Icici Project

INTRODUCTION OF INSURANCE
Fundamentals of Insurance
In life every human being-you and we included is exposed to an element
of risk, commonly defined as the possibility of loss. These broadly relate
to two spheres-our lives and our material possessions. Further, every loss
has two implications: financial and non-financial. For instance when a
person dies, the family suffers a grievous emotional loss, which can
perhaps never be compensated. But the family also suffers another
significant loss-financial loss; particularly person who dies was an
earning member or even potentially earning member. There are then
concerns about the financial stability of the dependents. Similarly, when a
factory is gutted in a fire, in addition to the loss of property, there are
other considerations: the effort to rebuild the factory, the future of
workers and the fate of suppliers and consumer attached to the business.
In both instances, little can be done about non-financial losses. But
financial losses can-and must-be addressed and using risk management
tool and that is Insurance.
What is Insurance?
"Insurance is a financial service for collecting the saving of the public
and providing them with a risk coverage." Thus in insurance, there are
three elements involved
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Tolani Institute of Management Studies, Adipur.
The Risk
The Insured
The Insurer.
General definition: In the words of John Magee, "Insurance is a plan

by which large number of people associate and transfer to the shoulders
of all risks that attach to individuals."
Fundamental definition: In the words of D.S. Hansell, "Insurance is

accumulated contributions of all parties participating in the scheme.
Contractual definition: In the words of justice Tindall, "Insurance is

a contract in which a sum of money is paid to the assured as
consideration of insurer's incurring the risk of paying a large sum upon a
given contingency.
Why do you need Insurance cover?

Insurance will help provide protection to investors from certain or
uncertain risks. Certain risk includes events like death, retirement,
pension, education, marriage, etc. Uncertain risk includes events like
theft.
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A human life is also an income-generating asset. This asset also can be

lost through unexpectedly early death or made non-functional through
sickness and disability caused by accident. Accident may or may not
happen. Death will happen, but the timing is uncertain. If it happens
around the time of retirement, when it could be expected that the income
will normally cease or the person could have made some other
arrangement to meet the continuing needs. But if it happens much earlier
when the alternative arrangements are not in place, insurance is necessary
to help those dependent on income.
In case of a human being, he may have made arrangements for his need
after his retirement. These would have been made on the basis of some
expectations like he may live for another 15 years or that his children will
look after him. If any of these expectations would become inadequate and
there could be difficulties. Living too long can be as much a problem as
dying too young. These are risks, which need to be safeguard against
thorough insurance.
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History of Insurance Sector
Almost 4,500 years ago, in the ancient land of Babylonia, traders

used to bear risk of the caravan trade by giving loans that had to be
later repaid with interest when the goods arrived safely. In 2100
BC, the Code of Hammurabi granted legal status to the practice.
That, perhaps, was how insurance made its beginning.
Life insurance had its origins in ancient Rome, where citizens
formed burial clubs that would meet the funeral expenses of its
members as well as help survivors by making some payments.
As European civilization progressed, its social institutions &
welfare practices also got more & more refined. With the discovery
of new lands, sea routes & the consequent growth in trade,
medieval guilds took it upon themselves to protect their member
traders from loss on account of fire, shipwrecks & the like. Since
most of the trade took place by sea, there was also the fear of
pirates. So these guilds even offered ransom for members held
captive by pirates. Burial expenses & support in times of sickness
& poverty were other services offered. Essentially, all these
revolved around the concept of insurance or risk coverage. That's
how old these concepts are, really.
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In 1347, in Genoa, European maritime nations entered into the earliest

known insurance contract & decided to accept marine insurance as a
practice.
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, shipowners & underwriters met to discuss & transact business. By the end of
the 18th century, Lloyd's had brewed enough business to become one of
the first modern insurance companies.
Insurance & Myth...

In 1693, astronomer Edmond Halley constructed the first mortality table
to provide a link between the life insurance premium & the average life
spans based on statistical laws of mortality & compound interest. In 1756,
Joseph Dodson reworked the table, linking premium rate to age.
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
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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 & their dependents.
However, it was after 1840 that life insurance really took off in a big way.
The trigger reducing opposition from religious groups.
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
& industrialization. In 1835, the infamous New York fire drew people's
attention to the need to provide for sudden & 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
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automobile, public liability insurance, this first made its appearance in the
1880s, gained importance & acceptance.
In the 19th century, many societies were founded to insure the life &
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 labour organizations.
Many employers sponsor group insurance policies for their employees,
providing not just life insurance, but sickness & accident benefits & oldage pensions. Employees contribute a certain percentage of the premium
for these policies.
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Life Insurance-The Time Line :

