A Comparative Study: Lic and Icici Prudential

CHAPTER 5
A COMPARATIVE STUDY: LIC AND ICICI PRUDENTIAL
5.1: Introduction
The life insurance industry in India has undergone transformational changes over
the last 15 years. The liberalization of insurance sector which took place in the year 1999
and it has led to the entry of the global life insurance companies with an eye on the emerging
Indian market. The Indian life insurance market continues to develop and expand with the
arrival of private players. It has witnessed different phases of growth along with spans of
growth moderation, intensifying competition among 23 private companies and significant
expansion of the customer base. There have also been number of innovative product offered
and effective marketing strategies necessitated by the insurance companies to sustain tough
competition in the market. In order to achieve profitable growth and long term sustainability
in the market, life insurers have two key imperatives. Firstly, they would need to conserve
capital and efficiently optimize the existing scared resources and deploy effective
distribution networks. Secondly, they would need to offer different customer oriented
products but more importantly in terms of effective operating models in order to develop
sustainable competitive edge. The regulatory developments is directing towards customer
awareness and protection in the recent years. The regulatory environment shows that the
focus is increasing on competitive strategies such as niche focus, merger and acquisitions
and on removing structural anomalies in the products and operations. While these positive
initiatives would certainly enable long term life insurance industry growth, the role of the
IRDAI in providing an enabling environment to achieve profitable growth cannot be
undermined.
Marketing strategy is the set of controllable variables that the life insurance companies
use for reaching out to the potential customer in the targeted market. The term strategy is
very broad and it is used in business to describe how an organization is going to achieve its
objectives and mission with limited resources. Marketing strategies helps in providing basic
concepts and effective processes for gaining competitive advantages by delivering customer
value. A successful organization needs to require and develop a competitive marketing
strategy for capturing larger market share. The marketing strategy implies development of
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an action plan to achieve the organizational goals and objectives by involving management
skill with concerted efforts. The developing of initial marketing strategy for introducing the
product into the market consists of three parts:
a. The first part describes about the target market; the planned product positioning; the
sales, market shares; and the profit goals for the first few years,
b. The second part outlines the product’s planned price, better distribution and effective
marketing budget for the first year and
c. The third part describes the planned long run sales, profit goals and marketing mix
strategy.
Life insurers have traditionally aligned themselves to marketing models that are
inherently conventional in its approach - insurance agents, newspaper, television and
magazines instead of giving importance to either the e-marketing or social media marketing.
The sudden increase in the use of technology particularly among youths, the insurer backed
marketing with the internet and mobile apps which provides a low cost opportunity and
leverage some of the success of online marketing and e-marketing to build an online product
bouquet that engages the customer and enables him/her to buy. There is enough evidence
from developed markets that internet penetration and usage have a positive correlation with
the performance and activities of life insurance companies at various levels – lower
customer acquisition costs, improved access to potential customer information, product
innovation that cater to the needs of the customers and enhanced customer satisfaction. India
has only 354 million internet users as of September 2015. The marketing of life insurance
at mass level will be better with the increase in the number of internet users. It requires
identifying the ‘need of the internet’ to create awareness of insurance products, educating
them on the need to be insured and finally converting them in a cost effective manner to tap
‘un-insured’ and ‘under-insured’ life insurance market.
The LIC of India has to compete with ICICI Prudential by adopting effective marketing
strategies. The marketing strategies of life insurance keep on changing with the passage of
time and need to check on a continuous basis to meet the objectives of the company. The
profile of ‘LIC and ICICI Prudential’ and their marketing strategies is the focus of this
chapter of the research. To begin with, the researcher enumerates the benefits of marketing
strategies in life insurance; and describes how it has been contributing in reaching out to the
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potential customer and making rapid strides of progress in the Indian scenario. In the next
part of this chapter, researcher focuses on different marketing strategies adopted by LIC and
ICICI Prudential based on 7 P’s.
5.2: Profile of LIC
Life Insurance Corporation of India is an autonomous body. It is authorized to run
the life insurance business in India with its Head Office in Mumbai. The Parliament of India
passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance
Corporation of India came into existence on 1st September, 1956, with the objective of
spreading life insurance extensively and in particular to the rural areas with a view to reach
all insurable persons in the country and providing them adequate financial cover at a
reasonable cost. There were 154 Indian insurance companies, 16 non-Indian companies and
75 provident fund societies operating in India at the time of nationalization. The
nationalization process took place in two stages; initially the management of the companies
was taken over by means of an Ordinance, and later, the ownership was accomplished by
means of a comprehensive bill. From the establishment to present day, LIC has crossed
many milestones and has set unprecedented performance records in various aspects of life
insurance business. The visionary people who spearheaded this move at that time and
incorporated an entity by an act passed by the parliament that will provide life insurance to
Indians, especially the vast rural people, at an economical cost and channel the domestic
savings for the betterment of the nation. It is the largest life insurance company in India and
also the country’s largest investor. It is fully owned by the Government of India LIC
continues to be the dominant life insurer even after liberalization scenario in Indian life
insurance industry and is moving fast on a new growth trajectory surpassing its own past
records.
Today LIC function with 2048 fully computerized branch offices, 113 divisional
offices, 8 Zonal offices and the corporate office. LIC’s wide area Network covers 113
divisional offices and connects all the branches through a Metro area network. LIC has tied
up with several Banks and service providers to offer online premium collection facility in
selected cities. In January 2016, LIC has launched e-services to access, manage and track
the policy details from anywhere at any time. The Electronic Clearance System (ECS) and
ATM premium payment facility is an additional benefit provided by LIC for better
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convenience to its customer. Apart from on-line kiosks and Interactive Voice Response
System (IVRS), info centers have been commissioned at major cities like Mumbai,
Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune etc. With the
vision of providing easy access to its policyholders, LIC has launched its SATELLITE
SAMPARK offices across the nation. The digitalized record of the satellite offices will
facilitate policyholder’s records anywhere and at any time to serve conveniently in the
future. LIC has crossed several milestones and has set unprecedented performance records
by insuring large numbers of people in life insurance business.
5.2.1: Trends in Branch Expansion
The LIC follows certain basic criteria as to open new branches according to the areas
of economic viability, in terms of estimated premium income, market already covered,
insurance market potential and renewal expenses. The main aspect of distribution of LIC
services is expansion of branches and theirp easy accessibility to the policyholders. Since
the nationalization of the LIC in 1956, various attempts are being made to reach out to the
maximum and expand branch network in different parts of the country. The following table
5.1 illustrates the data related to the expansion of divisional offices and branch offices in
different periods of time. Table 5.1: Trends in Branch Expansion of LIC
Year Zonal Divisional Growth Branch Growth

Offices Offices Index Offices Index
31.12.1957 5 33 100 240 100
31.12.1960 5 35 106 267 111
1969-1970 5 36 109 424 176
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1979-1980 5 41 124 738 307
1989-1990 6 69 209 1528 636
1999-2000 7 100 303 2048 853
2009-2010 8 109 330 2048 853
2010-2011 8 111 336 2048 853
2011-2012 8 113 342 2048 853
2012-2013 8 113 342 2048 853
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2013-2014 8 113 342 2048 853
2014-2015 8 113 342 2048 853
Source: Annual reports of LIC (1957-2015)
5.2.2: Organizational Structure of LIC of India
The Life Insurance Corporation Act, 1956 gives broadly the pattern of its
organization which is given in (Figure 5.1). The Corporation consists of members who are
appointed by the Central Government but it should not exceed more than 15 in number. The
Chairman is the chief executive of the organization. General superintendence and direction
of the affairs of business of LIC is entrusted to the Executive Committee which would be
formed from among its own members but limited to five only. The Chairman of the Life
Insurance Corporation (LIC) is the Chairman of all these committees constituted. The
organizational structure envisaged by the Act consists of a four-tier structure. The central
office at the top is primarily concerned with the formulation of policies. Under the central
office head there are 8 zonal offices to assist the central office in the matter of development,
planning and review of business and supervision of divisional offices within their power of
jurisdiction. The 113 divisional offices is of the same kind to a head office and is concerned
with all activities of the insurer from procurement of new business to settlement of the
claims made by the policyholders. Under each divisional office there are 2048 branch
offices and sub-offices.
As on 31st March 2015, the Corporation has 8 Zonal Offices, 113 Divisional Offices and
2048 Branch Offices, 1381 Satellite Offices (SOs) and 1245 Mini Offices. Figures 5.1
shows the organizational set up of LIC according to annual report of IRDAI 2014-15.
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5.2.3: LIC Operation in India
The Life Insurance Corporation of India (LIC) is having operation throughout
India for insuring the insurable people of India. The corporate office is situated in Mumbai.
There are eight zonal offices operating namely central zone, eastern zone, east central zone,
northern zone, north central zone, southern zone, south central zone and western zone. The
LIC is not only an insurance company which only insures the people of India but it is a
brand image created in the mind of the people in many decades with its dedicated services.
In order to achieve the objectives, the LIC has opened several branches as well as divisional
and zonal offices in different parts of the country to reach maximum insurable peoples.
Since the nature of the life insurance contracts are longterm and during the long term policy,
it requires a variety of services, the need was felt in the later years to expand the operations
and place a branch office at each district headquarter. Re-organization of the LIC took place
and large numbers of new branch offices were opened. It has reached to 20148 in FY2014-
15 while divisional offices were also opened and reached to 113 in the same period. As a
result of the re-organization, servicing functions were transferred to the branches, and
branches were made accounting units for better functioning. In its more than 59 years of
existence, LIC has grown and strengthen its customer base, large agency network, branch
office network, new business premium, innovative products, better distribution channels,
effective marketing strategies and has a significant role in spreading life insurance widely
across the country. The figure 5.2 illustrates the operations of LIC in India as per IRDAI
annual report 2014-15.
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Fig. 5.1: Organizational set up of LIC
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Figure 5.2: LIC Operation in India
Source: www.licindia.in
5.2.4: LIC New Individual Premium
Life Insurance Corporation of India’s share of new individual premiums has dropped
to 54 % in December 2015 from 72 % in December 2012. The drop comes as result of
amendments in the Income Tax Act restricted tax breaks on policies which did not have
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adequate life cover. The given table no.5.2 and figure no.5.3 illustrates the trends of new
individual premium.
Table No. 5.2: LIC New Individual Premium ( Rs.cr)
Period LIC Premium Industry Premium LIC Market Share

