Professional Documents
Culture Documents
ON
BY
Dasari Ravi
REGISTRATION NO: 80339011
1
ACKNOWLEDGEMENT
I would like to begin my report by extending a sincere word of
thanks to Dr. K V Subba Reddy Institute of Management,
Kurnool and ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD for
giving me an opportunity to work on this project, as apart of my academic
program. It had been a very knowledgeable experience for me working on
this project. This project help me enhanced my level of confidence a lot
I would like to show my sincere gratitude to my Unit Manager ICICI
PRUDENTIAL LIFE INSURANCE CO LTD: Mr. M.R. Kiran (Company
Guide) for giving me the opportunity to work in his esteemed organization.
Dasari Ravi
2
DECLARATION
Dasari Ravi
3
CONTENTS
CHAPTER TITLE OF CHAPTER PAGE
NO.
1. EXECUTIVE SUMMARY
2. INTRODUCTION
IMPORTANCE OF THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
METHODOLOGY OF THE STUDY
LIMITATIONS OF THE STUDY
3. INTRODUCTION TO INDIAN INSURANCE
MARKET
LIFE INSURANCE MARKET
MARKET SHARE AND GROWTH
INSURANCE INDUSTRY A SWOT
-ANALYSIS
4.
COMPANY PROFILE
5.
DATA ANALYSIS AND INTREPRETATION
6.
SUGGESTIONS
7.
CONCLUSIONS
8.
BIBILIOGRAPHY
9.
ANNEXURE
4
EXECUTIVE SUMMARY
5
EXECUTIVE SUMMARY
As the title of the project suggests the main aim of the project lies in
studying the marketing process of insurance products and during this
process to understand the psychology-customer behavior and various
reactions of the customers as prospects.
Insurance business has traditionally been at the mercy of tax savers
and business booms in the financial yearend. However the influx of private
players in the foray has changed the business outlook of this industry.
The project gives an introduction to the concept of insurance
followed by its origin and history in the world and in India and then
discusses the current market scenario. Further the project gives
introductions of ICICI prudential life insurance company ltd. and the
various products it has for offering to the public.
The project then briefly discusses about the sales interviewing
script, methodology of research, consumer opinion analysis, direct selling,
and market segmentations etc.
A sample size of 110 consumers was taken and their responses are
briefly analyzed, tabulated, to know the reactions of customers regarding
insurance products of ICICI PRU LIFE.
During the study it was found that most of the people has good
opinion about ICICI PRU LIFE and most of the people are interested in
investing their money in insurance and considering safety and profits as
factors for their investments.
6
INTRODUCTION
7
INTRODUCTION
8
OBJECTIVES:
9
scope
insurance.
10
RESEARCH METHODOLOGY:
Methodology selected in order to realize the research objective of
the present study of survey by interview
RESEARCH DESIGN:
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 for data collection.
SAMPLING PROCEDURE:
Sample size of 110 consumers covering various segments like
manufacturing,
11
Limitations:
4. The study was carried out in Kurnool only, hence the results
busy
Schedule.
largesampling.
12
INSURANCE MARKET
IN
INDIA
13
INSURANCE MARKET
The mechanism involves people who are exposed to the same risk
come together and agree that if any one of the members suffers a loss the
others will share the loss . Thus people facing common risk come together
and make their contribution towards a common fund whose amount is
determined beforehand on the basis of past data and experiences.
14
Thus we see that a large number of homogenous units (people
.companies, Entitles) with a similar potential for loss exposure must be
available for insurance and this is generally referred to as The Law of large
numbers.
Life Insurance
15
The first step...
Insurance as we know it today owes its existence to 17th century
England. In fact. it began taking shape in 1688 at a rather interesting place
called Lloyd's Coffee House in London, where merchants, ship-owners
and underwriters met to discuss and transact business. By the end of the
18th century, Lloyd's had brewed enough business to become one of the
first modern insurance companies.
Enter companies...
The first stock companies to get into the business of insurance were
chartered in England in 1720. The year 1735 saw the birth of the first
insurance company in the American colonies in Charleston, SC.
In 1759, the Presbyterian Synod of Philadelphia sponsored the first
life insurance corporation in America for the benefit of ministers and their
dependents.