1980s-Life Insurance Corporation (LIC) continues to enjoy a
monopoly in insurance since its inception in 1955-56. In 1990, the
government starts to analyze the need for opening up of the sector.
June 1991- LIC insures a record 10 million lives under individual
& group insurance during 1990-91.
June 1991-For the first time, Election commission takes an
insurance cover of Rs.47.35 lakh for four million government
employees on poll duty, anticipating an outbreak of violence during
elections.
January
1994-
Malhotra
Committee
submits
its
report
recommending the opening up of the insurance sector & allowing

foreign participation. December 1995- Government decides to set
up an interim Insurance Regulatory Authority (IRA). In January
1996, N. Rangachary takes over as chairman. July 1996- IRA set
up to help & regulate privatization of the insurance sector. 4 July
1998-LIC's Life Fund crosses the Rs.100000 crore landmarks.
December 1999.
The Insurance Regulatory & Development Authority (IRDA) Act
1999 is passed. Important features include foreign capital
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participation, minimum capital requirement related norms for new

insurance companies, & establishment of the IRDA. The IRDA is
formally constituted in April 2000.
2nd July 2000-IRDA creates draft regulation for brokers, including
norms relating to net worth, remuneration, categories of brochures,
granting of licenses to brokers, etc.
31st July 2001-The Union Cabinet allowing cooperative societies
to enter the insurance sector approves - Insurance amendment Bill
2001.
19th September2001- Private Sector insurance companies are to
come under the microscope of credit rating agencies.
11th December 2001- IRDA grants official recognition to the
Insurance Broker's Association of India.
April 2002- LIC is all set to embark on an ambitious overseas fiveyear expansion plan to tap business worth $ 50 billion.
September 2002- LIC ties up with $117 billion Nationwide Inc to
act as its corporate agents in the US.4 March 2003- US- based
Marsh Inc sets up shop in India after receiving a composite
brokerage license from IRDA.
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2002-2005 Over 13 Private Life Insurance came up for a tough

competition with the existing monopoly of LIC, among which
ICICI Prudential stands at the 1st position acquiring major market
share from LIC.
2002-2007 - Over 16 Private Life Insurance companies for tough
competition with existing monopoly of LIC, where ICICI
Prudential stands 1st among the private life insurance companies
acquiring a major market share.
The following companies are present in the Life Insurance Industry in
India.
NAME OF THE PLAYERS
Birla Sun Life Insurance Co. Ltd.
HDFC Standard Life Insurance Co. Ltd.
ICICI Prudential Life Insurance CO. Ltd.
ING Vysya Life Insurance Company Pvt. Ltd
Life Insurance Corporation Of India.
Max New York Life Insurance Co. Ltd.
Met Life India Insurance Company Pvt. Ltd.
Kotak Mahindra Old Mutual Life Insurance Limited.
SBI Life Insurance Co. Ltd.
Tata AIG Life Insurance Company Limited.
Reliance Life Insurance Company Limited.
Aviva Life Insurance Co. India Pvt. Ltd.
Sahara India Life Insurance Co. Ltd.
Shriram Life Insurance Co. Ltd.
Bharti AXA Life Insurance Company Ltd.
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Bajaj Allianz Life Insurance Company Limited.
COMPANY PROFILE
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 services and long tem commitment
to customers. 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
ICICI Bank (NYSE:IBN) is India's second largest bank and largest
private sector bank with over 50 years presence in financial services and
with assets of over Rs 3446.58 bn (USD 79 billion) as on March 31,
2007. The Bank 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 in the areas of
investment banking, life and non-life insurance, private equity and asset
management. ICICI Bank is a leading player in the retail banking market
and services its large customer base through a network of over 950
branches and extension counters, 3300 ATMs, call centers and internet
banking to ensure that customers have access to its services at all times.
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ICICI Bank is now the parent company for the following companies:
ICICI Prudential Life Insurance Co. Ltd.
ICICI Lombard General Insurance Co. Ltd.
Prudential ICICI AMC
ICICI web trade
ICICI InfoTech
ICICI Securities Ltd.
PRUDENTIAL PLC
Established in London in 1848, Prudential plc, through its businesses in
the UK and Europe, the US and Asia, provides retail financial services
products and services to more than 20 million customers, policyholder
and unit holders and manages over 251 billion of funds worldwide (as of
31 December 2006). In Asia, Prudential is the leading European life
insurance company with life operations in China, Hong Kong, India,
Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,
Thailand, Vietnam. Prudential is the second largest retail fund manager
for Asian sourced assets ex-Japan as at June 2006. Its fund management
business has expanded into a total of ten markets : China, Hong Kong,
India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United
Arab Emirates.
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ICICI+PRUDENTIAL:
ICICI Prudential was amongst the first private sector insurance
companies to begin operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA).
ICICI Prudentials equity base stands at Rs. 1185 crore with ICICI Bank
and Prudential plc holding 74% and 26% stake respectively. For the past
five years, ICICI Prudential has retained its position as the No. 1 private
Life Insurer in the country, with a wide range of flexible products that
meet the needs of the Indian customer at every step in life. In the first
quarter of financial year 2006-07, ICICI Prudential has crossed a new
milestone of insuring the lives of more than 2.5 million policy holders.
ICICI Prudential Life Insurance is the first in India to receive a National
Insurer Financial Strength rating of AAA (Ind) by Fitch Ratings.
ICICI Prudential Assets under Management Crosses 9300 Mark: ICICI
Prudential is the No.1 among the private life insurers to achieve this
milestone.
ICICI Prudential has 32% market share amongst the private life insurance
companies.
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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. Barry Stowe
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. HT Phong
Mr. M.P. Modi
Mr. R Narayanan
Mr. Keki Dadiseth
Ms. Shikha Sharma, Managing Director
Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Management Team
Ms. Shikha Sharma, Managing Director & CEO
Mr. Puneet Nanda, Chief Investments Officer
Mr. N.S.Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anita Pai, EVP- Customer Service& Technology
Mr. Azim Mithani- Chief Actuary
Mr. Binayak Dutta- Chief Sales and Distribution
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VISION
To make ICICI Prudential the dominant Life and Pensions player

