A COMPARATIVE STUDY OF UNIT LINKED INSURANCE PLANS OFFERED BY ICICI PRUDENTIAL AND OTHER LIFE INSURANCE COMPANIES AT ICICI

I Prudential Life Insurance

Presented by Namita Saini 100172243499

COMPANY PROFILE

Indias Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of Indias foremost financial services companies-and Prudential - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 580 offices. For three years in a row, ICICI Prudential has been voted as Indias Most Trusted Private Life Insurer, by The Economic Times survey of Most Trusted Brands. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.

ULIP
Unit Linked Insurance Plan ULIP is life insurance solution that provides for benefits of protection and flexibility in investments. ULIP came into play in 1960s and become very popular in Western Europe and Americans.

Comparative analysis done on

Life insurance corporation Reliance Life Insurance Bajaj Allianz ICICI prudential

So I proposed to make survey among the people who have Life insurance of ICICI Prudential or taken some kind of Life insurance and some people who dont have any Life Insurance. To get response from both sides to know what is the actual problem. Is that current customer or existing customer are dissatisfied and spreading negative word of mouth or the other prospect are not exactly aware about the Life Insurance Schemes.

Working of the unit linked insurance plans. Swot analysis of the product. Comparative study of the competition. Study tax planning solutions available in the market. Market interface.

Research Methodology

Market Research Design:- Descriptive type Data Sources:- Primary Source Research Approach:- Survey Method Research Instrument:- Questionnaire Sample Size:- 100 Samples Mode Of Collecting Data:- Respondents to be chosen randomly

Sources of data Collection

Primary data:The fresh data which is collected at the first time by interviewing, getting questionnaire filled and etc. customers were given the structured questionnaire. Secondary database :The data which is already available there. It is a kind of second hand data. The sources of the secondary data are:y Magazines. y Websites

Sample Design
Social phenomenon being very vast, it becomes impossible to contact each and every individual of population due to limitation of essential resources like time and money. The study aimed to survey 100 samples. The respondents were selected on the basis of convenience sampling.

The questions having alternative choices have been analyzed by taking percentages. In the case of explanatory questions, the general suggestions have been summarized.

Features

ICICI Prudential Life Insurance LifeTime Gold

LIC

Bajaj Allianz Life Insurance company

Reliance Life Insurance

Name Of The Policy Entry Age

Bimaplus

Capital Unit gain

Market Return Plan

Min Age (Years) Max Age (Years) Maximum Policy Term

0 65

12 55

0 60

30 days 65

75years

10years

60

40years

Premium Min 20,000 5,000 10,000 10,000

single premium

25,000

50,000

25,000

25,000

Sum Assured

Min Max Top-ups Switches Loan Riders

1,00,000 Unlimited 2,500 4times No

50,000 10,00,000 5,000 2times No

1,00,000 unlimited 5,000 3times No

50,000 unlimited 2,500 1time No

Accident Benefit Critical illness Benefit Hospital cash

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

No

No

Yes

No

Questionnaire
Are you aware of ULIP offered by various companies in India?
Insurance Policy No. of Respondents % of Respondents

Yes No Total

88 12 100

88% 12% 100%

Aware of ULIP
100 90 80 70 60 50 40 30 20 10 0 1 2 12

88

Interpretation People are aware about the ULIP offered by various insurance companies. 88% are aware about the ULIP and 12% are not aware.

Respondents ready to invest in the ULIP of icici prudential

Ready to Invest in the ULIP of ICICI Prudential Yes No 60 Total 100 100% 60% No. of Respondents % of Respondents

40

40%

Respondents ready to invest in the ULIP of ICICI prudential

70 60 60 50 40 40 30 20 10 0 1 2

Interpretation
The above interpretation shows that 40% of sample population is ready to insure their life with ULIP of ICICI Prudential and remaining 60% are not ready to invest with ULIP of ICICI Prudential. It is clear that the company has to create the awareness about the ULIP in the market in order to increase the sales.

Survey Findings

There is a common opinion that ULIP has a good future as it will satisfy all the wants of an investor including return. Around 29% of sample population is ready to invest if they get High Returns, apart from Tax Benefit & Partial & Full Withdrawal Facilities. 42% of the sample population is ready to invest in ULIP. Around 58% like to invest in private life insurance companies. Even though majority of the people have a good awareness but still they have a negative attitude towards investing in insurance and related securities. 40% of sample population is ready to invest in the ULIP of ICICI Prudential and the remaining 60% are ready to invest in other ULIP providing insurance companies.

Limitations

The geographical area was very much limited to residential area & so the results are not particularly reflection of the current behavior. Due to limited time period and constrained working hours for most of the respondents, the answers at times were vague enough to be ignored. March for tax saving purposes & so the response to initial contacts were not all encouraging and that has been the primary reason in the inability to quantify the results large enough so as to reduce any relevant outcomes. Most of the results that are spelt out have been of qualitative aspects. People are not interested in giving personal opinion

Conclusion
People are now showing more interest in ULIP as compared to some of the traditional plans. The size of the market has grown and the size of the insurable population in India is really huge and the existing player has managed to cover about onefourth of it. The opportunities before the players are, therefore, huge in terms of target audience. The falling interest rates, the collapse of many small-time financial institutions, the scope for entering related areas like banking and the promise of E-Commerce provide opportunities for the new products like ULIPs in the insurance market as it gives high returns and insurance coverage to the customers. As it provides benefits of mutual funds and endowment plans most of the people like to take a policy. Life insurance has today become a core of market economy since it offers plenty of scope for generating large sum of money with the time by offering its customers perfect products to satisfy their financial need. It is, therefore, essential to invest in insurance sector if we want to have a worry-free future.

Recommendations

Total financial planning and advice should be given to every customer. The company should quite frequently send their agent to the customer so that they should be aware of the latest offer. Company should introduce more innovative pension and child ULIP plans as they have more demand. ICICI Prudential can unquestionably make good use of more advertisement to promote its products and to improve its brand awareness and brand image. From the customers point of view, ICICI Prudential is just another private insurer trying to sell whatever they have. Instead the company must modify its product range in such a way that the company could clearly distinguish its products from that of its competitors. ICICI must clearly introduce ULIP products with low premium because the low profile customers who want to invest in ICICI Prudential have no option other than going to other private players.