However, it was after 1840 that life insurance really took off in a big
way. The trigger: reducing opposition from religious groups.
16
The growing years...
The 19th century saw huge developments in the field of insurance,
with newer products being devised to meet the growing needs of
urbanization and industrialization.
In 1835, the infamous New York fire drew people's attention to the
need to provide for sudden and large losses. Two years later,
Massachusetts became the first state to require companies by law to
maintain such reserves. The great Chicago fire of 1871 further
emphasized how fires can cause huge losses in densely populated
modern cities. The practice of reinsurance, wherein the risks are spread
among several companies, was devised specifically for such situations.
There were more offshoots of the process of industrialization. In
1897, the British government passed the Workmen's Compensation Act,
which made it mandatory for a company to insure its employees against
industrial accidents.
With the advent of the automobile, public liability insurance, which
first made its appearance in the 1880s, gained importance and
acceptance?
In the 19th century, many societies were founded to insure the life
and health of their members, while fraternal orders provided low-cost,
members-only insurance.
Even today, such fraternal orders continue to provide insurance
coverage to members as do most labor organizations. Many employers
sponsor group insurance policies for their employees, providing not just life
insurance, but sickness and accident benefits and old-age pensions.
Employees contribute a certain percentage of the premium for these
policies.
17
Life Insurance in India
Although insurance in its present form has been brought to India by
the British and other colonial powers the concept of collective co-operation
to share a particular risk is as old as the dawn of human civilization.
India was a major trading power in ancient times and some
examples of sharing risks can be found such as ships carried cargo of
several traders together instead of a single individual. In the Mogul army a
life annuity was granted to the family on the demise of a soldier against
some regular contribution in his life time. The Joint family system of India
is also an embodiment of the same concept.
Early attempts
Life insurance in its modern form came to India from England in
1818 with the formation of the Oriental Life Insurance Company in Kolkata
and with the passage of time Indians were also covered by this company.
By 1868 there were 285 companies operating in India and were primarily
into insuring the European lives, those Indians who were offered were
charged an extra premium of 15 to 20% and treated as substandard lives.
18
growth of life insurance was quiet steady except in 1947-48 during the
partition of India.
Nationalization of Insurance Business 1956
After Independence our nation was moving towards a Socialistic
pattern of society and with the main aim of spreading the concept to rural
areas and to channel the money into nation building activities the
government of India Nationalized the life insurance business and formed
"The Life Insurance Corporation of India" by merging about 250 life
insurance companies. The Life Insurance Corporation of India started
functioning from 1.9.1956 and today is the largest insurer in the country
with one central office, seven zonal offices and over 2,048 branch offices
with a workforce of 1,25,000 employees and over 8,00,000 life insurance
agents.
Evaluate your life insurance needs :
Life Insurance is one of the most popular savings/ investment
vehicles in India. Ironically, it’s probably the least understood too. An
insurance policy offers much more than just tax planning and investment
returns. It offers the ability to plan for unforeseen events that could affect
family's financial profile adversely.
Factors to consider:
Financial profile and needs are different from person to person,
and the same is true for insurance needs.
However, irrespective of the differences, the number of dependents
PH has and their financial needs are the most important factors to
consider.
19
Issues to consider while evaluating the above factors include:
20
Whole life versus limited period:
As PH grow older, he may not have as many dependents (his
children would become self-dependent) or his wealth may reach a level
where it can support his dependents’ financial needs in the event of his
death.
These possibilities bring us to the interesting question on whether
he should insure himself, for whole life or for a limited term. Obviously, the
cost of insurance for the latter is lower.
I recommend him to insure for whole life only if he never expect his
wealth to reach a level where it can support the financial needs of his
dependents.
Tax Planning:
The premium paid for an LIC policy also qualifies for tax rebate
under Section 88 of the Income Tax Act. The maximum premium amount
that can qualify for rebate is Rs60, 000 per annum and you get a rebate
equivalent to 20% of the premium paid, from your tax liability for the year.
In step 3, deals about steps in selecting a life insurance policy.