built on trust by world-class people and service.
This we hope to achieve by
Understanding the needs of customers and offering them superior

products and service
Leveraging technology to service customers quickly, efficiently and

conveniently
Developing and implementing superior risk management and

investment strategies to offer sustainable and stable returns to our
policyholders
Providing an enabling environment to foster growth and learning for

our employees
And above all, building transparency in all our dealings.
MISSION
The success of the company will be founded in its unflinching
commitment to 5 core values
Integrity
Customer First
Boundary less
Ownership
Passion.
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Each of the values describes what the company stands for, the qualities of
our people and the way we work.
Integrity
Walk and Talk
Live the values
Stand up honestly and fearlessly for what we truly care about.
Always act in a consistent and equitable manner.
Dont compromise the future to pay for the present.
Customer First
Own the customer; deliver the promise.
Listen actively, stretch continually to add value to customer and
channel partners.
RICE Respect Internal Customer Expectations
Seek and empower decision making for superior service quality.
Boundary less
Never say its not my job, Go beyond the call of duty
Experiment Believe anything is possible
Seek new ideas and thoughts freely across levels and functions
Ownership
If it is to be, it is up to me
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Bias for action.

Accountable for team performance.
Passion
Winning Instinct
Transmit Boundless energy and enthusiasm to drive results.
Stand up and make a difference
Demonstrate speed for competitive advantage.
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ORGANISATION CHART
NATIONAL LEVEL HIERARCHY
CEO
HEAD HIMALIAN
ZONAL MANAGER
TERRITORY MANAGER
ASSISTANT SALES
MANAGERS
UNIT
MANAGERS
SALES MANAGERS
AGENCY
MANAGERS
ADVISORS
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SENIOR AGENCY
MANAGERS
BRANCH LEVEL HEIRARCHY
TERRITORY MANAGER
SALES MANAGER
SENIOR AGENCY
MANAGER
AGENCY MANAGER
UNIT MANAGERS
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DISTRIBUTION
Tied Agency
Tied Agency is the largest distribution channel of ICICI Prudential,
comprising a large advisor force that targets various customer segments.
The strength of tied agency lies in an aggressive strategy of expanding
and procuring quality business. With focus on sales & people
development, tied agency has emerged as a robust, predictable and
sustainable business model.
Bancassurance and Alliances

ICICI Prudential was a pioneer in offering life insurance solutions
through banks and alliances. Within a short span of two years, and with
nearly a large number of partners, B & A has emerged as a vital
component of the company's sales and distribution strategy, contributing
to approximately one third of company's total business.
The business philosophy at B&A is to leverage distribution synergies
with their partners and add value to its customers as well as the partners.
Flexibility, adaptation and experimenting with new ideas are the
hallmarks of this channel.
Customer Service & Operations

The Operations department oils the work processes between the customer
and the company to ensure consistent and quality service to the customer.
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To streamline the operations, the Operations department interfaces

between the clients and the agents, the branches and the underwriters, and
manages work processes.
The Vision at Customer Service is to deliver 'World Class Service' at
every opportunity. Units such as the 9 to 9 contact centre, Outbound Call
Centre, Customer Care and Query Resolution Unit are all committed to
providing effective solutions to over lakhs of customers across the
country. ICICI Prudential has one of the largest distribution networks
amongst private life insurers in India, having commenced operations in
95 cities and towns in India. The company has seven banc assurance tieups. Further, it leverages its state-of-the-art IT infrastructure to provide
superior quality of service to customers.
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CORE DEPARTMENTAL FUNCTIONS

