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LIFE INSURANCE MARKET NEED FOR INSURANCE ORGANIZATION PROFILE PRODUCTS AWARDS AND RECOGNITIONS CONCLUTION BIBLIOGRAPHY

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INTRODUCTION A) INSURANCE IN INDIA:

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It is a business growing at the rate of 15-20 percent annually and presently is of the order of Rs 450 Billion. Together with banking services, it adds about 7 per cent to the country s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. In addition, this part of the population is subject to weak social security and pension systems with hardly any old age income security. This is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is necessary for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability. It has estimated that, over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. Insurance is a federal subject in India. Two legislations govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back 5 to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. B) HISTORICAL PERSPECTIVE ABOUT LIFE INSURANCE IN INDIA:
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The history of life insurance in India dates back to 1818 when it was considered as a means to provide for English Widows. Interestingly in those days, a higher premium was charged for Indian lives than the non-Indian lives, as Indian lives were considered more risky for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company established in 1880. The General insurance business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Until the end of nineteenth century, insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938, there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified because it would create muchneeded funds for rapid industrialization. This was in conformity with the Government's chosen path of State lead planning and development. 6

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The (non-life) insurance business continued to thrive with the private sector until 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. India Assurance Company, Oriental Insurance Company and United India Insurance Company are subsidiaries of the General Insurance Company (GIC). C) Important milestones in the life insurance business in India: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian, foreign insurers and provident societies were took over by Central government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crores from the Government of India. D) Important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up- the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 7

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1972: The general insurance business in India nationalized through The General Insurance Business (Nationalization) Act, 1972 with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies- the National Insurance Company Limited, the New India Assurance Company Limited, the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. E) INSURANCE SECTOR REFORMS: In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N. Malhotra- formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was setup with the objective of complementing the reforms initiated in the financial sector. The reforms was aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included: a) Structure: Government stake in the insurance Companies must brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies must have greater freedom to operate. b) Competition: Private Companies with a minimum paid up capital of Rs.1bn should allow entering the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies were allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance was allowed to operate the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state. 8

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c) Regulatory Body: The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent. d) Investments: Mandatory Investments of LIC Life Fund in government securities to was reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (there current holdings to be brought down to this level over a period of time) e) Customer Service: LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 Crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body- The Insurance Regulatory and Development Authority. A reform in the Insurance sector was initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of 9

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framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products. The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001. F) THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY: Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. 10

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The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies launched the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered. INSURANCE MARKET IN INDIA: The India Insurance market despite having a highly elaborate history spanning almost two centuries, has come of age only in last 50 years after the formation of the Life Insurance Corporation (LIC) of India in 1956 and the entry of private companies into the market in 2000. Traditionally the Indian Insurance Market had centered on the life insurance until recently, a host of other insurance policies covering a diverse range of issues and objects like Medical Insurance, Accident Insurance, Fire Insurance, Automobile Insurance and other policies which fall under the category of general insurance are being provided by various private insurance companies. A) PERFORMANCE OF THE INDIAN INSURACE MARKET-A REPORT: The following points will provide you an insight into the insurance market in India and its fast expanding prospects. The report is well supported by data based on detailed analysis that would help investors, financial service providers and global banking players to venture into the Indian insurance market. Taking into account the changing socioeconomic demographics rate of GDP growth, behavior of consumers, and occurrences of natural calamities at regular 11

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intervals the market of Life Insurance in India is expected grow to the value around US $ 41.44 billion by the year 2009. The Market is expected to grow at a compounded annual growth rate (CAGR) of more than 200% year over year (YOY) from year 2006 onwards. 65% of the general insurance market is controlled by private house that already exists in the market. However in automobile insurance, public sector covers a substantial 68% of the total market value. Among individual companies that are worthy of mentioning, ICICI Lombard enjoys a whopping 53% market share in Accident Insurance while the remaining 47% is shared by New India Assurance and United India Insurance both belonging to the public sector The other key players of the market include: A) In Public Sector: Life insurance Corporation(LIC) of India, National Insurance Company Limited, Oriental Insurance Limited, New India Assurance Company Limited and United India insurance Company Limited. B) In Private Sector: ICICI prudential Life Insurance, Bajaj Allianz, SBI Life, HDFC Standard, Birla Sunlife, Aviva Life Insurance, Kotak Mahindra old mutual, Max New York Life and Met life, Tata AIG Life, ING Vysya. Thus, the ever increasing population of the country will ensure constant boom in the India Insurance market in the distant future.