21
How long he want to pay his insurance premium for? Key factors
this decision could depend upon are -
1) How many years he see himself earning a regular income
2) The level of his regular savings
3) The amount he can commit to paying regularly as insurance
premium
4) How long he want to be insured versus how long he expects to pay
a premium for?
Other important questions to ask besides understanding how
much insurance he need and letting his premium-paying term, he need to
consider some other
Key factors, such as -
Does he want to participate in bonus/ profit share?
1) What is the primary objective of his seeking insurance –
2) Mainly risk cover, mostly investment returns?
3) Does he want accident cover?
For a detailed understanding of the factors he need to consider
while selecting a life insurance policy, and the rationale for the same, use
Insurance Planner.
This planning tool will also take him step by step and arrive him at a
shortlist of life insurance policies appropriate for him, based on his
personal profile.
To understand life insurance terms, he can read The Basics of Life
Insurance is as follows....
What is life Insurance?
Life insurance is a contract for payment of money to the person
assured (or to the person entitled to receive the same) on the occurrence
of the event insured against.
Usually the contract provides for -
Payment of an amount on the date of maturity or at specified
periodic intervals or at death, if it occurs earlier.
22
Periodical payment of insurance premium by the assured, to the
corporation who provides the insurance.
23
Premium for an endowment life policy is much higher than those for
a whole life policy.
24
What is Bonus?
An insurer distributes its profits among it policyholders every year in
the form of a Bonus. Bonuses are credited to the account of the
policyholder and paid at the time of maturity. Bonus is declared as a
certain amount per thousand of sum assured. The term "bonus" is used
interchangeably with "with profit".
25
What are Accident Benefits?
On payment of an additional premium of Re1 per Rs1000 of Sum
Assured per year, the assured is entitled to the following benefits:-
In case of accidental death, the nominee shall receive double the sum
assured.
In case of total and permanent disability due to accident, risk
coverage continues without further payment of premium. In addition, an
amount equal to the sum assured is paid to the assured in monthly
installments spread over 10 years. However, subsequent accidental death
will not entitle the nominee for double the sum assured.
26
scheme, the additional charge of 5% of the premium usually added for the
monthly mode of payments will be waived.
27
What is Nomination/Assignment of a Policy?
When the policy money becomes due for payment on the death of
the policyholder, it can be paid only to that person who is legally entitled to
give a valid and effective discharge to the corporation. If the policy bears
nomination, the claim is settled in favor of the nominee. Similarly, if the
policy is assigned, the assignee receives the claim amount. It should be
noted that an assignment of a policy automatically cancels the existing
nomination. Hence, when such a policy is reassigned in favor of the
policyholder, it is necessary to make fresh nomination.
28
When does a policy lapse?
When the premium is not paid within the days of grace provided
after the due date, the policy lapses. The grace period in case of yearly,
half-yearly and quarterly modes of payment is one month and in case of
the monthly mode of payment, it is 15 days.
29
alterations resulting in lower rates of premier and within the 1st year from
the commencement of the policy.
30
Insurance Sector Reforms
Secondly, the maximum share the foreign player can hold is 26%,
with the local company (or companies) holding the balance. Regulators
are currently reconsidering the foreign equity cap of 26%.
31
Proactive steps taken by the IRDA for development of the market:
1) Market regulation by prudential norms.
2) Registration of players who have the necessary financial strength to
withstand the demands of a growing and nascent market.
3) Implementation of a solvency regime that ensures continuous
financial stability.
4) Presence of an adequate number of insurers to provide competition
and choice to the customers.
5) Development of market capacity by asking insurers to retain bulk Of
the premium within the country and to exhaust local market
32
players. As the consumer of insurance is waking up to newer needs. The
Indian insurer is also getting there to meet them. Through product and
market research and no doubt through observation of consumer behavior
changes are effected in the kind of products and features coming out into
the market.
The concept of Insurance
The business of insurance is related to the protection of the
economic value of an asset for which a normal lifetime exists during which it
is expected to perform. However if the asset gets Damaged, destroyed or is
made non functional by the occurrence of some unfortunate event the
owner of the assets suffers. Insurance is a mechanism to reduce the
financial implications of such consequences.
