanding the need of customers and offering them superior products and service • Leveraging technology to service customer quickly, efficiently and conveniently. • Developing and implementing superior risk management and investment strategies to offer sustainable and stable return to the policyholders. 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.
OUR VALUES:
Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.
PROMOTERS:
SDM PG Centre, Mangalore Page 16
ICICI Pru Life Insurance Company Ltd.
2010
ICICI Bank Limited:
ICICI Bank(NYSE: BSE) is India’s largest private sector bank and the second largest bank in the country, with consolidated the total assets of $121 billion as of September 30, 2008.
PRUDENTIAL PLC:
Established in London in 1848, Prudential Plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 21 million customers, policy holder and unit holders and manages over £256 billion of funds worldwide (as of June 30, 2008). In Asia, prudential is the leading Europe-based life insurer with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms of overall assets sourced in Asia ex-Japan with £34.3 billion funds under management (as of June 30, 2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Emirates. Singapore, Taiwan, Vietnam and United Arab
MANAGEMENT PROFILE: BOARD OF DIRECTORS:
The ICICI Prudential life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad.
SDM PG Centre, Mangalore Page 17
ICICI Pru Life Insurance Company Ltd.
2010
1. Ms.Chanda D. Kochhar, Chairperson 2. Mr. N. S. Kannan, Director 3. Mr. K. Ramkumar, Director 4. Mr. Barry Stowe, Director 5. Mr. Adrian O’Connor, Director 6. Mr. Keki Dadiseth, Independent Director 7. Prof. Marti G. Subrahmanyam, Independent Director 8. Ms. Rama Bijapurkar, Independent Director 9. Mr. Vinod Kumar Dhall, Independent Direct 10. Mr. V. Vaidyanathan, Managing Director & CEO
MANAGEMENT TEAM:
The ICICI Prudential life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. 1. Mr.V.Vaidyanathan, Managing Director & CEO 2. Dr. Avijit Chatterjee, Appointed Actuary 3. Mr. Puneet Nanda, Executive Vice President
DISTRIBUTION:
ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has strong presence across India with over 2000 branches ( including 1,100 micro- offices) and an advisor base of over 2,58,000 (as on November 30,2008).
SDM PG Centre, Mangalore Page 18
ICICI Pru Life Insurance Company Ltd.
2010
The company has 24 banc assurance partners having tie-ups with ICICI Bank, Bank of India, South Indian bank, Shamrao Vitthal Co-Op bank, Jalgaon peoples Co-Op bank, Ernakulam district Co-Op bank, Idukki District Co-Op Bank, Ratnagiri Sindhudurg Gramin Bank, Jharkhand Gramin Bank, Solapur Gramin Bank, Narmada Malwa Gramin bank, Wainganga Kshetriya Gramin Bank, Ratnagiri District Central Co-Op Bank, Seva Vikas Co-Op bank, Sangli Urban Co- Operative bank, The Haryana State Co- Operative Bank, Renuka Nagrik Sahakari Bank, Amanath Co-Operative Bank, Arvind Sahakari Bank, Bhandara Urban Co Operative Bank.
PRODUCTS: INSURANCE SOLUTION FOR INDIVIDUALS:
ICICI Prudential Life Insurance offers a range of innovative, customer-centric product that meets the needs of customers at every stage.
1. LIFE INSURANCE PLANS: • Education Insurance Plans • Wealth Creation Plans • Protection Plans 2. PENSION & RETIREMENT SOLUTIONS • Life Time Pension Maxima • Life Stage Pension Advantage
SDM PG Centre, Mangalore Page 19
ICICI Pru Life Insurance Company Ltd.
2010
3. HEALTH PRODUCTS SUIT
•
Hospitalisation Plans
1. 2.
MediAssure Hospital Care II Crisis Cover
•
Critical Illness Pans
1.
SDM PG Centre, Mangalore
Page 20
ICICI Pru Life Insurance Company Ltd.
2010
AWARDS AND RECOGNITIONS: 1. AWARDS:
• ICICI Prudential Life was awarded the Life Insurance Company of the Year at the 12th Asia Insurance Industry Award 2008.
• ICICI Prudential Life won the Award for Brand Excellence in the Banking and Financial services category at the Asia Brand Congress 2008.
SDM PG Centre, Mangalore Page 21
ICICI Pru Life Insurance Company Ltd.
2010
• Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance Co. Ltd. was adjudged the Businesswoman of the year at The Economic Times Awards for Corporate Excellence, 2007-08.
• ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008 in three key categories for its marketing initiatives.
SDM PG Centre, Mangalore
Page 22
ICICI Pru Life Insurance Company Ltd.
2010
• Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was awarded the Outstanding Businesswoman of the Year at CNBC TV18's India Business Leader Awards 2007.
•
ICICI Prudential Life’s, retirement solutions campaign for the year 2006-07 was awarded the Bronze Effy trophy in the services category. It also won the Brand Equity Bravery Award 2007, instituted by Ad club.
SDM PG Centre, Mangalore
Page 23
ICICI Pru Life Insurance Company Ltd.
2010
• Innovation Award for launching Diabetes Care – Prudence Award 2006. People Award for excellence in training and people development - Prudence Award 2006. • Most Trusted Private Life Insurer. The Economic Times - A C Nielsen Survey of Most Trusted Brands – 2003, 2004 and 2005.
• Best Life Insurer 2003. Outlook Money Awards 2003 & 2004 • IMM Award for Excellence. Institute of Marketing & Management • Organization with Innovative HR Practices Indira Group of Institutes.
2. RECOGNITIONS:
• ICICI Prudential Life was recognized as the most trusted brand amongst private life insurers in the Economic Times-Most Trusted Brand survey 2008. • IMM Award for Excellence. Institute of Marketing & Management.
SDM PG Centre, Mangalore
Page 24
ICICI Pru Life Insurance Company Ltd.
2010
• Organization with Innovative HR Practices. Indira Group of Institutes. • Organization with Innovative HR Practices. Asia-Pacific H R Congress Awards for HR Excellence.
4.ORGANIZATION STRUCTURE
VICE PRESIDENT
REGIONAL MANAGER
BANC ASSURANCE & ALLIANCE MANAGER
AREA MANAGER
SALES MANAGER
SDM PG Centre, Mangalore
SENIOR FINACIAL SERVICE MANAGER
Page 25
ICICI Pru Life Insurance Company Ltd.
2010
ASSOCIATIVE FINACIAL MANAGER
FINANCIAL SERVICE CONSULTANT
5.RESEARCH METHODOLOGY
IMPORTANCE OF THE STUDY:
The main aim of the study can be summarized as a study into the consumer behaviour in the process of selling of insurance products and thus it is primarily based on the study of consumer behaviour i.e. how individuals make decisions to spend their available resources (time, money, effort) on various items. As marketers, it is important for them to recognize why & how individuals make their consumption decisions so that we can make better strategic marketing decisions, if marketers understand consumer behaviour they are able to predict how consumers are likely to react to various informational & their marketing decisions concerning product, price, promotion & distribution perceptions. can be altered according to consumer’s
OBJECTIVES:
The main objective of this project is to study the customer behaviour and various reactions of customers with reference to
SDM PG Centre, Mangalore Page 26
ICICI Pru Life Insurance Company Ltd.
2010
ICICI prudential life insurance co., and suggest ways to improve its marketing efforts. • To Study the tends in Life Insurance Market • To Study the profile of ICICI Prudential Life Insurance Co., • To Study the investors behaviour with respect to ICICI life insurance
•
To Analyse insurance
the investors’ perceptions about
ICICI life
SCOPE:
The study is confined to the life insurance market, about the investor preferences towards life insurance and a specific focus on the ICICI Prudential Life Insurance has been made. • To understand the psychology of customer behaviour and the reactions of the customers when they are approached. • To develop an overall view of the insurance sector in the company. • To understand the selling in the mechanism marketing and of various techniques products • To understand customers perceptions regarding for opting of life insurance. involved insurance
RESEARCH METHODOLOGY:
SDM PG Centre, Mangalore Page 27
ICICI Pru Life Insurance Company Ltd.
2010
Methodology selected in order to realize the research objective of the present study of survey by interview and through telephone.
RESEARCH DESIGN:
The study conducted is exploratory in nature. It involves a survey of consumers for understanding consumer behaviour and various reactions of customers in reference to ICICI Prudential Life Insurance Co.
DATA SOURCE:
The primary data was collected from the consumers.
RESEARCH INSTRUMENT:
The research instrument used was a structured closed questionnaire backed by personal interview and through telephone for data collection.