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NEED FOR INSURANCE: Superior to an ordinary savings plan as it provides full protection against risk of death. Encourages and forces compulsory savings unlike other saving instruments, wherein the saved money can be easily withdrawn. Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan. Offers tax relief to policyholders. Hedges risk against uncertainty. For a policy taken under the MWP Act 1874, (Married Women's Property Act), a trust is created for wife and children as beneficiaries. Based on the concept of sharing of losses, the society will benefit as catastrophic losses are spread globally. NEED FOR LIFE INSURANCE: Life brings with it many surprises, some pleasant and some not so and a Life Insurance Plan ensures that you are better prepared to face uncertainties. In a number of ways: A) Protection: You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. That is a good reason. Supposing you are suffered by an injury that keeps you away from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected. 13

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B) Retirement: Life insurance makes sure that have regular income after retire and also helps to maintain standard of living. It can ensure that your post-retirement years will be spent in peace and comfort. C) Savings and Investments: Insurance is a means to Save and Invest. The periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your childs education or marriage! Besides, it can be used as supplemental retirement income. D) Tax Benefits: Life insurance is one of the best tax saving options today. Tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned. 14

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ORGANISATION PROFILE: ICICI PRUDENTIAL ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of Indias foremost financial service companies and Prudential plc - a leading international financial service group headquartered in the United Kingdom. Total capital infusion stand at Rs 47.80 billion, with ICICI Bank holding a stake of 74% and prudential plc holding 26%. They began operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2000 branches (inclusive of 1,100 micro offices), over 2,58,000 advisors; and 24 banc assurance partners. ICICI prudential is the first Insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch rating. For three years in a row, ICICI Prudential has been voted as India s Most Trusted Private Life Insurer, by the Economic times AC Nielsen ORG Marg survey of Most Trusted Brand. A) ICICI PRUDENTIAL EDGE: The ICICI Prudential edge comes from our commitment to our customer, in all that we do-be it product development, distribution, the sales process or servicing.. 1. The products have been developed after a clear and through understanding of customers need. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee the childs education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the fund you might need to recover from dreaded disease. 2. Having the right product is the first step, but it s equally important to ensure that, the customer can access them easily and quickly. To this end, ICICI prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute the products

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3. Robust risk management and underwriting practices form the core business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claim process. 4. Entrusted with helping our customer meet their long-term goals, they adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term. 5. Last but definitely not the least, our 32000 plus strong team is given the opportunity to learn and grow, every day in multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life.

B) OUR VISION AND VALUES VISION:

To be the dominant life, Health and Pension player build on trust by world class people and service This we hope to achieve by: Understanding the need of customers and offering them superior products and service Leveraging technology to service customer quickly, efficiently and conveniently. Developing and implementing superior risk management and investment strategies to offer sustainable and stable return to the policyholders. The success of the company will be founded in its unflinching commitment to 5 core values Integrity, Customer First, Boundary less, Ownership and 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.

VALUES:
Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.

C) PROMOTERS:
ICICI Bank Limited (NYSE: BSE) is Indias largest private sector bank and the second largest bank in the country, with consolidated the total assets of $121 billion as of September 30, 2008. D) PRUDENTIAL PLC: Established in London in 1848, Prudential Plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 21 million customers, policy holder and unit holders and manages over 256 billion of funds worldwide (as of June 30, 2008). In Asia, prudential is the leading Europe-based life insurer with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms of overall assets sourced in Asia ex-Japan with 34.3 billion funds under management (as of June 30, 2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

E) MANAGEMENT PROFILE:
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BOARD OF DIRECTORS: The ICICI Prudential life Insurance Company Lited Board comprises reputed people from the finance industry both from India and abroad.