The mechanism involves people who are exposed to the same risk
come together and agree that if any one of the members suffers a loss the
others will share the loss and make good the loss. Thus people facing
common risk come together and make their contribution towards a common
fund whose amount is determined beforehand on the basis of past data and
experiences.
STATISTICS
Population : 1.07
Billion Economies : 4th largest in the world in terms of Purchasing Power
Parity (PPP).
Saving Rate : Around 20 % of GDP
GDP growth Rate : Over 7.3%
Estimated insurable population : 900 million
Insured population : 70 million only
Insurance premium as a percentage of GDP: 2 %
Size of market, life and Non-life : $9.94 billion
Total global insurance premium : $ 2422 billion
33
Rate of Annual Growth year 2004-05 : Life 21.57
Non-life : 13.5 %
34
the total 400 million of the insurable population. The state owned LIC
sold insurance as a tax instrument. Not as a product giving protection.
Most customers were under-insured with no flexibility or transparency in
the products. With the entry of the private insurers the rules of the game
have changed.
The 15 private insurers in the life insurance market have already grabbed
nearly 21.57% of the market in terms of premium income. The new
business premiums of the 15 private players had tripled to Rs. 13,153 crore
in 2004 with the business increasing in the year 2004. Meanwhile state
owned LIC’s new premium business has fallen.
The private insurers also seem to be scoring big in other ways they
are persuading people to take out bigger policies. For instance, the
average size of a life insurance policy before privatization was around Rs.
50, 000. That has risen to about Rs. 80,000. But the private insurers are
ahead in this game and the average size of their policies is around Rs.1.1
lakh-way bigger than the industry average.
35
Market share and growth
LIC dominated the life insurance market with 87.4% of the total
premiums collected during FY 2003. Its premium income increased 42.8%
during FY 2004 from Rs.348.920 mn in FY 2003 to Rs 498219 mn in FY
2004 by comparison LIC’s premium income had increased 25.1 % during
2003 and 21.2% during 2004.
Among the private players ICICI prudential led with a market share
of 6.25% (premium collection is about 750.91 Crores) followed by Allianz
bajaj at 3.4% (premium collection is about 449.86 Crores). Further a
comparison of the individual single premium underwritten by the private
players and LIC reveals a decline of 3.42 % and 61.29 % at Rs.287.97
Crores and Rs.1161.71 Crs respectively. Under the group insurance
scheme the premium underwritten by the private players and LIC stood at
376.79 crs and Rs. 3647.82 crores with lives covered at 17.35 lakh and
45.10 lakh respectively the market share of the private insurers and LIC in
36
terms of premium underwritten for group insurance was 9.36%, 90.64%
respectively.
11.1719 ING.VYSYA
HDFC
MET LIFE
4.0583 ALLIANZ BAJAJ
37
MARKET SHARE OF LIFE INSURANCE CO. & PRIVATE INS.CO.
22%
LIC
PRIVATE
78%
NEW BUSINESS PREMIUM UNDERWRITTEN BY PRIVATE LIFE INSURERS FOR 2003-04 AND 2004-05
38
BUSINESS PREMIUM UNDERWRITTEN BY PRIVATE INSURERS AND LIC
INDUSTRY FOR 2003-04 & 2004-05
2003--04, 2004--05,
100
87.04 78.07
80
60 Series1
40 2003--04, 2004--05, Series2
20 12.96 12.96
0
2003--04 2004--05
Major Weaknesses
1) Insurance companies are often slow to respond to changing needs.
2) There is an increasing trend of financial weakness among the
companies.
3) There are more competitors for agencies to compete with banks
and Internet players
39
Opportunities
1) The ability to cross sells financial services is barely being tapped
and can still be developed by collaborative efforts.
2) Technology is improving to the point that paperless transactions are
available.
3) The client's increasing need for an "insurance consultant" can open
new ways to service the client and generate income.
Threats
1) The increasing cost and need for insurance might hit a point where
a backlash with occur.
2) Government regulations on issues like health care, mold and
terrorism can quickly change the direction of insurance. Increasing
expenses and lower profit margins will hit hard on the smaller
agencies and insurance companies.