SAMPLE SIZE:
110 CONSUMERS
SAMPLING PROCEDURE:
Convincing Sampling Method - Sample size of 110 consumers is covered from Gokulum, Siddartha Layout & Yadovgiri , Mysore. The completed questionnaire were compiled, tabulated and analysed so as to understand and find solutions, which will guide on reaching the objectives of the study.
SDM PG Centre, Mangalore Page 28
ICICI Pru Life Insurance Company Ltd.
2010
LIMITATIONS
• Only life Insurance market has been studied • Only few investors were considered for the study
•
The study was carried out in Mysore only, hence the results cannot be extended to National level. Few respondents are not cooperative enough owing to their busy Schedule.
Time constraint had become a hindrance to go for large sampling.
•
•
6.SWOT ANALYSIS
This part of the study is based on the industry and company analysis of Company LTD. Strength
•
ICICI Prudential Life Insurance
ICICI Prudential is the 1st life insurance company to introduce UNIT LINKED, PENSION PRODUCTS AND LIFE TIME it can get the pioneer advantage.
•
Prudential is the 156 year old company founded in 1848 so it has full fledge experience in this industry.
• Company has created a brand name.
Weaknesses
SDM PG Centre, Mangalore Page 29
ICICI Pru Life Insurance Company Ltd.
2010
• It has to do operation within the boundary of IRDA. • No option in rural area. • Yet to build a strong distribution network in the market.
Opportunity
• Today ICICI Prudential covers 40% Market so yet there is a great potentiality to increase market share. • Insurance plan like pension plan, child plan and investment plan of ICICI Prudential go good response from the market. So in future company can take benefit for it. • The brand name that creates ICICI Prudential and awareness level of it is comparatively quite higher than competition. So it will be helpful in future while lunching new innovation products. • Untapped market of India.
Threats
• It is private company so there is a doubt about solvency and liquidity among the general people.
•
Change in the environmental factors will affect the company. Large distribution network of LIC and trust of people in LIC. ( competition)
•
SDM PG Centre, Mangalore
Page 30
ICICI Pru Life Insurance Company Ltd.
2010
7.DATA ANALYSIS AND INTERPRETATION
1. RESPONDENTS MONTHLY INCOME DETAILS QUANTUMN OF MONTHLY INCOME 5000-10000 10000-15000 15000-20000 ABOVE 20,000 39 45 16 10 35% 41% 15% 9% 100% TOTAL RESPONDENTS PERCENTAGE
T 110 OTAL
SDM PG Centre, Mangalore
Page 31
ICICI Pru Life Insurance Company Ltd.
2010
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 5000-10000 10000-15000 15000-20000 ABOVE 20,000
INFERENCE: 41% of the respondents earning 10000/- to 15000/- income, 35% are 5000/- to 10000/-, 15% are 15000/- to 20000/- and 9% of the respondents earning more than 20000/-. 2. PERCENTAGE OF AMOUNT RESPONDENTS WOULD LIKE TO SAVE FROM THEIR MONTHLY INCOME PERCENTAGE OF AMOUNT RESPONDENTS LIKE TO SAVE FROM MONTHLY INCOME 5% 5%-10% 10%-20% 20%-30% ABOVE 30% TOTAL 14 33 47 9 7 110 13 31 42 8 6 100 TOTAL RESPONDEN TS PERCENTAGE %
SDM PG Centre, Mangalore
Page 32
ICICI Pru Life Insurance Company Ltd.
2010
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% PERCENTAGE % 5% 5% -10% 10% -20% 20% -30% ABOVE 30%
FINDINGS: This is clear from the above figures that out of 110 respondents 42% would like to save 10-20% from their monthly income, 31% of them would like to save 5-10%, 13% want to save 5%, 8% want to save 20-30% and 6% want to save above 30% of their income. 3. RESPONDENTS OPINION ON ICICI PRUDENTIAL LIFE INSURANCE COMPANY OPINION ON ICICI PRUDENTIAL COMPANY GOOD BAD NO OPINION TOTAL TOTAL NO OF RESPONDE NTS 105 5 0 110 96 4 0 100 PERCENTAGE %
SDM PG Centre, Mangalore
Page 33
ICICI Pru Life Insurance Company Ltd.
2010
4%
96%
FINDINGS:
It is clear from the above sample size of 110
respondents 96% of the respondents are having good opinion on ICICI prudential life insurance company, 4% are having bad opinion on the company. 4. RESPONDENTS VARIOUS OPTIONS GENERALLY
CONSIDER FOR RESPONDENTS OPTIONS OF INVESTMENTS FIXED DEPOSITS MUTUAL FUNDS INSURANCE SHARES CHIT FUNDS TOTAL
INVESTMENT TOTAL NO RESPONSES 29 20 32 25 4 110 PERCENTAGE % 26 18 29 23 4 100
SDM PG Centre, Mangalore
Page 34
ICICI Pru Life Insurance Company Ltd.