Information Technology
The Information Technology function at ICICI Prudential is committed to
enable business through the use of technology. It is segmented into 4
groups to enable highest levels of delivery to the customers: Life Asia
Solutions Group that provides flexibility in designing better product
offerings to end-users, the Solutions Group- Web that provides real-time
information to customers and is responsible for customer relationship
management, IT Architecture & Corporate Solutions Group is in charge
of developing and maintaining a blueprint for the IT architecture for the
enterprise as a whole. This team works as an in house R&D Solution
Group, exploring new technological initiatives and also caters to
information needs of corporate functions in the organization. IT
Infrastructure group is responsible for providing hardware, software,
network services to the whole organization. This group runs the 'Digital
Nervous System' of the Enterprise at the highest levels of efficiency and
provide robust, scalable and highly available platform for deployment of
business application.
Marketing
The Marketing function at ICICI Prudential covers an array of activities brand and media management, channel support, direct marketing and
corporate communications. The Brand and Communications team is in
charge of advertising, consumer research, media planning & buying and
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Public Relations; that helps develop and nurture ICICI Prudential's

corporate identity while effectively communicating its varied product
offerings to the customer. Channel marketing provides support to the
sales force by streamlining the design and development of collaterals and
sales tools across distribution channels. The Direct marketing team was
set up to generate high quality leads for profitable business. The team
achieves this through target database acquisition and communicating
customized product information through e-mailers, telemarketing and
innovative direct mailers.
Finance
Finance function in ICICI Prudential is committed to create an
infrastructure that is aligned to shareholder expectations. Finance
basically comprises of four functions. . Corporate Planning and MIS
provide feedback on business strategies. This includes driving the
budgeting process, providing strategic inputs for decision-making and
management reporting and analysis. The Accounts function includes
preparation and maintenance of financial records, funds management, and
expense processing and treasury operations. Compliance ensures that
every action is within the regulatory framework. This includes reviewing
compliance requirements and supporting the ethical framework of ICICI
Prudential Life Insurance company Limited. Internal Audit includes risk
management and business continuity plans for the enterprise.
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HR
The people strategy of ICICI Prudential is "To build a committed team
with a culture of innovation, learning and growth. The Human Resource
Function at ICICI Prudential drives the people strategy of the business.
With its initial focus on operational excellence to deliver benefits and
services to staff members, HR is now committed to building capability
through state of the art processes. A robust performance management
system, compensation system and a segmented training architecture
enable it to deliver value to the organization.
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SWOT ANALYSIS
Strength:
ICICI Prudential is the first life insurance Company to introduce
unit linked, pension products and lifetime. So it can get pioneer
advantage.
Prudential is 156 years old company founded in 1848 so it has fullfledged experience in this industries.
ICICI enjoys a rating with the Moody's which is higher than the
sovereign rating.
Large distribution channel with 113 branches and more than
2,34,000 financial advisors.
ICICI Prudential has the complete and diversified portfolio of
products.
ICICI Prudential provides the best incentives which motivate and
encourage the Advisors to work and fulfill the commitment.
The only Life Insurance Company in the world to provide
Insurance for disease like Diabetes.
Good customer service.
Company has created a brand name.
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Weakness:
Yet to build a strong distribution network in the market.
People were reluctant to join or trust a Private Life Insurance
Company.
Opportunities:
Today ICICI Prudential covers 32% market share among the
private players and 16% of total market. So yet there is a great
potentiality to increase market share.
Insurance plans like Pension plan, Child plan and Investment Plan
of ICICI Prudential got good response from the market. So in near
future company can take benefit of it.
The brand name that creates ICICI Prudential and awareness level
of it is comparatively quite higher than competitors. So it will be
helpful in future while launching new innovative products like unit
link plans..
Threats:
It is a private company so there is a doubt about solvency and
Liquidity among the general people.
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Also, in the case of professionals such as CAs and Tax

Consultants.
They considered that the job of an agent did not match their status.
Large distribution network of LIC and trust of people in LIC.
There will be entry of 11 more Private Insurance Players .
IMPORTANCE OF INSURANCE ADVISOR

For insurance industry direct marketing is a main marketing tool for
business. ICICI Prudential also try to make best advisor force for the
business. In India there is 30,000-advisor force in company. Company
always works for recruit best advisor. Advisors are the 1st link between
the prospect client and the company. Advisors are the major players who
generate revenue for the company. They serve as a center of influence and
act as a relationship manager to the company.
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REQUIREMENTS TO BECOME
ICICI PRUDENTIAL LIFE ADVISOR
Self Motivation
Communicate well with others.
Set goals then achieve them.
Being an ICICI Prudential insurance advisor can be one of the most
rewarding careers one can find. It is also hard work. But at ICICI
Prudential Life, hard work pays off in the form of compensation and
recognition.
As an advisor one contribute in bringing in new business for the
company, offer world class pre and post sales service to the clients with
the support of the organization.
But an advisor to the company means much more than a salesman or a
saleswoman, at ICICI Prudential recognize advisors as the ambassadors
of organization in the marketplace and consider the advisor force would
be their biggest differentiating factor in the coming years. That is why;
the company takes a lot of care in recruiting and developing advisors
force, so that it can maintain standards of quality in service and
salesmanship.
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ROLE OF INSURANCE ADVISOR