3) Increasing expenses and lower profit margins will hit hard on the
smaller agencies and insurance companies.
4) Increasing in the number of private players in the market.
Factors Responsible for the Likely success of Insurance Companies.
Several factors are responsible for the likely success of the various
Insurance companies in general; viz.
1 The A change in the attitude of the population
2 An open and transparent environment created under the IRDA.
3 A well-established distribution network.
4 Trained professionals to build and sell the product.
5 A more rationale approach to the investment criteria
6 Encouragement of newer and better products.
7 A stringent accounting practice to prevent failures amongst the
insurers.
8 A level playing field at all stages of development in the sector for all
the players.
40
COMPANY PROFILE
41
COMPANY PROFILE
INTRODUCTION OF ICICI PRUDENTIAL LIFE INSURANCE CO LTD.
42
ICICI NETWORK:
ABOUT PRUDENTIAL
43
Origins:
When Prudential was founded in London in 1848 it provided
professional people with loans secured by life assurance. The market was
later broadened when insurance policies, with penny premiums collected
by agents, were sold by the industrial branch to the working classes in the
second half of the nineteenth century.
Industrial assurance was an innovation in insurance. The actuarial
methods , until then had been applied to insurance for the better off social
classes were combined with the traditional method of direct selling through
agents that had successfully been used by friendly societies and burial
clubs. The Prudential brand values of integrity, value for money and
security were established and built the company's reputation. Success in
this market meant that by the 1900s Prudential insured one third of the UK
population.
Expansion
Over the decades Prudential has extended the product portfolio to
meet customers' needs. Following the First World War new policies for
single women, family and home protection were introduced. The
establishment of group pensions in 1929 added a further range of products
to the business. During the 1950s and 1960s, Prudential's ordinary branch
focused on life cover, long term savings products and retirement annuities.
Traditional industrial branch products declined, although home service was
still in demand. By the 1970s Prudential had established a wide range of
assurance, investment and savings products.
44
The focus on adopting new sales and marketing techniques to
promote products dominated the 1980s. The sales force was restructured
to deal better with customer needs and new channels of communication
were opened through telephone sales and Independent Financial
Advisers. The 1990s saw further diversification of products and methods of
communication. In 1997 Scottish Amicable was acquired, strengthening
Prudential's position in the IFA sector.
Recent Events
Prudential's UK business has undergone a strategic review to meet
customer's changing needs including the closure of the direct sales force,
the transfer of our general insurance operations to Winterthur Insurance
and the relaunch of a single UK brand with the award-winning ‘Plan from
the Pru’ campaign, an impartial guide to financial planning.
Today Prudential's UK Insurance Operations provide a range of
financial products and services through a diversified distribution model
which includes agreements with Abbey National Bank and Zurich Financial
Services. Prudential is the leading distributor of with-profits bonds through
IFAs, and continues to lead the market in its other chosen product areas,
including corporate pensions and bulk and individual annuities.
45
ICICI COMPANY VISION
To make ICICI Prudential the dominant Life and Pensions player built on
trust by world-class people and service.
Promoters:
46
ICICI and Prudential came together in 1993 to form Prudential ICICI
Asset Management Company, which has today emerged as one of the
leading mutual funds in India. The two companies bring together two of the
strongest financial service brands in Asia, known for their professionalism,
excellent quality of service and long term commitment to YOU. Riding on
the success of this relationship, the two companies joined hands once
more in 2000, to form ICICI Prudential Life Insurance, with a commitment
to provide leading-edge life insurance solutions.
ICICI Bank has 74% stake in the company, and prudential plc has 26%.
ICICIBank:
(www.icicibank.com). ICICI Bank posted a net profit of Rs.1, 206 crore for
the year ended March 31, 2005. ICICI Bank is the only Indian company to
be rated above the country rating by the international rating agency
Moody’s and the only Indian company to be awarded an investment grade
international credit rating. The Bank enjoys the highest AAA (or equivalent)
rating from all leading Indian rating agencies.
Management:
47
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board
comprises reputed people from the finance industry both from India and
abroad.