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Mr. K.V. Kamath, Chairman Ms. Chanda Kochhar, Director Mr. Barry Stowe, Director Mr. Adrian OConnor, Director Prof. Marti G. Subrahmanyam, Director Mr. Mahesh Prasad Modi, director Ms Rama Bijapurkar, Director Mr. Keki Dadiseth, Director Ms. Shikha Sharma, Managing Director Mr. N.S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director F) MANAGEMENT TEAM: The ICICI Prudential life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Ms. Shikha Sharma, Managing Director & CEO Mr. N.S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director MS. Anita Pai, Executive Vice president Customer Service & Technology Dr. Avijit Chatterjee, Appointed Actuary Mr. Puneet Nandha, Executive Vice president & Chief Investment officer

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G) DISTRIBUTION: ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has strong presence across India with over 2000 branches ( including 1,100 micro- offices) and an advisor base of over 2,58,000 (as on November 30,2008). The company has 24 banc assurance partners having tie-ups with ICICI Bank, Bank of India, South Indian bank, Shamrao Vitthal Co-Op bank, Jalgaon peoples Co-Op bank, Ernakulam district Co-Op bank, Idukki District Co-Op Bank, Ratnagiri 18

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Sindhudurg Gramin Bank, Jharkhand Gramin Bank, Solapur Gramin Bank, Narmada Malwa Gramin bank, Wainganga Kshetriya Gramin Bank, Ratnagiri District Central Co-Op Bank, Seva Vikas Co-Op bank, Sangli Urban Co- Operative bank, The Haryana State Co- Operative Bank, Renuka Nagrik Sahakari Bank, Amanath Co-Operative Bank, Arvind Sahakari Bank, Bhandara Urban Co Operative Bank.

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The joint st rengt hs

A powerful joint venture partnership with each carrying a set of strengths complementing each others

Brand strength

Reputation

Infrastructure Customer base Market Innovators

Insurance expertise

ICICI

PRUDENTIAL

Product Distribution

Local knowledge

Operations

ICICI PRUDENTIALS PRODUCTS.

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Insurance solution for individuals..

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its 17 products cab is enhanced with up to 6 riders, to create a customized solution for each policyholder.

Savings Solutions.. Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection. Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options. Save n Protect is a traditional endowment savings plan that offers life protection along with adequate returns. Cash Back is an anticipated endowment policy ideal for meeting milestone expenses like a childs marriage, expenses for a childs higher education or purchase of an asset.

Protection Solutions. LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 coupons level term assurance, level term assurance with return or premium and single premium.

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Child Solutions. Smart kid child plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the childs life. SmartKid child planed are also available with in unit-linked form both single premium and regular premium.

Market-linked Solutions LifeLink is a single premium Market Linked Insurance Plan, which combines life insurance cover with the opportunity to stay, invested in the stock market. Life Time offers customers the flexibility and control to customize the policy to meet the changing needs at different life stages. It offers 3 investment options Growth Plan, Income plan and Balance plan.

Retirement Solutions Forever Life is a retirement products targeted at individual in there thirties. Secure Plus Pension is a flexible pension plan that allows one to select between 3 levels of cover.

Market-linked retirement products Life Time Pension is a regular premium market-linked pension plan. Life Link Pension is a single premium market linked pension plan. ICICI Prudential also launched Salaam Zindagi, a social sector
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group insurance policy targeted at the economically underprivileged sections of the society.

Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

Group Gratuity Plan ICICI Prus group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also customize to structure schemes that can provide benefits beyond the statutory obligations.

Group Superannuation Plan ICICI Bank offers flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for partial commutation of the annuity at the time of retirement. Group Term Plan

Group Term Plan

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ICICI Prus flexible group term solution helps provides affordable cover to members of 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.

Flexible Rider Options ICICI Pru Life offers flexible riders, which can be added to the basic policy at marginal cost, depending on the specific of the customer. Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit. Accident benefit: This rider option pays the sum assured the rider on death due to accidents. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical prior to death. Major Surgical Assistance Benefits: provides financial support in the event of medical emergencies, ensuring that benefits are payable to the life assured for medical expenses Incurred for surgical procedures. Cove is offered against 43 different surgical procedures. 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 SmartKid, SecurePlus and Cashplus. Waiver of Premium: In Case of total and permanent due to an accident, the premiums are waived till maturity. This rider is available with SecurePlus and CashPlus.