Identify future clients
Making appointments
Conduct financial review meetings with prospects/clients
Close sale
Get referrals
Provide service to clients.
RETURNS OF AN ADVISOR
Estate Creation :
In this industry, the advisors are paid commission till the maturity of the
policy. Advisor is paid renewal commission every year and this
commission helps the advisors to build an estate. It means a policy that is
sold today will pay the advisors for more than 10 to 15 years, whatever is
the term of the policy.
Status :
Advisors secure the life of people. They advise their clients of buying the
right policy after properly evaluating their needs. So, they have a respect
in peoples mind.
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Prestige :
Company provides the advisors opportunities like foreign trips if they
achieve the target. Moreover there are club memberships also available.
Honour :
ICICI Prudential life insurance gives a target to the advisors and if they
reach this target, ICICI Prudential awards them a trophy, a certificate and
incentives in the meeting of the company.
Widen Social Circle :
Life insurance is the business of contacts. As the time passes in this
business more people will know and recognize the advisors. In this way
the advisors can widen their social circle in a strategic manner.
Mitigate Human Hardship :
When advisors come into the life insurance business, they dont sell only
policy to the people but they provide safety against the uncertainty of the
life. They help people in planning for the unforeseen future in the present.
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Rapid Career Development:

In future an advisor has chances of further development and can develop
full time career in insurance sector. There is a Pinnacle Programme which
a full time career as a unit manager. It is growth within the ICICI
Prudential. It contains greater earning potential. In this program an
advisor gets promotion and can create his own team to work and give best
result. For this performance criteria are age should be between 25 to 45
years. They should work at least 1 year or 6 months in systems. And they
should make 36 issuance policies within a year.This is how they can
become full time consultant of insurance sector.
A trip to national and international places though various club
memberships.
There are various clubs going on in the ICICI Prudential. They are
precedents club and ICICI prudential star club and MDRT(Million Dollar
Round Table) Membership.
In ICICI Pru. star club there are many different clubs like Platinum star,
Diamond star, Gold star, Silver star and Bronze star. To qualify in this
clubs person has to earn some points and numbers of person in this clubs
are limited.
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SUPPORT & FACILITES TO

INSURANCE ADVISORS
Extensive Product Portfolio:

Extensive product range that provides financial solution to
Cover all basic needs:
Pre-mature death
Living too long
Childrens future
Wealth creations
Extensive training to make One a Professional Advisor
State-of-the-art training on :
Selling skills
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Product knowledge
Relationship skills
Training delivery through several convenient options
Face to face
Online
Self learning
Technological Support:
ICICI also Provides technological support such as official Email Id to
its advisors which no other insurance company provides, which could
make them motivated as they would be a part of the organization.
MOTIVATING FACTORS
FOR ADVISORS
Every time only money might not be the motivator to the advisor. ICICI
Prudential believes that there are many other things that advisors aspire to
achieve-fame and recognition and desire to take a holiday abroad. The
benefits one can enjoy being associated with the company are listed
below-
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MDRT (Million Dollar Round Table) :

The MDRT (Million Dollar Round Table), founded in 1927, is a premier
association of the worlds top sales professionals in the life insurance
business with a total world wide membership of 25000. The eligibility
criteria are based on commissions earned on an annual basis on the sale
of policies. In India the minimum eligibility is commission earnings of Rs
4,90,000 per year. India to date has 140 agents as MDRT members and
the number is said to be rising. Though over 400 agents of LIC qualify to
be MDRT members, a good number are not yet members considering the
high annual membership fees of $350. The fact that a number of LIC
agents are part timers could also be another of the reasons. To qualify as a
member of Court of the Table, one-up on the ladder, annual commission
earnings have to exceed Rs 22lakh.
An MDRT member other than the prestige attached to the label gets the
advantage of interacting with his counterparts across the globe and share
knowledge of prevailing market trends. The insurance sector has opened
up and awareness about insurance is growing. The mood in the industry is
upbeat and the day is not far when private insurers too will be bitten by
the MDRT bug.
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ICICI Pru Star Club

Advisors will be eligible to earn business cards, letterheads, business
allowance, office support etc, which will help them organize their work in
a professional manner. There are three sub clubs in ICICI Pru Star Club:
ICICI Pru Platinum Club

If any advisor completes 150 policies and 850000 of premium collection,
he will become a Platinum Club Member.
ICICI Pru Gold Club

If any advisors complete 120 policies and 700000 of premium collection,
he will become a Gold Club Member.
ICICI Pru Silver Club

If any advisors complete 80 policies and 450000 of premium collection,
he will become a Silver Club Member.
The company has its incentive schemes which actually motivate the
advisors to work. Also for those who have reached the targets set by the
company get benefit of foreign tours and also tours arranged by the
company in India.
There are various contests organized by the company every month. They
keep huge amount at various premium collections done by the advisor.
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Clear Career Path:

If an advisor achieves the target set by the company, for 6 months, he
enters into pinnacle program where he has a chance to become a Unit
Manager which is first of its kind offered by any insurance company.
There are unit managers who had been advisors when they started with
ICICI Prudential.
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PROCEDURE TO BE
ICICI PRUDENTIAL ADVISOR
The person to be an advisor of any company according to the IRDA

norms has to be more than 18 years and should be at least Higher
Secondary Passed. The criterion which an advisor has to fulfill is the QSCORE which is very important for a person if he wants to be an agent of
ICICI Prudential. The Q-SCORE includes the following :
1. The person should be 25 years of age.
2. The person should be a graduate.
3. The person should be married.
4. The persons household income should be above Rs. Two lakhs.
5. The person should have live in the city for more than 5 years.
Out of the above mentioned 5 required criterions the person
should fulfill at least 3 to be an ICICI Prudential Advisor. The
company generally follows the procedure as given.
Appear for an interview:
The company prefers people who are above the age of 25 years and who
are graduates. The company wants people who are matured and
responsible.
Get selected and go in for the 100-hour (Approx.18 Days) mandatory
training. As far as the training is concerned there are three options:
- 37
Full Time (Manual Training).

Online Training
Pass the IRDA licensing examination and company specific training.
It is a rule to undergo IRDA (Insurance Regulatory Development
Authority) training to procure a license. This holds true for every
company. Apart from this the person has to undergo product specific
training offered by the company that is for four days.
INSURANCE ADVISORS RECRUITMENT PROCESS

Company always looks for those people who want to work sincerely and
recruit them.
Recruitment Criterias:
Person must 12th pass or 10+3 year Diploma course. This is a
minimum eligible criterion.
Minimum age should be 18 years & above.
- 38
Then he/she should be able to attempt a 100 hour training

programmed approx. 18 days, which is compulsory by Insurance
Regulatory and Development Authority (I.R.D.A.) & Sponsored by
ICICI Prudential.
He/ She should be willing to work for Full / Part time as Insurance
Advisor for ICICI Prudential.
He/ She should have all the documents such age proof- Photocopy
of School Leaving Certificate, Residence Proof- Photocopy of
Telephone bill or Electricity Bill, education proof, etc.
He/ She should give cash or a Demand Draft of Rs. 1000 in favour
of ICICI PRUDENTIAL LIFE INSURANCE CO. LTD. Payable
at Ahmedabad.
Other general requirements were that He/ She should have Good
contacts, must be Confident, Selling skills, Influencing skills,
Communication /presentation skills, Reliable.
He / she should be approved by the concern Unit Manager or
Agency Sales Manager.
- 39
METHODOLOGY FOR RECRUITING ADVISOR

The various processes which were undertaken for recruiting advisors are
as follows.
1. Natural Market: We contacted first our natural market and
convince the people who were interested to become advisors of the
company. The natural market consists of:
Relatives
Friends
Neighbors
Apart from moving in the Natural market, we also had to generate leads
by cold calling. In Cold calling, we mostly concentrated on the following:
Database of different companies
LIC/GIC Agents
Telecalling Leads.
2. References: For generating references ICICI Prudential follows a
scientific method of Power of 6 or the Power of 8. When we meet
people for recruiting advisors this method of Power of 6 is used
wherein we ask 6 or 8 questions like:
a) Who is your General Insurance Advisor?
b) Who is your Lawyer?
c) Who is your Family Doctor?
d) Who is your Chartered Accountant?
e) Who is your Sons Private Tutor?
f) Who is your Sons School Principal?
- 40
3 Market Skimming: Also we had arranged various activities in

order to generate leads. We had put stalls at various places. We also did
road-shows and various cold calling activities at various places .The basic
motto of doing this was to come in contact with people and explain the
business opportunity offered by the company.
People who were targeted were more than 18 years and were at least
Higher Secondary Passed. This is a compulsory norm issued by IRDA.
Normally the group used to consist of:
Businessman
Serviceman
Housewives
Students
Chartered Accountants
Tax Consultant
LIC \ GIC Agents
Retired (VRS)
Normally the procedure is that we fix the appointments first on the
telephone. Then we make a visit to the interested or he comes to the
office. The details are explained to him and his queries are solved. After 2
days we give him a call and ask his interest. If he is interested then the
formalities are completed.
- 41
We as management trainees had our work till the person gets over with all
the formalities. Once that is done he is appointed under a Unit manager
and he has to report to him.
Following is the procedure which we adopted while recruiting Insurance
Advisor:
Identification of Prospect:
Usually identifying a prospect involves identifying a set or segment of
people which is best suited for doing the insurance business. This
segment can depend on many things such as comfort level, past
experience, locality or team requirements of Unit Manager. Many times a
reference received from some one who you know, who knows someone
who is interested in insurance, can be a great help. Many of the unit
managers also prefer a group presentation as a tool for prospecting.
First Contact with Prospect:
After the Prospect is identified the first contact is made with him/her,
explaining them the basic of the business opportunity that company will
like to offer to them. If they are interested a suitable time and place is
fixed for Unit manager to make a Business Opportunity Presentation to
them.
- 42
Business Opportunity Presentation :