2010
4% 23%
26%
29%
18%
FINDINGS:
It is clear from the above sample that out 110
respondents 29% like to invest in insurance, 26% like to invest in fixed deposits, 23% like to invest in shares, 18% like to invest in mutual funds and 4% like to invest in chit funds. 5. RESPONDENTS OPINIONS ON FACTORS CONSIDER WHILE INVESTING THEIR MONEY FACTORS PROFITS LIQUIDITY SAFETY TAX BENEFITS TOTAL TOTAL NO OF RESPONSES 37 6 57 10 110 PERCENTAGE % 34 5 52 9 100
SDM PG Centre, Mangalore
Page 35
ICICI Pru Life Insurance Company Ltd.
2010
9% 34%
52%
5%
FINDINGS: 52% of the respondents consider safety while investing the money, 34% return, 9% tax benefits and 5% of the respondents consider liquidity while investing the money. 6. RESPONDENTS OPINION ON IMPACT ON THEIR SAVINGS WITH THE CURRENT BUDGET-2010 IMPACT ON SAVINGS WITH CURRENT BUDGET-2010 YES NO TOTAL
37%
TOTAL RESPO NSES
PERCENTAGE %
69 41 110
63%
63 37 100
SDM PG Centre, Mangalore
Page 36
ICICI Pru Life Insurance Company Ltd.
2010
7.
RESPONDENTS
PREFERED
TIME
HORIZON
FOR
INVESTMENT (INYEARS) TIME HORIZON OF INVESTMENT (IN YRS) MINIMUM 1-2 YEARS MINIMUM 1-3 YEARS MINIMUM 1-4 YEARS ABOVE 5 YEARS TOTAL 20 110 18 100 23 21 34 31 33 TOTAL RESPONSES PERCENTAGE % 30
18%
30%
21% 31%
FINDINGS:
It is clear from the above sample of 110
respondents, 31% of the respondents preferred 1-3 years as time horizon to invest, 30% are 1-2years, 21% are 1-4years and 18% are more than 5years as time horizon to investment.
SDM PG Centre, Mangalore
Page 37
ICICI Pru Life Insurance Company Ltd.
2010
8. RESPONDENTS AWARE ABOUT CAPITAL GUARANTEE SCHEMES COMPANY AWARENESS ABOUT ICICI PRULIFE SCHEMES YES NO TOTAL 58 52 110 TOTAL RESPONSES PERCEBTAGE % 53 47 100 OF ICICI PRUDENTIAL LIFE INSURANCE
47%
53%
FINDINGS:
It is clear from the above sample of 110
respondents 53% of the respondents are aware of ICICI PRUDENTIAL LIFE INSURANCE COMPANY schemes and 47% are not aware of the company schemes.
9. RESPONDENTS KNOW ABOUT THE SCHEMES THROUGH DIFFERENT MARKETING CHANNELS
SDM PG Centre, Mangalore Page 38
ICICI Pru Life Insurance Company Ltd.
2010
RESONDENTS KNOW ABOUT THE SCHEMES
TOTAL RES PO NSE S
PERCENTAGE %
ADVISORS OF COMPANY/EMPLOYEE MANAGEMENT TRAINEES ADVERTISEMENTS OTHERS TOTAL
29
26
16 40 25 110
15 36 23 100
MANAGEMENT TRAINEES OTHERS 23% 15%
ADVISORS /EMPLOYESS 26%
ADVERTISEMENTS 36%
FINDINGS: 36% of the respondents came to know about the capital guarantee schemes through Advertisements, 26% through Advisors/Employess,15% through Management Trainees and 23% from others. 10. RESPONDENTS INTERESTED ORGANIZATIONS FOR INVESTING THEIR MONEY
SDM PG Centre, Mangalore Page 39
ICICI Pru Life Insurance Company Ltd.