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AWARDS AND RECOGNITIONS:

ICICI Prudential Life was awarded the Life Insurance Company of the Year at the 12th Asia Insurance Industry Award 2008. .

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ICICI Prudential Life won the Award for Brand Excellence in the Banking and Financial services category at the Asia Brand Congress 2008.

Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance Co. Ltd. was adjudged the Businesswoman of the year at The Economic Times Awards for Corporate Excellence, 2007-08. \

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ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008 in three key categories for its marketing initiatives.

Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was awarded the Outstanding Businesswoman of the Year at CNBC TV18's India Business Leader Awards 2007.

ICICI Prudential Lifes, retirement solutions campaign for the year 2006-07 was awarded the Bronze Effy trophy in the services category. It also won the Brand Equity Bravery Award 2007, instituted by Ad club.

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Innovation Award for launching Diabetes Care Prudence Award 2006. Most Trusted Private Life Insurer. The Economic Times - A C Nielsen Survey of Most Trusted Brands 2003, 2004 and 2005.

Best Life Insurer 2003. Outlook Money Awards 2003 & 2004 IMM Award for Excellence. Institute of Marketing & Management Organization with Innovative HR Practices Indira Group of Institutes. B) RECOGNITIONS: A) ICICI Prudential Life was recognized as the most trusted brand amongst private life insurers in the Economic Times-Most Trusted Brand survey 2008. B) IMM Award for Excellence. Institute of Marketing & Management. C) Organization with Innovative HR Practices. Indira Group of Institutes. D) Organization with Innovative HR Practices. Asia-Pacific H R Congress Awards for HR Excellence.

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DATA ANALYSIS AND INTERPRETATION 1. Age of the respondents

PARTICTULARS Less than 25 25 - 35 35 - 45 Above 45 TOTAL

NO.OF.RESPONDENT 11 40 20 29 100

PERCENTAGE 11% 40% 20% 29% 100

Age of the Respondents

NO.OF.RESPONDENT 100 80 60 40 20 0 Less 25 - 35 35 - 45 than 25 Above 45 TOTAL PERCENTAGE

ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 11% of the respondents are less than 25 years old. 40% of the respondents are between 25 and 35 years of age. 20% of the respondents are between 35 and 45 years of age. 29% of the respondents are more than 45 years of age.

2. Qualification of the respondents.

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PARTICUALR Graduate Post Graduate Diploma Other discipline TOTAL

NO.OF.RESPONDENT 52 29 8 11 100

PERCENTAGE 52% 29% 8% 11% 100%

Qualification of the Respondents

Graduate Other discipline 100 80 60 40 20 0 NO.OF.RESPONDENT PERCENTAGE Post Graduate TOTAL Diploma

ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 52% of the respondents were graduate 29% of the respondents were post graduate 8% of the respondents were diploma 10% of the respondents were other discipline

3) Occupation of the respondents PARTICULARS Business man Professionals Job holders Others NO.OF.RESPONDENT 34 18 37 11 PERCENTAGE 34% 18% 37% 11%

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TOTAL

100

100%

Occupation of the Respondents

Business man Others 100 80 60 40 20 0 NO.OF.RESPONDENT Professionals TOTAL Job holders

ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 34% of the respondents are businessmen. 18% of the respondents are professionals. 37% of the respondents are job holders. 11% of the respondents are background.

4)

Average annual income of respondents. NO.OF.RESPONDENT 33 43 20 4 100 PERCENTAGE 33% 43% 20% 4% 100%

PARTICULARS Up to 1 lakh 1 lakh - 3 lakh 3 lakh - 5 lakh 5 lakh & above TOTAL

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Average annual income of respondents.

