Minimization of opportunity loss through Bancassurance for

ICICI Prudential
Submitted by

Rakesh Vikram Ramaswamy

Index
1.
2.
3.
4.

Introduction....1
Business Model of ICICI Prudential.4
Opportunity loss.4
Suggestions.5

Bancassurance:
Bancassurance or Bank Insurance Model is a partnership between a bank
and an insurance company, where the bank will be acting as a channel
member for the insurance firm. It is a win-win situation for both the firms.
Advantages of Bancassurance:

It encourages customers of banks to purchase insurance policies

and further helps in building better relationship with the bank.

The people who are unaware of and/or are not in reach of insurance
policies can be benefitted through widely distributed banking networks
and better marketing channels of banks.

Increase in number of providers means increase in competition and

hence people can expect better premium rates and better services from
bancassurance as compared to traditional insurance companies.
Disadvantages of Bancassurance:

Data management of an individual customers identity and contact

details may result in the insurance company utilizing the details to market
their products, thus compromising on data security.

There is a possibility of conflict of interest between the other

products of bank
ICICI Prudential:
ICICI Bank acts as a bancassurance channel for ICICI Prudential.
Benefits for ICICI Bank:
It is a source of additional income for the bank. Besides it, the bank
attracts other new customers who are more interested in the insurance
products rather than banking activities. It also results in value addition to
the banking services. Bancassurance also improves resource utilisation
and creates additional cash flow.
Benefits for the ICICI Prudential:

The banks customer base is shared with the insurance firm there by
increasing its reach. This model reduces the size of sales force and utilises
the banks infrastructure and other facilities like e-banking and other
online services.
Business Model:
ICICI Bank segmented its customers into two segments mainly Retail and
Wealth. Retail segment consists of customers from value and privilege
segment, whereas wealth segment consists of customers from wealth. In
retail banking the leads are generated by the cafos team through cross
selling and by the FSCs through direct pitching. These leads are
documented in a software called Navigator where the customer details
and expected closure date are entered. In wealth the leads are generated
by Relationship Managers and they are forwarded to the FSC. These leads
are also documented on navigator. The FSCs try to convert the leads
generated.
Opportunity Loss:
In Retail (Kondhwa):
Number of leads generated by the entire cafos team per day =7
Number of leads generated by FSCs through direct pitching per day =3
Number of working days in February = 21
Total leads generated by cafos per month = 7*21=147
Total leads generated by direct pitching per month = 3*21=63
Total number of policies sold = 32
Conversion rate in percentages= 32/210=15%
Opportunity Loss in percentages= 178/210=85%
In Wealth:

Average number of meetings per day=3

Number of working days in February = 21
Dheeraj.dadlani@iciciprulife.com
Total number of meetings= 63
Leads generated per RM=15
Total number of leads= 15*6= 90
Number of policies sold= 25
Conversion rate in percentages = 25/90 = 28%
Opportunity loss in percentages = 72%
Opportunity MIS:
Number of leads for LI = 5
Number of customers met = 3
Number of policies sold = 1
Conversion rate in percentage= 1/3= 33%
Opportunity loss = 67%
Suggestions:
1. Try to show them an excel model which explains them the amount they
are going to spend and the amount they will be earning.
2. Before pitching for a product try to understand the needs of the
customer and then suggest the customer what is better for him by
comparing.
3. Opportunity MIS for retail which gives the details of the customer who
are interested in investing in future.
4. Integration of Opportunity MIS and Integra, so that every month new list
of potential customers will be generated

5. Third party certifications about our various funds like customer

reviews, moneycontrol.com, Morningstar.in should be used to gain