This is a very interesting tool developed by ICICI Prudential, to explain
in detail, what sort of business opportunity the company will like to offer
to Advisors. It is a visual presentation which will describe the Roles,
Expectations, Returns, Opportunity for the advisor. It combined with
presentation made by Unit manager gives the complete picture of what
Advisor can expect when he joins ICICI Prudential.
Objection Handling:
It is a very common practice for the prospects to take their time in
deciding whether they want to join ICICI Prudential or not. This requires
on the average 2 or 3 sessions in which the Unit manager clears out all
the doubt the Prospects have.
Documentation:
Once the Prospects make the decision to join ICICI Prudential family,
they have to fill out a Recruitment form which has all the details about
the Advisor, his preferred area of work, his expectations and devotion
towards Insurance Business. Along with this form he has to submit
following documents:
Age Proof
Education Proof
7 photographs
- 43
Rs 1000 cash or Demand Draft in Favor of ICICI Prudential Life

Insurance Co. ltd.
IRDA Form-VA
Examination Form
Agency Recruitment Form
IRDA Training:
Once the Advisor is registered with ICICI Prudential then ICICI sends his
form to IRDA for 100 hrs (Approx. 18 days) mandatory training. He can
take this training either in classroom session or online from the website.
Product Training :
Along with the IRDA training the Company provides the advisors with 3
days of Product training in which all the products, their implications and
suitability to segments of society are explained in details.
IRDA Exams :
After the advisor finishes the training he has to appear for IRDA exam
which tests him on the training he has received. This is objective type of
test here advisor has to select the right answer from four given options.
Advisor has to secure minimum 50% marks in this test to qualify for
- 44
Insurance License. ICICI Prudential helps its advisor by making sure that
they are fully prepared for the test. It conducts mock-tests and revision
sessions for the advisors, if need is felt.
Issue of Insurance License:

When the results of the Test are declared all the participants who Pass the
test are issued a Nation-wide Insurance License which allows them to sell
policies of one particular company anywhere in country. This license has
to be renewed after every 3 years.
Issue of Login ID:

Once the Advisor gets the license, the company issues him/her a unique
login. This gives him/her the right to login the policy at any branch of
ICICI Prudential.
- 45
ANALYSIS
It was observed/ experienced by us/trainees that such High Net Worth
Individuals did not respond positively. Rather people of the low income
and recognition group responded very well. The reasons being need for
recognition and no capital investment. They showed willingness to invest
their spare time as many of them were already employed.
People think twice before spending money and hence its difficult to sell
intangible product like insurance policy. Good communication skill is
must for selling insurance policies, because it is the toughest product to
sell.
Of course the strategy of ICICI Prudential was right when they instructed
us to target HNIs (High Net worth Individuals) because they could have
generated good business for company. But the problem in recruiting them
was that they were not able to compromise with their status.
Hence the people who were willing to join were mostly unemployed who
had need for money and the people of low income group who had hunger
for money. Among people who are working like Doctors, Charted
Accountants and Advocates etc. were not ready to work as an Insurance
Advisor because some of them were believing that this will not match
with their status, some thought it is not worth doing , some thought that
they dont have time to do this kind of training.
- 46
Some more responses we got from our target segments:

1. Did not have time for training
2. Not interested.
3. Busy with their current work.
The major obstacles which are faced while convincing the people
could be pointed out as follows
People dont have time to devote for the company for training.
People are interested to join as an advisor but do not have time to
devote to the profession.
People always try to compare LIC and the private players in
general. They are not still open to the private players.
Some people consider the licensing fees of Rs. 1000 as a
constraint.
Most of the target markets like CA, Financial Advisor, Tax
consultant etc. have already acquired the agency of some other
insurance company.
Chartered accountants cannot become an agent of any company
(they have to take a special permission from the Institute Of
- 47
Chartered Accountants, which they normally avoid) but one of his

family members is eligible for the agency & on their behalf CA can
work but none of the family members is interested to take training.
A person cannot take more than one Life insurance Agency on his
name.
Part time training is not available.
- 48
RECOMMENDATION
& SUGGESTONS
Recommendations :
Target Semi- Rural market.
Other Recommendations:
Provide lower premium policies so that one could target middle
class people and generate good cash flow for further growth.
.
Keep more seminars and target LIC/GIC agents, CAs, Tax
consultants, financial investor etc.
Motivate the agency holders (by giving fixed salary).
Provide part time training.
Focus on any mass marketing activity for generating awareness of
company among people.
Try to collect data of Life/General insurance agents across India
and invite them to associate with ICICI Prudential.
- 49
Suggestions:
Based on our experience of 7 weeks with ICICI Prudential and the studies
& activities carried out by us during this period we would like to divide
our suggestions to company in four different segments that are as follows:
About the Image of the Company
About the Remuneration Structure.
About the Company Image :

While recruiting the Insurance Advisor (IA) we experienced/ observed
that many people did not believe in the earning potential that this job (of
a IA) offered. Hence, we would like to suggest, ICICI Prudential to
advertise the earnings/ commissions earned by the STAR IA/Performers
of this branch and the Incentives that an IA gets on bringing Premium
Income, in the Local Newspapers.
This
will
definitely
attract
more
&
more
people
to
this
profession/business as they will find it lucrative.