100 80 Up to 1 lakh 1 lakh - 3 lakh 3 lakh - 5 lakh 5 lakh & above TOTAL 60 40 20 0 NO.OF.RESPONDENT

ANALYSIS: From the survey it was found that amongst 100 respondents a) 33% of the respondents have an average annual income up to 1 lakh b) 43% of the respondents have an average annual income from 1 lakh to 3 lakh c) 20% of the respondents have an average annual income from 3 lakh to 5 lakh d) 4% of the respondents have an average annual income above 5 lakh

5) Family size of respondents PARTICULARS Below 5 members 5 - 10 members Above 10 members TOTAL NO.OF.RESPONDENT 50 32 28 100 PERCENTAGE 50% 32% 28% 100%

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FAMILY SIZE

28% 50% below 5 members 5- 10 member above 10 member 32%

ANANLYSIS: From the survey it was found that amongst 100 respondents a) 50% of the respondents are below 5 members. b) 32% of the respondents are between 5 to 10 members. c) 28% of the respondents are above 10 members.

6) According to life insurance is. PARTICULARS Risk Coverage Tax Savings Good return Security All the above TOTAL NO.OF.RESPONDENT 10 3 4 3 80 100 PERCENTAGE 10% 3% 4% 3% 80%

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Life Insurance is
Risk Coverage Security 100 80 60 40 20 0 NO.OF.RESPONDENT Tax Savings All the above Good return TOTAL

ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) e) 10% of the respondents say risk coverage. 3% of the respondents say tax savings. 4% of the respondents say good returns. 3% of the respondents say financial security. 80% of the respondents say all of the above.

7)

Awareness of ICICI Prudential life insurance NO.OF.RESPONDENT PERCENTAGE 17 83 100 17% 83% 100%

PARTICULARS Yes No TOTAL

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Awareness of ICICI Pru

Yes 100 80 60 40 20 0 NO.OF.RESPONDENT No TOTAL

ANALYSIS: From the survey it was found that amongst 100 respondents a) 83% of the respondents say that they are aware of ICICI Prudential life insurance co. b) 17% of the say that they are unaware of ICICI Prudential life insurance co

8) Awareness regarding insurance. PARTICULARS Yes No TOTAL NO.OF.RESPONDENT 2 98 100 PERCENTAGE 2% 98% 100%

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INSURANCE AWARENESS
100 90 80 70 60 50 40 30 20 10 0

NO.OF.RESPONDENT PERCENTAGE

Yes

No

TOTAL

ANALYSIS: From the survey it was found that amongst 100 respondents a) 98% of the respondents say that they are aware of insurance. b) Only 2% are unaware of insurance.

9) % of respondents who are under different plans of ICICI Prudential life insurance co. PARTICULARS Invest gain plan Unit gain plan Child gain plan Whole life plan Pension plan TOTAL NO.OF.RESPONDENT 41 36 8 15 No 100 PERCENTAGE 41% 36% 8% 15% No 100%

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INSURANCE PLANS OF ICICI PRUDENTIAL

15% 8% 41%

36%

Invest gain plan Unit gain plan Child gain plan Whole life plan Pension plan

ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) e) 41% of the respondents are under invest gain plan 36% of the respondents are under unit gain plan 8% of the respondents are child gain plan 15% of the respondents are whole life plan No body under pension plan

10)

% of respondents benefits of choosing the particular products NO.OF.RESPONDENT 60 20 12 8 100 PERCENTAGE 60% 20% 12% 8% 100%

PARTICULARS Risk coverage Additional benefit Maturity date Sum Assured TOTAL

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Benefits of Particular Products

100 90 80 70 60 50 40 30 20 10 0

Risk coverage Additional benefit Maturity date Sum Assured TOTAL

ANALYSIS: a) 36% of the respondents say that a benefit of choosing the particular Product is for Safety of life. b) 20% of the respondents say that a benefit of choosing the particular products is for additional benefit to family c) 12% of the respondents say that a benefit of choosing the particular products is for maturity date d) 8% of the respondents say that a benefit of choosing the particular products is for sum assured

11)

% of disadvantages in insurance plan NO.OF.RESPONDENT 35 20 19 14 12 100 PERCENTAGE 35% 20% 19% 14% 12% 100%

PARTICUALRS Liquidity Lapsation Unable to decide premium High risk coverage Fixed Term TOTAL

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Disadvantages in Insurance Plans