(in ‘000) (in ‘000) (%)
December 2015 19.311 35.343 54
March 2015 32.786 55.372 59
December 2014 23.292 37.499 62
March 2014 41.778 60.957 68
December 2013 32.132 44.685 72
Source: IRDAI
Figure No. 5.3: LIC New Individual Premium
LIC New Individual Premium
100
50 LIC Market Share (%)

Industry Premium (in ‘000)
0 LIC Premium (in ‘000)
Dec/13 Mar/14 Dec/14 Mar/15 Dec/15

LIC Premium (in ‘000) 19.311 32.786 23.292 41.778 32.132
Industry Premium (in ‘000) 35.343 55.372 37.499 60.957 44.685
LIC Market Share (%) 54 59 62 68 72
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5.2.4: Marketing Activities of LIC
The success of the life insurance company reflects the consolidated effort of all of
its activities but the marketing activities in particular plays an important role in achieving
the business goals and objectives. These activities may be further arranged into three major
functional heads – marketing, investments, and administration. These three areas of
classifications, marketing is the largest in terms of both personnel requirements, effective
cost assessment and is more critical to success of the life insurance companies. Life
insurance marketing is an effort to transform the prospects into actual policyholders for the
business. The two fold goal of marketing is to attract potential customers by promising
quality services with superior value and to keep current customers satisfied by delivering
value added services as per the requirement. The following table 5.2 illustrates the new
business procured through different channels of marketing activities of LIC.
Table 5.3: Statement of individual new business procured
Number of First Premium

Business Year Policies Income
(In Lakh) (In Crore)
Conventional (Tied) 174.55 29168.91
Bancassurance & Alternate 3.53 901.51

Channels
Chief Life Insurance Advisor 18.51 2334.39

(CLIA)
Direct Marketing 0.79 406.09
Micro Insurance 4.00 16.40
Total 201.38 32827.30
Source: IRDAI Report 2014-15
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(a) Banc-assurance and Alternate Channels
Banc-assurance and Alternate Channels (B&AC) completed 3,52,971 policies and

collected 901.51 crore of First Premium Income (FPI). The percentage share of B&AC
premium to Total First Premium Income (Individual Assurance) was 2.75% during the
FY2014-15. The concept of Banc-assurance & Alternate Channels was started in the year
2001 after the Reserve Bank of India (RBI) allowed banks to sell other financial products
like Insurance and Mutual Funds. During the initial period, this channel generated 1,455
policies and 2.21 crore premium, the channel then multiplied manifold in the period of 14
years. During the FY 2014-15, the channel has tie-ups with 11 Public Sector Unit (PSU)
Banks, 3 Private Banks, 10 Regional Rural Banks (RRBs), 32 Co-operative Banks and 1
Foreign Bank. During the current year the bank partners has contributed 88.72% of policies
and 94.78% of FPI of the total banc-assurance and alternate channel business by completing
3,13,173 policies and 854.43 crore of FPI. The brokers has completed 810 policies with
6.64 crore of FPI and 54 bank branches procured 1 crore above FPI, while 152 Branches
procured 50 lakh and above FPI during the year.
(b) Direct Marketing

The direct marketing channel as a medium of marketing activities was established
in August, 2009 with 6 Units and 138 Direct Selling Executives (DSEs). The sole purpose
of establishing the channel was to bring a culturally different approach towards the
marketing of life insurance products. The initiative was aimed at creating new systems for
business generation, sales process monitoring and business process with a view to reach out
to untapped life insurance markets and provide new and improved buying experience to the
customers, especially to today’s young generation, tech savvy executives and high net worth
individuals respectively. The direct marketing channel is currently operating through 124
units spread across the length and breadth of the Country. The Channel is driven by the
values of passion, performance and professionalism as promoted through a committed
professional sales force, providing excellent buying experience to customers with enhanced
use of innovative technology. The Channel also sells two products online, viz. LIC’s e-Term
and Jeevan Akshay VI. In the FY 2014-15, the Channel procured a First Premium Income
of 406.09 crore on
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78,832 Policies.
(c) Micro Insurance
Micro insurance business as a medium to reach out to the rural areas has completed
4 lakh policies and 16.40 crore as First Year Premium Income (FPI) in FY 2014-15. The
total number of policies covered by the channel since inception is 1.82 crore and it has thus
provided valuable insurance cover to the underprivileged and low income segments of the
society. The contribution of micro insurance to LIC’s new business in terms of number of
policies for FY 2014-15 was 1.98%. Micro insurance policies are sold through a specialized
distribution channel comprising of NonGovernment Organizations (NGO), Self Help
Groups (SHG), Micro Finance Institutions
(MFI), Corporate Agents, select conventional agents, District Cooperative Banks (DCB),
Regional Rural Banks (RRBs), Urban Cooperative Banks (UCB), Primary Agricultural
Cooperative Societies (PACS), Other Cooperative Societies (CS) and Banking
Correspondents (BC). There are 19,379 micro insurance agents on roll as on 31.03.2015.
During the FY 2014-15, 109 villages were declared “Madhur Bima Gram” under “Madhur
Bima Gram/Community” Scheme. Under this scheme, if certain minimum numbers of new
policies are issued from that area then some financial incentive is to be provided to the
village for further developmental activities. A new plan of LIC “Bhagya Lakshmi” was
launched on 29.12.2014 under the head micro insurance. At present, two life micro
insurance products, LIC’s New Jeevan Mangal and LIC’s Bhagya Lakshmi, are available
for distribution through this vertical. The provision of micro insurance has been revised by
the Insurance Regulatory and Development Authority of India (Micro Insurance)
Regulations, 2015, notified by IRDAI on 13.03.2015. The provisions according to new
notification regarding categories of individuals/entities who are eligible to become micro
insurance agents and new features of micro insurance products which will help in
strengthening the distribution channel and in offering micro insurance products to
economically weaker sections of the society.
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5.2.5: Marketing Channels of LIC
Any sales process of life insurance companies which does not involve the tied
channels will be called an alternative channel. The channel plays a key role in marketing of
the life insurance companies and also performs a number of vital distribution functions. The
insurance firms somehow rely on the marketing channels for achieving customer
satisfaction and for generating differentiation over competitors with a vital source of
competitive advantage in the market. Till the year 2003, the agents were the only means of
distribution channel of life insurance products in India. There are now a number of
innovative alternative channels which are being offered to the customers. The alternative
channels became popular in India with the emergence of private players with foreign
collaboration after the liberalization took place. Some of them are Bancassurance, Brokers,
Corporate Agents, Internet Marketing, Tele Marketing, etc. The figure 5.3 gives a clear
picture of the marketing channels of LIC.
Figure 5.4: Marketing Channels of LIC
Marketing Channels of LIC
Individual Agents Alternative Channels
Banc-assurance CorporateAgents
Brokers
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5.2.6: Marketing Communications of LIC
During FY 2014-15, more emphasis were given by LIC on maintaining the legacy
of the iconic brand in the minds of general public especially among the youth of the country.
The presence of LIC has been consistent in more than 70 magazines/publications and ran
26 campaigns in newspapers apart from 41 advertisement campaigns for other departments.
The corporation has used various booklet activities for insurance awareness, financial
planning and agency as career were done through 3 magazines. The LIC as a brand was
visible with advertisements in all major Television (TV) Channels, Aircrafts (Air India and
Jet Airways) and also display of Audio Visuals in 7000 Movie Screens across India.
During year 2014-2015, the four initiatives namely LIC student of the year, college
campus activity, mobile van activity, wall paintings were taken up with right earnest and all
the activities were monitored from both, zonal and central Offices. As on 31.03.2015, the
numbers of activities as a mode of advertisements completed were: 7748LIC–Student of the
Year, 2387-College Campus Activity, 17616-Mobile Van Activity and 28596-Wall
Paintings. The nationwide movement of Swachh Bharat was supported by LIC through its
“Clean India Healthy India” campaign. The corporation had digital advertising presence
across 9 months through 3 major digital advertisement campaigns for reaching out to the
maximum customers and also represented in 17 major websites like Google, Yahoo, Rediff,
MSN, Times of India, Money control, Economic Times etc. The advertisement campaign
of the LIC also ran on E-commerce websites like Indian Railway Catering and Tourism
Corporation (IRCTC), Flipkart, Snapdeal and Shopclues for reaching mass level customers.
The number of people counted on LIC Facebook page was 3 Million, on Twitter handle has
more than 6500 followers and while on Youtube channel has more than 2500 subscribers.
5.2.7: Marketing Campaigns of LIC
LIC has long history of marketing campaign and has been more active and effective
after the government legislation of privatization of insurance industry in year 1999. LIC as
a representative of government agency has always engaged on social themes like prevention
of pollution, water is precious, preserve the wild through its advertisements because of the
social obligation to the society. LIC recent ad campaign “Jeevan Bima- Zindagi ke saath
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bhi, Zindagi ke baad bhi” is quite a success. LIC usually goes with 360 degree campaign to
create awareness and promote products to reach out all insurable persons of the country.
5.2.8: Awards and Recognition of LIC in FY2014-15
LIC has won 41 awards during the FY2014-15. These awards is itself recognizing
the contribution to LIC towards the development of life insurance industry and as well as
the Indian economy. Among them were the ET Best Brands, Superbrands- 2014, ABP News
Brand Excellence Award, Reader’s Digest 2014 Awards, Outlook Money-2014, Money
Today FPCIL Award, Greentech CSR Award-2014, Indira Gandhi Award from President
of India for OLI and Website of the year India Awards. LIC is also rated as the second most
valuable Indian brand in Annual study by Brand Finance and 5th in the Interbrand survey
for Best Indian Brands- 2014. The following table no. 3 illustrates in detail about the Awards
and Recognition of LIC in FY 2014-15.
Table No 5.4: Awards and Recognition of LIC in FY2014-15
S.No. Name of the awards received by LIC during FY2014-15
1. Child Magazine Most Popular awards 2014
2. Pitch Top 50 Brands 2014
3. Indian Insurance Awards 2014 - Claims Leader
4. Indian Insurance Awards 2014 Underserved Market Penetration
5. Indian Insurance awards 2014 - Life Insurance Company of the year
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6. Lokmat BFSI Awards 2014 - Highest Claim Settlement
7. Lokmat BFSI Awards 2014 - Best Life Insurance Company
8. Lokmat BFSI Awards 2014 - Underwriting Initiative of the year
9. Global Brand Excellence Awards Brand Excellence in BFSI
10. Global Brand Excellence Awards Best in house magazine
11. Asia BFSI Best CSR Practices
12. Asia BFSI Best Life Insurance Company
13. Hindustan Times Mumbai Hot 50
14. Readers Digest 2014 Trusted Brand
15. ET Best Brands
16. 2nd Bright Awards
17. Super Brands 2014
18. Ashirwad Award
19. Lokmat Coporate Excellence Award
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20. ABP News Brand Excellence Awards
21. Skoch Order of Merit CSR Excellence
22. Indira Gandhi Award from President of India
23. West Bengal State Award 2014
24. BFSI Vision CSR Award - Community Development
25. BFSI Vision CSR Award - HealthCare and Combating Diseases
26. IPSE Awards 2014 - Insurance PSE of the year
27. NASEOH - Sri Vijay Merchant Memorial Award
28. Greentech CSR Award
29. Money Today FPCIL
30. North east Consumer awards
31. ABP News Global CSR
32. ABP News BFSI Awards
33. 54th ABCI - WALLPAPER - SILVER
34. 54th ABCI - Bronze for photo feature in Yogakshema magazine
35. ABCI 14-15 Mag Design
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36. My FM STARS OF THE INDUSTRY AWARDS Brand Leadership
37. My FM 14-15 Excellence in life insurance
38. BFSI Leadership - LIC GJF
39. Website of the year India Awards - Most Popular Website
40. Outlook Money Best Life Insurer
41. Child Magazine Most Popular awards 2014
Source: www.licindia.in
5.2.9: Vision and Mission of LIC
Mission
"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns, and by
rendering resources for economic development."
Vision
"A trans-nationally competitive financial conglomerate of significance to societies
and pride of India."
Contact Address:
1st Floor, West Wing,
Mumbai Do-Iv,
Yogakshema, Jeevan Bima Marg,
Mumbai - 400 021, India
Website: www.licindia.in
5.3: Profile of ICICI Prudential
ICICI Prudential Life Insurance Company (ICICI Prudential Life) is a joint venture
between ICICI Bank Ltd., India's largest successful private sector bank, and prudential plc,
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a leading international financial services group headquartered in the United Kingdom. ICICI
Prudential Life was amongst the first private sector life insurance companies to begin its
operations in December 2000 after receiving approval from Insurance Regulatory
Development Authority of India (IRDAI). Earlier the ICICI bank holds 74 percent and
prudential Plc is having 26 percent stake in the joint venture according to the government
rules. ICICI Bank on November 15 2015 approved a 6 percent sale in ICICI Prudential Life
Insurance and after the deal, the bank will hold 68 percent stake, while the Prudential PLC
(the joint venture partner) will hold 26 percent. The remaining 6 percent stake will be sold
to Pemjii Investment and Compassvale Investment. The company innovative initiatives is
purely committed to customers at the core of every aspect, be it product development,
distribution, the sales process or servicing and claims settlement. The product development
is undertaken with thorough research and understanding of the needs of customers. For over
a decade, ICICI Prudential Life Insurance has maintained its focus on offering a wide range
of flexible and innovative products that meet the needs of the Indian customer at every stage
in life. The customer centric approach of the company has ensured that the various products
offered by the company strategically fit into the financial plan of the customers and helps
them in achieving their various long term financial goals.
In addition, ICICI Prudential Life also has a comprehensive multichannel