2010
INTRESTED ORGANIZATIONS FOR INVESTMENTS LIC ICICI PRU LIFE SBI LIFE INSURANCE HDFC OTHERS TOTAL
TOTAL RESPONSES 58 32 6 5 9 110
PERCENTAGE % 52.72 29.09 5.45 4.54 8.18 100
RESPONDENTS INTRESTED ORGANZATIONS FOR THIER INVESTMENTS
60.00% 50.00% E G 40.00% A T N 30.00% E C R E 20.00% P 10.00% 0.00%
52.72%
29.09%
5.45%
8.18% 4.54%
1
LIC ICICI PRULIFE SBI INSURANCE HDFC OTHERS
FINDINGS:
52.72% of the respondents are interested for
investing their money in LIC, 29.09% in ICICI, 5.45% in SBI, 4.54% in HDFC and 8.18% in others. 11. RESPONDENTS OPINION ON THE BENEFITS OF THE SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY RESPONDENTS ON
SDM PG Centre, Mangalore
TOTAL
PERCENTAGE
Page 40
ICICI Pru Life Insurance Company Ltd.
2010
BENEFITS OF ICICI SCHEMES REASONABLE NOT REASONABLE CAN NOT SAY TOTAL
RESPONSES 62 8 40 110
% 56 7 37 100
60% 50% 40% 30% 20% 10% 0% REASONABLE NOT REASONABLE CANNOT SAY
FINDINGS: 56% of the respondent’s opinion on the benefits of the schemes of ICICI prudential life insurance company are reasonable, 7% is not reasonable, 37% of the respondents can’t say. 12. RESPONDENTS OPINION ON INCREASE OF MARKET SHARE WITH THESE SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY RESPONDENTS OPINION ON INCREASE OF MARKET SHARE YES
SDM PG Centre, Mangalore
TOTAL RESPONSES
PERCENTAGE %
67
61
Page 41
ICICI Pru Life Insurance Company Ltd.
2010
NO CAN’T SAY TOTAL
14 29 110
13 26 100
OPINIONS OF RESPONDENTS REGARDING THE INCREASING OF MARKET SHARE WITH THESE SCHEMES OF ICICI
NO 13% YES 61%
YES
NO
CANNOT SAY
CANNOT SAY 26%
FINDINGS: 61% of respondents opined that the benefits given by ICICI PRU are satisfied, 13% respondents are not satisfied and 37% can’t say. 13. RESPONDENTS OPINION ON THE CAPITAL GUARANTEE SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY
SDM PG Centre, Mangalore
Page 42
ICICI Pru Life Insurance Company Ltd.
2010
RESPONDENTS OPINION ON ICICI SCHEMES GOOD AVERAGE EXCELLENT GOOD POOR TOTAL FINDINGS: 12% Poor.
POOR 12%
TOTAL
PERECENTAGE % 60
AVERAGE 60%
RESPONSES 66 8 23 13 110
21%
7 21 12 100
EXCELLE NT 7%
60% of the respondents opined that capital
guarantee schemes are Average, 21% good, 7% Excellent and
14. AGE OF THE RESPONDENTS RESPONDENTS AGE BELOW 30 30-40 40-50 ABOVE 50 TOTAL PERCENTAGE % 18 39 33 10 100
SDM PG Centre, Mangalore
Page 43
ICICI Pru Life Insurance Company Ltd.
2010
10%
18%
1 2 3
33% 39%
4
FINDINGS: From the above sample of 110 respondents 18% are below the age of 30.From the above sample of 110 respondents 39% are the age group of 30-40.From the above sample of 110 respondents 33% are age group of 40-50.From the above sample of 110 respondents 10% are the age group of above 50.
8.FINDING AND SUGGESTIONS
OVERALL FINDINGS:
•Majority of the people (69%) know about ICICI PRU LIFE.
• Most
of the people (42.72%) have very good opinion about
ICICI PRU LIFE.
• By
this research it is clear that most of the respondents of the people (47.72%) are interested in saving 10%of the respondents take insurance to secure their
consider safety while investing their money.
• Most
20% from their monthly income for their future period.
• Majority
lives and for tax benefits and also for future profits.
SDM PG Centre, Mangalore
Page 44
ICICI Pru Life Insurance Company Ltd.
2010
• Most
of the people are not proper awareness regarding of the people are choosing LIC for their investments.
the schemes of ICICI PRU LIFE.
• Most
And less no of people are choosing ICICI PRU LIFE to invest their money. •Most of the respondents have given the reasonable opinion on the benefits given by ICICI PRU LIFE schemes and they had good opinion on the schemes. •Most of the respondents have given an opinion that they can invest their money up to a time horizon of 1-3 years.
