Spreading awareness about the insurance products and generating leads

Executive Summary
India Infoline is the biggest corporate agent for ICICI Prudential Life Insurance Insurance Selling is not like selling any other product. While selling this intangible product we are actually selling death benefit, which makes it less attractive because customers are less interested in a product whose benefit will be received after their death This project deals with spreading awareness about the insurance products and generating leads in Ahmadabad city.

 The steps followed by me were: Cold calling

Lead generation
Visiting the leads Pitching the product

Introduction

 India Infoline is a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology.

India Infoline Group

The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries , straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websiteswww.indiainfoline.com andwww.5paisa.com The company has a network of 976 business locations(branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000 customers.

INDIA INFOLINE GROUP

India Infoline Media and Research Services Limited.

The content services represent a strong support that drives the broking , commodities, mutual fund and portfolio management services businesses. Revenue generation is through the sale of content to financial and media houses, Indian as well as global

India Infoline Commodities Limited.

India Infoline Commodities Ltd. Enjoys memberships with the MCX and NCDEX, two leading Indian commodities exchanges ,and recently acquired membership of DGCX.

India Infoline Marketing &Services

India Infoline Marketing and Services Limited is the holding company of India Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited

India Infoline Marketing &Services

It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited, which is India's largest private Life Insurance Company. India Infoline was the first corporate agent to get licensed by IRDA in early 2001. India Infoline Insurance Brokers Limited India Infoline Insurance Brokers Limited is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking license and the clearance for the same is awaited. Post the grant of license, we propose to also commence the general insurance distribution business.

India Infoline Investment Services Limited

India Infoline Investment Services Private Limited consists of the following step-down subsidiaries. (a) India Infoline Distribution Company Limited(distribution of retail loan products) (b) Money line Credit Limited (consumer finance)

(c) India Infoline Housing Finance Limited(housing finance)

IIFL (Asia) Pte Limited

IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets.

Indian Insurance Industry

Insurance constitutes one of the major segments of the financial market. Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry.

Recently there has been a hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. Government may in near future allow 49% FDI in Insurance. This would lead to more capital inflow by foreign partner Right now the insurance industry has great opportunities in a country like India or China which huge population. Also the penetration of insurance in India is very low in both life and non-life segment so there is lot potential to be tapped.

Competitor Analysis of ICICI Prudential

 In the Insurance Sector, LIC is the largest player. But its share has been consistently reducing since liberalization and privatization of this sector INDUSTRY GROWTH RATE IS 36% Left (Image)

SWOT analysis of I.C.I.C.I Prudential Insurance Products

Strengths
The biggest strength of the organization is the: Money power which makes them ignorant about the gestation period. Brand image , brand experience and innovative products.

Weakness
High targets for the financial advisors and sales department. Many competitors in the market sell the same product with a slight difference in premium and offerings The reach in semi-urban areas and rural markets is still very less

Opportunity
Huge market is still untapped, out of 320millio n insurable markets only 20 % is insured. Health insurance and pension schemes have an estimated market potential of 15billion

Threats
Players like Bajaj and Birla Sun life have low premium for similar plans. Entry of many other private companies with equally strong experience and financial strength of foreign partners is making the competition difficult and saturating the urban markets. LIC has woken up from sleep and is following competitive strategies. Its huge surplus in Life fund gives a capability to lodge a price war.

Observations
LACK OF AWARENESS AMONG THE PEOPLE: This is the biggest limitation found in this sector that people are not aware of the necessity and importance of the insurance in their life. They are not aware how useful life insurance can be for their family members if something happens to them. Perception of the people towards insurance sector: People still consider insurance as a tax saving device. So today there is always a rush to buy Insurance policy only at the end of the financial year making the other 9 months dry for this business

 Insurance does not give good returns: Still people think that insurance does not give good returns. They are not aware of the modern UNIT LINKED INSURANCE PLANS which are offered by most private players these days. They still carry the perception that if they take insurance they will get 5-6%returns which is not true now a days. Now a days most of the modern ULIPs give returns which are much more than the returns from Fixed deposits, National saving certificate, Post office deposits and Public Provident fund. Lack of awareness about the earning opportunity in the insurance sector-People still today are not aware about the earning opportunity that the insurance sector gives. After the privatization of the insurance sector many private giants have entered the insurance sector. These private companies in order to beat the competition and to increase their Insurance Advisors to increase their reach to the customers are giving very high commission rates but people are not aware of that.

 Increased competition Today the competition in the insurance sector has become very stiff. Currently there are 14 Life Insurance companies working in India including the LIC(life insurance corporation of India). Today each and every company is trying to increase their Insurance Advisors so that they can increase their re chin the market. This situation has created a scenario in which to recruit life insurance advisors and to sell life insurance policy has become very very difficult.

Recommendations
The insurance products should not be pitched as pure insurance products but as investment instruments A ULIP offers a wide choice of funds, ranging through equity, debt, cash, or a combination of the three. The customer is also offered the option of choosing fund mix based on his desired asset allocation. Customer can choose from various fund options i.e. R.I.C.H., Multiplier, Flexi Growth, Flexi Balanced, Balancer, Protector, Preserver. These have varying equity and debt mix and accordingly they give returns. Higher investment in equity , higher returns but risk will be also higher .

 If the premium is paid for three years and after that if the customer wishes to stop paying premium he has an option to continue the risk cover and his premiums will not be forfeited. Taking undue advantage of that what insurance salespeople do they pitch the product saying to the customer that you need to pay premium only for 3 years and you can enjoy the risk cover for the rest of the term of the policy. This helps make acquisition of the customer easy and fast, because customer thinks that he is getting the risk cover for only three years of premium so he gets easily acquired

 Regional language is very important in giving personal touch So ICICI prudential should print product details in regional language. ICICI prudential should look forward for more interactions with customers through arranging the annual meeting.

 Various needs can be The insurance products should be pitched according to the life stage need.2530 Seeking job, trying to save, house /car loans.30-35 Marriage expenses,3550 Children's education.5055 Spending on parent's medical expenses.60 onwards Own retired life

Riders
A rider is a clause or condition that is added on to a basic policy providing an additional benefit. Insurers find it easier and covenient to have a small number of basic plans , with riders being offered as options, effectively the prospect has a number of options to choose from. Such options enable customisation of the product. Various riders are: Increased death benefit , being twice or even more than the survival benefit. Accident benefit allowing double the Sum Assured if death happens due to accident.

 Permanent disability benefits , covering loss of limbs, eyesight, hearing , speech etc. Dreaded disease cover, providing additional payments( in lump some or in installments), if the life insured requires medical attention because of specified conditions like cancer, cardiac or stroke , kidney failure etc. Cover to continue beyond maturity age for same Sum assured or higher Sum Assured. Option to increase cover within specified limits or dates

Managerial Learning
Intermediary plays a very important role because of the following reasons : Its a personalized type of marketing. Moral hazard of the insured is to be judged. Layman does not know insurance He has to be guided for the best cover He has to be given service in terms of proposal form, claim form, getting refunds, giving policies, receipts , cover notes. He has to be told about requirements and documentation.