distribution network across various geographic and income segments to ensure that its
products and services are accessible to every customer. ICICI Prudential Life Insurance has
been helping customers meet their long term financial goals by adopting an investment
philosophy that aims to achieve risk adjusted returns over the long term. The customer
centric approach and focus on upgraded technology and innovation in product development
has enabled the company to acquire the abundant support of its customers and creating a
trusted brand in the Indian life insurance sector. The company is continuously focused on
profitable growth opportunities in the market with customised regional strategy to
strengthen relative position in key micro markets in the country. With 547 branches and
over 5000 partner points of presence, the company is able to cover 527 districts in country.
ICICI Prudential Life's capital infused stands at Rs. 48.16 billion (as on 31st March, 2015).
For the FY 2014-15, the company garnered a total premium of Rs. 153.07 billion. The
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company has assets under management of Rs. 1001.83 billion as on 31st March 31, 2015.
There has been a 4.3% growth in Profit after Tax (PAT) for the Company and increased to
Rs. 16.34 billion in FY2015 compared to Rs. 15.67 billion in FY2014. The financial position
of the Company remained strong and stable with a solvency margin of 336.9% in FY2015
compared to 372.3% for FY2014 against
regulatory requirement of 150%. This strong financial position will surely help the ICICI
Prudential in acquiring more market share and attracting the potential customer while
retaining the existing customers.
5.3.1: Promoters of ICICI Prudential
(a) ICICI Bank
ICICI Bank Private Limited is India's leading private sector bank, with consolidated
total assets of Rs. 8260.79 billion as on 31st March 2015. ICICI Bank's subsidiaries include
India's leading private sector life insurance companies, the largest online retail brokerage
and among its largest mutual funds and private equity firms. ICICI Bank is having wide
network of operation and currently doing business in 17 countries, including India.
(b) Prudential Plc
Prudential plc is a company incorporated with its principal place of business in

England, and its affiliated companies constitute leading financial services groups in the
world. It provides insurance and financial services through its subsidiaries and affiliates
throughout the world. It has been in existence for more than 166 years and has Rs. 3628.38
billion in assets under management (as on 31st December 2014). Prudential plc is not
affiliated in any manner with Prudential Financial, Inc., a company whose principal place
of business is in the United States of America.
5.3.2: Market Share of ICICI Prudential
ICICI Prudential Life has maintained its leading position among private life insurers
in the country with an array of products that match the different life stage requirements of
customers and enables them to achieve their long term financial goals. The company
retained its market leadership position in FY2015 with a private market share of 23 percent
compared to 18.9 percent in FY2014. The continuous growth in market share of ICICI
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Prudential is due to adoption of effective marketing strategies, innovative products being
offered and customer centric approach. The Overall market share also increased to 11.3%
in FY2015 compared to 7.2% in FY2014. The Company registered an increase in market
share to 11.3% for FY2015 from 7.2% in FY2014 based on Retail Weighted Received
Premium (RWRP). Among the private players, the market share increased to 23.0% from
18.9% in FY2014. The following table no. 5.4 depicts the market share captured by the
ICICI Prudential Life Insurance Company.
Table No.5.5: Market share of ICICI Prudential
Market Share FY 2012 FY2013 FY2014 FY2015
Within private sector 16.1 18.5 18.9 23
Within total industry 5.9 7.0 7.2 11.3
Source: IRDAI, Life Insurance Council
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Figure 5.5: Market share of ICICI Prudential
Market Share of ICICI Prudential
25
20
15
10
0
FY FY20 FY20 FY20
2012 13 14 15
Within private sector 16.1 18.5 18.9 23
Within total industry 5.9 7 7.2 11.3
5.3.3: New Business Premium of ICICI Prudential
The total gross premium collected by the company registered a growth of 23.2% to
Rs.153.06 billion in FY2015 from Rs.124.29 billion in FY2014. The Retail weighted
received premium (RWRP) for the FY 2015 is Rs.45.96 billion while it was Rs. 32.93 in
FY 2014. The Annualised Premium Equivalent (APE) for the FY 2015 is Rs. 47.44 while it
was Rs.34.44 in previous year. There is a tremendous growth of premium collection in
recent years by the company. The Assets under Management (AUM) reached a significant
milestone this year with the company becoming the only private life insurer to have an AUM
of Rs. 1 trillion in March 2015. The AUM increased to Rs. 1,001.83 billion as at March 31,
2015 from Rs. 805.97 billion as at March 31, 2014. The (AUM) is calculated in Life
Insurance Company as, all the premiums collected during the financial year minus
administration cost, operating cost, sales related expenses and mortality expenses. The asset
under management is the pool from which the money is distributed back as returns to the
company and it is directly correlated with the amount of premium collected during the
financial year. The following table no. 5.5 illustrates the trends of new business premium
collected by ICICI Prudential in various financial years.
167
Table No. 5.6: New Business Premium of ICICI Prudential Rs. billion)
Financial Retail weighted received Annualised Premium

