Strategic Analysis and

Analyzing SWOT of
ICICI Prudential Life
Insurance

PREPARE BY:- GAURAV BHUT

 Objective1:

What the Life Insurance

Industry is all about
 What Insurance is?

Insurance is concerned with the protection of

economic value of an asset.
Advantages of Insurance:
Financial security for the family.

Facility of nomination and assignment on

death.
Compulsory savings.

Tax benefits

Loans against policy.

Life Insurance Industry in India
The first Indian Insurance company was the
Bombay Mutual Assurance Society Ltd.,
formed in 1870.
In 1956, Life Insurance business was
nationalized and LIC of India came into
existence.
Right now, there are 18 private sector and 1
public sector Life Insurance companies in
India.
Life Insurance sector is growing at 10.48%
LIC of India has a dominating market share of
87% of total market covered.
The private sector companies has the growth
of 153%
 Objective 2:

What is the Environmental

Scenario of Insurance Business
 Legal Scenario
Indian government Act in 1912
Insurance Act 1938
Insurance act 1950
IRDA Act 1999
Duties, Power and Function of IRDA
Tax Benefits from Life Insurance
Policies
 Economic Scenario
Increasing Mobilization through Public
Savings through Life Insurance Premium
Increasing Foreign Joint Venture in Life
Insurance Business
Increasing Regulation and Supervision
The move towards importance of safety
with good returns
 Social Scenario
Life Insurance is a social security tool
Safety of investment in India
Increasing education of People about
Life Insurance
Ageing population
Special schemes for weaker section
of the society
 Technological Scenario
Insurance companies have been in
the forefront to adopt the latest
advances of Technology
Internet and Intranet
Kiosks
Benefits to the customers and insurer
 Industry Rivalry - High
Factors High Moderat Low
e
# of Firms
Market Growth
Fixed cost
Switching cost
Product
Difference
Exit barriers
Industry
 Threat of Substitute
Moderate
Factors High Moderate Low

Switching cost

Product
Difference
Substitutes

Access to
Products
 Bargaining Power of Buyer-
High
Factors High Moderate Low
Switching cost
# of Customers
Awareness of
Products
 Bargaining Power of Supplier -
High
Factors High Moderat Low
e
# of Suppliers
Suppliers
Concentration
Collaborations
 Barriers to Entry - High

Factors High Moderat Low

e
Legal Barriers
Investment Cost
Access to
Distribution
 Objective 3:
Various Processes of ICICI
Prudential Life Insurance
 Principles
Life Insurance Contracts
Utmost Good Faith
'A positive duty to disclose, accurately and
fully, all the facts material to the risk being
proposed. whether asked for or not'.
Insurable interest
Principle of indemnity
Insurance cannot be used as a means to
make profit out of it
Different risks
 Premium
Definition
Premium is the amount, which is paid by the insured to the
insurer for an insurance contract. In other words,
premium is the price for a policy.
Basic elements of Premium
Mortality, Interest yield , Expenses , Contingency Factor
Tabular premiums
Risk Premium , Net/pure annual premium , Office
premium , Tabular premium
 Conti
Factors affecting Premium to be paid
Type of policy

Age of insured person

Term of policy
Sum Assured
Mode of payment
State of health, occupation and hazards.
Additional benefit
Extra Premium Rider Premium
 Basic Products
Popular plans
Term Assurance Plans
Endowment Plans
Convertible Plans
With-profit & Without Profit Plans
Children's Plans
Industrial Assurance Plans
Salary Savings Scheme policies
Unit link plans
 Documents
Proposal Form
Other important documents
Personal statement
Agents report
Medical report
Proof of age
First Premium Receipt
Renewal Premium Receipt
Policy bond
Endorsements
Bonus Notices
Prospectus issued by the Insurer
 Policy Conditions
Age
Days Of Grace
Lapse And Non-Forfeiture
Paid-up Value
Nomination
Surrenders and Loans
 Claims
Intimations
Claim Documents
Maturity claims
Death claims

The conditions applicable to accidental cases

Settlement procedure
Survival Benefits
Unusual situations
Life assured missing
Miscellaneous
 Chairman