Mr. K.V. Kamath, Chairman
Mr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. Kevin Holmgren
Mr. M.P. Modi
Mr. R Narayanan
Ms. Shikha Sharma, Managing Director
Management Team
Ms. Shikha Sharma, Managing Director
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Shubhro J. Mitra, Chief - Human Resources
Mr. Puneet Nanda, Head - Investments
Ms. Anita Pai, Chief - Customer Service and Operations
Mr. V. Rajagopalan, Appointed Actuary
Mr. Dipan Bhattacharya - Chief Information Technology
48
ICICI Prudential Life hikes capital to Rs 675 cr
ICICI Prudential Life has hiked its capital by Rs 50 crore to Rs 675 crore in
view of booming business.
Hiking the capital for the ninth time since its inception in December 2000,
the 74:26 joint venture between ICICI Bank and Prudential (PLC) said the
additional capital would be used for meeting capital adequacy norms
stipulated by the Insurance Regulatory and Development Authority.
'ICICI Prudential has grown exponentially over the past three years,'
its Managing Director Shikha Sharma said in a statement.
49
Winner: ICICI PRUDENTIAL
In the short span since the insurance sector was opened up, ICICI
Prudential Life Insurance has literally dictated the market’s evolution.
Catering to all age and income segments, the company started out with
the traditional insurance policies that were easy to understand. The idea
was to entire customers used to LIC' style of functioning.
ICICI Prudential also has a strong sales network and tie-ups with
banks to offer bank assurance products. Its supplementary marketing
channels contribute close to 30 per cent of its premium income. The
company is now reaching out to new and untapped markets. ICICI
Prudential works closely with NGOs and micro-finance institutions to
spread awareness about the concept of insurance in rural areas. This
helps meet the social obligations mandated by IRDA, but the company has
gone a step ahead by actively involving the villagers and working closely
with them.
50
company isn’t a trifle too aggressive. But others say this has more to do
with the company’s customer-centric focus, its pan-India presence and
superior risk management and investment strategies. ICICI Prudential is
not, however, resting on its laurels. The company will continue to innovate
and set the standards.
HDFC Standard Life and Tata AIG have retained their third and
fourth positions. Interestingly, there are three companies that are neck-
51
and-neck in the battle to be among the top five with a market share of
close to 7% - Allianz Bajaj, Max New York Life and SBI Life Insurance.
FACT SHEET:
THE COMPANY
ICICI Prudential’s equity base stands at Rs. 925 crore with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. In the
period April-December 2004, the company garnered Rs 860 crore of new
business premiums for a total sum assured of over Rs 7,360 crore and
wrote nearly 345,000 policies. Today the company is the No.1 private life
insurer in the country.
52
DISTRIBUTION:
PRODUCTS:
53
Insurance Solutions for Individuals:
Savings Solutions
54
• Invest Shield Cash is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest
along with flexible liquidity options.
Protection Solutions
Child Plans
Retirement Solutions
55
• LifeTime Pension II is a regular premium market-linked pension
plan
ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan
helps employers fund their statutory gratuity obligation in a scientific
manner. The plan can also be customized to structure schemes that can
provide benefits beyond the statutory obligations.
ICICI Pru Group Term Plan: ICICI Pru?s flexible group term
solution helps provide affordable cover to members of a group. The cover
could be uniform or based on designation/rank or a multiple of salary. The
benefit under the policy is paid to the beneficiary nominated by the
member on his/her death.
56
ICICI Pru Life offers flexible riders, which can be added to the basic
policy at a marginal cost, depending on the specific needs of the customer.
• Accident Benefit: This rider option pays the sum assured under
the rider on death due to accident.
• Income Benefit: This rider pays the 10% of the sum assured to the
nominee every year, till maturity, in the event of the death of the life
assured. It is available on SmarKid, SecurePlus and CashPlus.
57
ICICI Bank is India's second-largest bank with total assets of about
Rs.112,024 crore and a network of about 450 branches and offices and
about 1750 ATMs. It offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the areas
of investment banking, life and non-life insurance, venture capital, asset
management and information technology. ICICI Bank posted a net profit of
Rs.1,637 crore for the year ended March 31, 2005. ICICI Bank's equity
shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata
and Vadodara, the Stock Exchange, Mumbai and the National Stock
Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).