Year premium (RWRP) Equivalent (APE)
FY 2012 28.18 31.8
FY 2013 33.10 35.32
FY 2014 32.53 34.44
FY 2015 45.96 47.44
Source: Annual Report ICICI Prudential FY 2014-15
Figure No. 5.6: New Business Premium of ICICI Prudential
New Business Premium
50
45
40
35
30
25
20
15
10
5
0
FY 2012 FY 2013 FY 2014 FY 2015
Retail weighted received
28.18 33.1 32.53 45.96
premium (RWRP)
Annualised Premium
31.8 35.32 34.44 47.44
Equivalent (APE)
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Figure No. 5.7: Organisational Setup of ICICI Prudential
169
Source: ICICI Prudential Annual Report 2014-15 Table No. 5.7: Awards
and Recognition of ICICI Prudential in FY2014-15
S.No. Name of the awards received by ICICI Prudential during FY2014-15
1. 1st Prize for Innovation at the Qimpro Awards 2014, for the project on Digitization
2. BrandZ Top 50 Most Valuable Indian Brands 2014, by Millward Brown & WPP
Source: www.iciciprulife.com
5.3.4: Marketing Campaigns
ICICI Prudential has effective marketing strategies with excellent recall value
because of their successful ad campaigns. The most popular mascot, Chintamani was a huge
success for ICICI Prudential for reaching out to the common people. The ads featuring
Chintamani focused mainly on tax benefits, health and other similar aspects. There have
been also regular advertisements on pension products and “Jeete Raho” campaign. Recently
ICICI Prudential signed up with Bollywood actor Amitabh Bachchan to be its brand
ambassador.
5.3.5: Vision and Values of ICICI Prudential Our
vision:
To be the dominant Life, Health and Pensions player built on trust by world-class
people and service.
This we hope to achieve by:
a. Understanding the needs of customers and offering them superior products and
service;
b. Leveraging technology to service customers quickly, efficiently and conveniently;
c. Developing and implementing superior risk management and investment strategies
to offer sustainable and stable returns to our policyholders;
170
d. Providing an enabling environment to foster growth and learning for our employees;
e. And above all, building transparency in all our dealings.
Our values:
The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundary-less, Humility and Passion. Each of the values
describes what the company stands for, the qualities of our people and the way we work.
Every member of the ICICI Prudential team is committed to the 5 core values and these
values shine forth in all we do.
Boundary less – I will treat organization agenda as paramount
Integrity – What I do when nobody is watching me
Humility – Openness to learn a change
Customer First – Service excellence towards Internal and External Customers
Passion – Demonstrates infectious energy and enthusiasm
We do believe that we are on the threshold of an exciting new opportunity, where
we can play a significant role in redefining and reshaping the sector. Given the quality of
our parentage and the commitment of our team, there are no limits to our growth.
Contact Address:
ICICI Pru Life Towers
1089 Appasaheb Marathe Marg
Prabhadevi, Mumbai - 400025
Website: www.iciciprulife.com
5.4: Marketing Strategies of Life Insurance Companies
Effective marketing strategies are vital for the survival and growth of companies in
the rapidly changing business environment of the 21st century. The success or failure in
today’s competitive market is depending on the marketing strategies that they could adopt
with all effectiveness. Life insurance is no exception to this rule. The problem is still more
serious with the life insurance sector as they have to promote strategies to sell more products
and services.
The entry of foreign players after liberalization of insurance sector brings enormous
pressure on the profitable, efficient and socially responsible public life insurance company
of India. The private players have now created vast opportunity for the specific category of
professionals and the demand for qualified, skilled, expertise knowledge of marketing
171
personnel have suddenly increased for adopting effective marketing strategies to capture the
market. Foreign and private insurance players are ready to capture the market by providing
the innovative products and services at cheaper rates and also offering unbundled customer
oriented products (Pension market, annuity market etc.,) with a variety of benefits leading
to cut throat competition in the existing India life insurance market. The LIC of India has to
compete with private players by adopting effective marketing strategies on a regular basis.
According to Granroos, marketing strategy in the case of services may consist of 1.

Traditional external marketing 2. Internal marketing 3. Interactive marketing. The
traditional external marketing mainly consists of the usual 4 P’s viz., Product, Price, Place
and Promotion of marketing mix. Internal marketing generally implies that the service firm
must effectively train and motivate its customer friendly employees as well as all the
supporting service personnel to work as a team to provide customer satisfaction. Interactive
marketing emphasizes more on perceived services quality and it is highly dependent on the
quality of buyer and seller interaction. It describes the skill of employees in handling
customer contact and covers delivery of the product in a most satisfying manner.
5.4.1: Product Strategy
The primary objective of every company is to develop such a product that satisfies
the customer’s needs. The existence of the company is in trouble if it is unable to deliver
satisfying product/service. The basic concept of product extends the applicability of
marketing principles to insurance marketing. “A product is anything that can be offered to
a market for attention, acquisition, use or consumption that might satisfy a want or need. It
includes physical objects, services, persons, places, organizations and ideas.” Philip Kotler
describes insurance products as unsought (consumer) goods. “These are consumer goods
that the consumer does not know about or knows about but does not normally think of
buying.”
The nature of service industry is challenging because products are generally

intangible in nature and service differentiation plays an important role in the successful
marketing of services. Without the quality of products being recognized and sought by life
insurance customers, it is difficult to sell a product either to a new customer or to an existing
172
one. The product mix of life insurance companies includes whole life policies, endowment
policies, term insurance plans, money back policies, children policies, pension plans, Unit-
Linked Insurance Plans (ULIPs), riders, health plan and micro/rural insurance. The life
insurers of India therefore offers a wide variety of products according to annual report 2014-
15, which fulfills the needs of different segments of the society.
They are as follows:
(a) Whole Life Plans

This policy is known as whole life policies because under this, the risk is fully
covered for the entire life of the policyholders. The money of the policy including bonus are
payable only to the nominee or the beneficiary upon the death of the policyholder.
These policies can be issued either on profit basis or non- profit basis.
(b) Endowment Plans

The endowment policies covers the risk for a specified period at the end of which,
the sum assured is paid back to the policyholder, along with the entire bonus accumulated
during the term of the policy.
(c) Term Insurance Plans

Under the life insurance term plan contract, the sum assured is payable only in the
event of death during the term. In case of survival, the contract comes to an end at the end
of the term. There is no refund of premium payable to the policyholders. These policies are
non-participating in nature. The premium is low and the contract is simple in nature because
only death risk is covered.
(d) Money Back Plans
In money back policies, the policyholder gets periodic payments during the term of
the policy and a lump-sum amount on surviving its term or in the event of death. Without
any deduction for the amounts paid till date. These type of polices are very popular.
(e) Children Plans

The life insurers of India have several policies for the protection of the children.
There are various plans which are designed to take care of various education needs of the
child at an early age.
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(f) Pension Plans
Pension plans are individual plans that gaze into your future and foresee financial
stability during your old age. These policies are most suited for senior citizens and those
planning a secure future so that you never give up on the best things in life.
(g) Unit Linked Insurance Plans

Unit linked plans are combination of an investment fund (like mutual fund) and an
insurance policy. Unit linked plans offer a long-term investment option where return is
linked to the market performance but at the same time there is no compromise on protection.
Premiums received from the customers are utilized for purchasing units at the prevailing
prices. The daily unit price is calculated on the basis of the market value of underlying assets
(bonds, equities, government securities, etc.) Premiums paid by the customer, less the
charges like management/administrative expenses, are utilized for purchasing units at the
prevailing unit price of the day. Premiums are invested on the basis of predetermined option
of the customers.
(h) Health Plan

Unit linked health insurance plan is a combination of Health Insurance and
investment with an objective of income and growth with low risk. Health is a major concern
on everybody’s mind these days. With sky rocketing medical expenses, the possibility of
any illness leading to hospitalization or surgery is a constant source of anxiety unless the
family has actively provided for funds to meet such an eventuality.
Most families rarely provide for healthcare, and even if they do, it is grossly inadequate.
(h) Micro Insurance

Still a vast majority of people in rural and urban areas remained uninsured
particularly those who are in lower income states and cannot afford insurance at normal
price. In order to cover a large section of uninsured, particularly among the vulnerable
sections of society, a new product ranged at a cheaper price was required to be launched and
that ideal product was ‘micro insurance’.
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5.4.2: Price Strategy
Price is the mean of setting the exchange value between two parties to fulfill the
mutual needs. It is generally fixed on the principle of demand and supply and present
situations prevailing in the market. Price, in marketing mix terms, covers all aspects of
pricing such as discount pricing, extended credit, list price, and payment period (Woodruffe,
19951). Kandampully (2002) describes ―Pricing in service organizations is less influenced
by cost, but more by customer’s perceptions of quality, satisfaction, and value. The actual
pricing of a service is thus often determined by matching the customer’s perception of value
with the demand of the services. With this pricing method, pricing is considered as a
marketing mix variable, thereby considered together with the other marketing mix variables
before a marketing program is put together (Nagle and Holden, 20023). Zeithaml and Bitner
(2003) defines three basic marketing price strategies which service companies can attend,
the strategies are competition–based, cost–based, and demand–based pricing strategies.
Pricing in life insurance is somewhat complex as compared to the pricing strategies of other
financial products because of its intangible nature. The price (premium) for a life insurance
product is determined by expected claim costs, investment income, administrative costs,
and fair profit loading (Harrington and Niehaus, 2004). The actuary on considerations that
depend on the experience of the insurer in the past and his assessment of the trends in the
future decides the premium rates and includes the mortality rate realized on different age
groups. Pricing in the present life insurance business requires actuaries to be knowledgeable
in all field of operation with in-depth knowledge of statistics in an ever-expanding group of
issues because of the nature of diversified products. In case of life insurance, there is limited
scope to use price as a strategic weapon for attracting potential customers.
5.4.3: Promotion Strategy