Training Actuarial Investment

IT Marketing Client services

RM (east) RM (west) RM (south) RM (north) RM corporate agent

SM SM SM SM

agents agents agents

 Marketing Department
Marketing for Intangibles
Distribution Channel
Customers Relationship
Strengthening Relationships
Advertisements
Marketing Mix
Promotion Strategy
Product Strategy
Product Pricing
 Functions of An Agent
Before sale
Contact prospects
Study their insurance
needs Completion of
formalities for proposal of
new insurance viz, Filling
of form
Arranging for Medical
Examination
Collection proofs of age
and income
Any other information
required by the
underwriters..
After sale
Ensure payment of renewal
premiums.
Assist policyholder for
nomination / or change
thereof.
Assist the policyholder in
case he wants to get loan
against the policy
assignment.
Assist the policyholder or
the claimant to comply
with the requirement for
getting timely settlement
of claims.
 Underwriting
Classification Of Risks
Financial Underwriting
Non-Medical Underwriting
Underwriting By Agents
Recent Trends In Underwriting
 Objective 4:
Comparison of ICICI
Prudential Life Insurance
with other Players
Endowment Plan:

ICICI prudential has the advantage in the endowment

policy over other companies polices in terms of:
Extended maturity period of 5 years Loan against 3
years full premium Facility of cancellation of policy
within 15 days Premium paid will be refundable
Higher returns include policy value, sum assured and
the vested bonuses

The ICICI Prudential has the disadvantage against

OM Kotak and Birla Sunlife Insurance it terms that
both of these companies give benefit of Insurance
cover as well as investment opportunity in
government securities and AAA companies.
Money Back Plan:

Advantage of ICICI is that it gives survival benefit at

shorter interval which will be very much helpful in
planning of life cash flow to middle Class people.

ICICI Prudential is at the disadvantage position as

compared to others in terms of: Birla Sunlife
Insurance invests in government securities and
other financial instruments specified by IRDA, which
gives the higher returns to the customers at a
moderate risk Birla Sunlife Insurance and OM Kotak
Life Insurance are giving loans against the policy
The customer can know his repayment amount at
the pre-cancellation stage before maturity
Smart Kid Plan:

ICICI Prudential has the advantage against others in

terms of:
It covers the life insurance of the children during
the term
Risk starts at the commencement of the policy,
which is not the case with LIC

ICICI Prudential has the disadvantages also against

others in terms of:
Only concentrates on Educational Benefits
The Policy can be replaced by other persons like
relatives, friends, etc. in the policy of LIC
Unit Link Policy:
ICICI Prudential has the advantage of starting the death
benefit from the commencement of the policy. While in
LIC, the particular percentage of amount is to be paid to
the insurer.
In LIC on death after 1st year they are paying sum
assured along with along with the bid value of the fund
units while ICICI pays bid value or sum assured
whichever is higher.

The returns are secured at certain stage and unsecured

at more than that. The insurance companies invest the
money of the person in Equity and debt specified by
IRDA, which may give higher or lower returns to the
customers. But, still, the minimum sum assured is given
to the customers at the end of the maturity period.
Product Premium and Market share

Premium (Rs. in Mn) Market

Share
2002- 2003- % of 2002- 2003-
03 04 growth 03 04
Pvt. 9581. 24255 153.15 5.66 12.95
players 3

LIC 15976 16284 1.93 94.34 87.05

8 7
Total 16934 18710 10.48 100 100
9 2
 Objective 5:
Findings of ICICI Prudential
Life Insurance
 Opportunities for Life Insurance
Companies
High market growth
Increasing awareness
Technological Adoption
Economies of scale
Self regulation
Joint Ventures
 Threats for Life Insurance
Companies
Increasing Rivalry
Standardization of products
Higher commissions to the agents
Legal frameworks
Image of Private sectors companies
Strengths of ICICI Prudential

Competing products
Ability to serve multiple segments
High market share growth
Multiple product lines
Higher premium growth
Increasing network
 Weaknesses of ICICI
Prudential
Strong competing brands
Marketing and promotional efforts
from other players
Lower believability
Lower coverage
 Seven S Analysis

Strategy

Structure System

Shared Value

Skill Super ordinate

Goal

Staff
 Findings
Insurance is concerned with the protection of
economic value of assets.
IRDA is to regulate, promote and ensure
growth of the Life Insurance business.
Foreign joint ventures are increasing in Life
Insurance Business.
Industry is growing at the rate of 10.48% in
terms of premiums collections.
Advance technology adoption
ICICI prudential is business oriented,
customer service oriented and support
oriented.
Conclusion
 Corporate Growth Strategy
Current Product New Product
Market Penetration Product Development
Current ICICI Prudential ICICI Prudential
Market Increase Market Share Product Improvements

Increase product usage Product line Extension

through New application

Market Development Diversification

ICICI Prudential Strategy
New Expand Market by
Market existing Products by
geographic expansion
and new target markets
 Market Growth Relative Share
Matrix
High Relative Market share Low
High Star Question Mark
ICICI Prud.
Life Insurance Other Private Insurance
Market Corporation Companies
Growth
Rate
Cash Cow Dogs

Low
 Marketing strategy
Encirclement

Primary Objective
Market Characteristics
Competition
Firm Characteristics