SUGGESTIONS
•Most of the people are not having any proper awareness regarding the different products of the company so by educating and providing proper information to them we can easily attract them. •To create awareness in the people by conducting intensive customer contact and gathering programs. •Increase more no of capital guarantee schemes with low premiums so that middle class and rural customers can be attracted. •The schemes should be introduced according to the needs and profits of customers.
SDM PG Centre, Mangalore Page 45
ICICI Pru Life Insurance Company Ltd.
2010
•Along with the product, service has to be given ample opportunity to differentiate along the competitors as styling and services. •Company should maintain continuous relationships with the employees and customers to increase the market share. • Continuous maintenance of quality in services maintain the brand loyalty. •As technological improvements are increasing use the opportunities well and to help the customer a search facility should be include in order searching for key term from the website etc. to
9.CONCLUSION:
After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth ICICI in private sector, I come at the conclusion that • There is very tough competition among the private insurance companies on the level of new trend of advertising to lull a major part of Customers.
SDM PG Centre, Mangalore
Page 46
ICICI Pru Life Insurance Company Ltd.
2010
• The entries of more Pvt. Players in the Insurance Sector have expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers.
•
ICICI has vast market and very firm grip on its oldl customers and monopoly of life insurance products.
• Availability of ICICI is perfect. IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.
10.BIBLIOGRAPHY:
1. http://www.iciciprulife.com 2. http://www.google.com 3. http://www.wikipedia.com 4. http://business.mapsofindia.com
SDM PG Centre, Mangalore
Page 47
ICICI Pru Life Insurance Company Ltd.
2010
11.A Market Survey On Consumer Behavior on Capital Guarantee Schemes With Reference to ICICI Prudential Life Insurance Company
Respected Sir/Madam, I, Devnag G, pursuing MBA II year as part of the curriculum, I am undergoing summer project in ICICI Prudential Life Insurance Company. Hence, I request you to kindly extend your co-operation by filling this Questionnaire and the information provided will be kept confidential and used for only academic purpose.
SDM PG Centre, Mangalore
Page 48
ICICI Pru Life Insurance Company Ltd.
2010
Name: Age: Occupation: contact no: [
1) What is the Quantum of your Monthly Income? ] (A) 5000-10000 (B) 15000-20000 (B) 10000-15000 (D) ABOVE 20,000
2) What is the percentage of Amount you would like to save from Your income? [ (a) 5% Above 30% 3) Your opinion on ICICI Prudential Life Insurance Company? [ ] (a)Good (b) Positive (c) Negative (d) Better ] (b) 10% (c) 10%-20% (d) 20%-30% (e)
4) What are the various options generally you consider for Investment? [ ] (a)Fixed Deposits (b) Mutual Funds (c) Insurance (d) Shares (e) Chit Funds
SDM PG Centre, Mangalore Page 49
ICICI Pru Life Insurance Company Ltd.
2010
5) What are the factors you consider while choosing your Investment? [ (a) Profits ] (b) Liquidity (c) Safety (d) Tax Benefits
6) Do you feel that there is Impact on your Savings with the Current Budget? [ ]
(a) Yes (b) No 7) What is your preferred Time Horizon of Investment (in Years)? [ ]
Min 1- 2years (b) 1-3 years (c) 1- 4years ( d) Above 5years 8) Are you Aware of Capital Guarantee Schemes of ICICI ? [ ] (a)YES (b)NO ]
9) How you know about the Schemes? [
(a)Advisors/Employess (b) Management Trainees (c) Advertisements (d) others 10) Which organization ] will you choose for your
investments ? [
(a)LIC (b) ICICI PRU LIFE (c) SBI INSURANCE (d) HDFC (e) OTHERS
SDM PG Centre, Mangalore
Page 50
ICICI Pru Life Insurance Company Ltd.
2010
11) Your view on Benefits given by ICICI Schemes? ] (a)Reasonable (b) Not Reasonable (c) cannot say
[
12) Do you feel that Market Share of ICICI can be increased with these Capital guarantee Schemes? [ (a)Yes (b) No 13) What is the opinion on the Capital Guarantee Schemes of ICICI Prudential Life Insurance company [ a) goodb) excellent 14) Age of the respondents c) average [ ] ] d) poor ]
a) below 30 yearsb) 30 – 40 years c) 40 – 50 years d) above 50 years 15) Suggest any Measures to increase the Market Share: ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------SDM PG Centre, Mangalore Page 51