100 80 60 40 20 0 NO.OF.RESPONDENT Lapsation High risk coverage TOTAL

Liquidity Unable to decide premium Fixed Term

ANALYSIS: From the survey it was found that amongst 100 respondents a) 35% of the respondents say that disadvantages in insurance plan are liquidity. b) 20% of the respondents say that disadvantages in insurance plan are lapsation. c) 19% of the respondents say that disadvantages in insurance plan is unable decide premium. d) 14% of the respondents say that disadvantages in insurance plan are high risk coverage at high premium. e) 12% of the respondents say that disadvantages in insurance plan is fixed term

12)

% of respondents who want to invest in these different avenues. NO.OF.RESPONDENT 40 25 10 11 5 9 100 PERCENTAGE 40% 25% 10% 11% 5% 9% 100%

PARTICUALRS Recurring Deposit Equity Fund Balanced Fund Mutual Fund Debt Fund Cash Fund TOTAL

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INVESTMENT AVENUES
9% 40% R.D Equity Balanced fund Mutual Fund 10% 25% Debt Fund Cash Fund

5% 11%

ANALYSIS: From the survey it was found amongst 100 respondents a) b) c) d) e) f) 40% of respondents say that they want to invest in R.D 25% of respondents say that they want to invest in equity 10% of respondents say that they want to invest in balanced fund 11% of respondents say that they want to invest in mutual fund 5% of respondents say that they want to invest in debt market 9% of respondents say that they want to invest in cash

FINDINGS On an analysis and evaluation of the data collected from the respondents the following findings were found. Before establishment of private concerns the share of LIC was 22% hence there is a wide scope for private concerns to enter in to market. Total 100 respondents have been approached out of which 75 are the potential respondents who have shown interest for investment and finance plan Above 20% of respondents are shown interest for investment and financial plan About 33.33% of respondents are not interest to give their personal records.

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About 12.67% of respondents have already been covered by other insurance companies. About 10% of respondents have given invalid records. About 10% of respondents are newly employed or trainees. About 10% of respondents interested for investment plan after knowing ICICI PRUDENTIAL LIFE INSURANCE products.

RECOMMENDATIONS TO COMPANY: Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested, in terms of work force, in terms of market share, in terms of no. of customers. All these positive stands of the company place at the number one position. On second aspect whatever amount of money ICICI Prudential save, can be used to increase the no. of policies, which will helpful to increase the market share of the company. Since the customers think about the companies in the industry, when they invest money in the life insurance industry. So its necessary to increase the market share of the company. There are some recommendations.

Open some more branches in semi urban and rural area. ICICI Prudential has almost its branches in urban area or metros. So in order to increase the no. of customer, ICICI Prudential should increase the approach towards potential customers. For that it has to increase the branches in the semi urban cities like C, D grade cities. And the rural marketing is the best option for ICICI Prudential to increase its base in the market

Improve customer services. In order to take the advantage of being industry leader in private sector, ICICI Prudential has to improve its customer services. According to my experience in the company, a good number of customers forget to pay their premium at time so it causes a big loss to the company. ICICI Prudential has already

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collaborated with the ICICI bank for its Bancassurance facility and then can include another feature in it. ICICI bank can offer a bank account with the life insurance policy in which an ATM card will be provided. This card will have all the information regarding the policy as like future premium payment dates, payment made, money value of the policy at that date, value of the unit linked plan and all other information what the customer want. This will help the customer to pay premium on time and save their losses. This will be mutually helpful for both sister companies, ICICI bank will get new account and ICICI prudential will be able to more efficient services to their customers. Bring some unit linked life insurance plans in the market. Being a market leader doesnt ensure the leadership in the future. Since after increment in FDI from 26% to 49% all player will have the opportunity to capture the market share. So in order to maintain its position ICICI Prudential should

-Introduce some new market linked insurance plan, which will give a competitive advantage to the ICICI Prudential against its competitors. Trained the financial advisors more efficiently. In the changed scenario, more efficient training will be needed, so ICICI Prudential should provide good and efficient training to their financial advisors. Because they are the one who interact directly with the customers. So good training will give them the right way to deal with the potential customers.

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Source : Dion Global Solutions Limited

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