58
DATA ANALYSIS AND INTERPRETATION
45%
40%
35%
30% 5000-10000
25% 10000-15000
20% 15000-20000
15% ABOVE 20,000
10%
5%
0%
59
PERCENTAGE OF AMOUNT TOTAL PERCENTAGE %
RESPONDENTS LIKE TO SAVE RESPONDENTS
FROM MONTHLY INCOME
5% 14 13%
5%-10% 33 31%
10%-20% 47 42%
20%-30% 9 8%
ABOVE 30% 7 6%
TOTAL 110 100%
45%
40%
35%
30% 5%
25% 5%-10%
20% 10%-20%
15% 20%-30%
10% ABOVE 30%
5%
0%
PERCENTAGE %
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.
60
3.RESPONDENTS OPINION ON ICICI PRUDENTIAL LIFE INSURANCE
COMPANY
4%
96%
61
OPTIONS OF RESPONSES
INVESTMENTS
FIXED DEPOSITS 29 26%
MUTUAL FUNDS 20 18%
INSURANCE 32 29%
SHARES 25 23%
CHIT FUNDS 4 4%
TOTAL 110 100%
4%
23% 26%
18%
29%
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.
62
PROFITS 37 34%
LIQUIDITY 6 5%
SAFETY 57 52%
TAX BENEFITS 10 9%
TOTAL 110 100%
9%
34%
52% 5%
63
IMPACT ON TOTAL RESPONSES PERCENTAGE
SAVINGS WITH %
CURRENT
BUDGET-2005
YES 69 63%
NO 41 37%
TOTAL 110 100%
37%
63%
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7. RESPONDENTS PREFERED TIME HORIZON FOR INVESTMENT
(INYEARS)
18%
30%
21%
31%
65
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.
47%
53%
66
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.
ADVISORS
OF
COMPANY
OTHERS
15%
23%
MANAGEMEN
ADVERTISEM TTRAINEES
ENTS 36%
26%
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FINDINGS: 36% of the respondents came to know about the capital
guarantee schemes through management trainees,26% through
advertisements,15% through advisors and 23% from others.
LIC 58 52.72%
ICICI PRU LIFE 32 29.09%
SBI LIFE INSURANCE 6 5.45%
HDFC 5 4.54%
OTHERS 9 8.18%
TOTAL 110 100%
RESPONDENTS INTRESTED ORGANZATIONS FOR THIER INVESTMENTS
60.00%
52.72%
50.00%
PERCENTAGE
40.00%
29.09%
30.00%
20.00%
8.18%
10.00% 5.45% 4.54%
0.00%
1
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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.
REASONABLE 62 56%
NOT REASONABLE 8 7%
CAN NOT SAY 40 37%
TOTAL 110 100%
60%
50%
40%
30%
20%
10%
0%
REASONABLE NOT CANNOT SAY
REASONABLE
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12 RESPONDENTS OPINION ON INCREASE OF MARKET SHARE
WITH THESE SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE
COMPANY
NO
13%
YES
61%
CANNOT
SAY
YES NO CANNOT SAY 26%
70
13 RESPONDENTS OPINION ON THE CAPITAL GUARANTEE
SCHEMES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY
POOR
12%
AVERAGE
21%
GOOD
60%
EXCELLE
NT
7%
71
FINDINGS: 60% of the respondents opined that capital guarantee
schemes are good, 21% average,7% excellent and 12%poor.
TOTAL 100%
10% 18% 1
2
33% 3
39% 4
FINDINGS:
1. From the above sample of 110 respondents 18% are below the age of 30.
2. From the above sample of 110 respondents 39% are the age group of 30-
40.
3. From the above sample of 110 respondents 33% are age group of 40-50.
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4. From the above sample of 110 respondents 10% are the age group of
above 50.
OVERALL FINDINGS:
PRU LIFE.
future period.
insurance to secure their lives and for tax benefits and also for
future profits.
given opinion that there is impact on their savings with the current
budget-2005.