The promotional mix is a term used to describe the set of tools that a business can
use to communicate effectively and efficiently the benefits of its products or services to its
customers. Market communication performs three basic roles in marketing for the
customers–to inform, to persuade, and to remind. Traditional promotion employs a variety
of methods–including advertising, sales promotion, public relation, and personal selling–to
attract the attention of existing and potential customers, and to inform them of the products,
175
services, and special offers made available by the firm (Peattie, and Peattie, 19941). Each
of the elements of promotion mix has its own importance and now become familiar in many
areas of services marketing.
In case of life insurance services, promotion is done through a mix of advertising,

personal selling, and sales promotion. Promotion communicates with the potential market
so as to persuade the prospective customers to try a new insurance product (Periasamy,
2005). The new concept of online advertising is one marketing tool that is economical for
reaching out maximum customers at one point of time. As the internet takes on more power
and influence all of the time, having a web presence will put an insurance company on the
cyber map and get it noticed by the existing as well as by the potential customers. Punch
line advertising in business journals, television advertisement, newspaper advertisement,
industrial publications and periodicals are traditional approach for reaching out to the
customers. The modern approach of marketing includes social media marketing, internet
marketing and mobile apps marketing which are excellent forms of life insurance marketing.
All life insurance companies have started using public relation as a tool to make better image
in the minds of general public. Personal selling is more effective and extremely labour
intensive but is the best form as far as life insurance is concerned, dealing with one customer
at a time.
5.4.4: Place or Physical Distribution Strategy
Place is another important aspect which plays an important role in marketing mix.
Place refers to the location where the product or service is available to the customer,
including distribution channels. Place contributes an important factor in the marketing of
services (Bitner, 1990). In case of life insurance, it is a combination of decisions regarding
multiple channels of distribution and picking the right channel for the business. The
emerging new opportunity for life insurance companies towards integration of the financial
services industry is bancassurance (Aggarwal, 2004). Bancassurance prospects in India are
really bright because huge banking infrastructure across urban, semi–urban and rural India
(Neelamegam and Veni, 2008) and life insurers are using this channel (Shukla, 2006). New
distributors like stockbrokers, financial planners, general agents, and financial institutions
etc. involve lower distribution costs, variable as opposed to fixed expenses, lower front–end
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commission costs, and the opportunity of selling the products in conjunction with other
investment–related products (Chandler, 19945).
Strategy of worksite marketing is more useful in case of life insurance marketing

and especially in pension and health plans. The widespread diffusion of the internet has
created an explosion in the growth of electronic channels, including direct channels (that is,
individual company web sites), electronic markets, or electronic intermediaries over which
multiple buyers and sellers do business (Malone, Yates, and Benjamin, 19871), and other
cybermediaries (Sarkar, Butler, and Steinfield, 19952). However, consumers have not
shown a marked preference for purchasing insurance product via the Internet (Trembly,
20013). The insurance agents as a distribution channel are traditional in nature but it is still
dominating in India and this will continue to be a major distribution channel for insurers in
rural sector.
5.4.5: People Strategy

People, process, and physical evidence are the 3 P’s, which are especially applicable
to services marketing mix (Booms and Bitner, 1981). People are the main critical resource
available in any organization, particularly in service industry. The financial service staffs
occupy the key position in influencing customer’s perceptions because of the simultaneity
of production and consumption. Woodruffe (1995) solely uses service personnel in
the―People part of the services marketing mix. Recruiting the right staff at right place and
training them appropriately in the delivery of their service is essential, if the service provider
wants to obtain a form of competitive advantage in the market. Life insurance companies
have to give more attention in training and development of their employees and agents for
higher level of growth in the business. Building strong relationship with the insurance agents
as well as the customers will help in meeting customer’s needs and serving them efficiently
and effectively. The nature of interaction states the level of satisfaction between customers
and the people representing insurance companies. The use of innovative technology for
training the employees and agents while introducing new products to the customers for
selling products of the life insurance.
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5.4.6: Process Strategy
A process is the method and sequence of actions in the service performance. Unlike
goods, services are processes. The services offered are the end results of deeds, acts
performed by the employees in the business organization. In assessing process, customers
evaluate whether the service follows a production–line approach or whether the process is
a customized one in which the customer is given personalized attention (Bowen and Lawler,
1992). Shostack (1984) points out that since services are intangible and therefore described
in words by people, companies have to be really clear in defining the service process. The
risks of relying on words alone in describing services are the oversimplification of the
service, incompleteness of the description, subjectivity of different readers and the biased
interpretation of the words used to describe the service (Shostack, 1987). The process
involved in life insurance industry should be customer friendly with high speed and
accuracy of payment. The process methodology of life insurers should be such that it
provides total ease and convenience while satisfying the customers. Badly designed and
poor processes lead to slow and inefficient delivery and make it difficult for insurance
employees and insurance agents to do their job well.
Consequently it will result in low productivity, low business growth and service failures.
5.4.7: Physical Evidence Strategy
The physical evidence is defined as the environment in which the service is delivered
and where the service provider and the customers interact with each other. According to
Zeithaml and Bitner (2003), to evaluate services before its purchase and to assess their
satisfaction with the service after it is bought, customers tend to rely on tangible cues, or
physical evidence. The appearance of building, landscaping, interior furnishing,
equipments, printed materials, and other visible cues all provide tangible evidence of a
firm’s service quality. This sort of physical evidence provides excellent opportunities for a
service firm to send clear and consistent marketing messages regarding the firm’s purpose
the intended market segment, and the nature of the service (Bitner, 1992 and 1996). In case
of life insurance business, apart from office environment, materials such as brochures,
policy documents, and periodic statements are the tangibles, which will influence customers
to buy the policy. Life insurance companies and intermediaries need to manage all these
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physical evidences carefully as they can have a profound impression of the customers.
Although all life insurance companies provide similar kind of services, but the physical
evidence creates a big difference.
5.5: Implication of Marketing Strategies by LIC and ICICI Prudential
(a) Product Strategies of LIC and ICICI Prudential
After the opening up of the life insurance to the private sector in the year 1999, the
LIC of India have been putting in more efforts to offer innovative products continuously
and the quality of service rendered are going to capture the market share. The LIC of India,
over a period of 59 years, introduced several innovative products and some of them are
traditional products that have been continued from pre-nationalization days while some are
now discontinued. LIC offers a wide variety of products which fulfill the needs of different
customer segments of the society. During the FY 2014-15, the Corporation has introduced
10 new plans. These includes 8 Individual products viz. LIC’s e-Term, LIC’s Jeevan
Rakshak, LIC’s Jeevan Shagun, LIC’s Limited Premium Endowment Plan, LIC’s Bhagya
Lakshmi, LIC’s Jeevan Sangam, LIC’s New Children’s Money Back Plan and LIC’s Jeevan
Lakshya. In addition, LIC also launched one retirement product “Varishtha Pension Bima
Yojana” and one Group product “Pradhan Mantri Jan Dhan Yojana” on behalf of
Government of India.
In product strategy, the important aspects includes minimum age at entry, maximum
age at entry, maximum maturity age, minimum sum assured, maximum sum assured, sum
assured in multiplies, actual sum assured, minimum term, maximum term, risk coverage,
duplicate policy bond, tax benefits, policy loan facility, premium waiver benefits,
nomination facility, revival facility, surrender value of policy, survival benefits, maturity
benefits, claim settlement, variety of policies and attractive schemes. The given table no.
5.6 classified the different products offered by LIC of India and ICCI Prudential during the
FY 204-15.
Life Insurance
Plans LIC ICICI Prudential
179
LIC's Anmol Jeevan – II (Plan No. 822) ICICI Pru iProtect Smart
Term Plan
LIC's Amulya Jeevan – II (Plan No. 823)

ICICI Pru iProtect
LIC's e-Term (Plan No.825) ICICI Pru Care II
LIC’s New Term Assurance Rider (Plan

No.825)
LIC’s New Money BackPlan-20years (Plan

Money Back Plan/ No.820) ICICI Pru Savings Suraksha
LIC’s New Money BackPlan-25years (Plan

No. 821) ICICI Pru Cash Advantage
LIC’s New Bima Bachat (Plan No. 816) ICICI Pru Assured Savings
Insurance Plan
LIC's New Children's Money Back Plan

(Plan No. 832)
LIC's Jeevan Tarun (Plan No. 834)
Endowment Plan LIC’s New Endowment Plan (Plan

No.814)
LIC’s Single Premium Endowment Plan

(Plan No.817)
LIC's Limited Premium Endowment Plan

(Plan No.830)
LIC's Jeevan Lakshya (Plan No. 833)
LIC's Jeevan Rakshak (Plan No. 827)
LIC’s New Jeevan Anand (Plan No. 815)
LIC’s Jeevan Pragati (Plan No. 838)
LIC’s Jeevan Shikhar (Plan No. 837)
180
LIC’s Jeevan Labh (Plan No. 836)
LIC’s Jeevan Sugam (Plan No. 813)
LIC’s Jeevan Sangam (Plan No. 831)
LIC’s New Jeevan Anand (Plan No. 815)

Whole Life Plan
LIC's New Children's Money Back Plan

Child Plan (Plan No.832) ICICI Pru SmartKid
LIC's Jeevan Lakshya (Plan No. 833)
Pension/Retirement
LIC’s Jeevan Akshay VI (Plan No. 189)
Plan
ICICI Pru Immediate Annuity
LIC’s New Jeevan Nidhi (Plan No. 818)

ICICI Pru Easy Retirement
Varishtha Pension Bima Yojana (Plan

ICICI Pru Easy Retirement SP
No.828)
LIC’s New Endowment Plus (Plan No.