Sales Manager should guarantee 3-5 leads which will be provided by
ICICI Prudential in the 1st year only. This will not only boost confidence
in new IAs but will also attract people to join ICICI Prudential rather
- 50
than other insurance companies. This will have a two way benefit-recruitment of more IAs and increase in Sales.
About the Remuneration Structure:

Other Private Life insurance companies are offering fixed salary per
month to advisors so they are motivated and feel secured as they would
receive some fixed amount at the end of the month. Many of the people
we met for advisors were reluctant to join as there is no fixed salary being
paid in ICICI Prudential. So they were eager to join other private life
insurance companies where they could earn fixed salary. There should be
some fixed remuneration so they could join ICICI Prudential.
- 51
CONCLUSION
From our project at ICICI PRUDENTIAL LIFE INSURANCE, we have
come to the conclusion on the basis of our observation that in an
organization Recruitment of Insurance Advisor plays an important role as
these advisors are the main source of business. ICICI PRUDENTIAL
gives a lot of importance to recruitment of Insurance Advisor. Without
good employees company cannot grow and for that recruitment is one
important step to find the capable advisor to fulfill the requirement of the
company.
A lot of thought and efforts must be invested for recruitment of the
insurance advisor. Sometimes unsuitable persons are persuaded to join.
These people leave the training midstream. Training can bring about a
change but this cannot be imposed on the person, he has to be self
motivated to do so. Insurance salesmanship requires more of personality
traits than theoretical knowledge of insurance. Therefore, managers
should think well before recruiting advisors.
Though life insurance agency is an attractive and rewarding profession
still people feel that they have to keep on begging after people for
policies. If proper people are not recruited that and they are compelled to
join they may leave after sometime if they dont find anything worth
them, this would ultimately mean more cost to the company. So managers
should be very careful while recruiting agents.
- 52
BIBILIOGRAPHY
Websites Referred:
www.bimaonline.com
www.economictimes.com
www.iciciprulife.com
www.google.com
www.irda.national.com
- 53

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INTRODUCTION OF INSURANCE

General definition: In the words of John Magee, "Insurance is a plan

Fundamental definition: In the words of D.S. Hansell, "Insurance is

Contractual definition: In the words of justice Tindall, "Insurance is

Why do you need Insurance cover?

A human life is also an income-generating asset. This asset also can be

History of Insurance Sector

Almost 4,500 years ago, in the ancient land of Babylonia, traders

In 1347, in Genoa, European maritime nations entered into the earliest

The first step...

Insurance & Myth...

insurance company in the American colonies in Charleston, SC. In 1759,

The Growing Years...

Life Insurance-The Time Line :

recommending the opening up of the insurance sector & allowing

participation, minimum capital requirement related norms for new

2002-2005 Over 13 Private Life Insurance came up for a tough

Bajaj Allianz Life Insurance Company Limited.

Asset Management Company, which has today emerged as one of the

To make ICICI Prudential the dominant Life and Pensions player

Understanding the needs of customers and offering them superior

Leveraging technology to service customers quickly, efficiently and

Developing and implementing superior risk management and

Providing an enabling environment to foster growth and learning for

And above all, building transparency in all our dealings.

Bias for action.

BRANCH LEVEL HEIRARCHY

Bancassurance and Alliances

Customer Service & Operations

To streamline the operations, the Operations department interfaces

CORE DEPARTMENTAL FUNCTIONS

Public Relations; that helps develop and nurture ICICI Prudential's

Also, in the case of professionals such as CAs and Tax

IMPORTANCE OF INSURANCE ADVISOR

ROLE OF INSURANCE ADVISOR

Rapid Career Development:

SUPPORT & FACILITES TO

Extensive Product Portfolio:

MDRT (Million Dollar Round Table) :

ICICI Pru Star Club

ICICI Pru Platinum Club

ICICI Pru Gold Club

ICICI Pru Silver Club

Clear Career Path:

The person to be an advisor of any company according to the IRDA

Full Time (Manual Training).

INSURANCE ADVISORS RECRUITMENT PROCESS

Then he/she should be able to attempt a 100 hour training

METHODOLOGY FOR RECRUITING ADVISOR

3 Market Skimming: Also we had arranged various activities in

Business Opportunity Presentation :

Rs 1000 cash or Demand Draft in Favor of ICICI Prudential Life

Issue of Insurance License:

Issue of Login ID:

Some more responses we got from our target segments:

Chartered Accountants, which they normally avoid) but one of his

About the Company Image :

profession/business as they will find it lucrative.

About the Remuneration Structure:

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