8. It is clear by the research that most of the people are not proper
73
9. It is clear by the research that most of the people are choosing
10. Most of the respondents have given the reasonable opinion on the
benefits given by ICICI PRU LIFE schemes and they had good
11. Most of the respondents have given an opinion that they can
employees
74
SUGGESTIONS
75
SUGGESTIONS:
1 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.
2 To create awareness in the people by conducting intensive
customer contact and gathering programs.
3 Insurance advisors towards prospective investors need
improvement
4 Increase more no of capital guarantee schemes with low premiums
so that middle class and rural customers can be attracted.
5 The schemes should be introduced according to the needs and
profits of customers.
6 A little more aggression in direct marketing strategies is needed to
increase the customer relationships and to provide better service to
the customers.
7 Wide range of publicity is needed to withstand the competition and
to attract the customers.
8 Along with the product, service has to be given ample opportunity to
differentiate along the competitors as styling and services.
Enhancing the value added features in the products.
10 It can open insurance consultancies in twin cities, so that it can
come closer to its customers.
11 Company should maintain continuous relationships with the
employees and customers to increase the market share.
12 Continuous maintenance of quality in services to maintain the
brand loyalty.
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13 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.
CONCLUSIONS
77
CONCLUSION
Thus from overall project has helped me to learn a lot which is not
there in books. The practicality of the subject is totally seen in the real
sense. This live experience gave me an opportunity to learn new things,
which could be implemented in practical by the company to excel itself in
the segment. I thank ICICI PRUDENTIAL LIFE INSURANCE COMPANY
for providing this opportunity to me as a summer trainee and shown the
path of knowledge and experience which will help me to succeed in the
career and excel into bright future
Changing Expectations
1) While the fresh air of competition in every sector of the economy
brings in major changes in consumer expectations. The
insurance industry has witnessed a few unique aspects, such as
regulation-inspired efforts to educate insurance buyers, and a
vast change in the skills and capabilities of the intermediaries
78
involved in distribution.
Motivating factors
79
address this behavioral challenge more actively.
Customers' experience:
80
5) Instances of customers requiring agents to arrange for loans
against their policies, or change nominations etc. are rare.
Therefore companies need to gear themselves to provide high
service standards directly.
Premium shopping
High expectations
81
companies that remains to be tested widely is the claim payment
record. While consumers seem to be satisfied that the survival
benefits under a life insurance policy would get paid rather
promptly from the tech-savvy new companies, obviating the
need for interlocution by the insurance agent, insurance buyers
are not yet convinced about hassle-free payment in the event of
a claim. Whether under a life policy or a general insurance
policy. This is especially so in respect of rider benefits such as
critical illness or hospitalization benefits.
Employee Behavior
82
4) Finally employees have a greater change to invest in child care
policies as most of them inhibit a dream to collect small sums of
money to meet their children's education expenses at later
stages and are also very keen on the additional benefits given in
a policy.
Other Conclusions
b) Advertisements on TV channel:
83
Factors responsible success of the insurance Companies
Several factors are responsible for the likely success of the various
Insurance Companies in general ;
84
BIBILIOGRAPHY
BIBILOGRAPHY
85
1) www.iciciprulife.com
2) www.einsuranceprofessional.com
3) www.bimaonline.com
4) www.ciionline.org
5) www.mindbranch.com
6) www.irdaindia.com
7) Insurance Journals
8) Consumer Behavior – Leon G.Schiffman and Lazar Kanuk
9) Services Marketing – Zeithmal Valorie
86
ANNEXURE
QUESTIONNAIRE
87
A Market Survey On Consumer Behavior on Capital Guarantee Schemes
With Reference to ICICI Prudential Life Insurance Company
Respected Sir/Madam,
2) What is the percentage of Amount you would like to save from Your
income? [ ]
(a) 5% (b) 10% (c) 10%-20% (d) 20%-30% (e) Above 30%
4) What are the various options generally you consider for Investment? [ ]
(a) Fixed Deposits (b) Mutual Funds (c) Insurance (d) Shares
(e) Chit Funds
88
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
12) Do you feel that Market Share of ICICI can be increased with these
Capital guarantee Schemes? [ ]
(a)Yes (b) No
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a) below 30 years b) 30 – 40 years
c) 40 – 50 years d) above 50 years
90