835) ICICI Pru Smart Life
Wealth/ULIPs Plan
ICICI Pru Elite Life II
ICICI Pru Elite Wealth II
ICICI Pru Wealth Builder II
ICICI Pru Cash Advantage
ICICI Pru Guaranteed Wealth
LIC’s Jeevan Arogya (Plan No. 904)

Health Plan ICICI Pru Health Protector
LIC’s New Jeevan Mangal (Plan No.
Micro/Rural Plan 819) ICICI Pru Sarv Jana Suraksha
LIC's Bhagya Lakshmi (Plan No. 829) ICICI Pru Anmol Bachat
181
Pradhan Mantri Jan Dhan Yojana Loan Protect
Group Plan
Loan Protect Plus

LIC’s Group Credit Life Insurance
Group Leave Encashment

LIC’s Single Premium group Insurance
LIC’s New Group Leave Encashment
Group Immediate Annuity Plan
Plan
LIC’s New Group Superannuation Cash

Accumulation Plan Group Term Life Solution
LIC’s New One Year Renewal Group Group Gratuity

Term Assurance Plan I
LIC’s New One Year Renewal Group Group Superannuation

Term Assurance Plan II
LIC’s New Group Gratuity Cash

Accumulation Plan
Source: www.licindia.in, www.iciciprulife.com
Table No. 5.8: Products offered by LIC and ICICI Prudential The ICICI Prudential
life insurance company on the other hand concentrates more on ULIPs than traditional
products during FY 2014-15. For over a decade, ICICI Prudential Life has maintained its
dominant position (on new business retail weighted basis) amongst private life insurers in
the country, with an innovative collection of products to match the different life stage
requirements of customer and enable them to achieve their long term financial goals. The
trend of the life insurance market is continuously changing with the passage of time. The
concept of insurance now is not limited to protection of life only but linked with return of
investment as well. The following table no. 5.7 and figure no. 5.6 gives the product mix of
ICICI Prudential Life Insurance Company.
182
Table No.5.9: Product Mix of ICICI Prudential (Percent %)
Figure 5.8: Product Mix of ICICI Prudential
ICICI Prudential Product Mix
90
80
70
60
50
40
30
20
10
0
ULIPsTradit ULIPsTradit ULIPsTradit ULIPsTradit
ional ional ional ional
FY2012 FY2013 FY2014 FY2015
ICICI Prudential 61.6 38.4 54.5 45.5 66.5 33.5 84.8 15.2
(b) Price Strategy of LIC and ICICI Prudential
A suitable pricing policy is a very important factor in the successful running of an

insurance company as it is the pricing policy that affects the sales volume of a company.
Price is actually the valuation that is offered for the product by the insurer. For LIC and
ICICI Prudential Life Insurance policy, the policyholder has to pay a premium that is paid
either annually, half-yearly, quarterly or in some cases monthly. The management is sole
authority which takes the decision of fixing the premium of every policy relating to a
particular period according to the nature of the products offered.
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1. Life Insurance Company of India
A complete market analysis is done by LIC and information about various facts are
collected like how much money an individual can afford for a particular product, and what
is the economic and financial position of rural and urban India and present economic
condition of the market. This strategy helps in making fair and reasonable pricing policies
for the common people. The management of LIC also makes pricing decisions about the
premium mode, premium level, investment return, loan interest and the commissions. The
pricing strategies of LIC products are very much a value for money because of common
people centric approach. The LIC is having an excellent brand value, service quality and
thus a customer can get full value as per the price paid for an LIC product.
2. ICICI Prudential Life Insurance company
On the other hand the pricing strategies of ICICI Prudential is also based on deep
research and development process, which helps in selling more and more innovative
products to different segments of the customers. The need of the customer for protection
and financial security keeps on changing with changing life stages. The product portfolio
and its pricing are developed on the basis of research and regular engagement with
consumers and policyholders. The pricing of the product depends on the benefits offered to
the customers. There are traditional product and Unit Linked Insurance Plans (ULIPs)
offered by ICICI Prudential but the pricing of these depends on the individual benefit and
exposure to capital markets and the return on investment. The customers with a low risk
profile can choose endowment or traditional products which provide regular income at low
amount of premium. Importantly, the pricing strategies must focus on cost of the product
and their return on maturity. The ICICI Prudential has effectively adopted the pricing
strategies while covering the family or dependants at minimum amount of premium and
fulfilling the long term financial goals of the customers.
184
(c) Place/ Distribution Strategy of LIC and ICICI Prudential
1. Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) comes under service providing industry
and the distribution of its products and facilities is done through direct and indirect channels.
There are numerous routes available to reach the potential customers. The most traditional
and basic channel member until this date has been the Insurance Agent. Taking various
innovative routes in order to reach the maximum insurable persons in any farthest and
remotest corner is the objective of the LIC Company. The physical distribution of the service
products at the right time and place is an important factor of marketing strategies of LIC.
The channel of distributions of the corporation consists of agents, brokers,
development officers, retail services related to finance, branch office, alliance with banks
and distributors, corporate agencies with proper and well-maintained infrastructure.
Presently, the Life Insurance Corporation distributive channel consists of numerous
development officials, agents and service branches who are active participants. As on 31st
March 2015, the Corporation has 8 Zonal Offices, 113 Divisional Offices and 2048 Branch
Offices, 1381 Satellite Offices (SOs) and 1245 Mini Offices. The total number of agents on
roll is 11,63,604 as at 31.03.2015 as against 11,95,916 as on 31.03.2014. The number of
active agents is 10,81,495 as at 31.03.2015 as compared to 11,32,677 as on 31.03.2014.
During the FY 2014-15, the channel has tie-ups with 11 PSU Banks, 3 Private Banks, 10
Regional Rural Banks, 32 Co-operative Banks and 1 Foreign Bank.
2. ICICI Prudential Life Insurance Company
The ICICI Prudential life insurance distribution strategies are different from the
public sector life insurance company. The agency channel was able to arrest the year on
year declining trend with a growth of 22.1 percent in FY2015 as against decline of 19.7
percent last year. IRDAI has recently allowed registration of the Insurance Marketing Firm
(IMF) paving the way for insurance agents and entrepreneurs to start their own insurance
distribution firm. ICICI Prudential has very strong distribution network among all
185
insurance companies. It has formidable presence across India with over 1,900 branches and
an advisor base of over 2,10,000 (March, 2010).
The company has 7 bancassurance partners having tie-ups with ICICI Bank,
Ratanagiri District Central Co-op Bank, Ballia Kshetriya Co-operative Bank, Renuka
Nagrik Sahakari Bank, Bhandara Urban Co-operative Bank, Balasinor Nagarik Sahakari
Bank Limited, Arvind Co-op Bank. The Company has successfully integrated a new
bancassurance relationship with Standard Chartered Bank, a leading Multinational National
Company (MNC) bank having largest branches in India. Bancassurance emerged as the
predominant channel with a contribution of 59.2% and a growth of 53.0% compared to
19.5% in FY2014. The corporate agents are also contributing 6.9 percent as per 31st March
2015, as compared to 9.6 percent in FY2014. The following table no. 5.6 and figure no.5.6
depicts in detail the distribution mix of ICICI Prudential.
Table No. 5.10: Distribution Mix of ICICI Prudential (Per cent %)
Distribution
FY2012 FY2013 FY2014 FY2015
Mix
Agency 45.3 35.4 29.0 25.0
Bancassurance 37.6 44.9 54.6 59.2
Corporate Agents 10.3 13.1 9.6 6.9
Others 6.7 6.5 6.8 8.9
Source: Annual Report of ICICI Prudential FY 2014-15
Figure No. 5.9: Distribution Mix of ICICI Prudential
186
Distribution Mix of ICICI Prudential
60
50
40
30
20
10
0
FY2012 FY2013 FY2014 FY2015
Agency 45.3 35.4 29 25
Bancassurance 37.6 44.9 54.6 59.2
Corporate Agents 10.3 13.1 9.6 6.9
Others 6.7 6.5 6.8 8.9
(d) Promotion Strategy of LIC and ICICI Prudential

The promotional strategies of Life Insurance Corporation of India (LIC) are very
simple, innovative and straightforward for capturing maximum market share. The main aim
is to inform the potential and as well as existing customers about its various policies and
about its brand. In order to fulfil this it has taken various traditional as well as innovative
steps like personal selling, exhibitions, demonstrations at events, advertising through social
media, internet marketing, mobile apps marketing. Bags, diaries calendars are distributed as
gifts and incentives to the policyholders as a part of promotional strategies. New and
attractive ways of advertisements are shown on televisions, newspapers, magazines,
pamphlets, by in person through insurance agents, direct mailers and billboards as
promotional activities by the life insurance companies. A fierce battle seemed to have begun
among Indian life insurance companies to make one’s own brand and capture the maximum
market share. The new private companies further focused their campaigns primarily on
building an image of trustworthiness and reliability for themselves among the potential
customers. The new concept of life insurance emerged after liberalization by the private
players and their advertisements primarily focused on insurance as an investment option
and not a mere tax saving tool. Most of these advertisements carried messages like the
family’s happiness, human bonding, human emotions with underlying emphasis on the
security that life insurance could provide.
187
Marketing and sales promotion activities were very limited in LIC with small
number of advertisements in print media and television till 1980. LIC was the only player
till the liberalization took place in the year 1999, most advertising tended to be either merely
informative or plain dull. With the insurance bill being passed in 2000, the Indian insurance
sector saw a host of new private players enter the market with foreign players as their
partners. These new private players emerged with aggressive marketing and advertisement
strategies, which something the insurance market had never seen earlier. This sudden spurt
of advertisements and awareness programs was visible on all the media channels including
print, electronic and outdoor advertisements. In response to this LIC launched various
advertising and promotional campaigns to meet its corporate objectives and as well as
retaining the market shares. With private life insurance companies paying much attention to
advertising and innovative promotional activities, LIC, too, was forced to make efforts to
increase its visibility and enhance as well as retain its brand image. The corporation
commenced intense, effective systematic, well-focused public relations and publicity
activities both at the corporate and operational levels. LIC came out aggressively with a
corporate advertisement campaign on TV with the punch line, ‘Zindagi Tumhari Roshan
Rahe’ (May your life be glorious). Several sports events were co-sponsored by the
corporation and special publicity activities with a social purpose were undertaken in recent
years. LIC was forced to modify its advertisement campaigns and communication in order
to appeal to all groups because earlier it was not targeting women and younger generation.
The corporation then made its advertisements effective by carrying universally applicable
messages, focusing particularly on the young executive or the working woman, in order to
tap the market comprised of people in the age group of 18-35years.
A mobile-van for publicity roams across the rural areas for creating awareness about
the company and its various products for sale. LIC has its own website and webpage where
all the detailed information about every promotional strategy adopted and all possible
queries are supplied to satisfy the customers. The majority of advertising is oriented towards
life insurance products and services which can be purchased by the common man so as to
increase the reach of the company and at the same time, the sale of the products. Thus,
188
product introduction and product retention in the mind of the customers are the major
objective of promotions by Life Insurance Corporation of India.
However, with the growth in mobile applications and smart phone usage, new ways
of apps marketing are taken up by LIC. The application based marketing is very frequently
used to assist in the sales process. As mobile users are increasing tremendously with already
KYC compliant, and with ‘Aadhaar’ enabled bank accounts, piggy-backing on the mobile
wallet, mobile banking platform to offer insurance solutions is a cost-effective method to
tap a large un-insured life insurance market. The presence of LIC has been consistent in
more than 70 magazines, publications and ran 26 campaigns in newspapers apart from 41
advertisement campaigns for other departments. The corporation has used various booklet
activities, for life insurance awareness, financial planning and agency as career were done
through 3 magazines. The promotional strategy of LIC is very effective in rural areas
because of the large connectivity through promotional schemes and microinsurance
products which are oriented towards rural people.
The promotional strategies of ICICI Prudential are very innovative in nature and
have a deep impact in the mind of existing and potential customers. ICICI Prudential has
allocated an advertising budget of Rs. 15 crore in fiscal 2002-03, which is closer to its
advertisement spend in 2001-02. The creative agency ‘Lowe Lintas’ has been the sole
agency for all types of advertisement of ICICI Prudential products and services since 2001.
Over the last few years, ICICI Prudential has been mostly advertising in TV, magazines,
print media and electronic media. The company launched many corporate, retirement, health
insurance and child insurance in television campaign. ICICI Prudential Life Insurance has
launched an awareness campaign titled ‘Insurance Aaj Badal Rha
Hain’ on the new product guidelines for the life insurance sector introduced on 1st January
2014. The company has taken its campaign further to the next level, which highlights the
changes the life insurance sector has seen so far, across the country. The insurer has targeted
75 cities and adjoining areas through the medium like radio, outdoor, cinema and internet.
ICICI Prudential has recently launched television campaign in the year 2013
‘Achche Bande’ meaning ‘Good Men’ with the slogan “Protecting those who care
189
unconditionally”. It shows the discrete ways in which fathers and husbands take care of their
families despite being forgetful in the daily routine of life. The earlier television
advertisement campaign in “Saat Phere” which took the emotions and thoughts of initial
“Sindoor” corporate film a few steps further. The film highlights the strength of promises
that a husband makes to his wife, through the depiction of everyday situations, and then
goes on to emphasise that ICICI Prudential will stand by the husband to help him fulfilling
all these promises to her wife. The Television (TV) campaign in later years has also been
extended to outdoor advertisement. The company has also undertaken electronic media,
print media, social media and internet campaigns to inform existing customers and as well
as potential customers about benefits of some of its products, particularly retirement
solutions, health insurance through the Chintamani campaign. The following table no. 5.7
illustrates the television advertisement campaign launched by ICICI Prudential.
Table no. 5.11: ICICI Prudential Television Advertisement Campaign
Corporate Retirement Health Insurance Child Insurance

Advertisement Advertisement Advertisement Advertisement
Achche Bande (2013)

The World Best Job Long-Term, Short-Term About Our Child Plans
(2009) Chinatamani (2008) (2012)
Jeetey Raho (2007) Dadaji (2012)

Retire From Work,
Not Life (2003)
Kandha (2005) Badepapa (2012)
190
Saat Phere (2003)
Sindoor (2001)
Source: www.iciciprulife.com
After the hugely successful television campaigns like Acche Bande (corporate),
Chintamani (retirement) and Saat Phere (corporate) campaigns, ICICI Prudential Life
Insurance also introduced some innovations in the category to create a differentiated
emotional relevance for the brand, such as: having a tax planner by the name of Chintamani
on radio, who would answer consumers queries about the role of life insurance in overall
financial planning. Other innovative initiatives included tie-up with the Dabbawalla
Organisation in Mumbai for a direct marketing exercise and 100,000 direct mailers were
attached, to interact with the customers for a higher impact in the mind through a non-
cluttered route.
In addition; the company has also initiated several activities to raise customer
awareness about ICICI Prudential different plans and their tax benefits for advertisement.
ICICI Prudential regularly held seminars, customer awareness camps on the need for
early retirement planning in different cities of India. These activities are very well
attended and have contributed significantly towards increasing customer awareness about
the benefits of life insurance and product category of the company. Apart from this, ICICI
Prudential has also entered into alliances with different telecom companies, as well as
companies like BPCL and Dominos for reaching out to the maximum insurable persons.
191
(e) Process Strategy of LIC and ICICI Prudential
In process strategy (Procedural aspect is called as Process Strategy), time taken

for taking policy, getting policy document, revival, claim settlement and surrender of
policy, more information about various products and services in branch office, essential
services offered for the first time without discomforting the customer, effectiveness of
grievance redressal mechanism, improvement of quality of service of life insurer through
different distribution channels to policyholders, premium paid certificate for claiming tax
benefits and customer-contact employees (insurance surveyors, loss assessors, insurance
advisors, agents and brokers) interact with customer during the service delivery.
With a view to enhancing customer responsiveness and services, in July 1995, LIC
started a drive of ‘On Line Services’ to the policyholders and agents through computer
for easing the process of issuing policies. This on line services enabled policyholders to
receive immediate policy status report, prompt acceptance of their premium payment
with receipt and get revival quotation on demand. The quicker completion of proposals
and easy dispatch of policy documents to the policyholders have become a reality for the
policyholders of LIC. All the 2048 branches of LIC across the country have been covered
under front-end operations to provide better services in short span of time. Thus all 113
divisional offices have achieved the distinction of 100% branch computerisation. All these
new innovative modules help to reduce time-lag and ensure accuracy while offering to the
customers. Interactive Voice Response Systems (IVRS) has already been made functional
in 59 centres all over the country. This facility would enable customers to ring up LIC and
receive information (e.g. next premium due, Status, Loan Amount, Maturity payment due,
and Accumulated Bonus) about their policy on the telephone. This information could also
be faxed on demand to the customer for better services. The increasing customer
expectation for more conveniences in premium payments and servicing led to the
establishment of select Agents to collect the renewal premium through “Premium Points”
by Life Insurance Corporation of India. The Life Insurance Corporation has empowered
number of such “Premium Points” across the country and has increased to 32,894 as on
192
31.03.2015 as against 30,557 as on 31.03.2014. An amount of Rs. 32,767.50 crore (18%
growth) was generated with the help of empowered agents in Renewal Premium.
The big initiative rolled out by ICICI Prudential Life Insurance Company was
dematerialisation facility in the form of electronic Insurance Accounts (eIAs). This is a big
step towards making life insurance a digital service for the customers from buying the policy
to claiming the settlement. This will facilitate building a central repository of KYC for the
life insurance industry, further easing the sale process and claim settlement for customers.
The digital platform has completely transformed the challenges faced by customers while
purchasing life insurance. All this has been possible due to the adoption of innovative
technologies and simplifying the process. ICICI Prudential will continue to build on the
digital platform to deliver better value to the customers and capturing the maximum market
share. Digitisation has been a major cornerstone of ICICI Prudential marketing strategy to
deliver superior value to the existing as well as potential customers. The end to end use of
technology by the company from on boarding of customers to payouts has yielded
significant gains in recent years. New business applications initiated using the digital
platform stood at 93% for FY2015 50% of our renewal premium payment was completed
through standing instructions and online payment mode. 92% of our payouts were made
through electronic mode.
93% 92% 50% 69%
New business applications Payouts processed Renewal premium payments Service transactions have
were initiated using the through the were made through the been processed through
digital platform electronic mode website and other electronic the website, SMS and
modes IVRS
(f) People Strategy of LIC and ICICI Prudential
One of the greatest strengths that an organisation can have is the human capital. The
main challenge before human resource is to innovate while thinking from-out-of-thebox,
challenging daily conventions and pushing boundaries beyond the capacity for the
betterment of the organization. The agility and humility are two great strengths when it
193
comes to people, these two qualities will enable any services oriented company to achieve
great success. People are the main assets in any organization and in particular service
industry. The people strategies mainly consists of robust performance management system,
efficient compensation system and a segmented training architecture enable it to deliver
value to the organization.
In order to facilitate the customers conveniently, LIC of India has adopted

wideranging of marketing strategies to acquire maximum of life insurance coverage. LIC of
India believes and functions on the principle that if they have to continue as a market leader
in life insurance industry, then it is essential that the employees of the organization should
be fully satisfied. The corporation have worked thoroughly and introduced many new
strategies as a part of marketing tool to satisfy and strengthen their employees. LIC being
the only public player in the life insurance industry, its main focus is on the development
and strengthening of its employees. Some of the important steps which have been taken by
the corporation in recent years under the head ‘People Strategy’ are as follows.
i. Housing loan to agents at low rate of interest. ii. Meal coupons to
employees at subsidized rate. iii. Encouraging employees for sports activities
for physical and mental fitness. iv. Training and development of employees on
regular basis.
v. Increasing the number of individual agents.
vi. Increase in women employees for better participation with empowerment. vii.
Use of information technology for efficiency, both at staff and agent level.
viii. Strong relationship with intermediaries
ix. Field Personnel Training (FPT) is primarily engaged in imparting training to agents,
development officers and other intermediaries from different Marketing Channels.
194
In FY2014-15, a large number of 10,979 Development officers were trained at in-
house training institutes as well as External Training Institutes (ETIs). The number
of agents who were trained at various in-house as well as external training institutes
was 3,82,321 while 94,749 newly recruited agents were put through Induction
training at in-house training institutes.
At ICICI Prudential Life, the employees have a passion for continuous learning and
adapting the changes with time. Therefore, ICICI Prudential has good number of talented
and dynamic people in their organization. The people strategy of ICICI Prudential is to build
a committed team with a culture of innovation, learning and growth for offering better
services to the customers. The Human Resource Function at ICICI Prudential drives the
people strategy of the business while focusing on operational excellence to deliver benefits
and services for its business oriented employees. The company provides an enabling
environment to foster growth and learning for their employees in a healthy environment.
Every member of the ICICI Prudential team is committed to 5 core values and has become
the keystones for success:
i. Integrity ii.
Customer First
iii. Boundary Less
iv. Ownership
v.Passion
(g) Physical Evidence Strategy of LIC and ICICI Prudential
In physical evidence strategy (it brings tangibility to the invisible services like
insurance and helps customers to understand what they are buying and why they should buy
it with the help of physical attributes), exterior facility (buildings, exterior design, parking,
surrounding environment, internet/web pages, brochures, financial reports, punch lines,
195
employees dress code, signage, landscape, interior decor design, layout, equipment, lifts,
ventilation, proper seating, sidewalks for every movements, details of policy document,
brand name, logos, the diaries, calendars and magazines).
1. Life Insurance Company (LIC)

Physical evidence in life insurance industry includes facility design, equipment
signage, employee dress, tangibles, reports and statements. LIC of India has introduced a
new and unique system in May 2009 as Life- Plus office to lower down the heavy rush on
Branch offices cash centers for better services to the customers. The physical evidence
strategies of the corporation are more effective because of the following reasons:
i. Excellent infrastructure facilities which attracts more and more customers.

ii. Good location of branches at convenient places attracts potential customers.
iii. Convenient operating hours for the employees.
iv. Distribution of dairies, t-shirts and calendars to the policyholders annually.
v. The tag line of the corporation is ‘yogakshemam Vahamyaha’ meaning ‘your
welfare is our responsibility’ while punch line ‘Jeeney Ke Saath Bhi, Jeeney Ke
Baad Bhi’ has a good impact on the mind of the customers.
vi. The magazines, annual reports are very informative for the policyholders as well as
potential customers.
As a leading company in the private sector, ICICI Prudential primarily focused on

protection as a critical element of the business and leveraged technology to reach out to
locations where physical presence is a challenge in India. The effort has been to challenge
for reaching the potential customers. The ICICI Prudential is having excellent marketing
strategies in the form of physical evidence in life insurance industry. The following are the
important aspects of the company in developing effective physical evidence mix.
i. The branches are well located at important places.
196
ii. The internal environment of the branches is excellent with all basic facilities for the
customers. iii. Distribution of pen, t- shirts, letter pad and calendars for the policyholders
annually.
iv. The tag line of the company is ‘Zimmedari ka Safar’ while the punch line ‘We Cover
You, At Every Step in Life’ is itself showing the belief and confidence and briefly
depicts the vision and attitude of the life insurance company towards the existing
and as well as the potential customers.
v. The infrastructure facilities including branch building, parking, air condition, proper
dress code of the employees are of standard level and it helps in generating business.
vi. The financial reports, websites information, brochures, call centres, help desk, and
prompt service to the customers are well organised in nature with customer centric
approach while fulfilling the end objectives of customer satisfaction.
Conclusion
In this chapter an attempt has been made to compare and bring out the marketing
strategies of the LIC of India and ICICI Prudential with the mixture of the seven P’s namely
Product, Price, Promotion, Place, People, Process and Physical Evidence. Marketing
strategy implies development of an action plan to achieve the primary marketing objective
of customer satisfaction. Marketing strategy is a composite of life insurance services, widely
known as marketing mix, capable of meeting organizational objectives in the light of fast
changes in the requirements of life insurance policyholders of different socio-economic
profile. Despite all the pressures that have persisted across centuries, life insurance still
largely remains attached to the traditional models of consultative selling and pooling of
risks. The bancassurance is contributing as the new alternative channels for both LIC and
ICICI Prudential. The new age of digitalization holds a promise for the future with the online
sales increasing day by day. The agency channel as a traditional channel continues to
dominate the channel mix today.Thus it is concluded that the marketing strategies of the life
insurance companies needs to be regularly monitored and reviewed continuously to keep
the life insurance objectives effective and viable.
It can be said that LIC did a admirable job by bringing about changes in its marketing
strategies along with the marketing strategies adopted by private players and in particular
197
ICICI Prudential. LIC tried its level best to cope with the marketing initiatives of the private
insurance companies and adopt the recent marketing relevance like social media marketing,
e- marketing and mobile apps marketing. The market share which the private companies
were taking away from LIC was an eye opener for LIC who was once enjoying monopoly
position in the market and thus adopt aggressively the various effective marketing strategies
to retain the existing and attract the potential customers. The private companies are taking
away the market share of life insurance industry by bringing new and innovative products
to suit the needs of every customer from all age groups, building a strong distribution
network using different alternative channels, customer centric advertisement and finding
new niche markets for their products. The adoption of aggressive nature of marketing
strategies by ICICI Prudential led to the capturing of largest market shares among the
privates players. LIC has now revitalized itself to regain its market share and brand image
by adopting effective marketing strategies and unique sales promotion techniques while
satisfying maximum customer satisfaction to all groups of the society.
198
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A Comparative Study: Lic and Icici Prudential

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CHAPTER 5

A COMPARATIVE STUDY: LIC AND ICICI PRUDENTIAL

Year Zonal Divisional Growth Branch Growth

31.12.1957 5 33 100 240 100

31.12.1960 5 35 106 267 111

1969-1970 5 36 109 424 176

1989-1990 6 69 209 1528 636

1999-2000 7 100 303 2048 853

2009-2010 8 109 330 2048 853

2010-2011 8 111 336 2048 853

2011-2012 8 113 342 2048 853

2012-2013 8 113 342 2048 853

2014-2015 8 113 342 2048 853

Source: Annual reports of LIC (1957-2015)

5.2.2: Organizational Structure of LIC of India

5.2.4: LIC New Individual Premium

Table No. 5.2: LIC New Individual Premium ( Rs.cr)

Period LIC Premium Industry Premium LIC Market Share

December 2015 19.311 35.343 54

March 2015 32.786 55.372 59

December 2014 23.292 37.499 62

March 2014 41.778 60.957 68

December 2013 32.132 44.685 72

Figure No. 5.3: LIC New Individual Premium

LIC New Individual Premium

50 LIC Market Share (%)

Dec/13 Mar/14 Dec/14 Mar/15 Dec/15

Table 5.3: Statement of individual new business procured

Number of First Premium

Conventional (Tied) 174.55 29168.91

Bancassurance & Alternate 3.53 901.51

Chief Life Insurance Advisor 18.51 2334.39

Direct Marketing 0.79 406.09

Micro Insurance 4.00 16.40

Total 201.38 32827.30

Source: IRDAI Report 2014-15

Banc-assurance and Alternate Channels (B&AC) completed 3,52,971 policies and

(b) Direct Marketing

Figure 5.4: Marketing Channels of LIC

Marketing Channels of LIC

Individual Agents Alternative Channels

5.2.7: Marketing Campaigns of LIC

5.2.8: Awards and Recognition of LIC in FY2014-15

Table No 5.4: Awards and Recognition of LIC in FY2014-15

S.No. Name of the awards received by LIC during FY2014-15

1. Child Magazine Most Popular awards 2014

2. Pitch Top 50 Brands 2014

3. Indian Insurance Awards 2014 - Claims Leader

4. Indian Insurance Awards 2014 Underserved Market Penetration

5. Indian Insurance awards 2014 - Life Insurance Company of the year

7. Lokmat BFSI Awards 2014 - Best Life Insurance Company

8. Lokmat BFSI Awards 2014 - Underwriting Initiative of the year

9. Global Brand Excellence Awards Brand Excellence in BFSI

10. Global Brand Excellence Awards Best in house magazine

11. Asia BFSI Best CSR Practices

12. Asia BFSI Best Life Insurance Company

13. Hindustan Times Mumbai Hot 50

14. Readers Digest 2014 Trusted Brand

15. ET Best Brands

16. 2nd Bright Awards

17. Super Brands 2014

18. Ashirwad Award