A

SUMMER TRAINING REPORT

ON

CHANNEL DEVELOPMENT

OF TIED AGENCY

OF

ICICI PRUDENTIAL LIFE INSURANCE

COMPANY

Submitted By: Project

Guide

Rajesh Mr.H.S.ParharUniversity Roll No.543221000 Unit Manager

Session (2005-2007)CT INSTITUTE OF MANAGEMENT & IT

JALANDHAR

CHANNELDEVELOPMENT

2

ACKNOWLEDGEMENT

I am thankful to and owe a deep debt of gratitude to all those who have helped me in preparing this report. I am grateful to Mr.Harpreet Singh Parhar (Unit Manager) and to staff of ICICI Prudential and a host of other officials for their active help and cooperation at each stage of the study.

I would also like to thank my parents, family members, colleagues and every one concerned who has been instrumental in successful completion of the project.

RAJESH

3

EXECUTIVE

SUMMARY

4

EXECUTIVE SUMMARY

The objective of this project was to assist ICICI

Prudential Life Insurance in expanding their channel

by recruiting Tied Agents For the company. For the

company to successfully continue its operations , it

needs to undergo change to get some new

customers and to get some new ideas.Moreover

insurance is such a growing sector that it has full

potential to have new customers.so it very

essential to have new people in the system which

can add new customers to the company.

This was achieved through a three pronged efforts.

The First objective of the study was to look for

different segments of the people. The Second

5

objective of the project was to analyze the person

to find whether he is fit for doing insurance.The

Third objective of the project was to finally

introduce some people in the system by

recruiting them as advisors of the company.

The research methodology consisted of a survey

using simple Questionnaire and personal interview

with the general public at exibhition site mostly

based in Chandigarh, Panchkula and Mohali. The

questionnaire used is given at the end of report.

I would like to thank my mentor who provided me the opportunity to do some sales for the company which had given me a lot of new experience which will help me in my future.

----------

6

CONTENTS

LITERATURE REVIEW-----------------------------------------------

Introduction to Insurance---------------------------------------------Purpose and Need For Insurance------------------------------------Role of Insurance in Economic Development---------------------Classification of Insurance---------------------------------------------

LEGISLATIVE AND REGULATORY MATTERS----------------

7

IRDA Act, 1999---------------------------------------------------------Constitution of IRDA--------------------------------------------------Functions of IRDA-----------------------------------------------------Life Insurance Corporation of India Act, 1956--------------------

REPORT CARD OF LIFE INSURANCE SECTOR-------------

Report Card: The Current Scenario----------------------------------How They Stack Up (Graph)------------------------------------------

COMPANY’S PROFILE------------------------------------------------

ICICI Prudential Life Insurance Co. Ltd.---------------------------Distribution--------------------------------------------------------------Products------------------------------------------------------------------About the Partners-----------------------------------------------------

OBJECTIVES OF THE STUDY-------------------------------------- Main Objective--------------------------------------------------------- Sub Objectives--------------------------------------------------------

CHARACTERISTICS OF A GOOD INSURANCE SALES PERSON

RESEARCH METHODOLOGY-------------------------------------

Research Process-------------------------------------------------------Data Collection---------------------------------------------------------Survey--------------------------------------------------------------------

FINDING AND DATA ANALYSIS----------------------------------

Age Composition-------------------------------------------------------

Occupation Scenario---------------------------------------------------

Income Scenario--------------------------------------------------------

8

Most Preferable Investment

Area------------------------------------

Most Important Criteria While

Investment------------------------

Awareness in Life

Insurance------------------------------------------

Most Important Criteria In Life

Insurance-------------------------

Brand Reliability---------------------------------------------------------

SWOT

ANALYSIS--------------------------------------------------------

CHALLENGES BEFORE

INDUSTRY-----------------------------

Broadening the Benefits-----------------------------------------------

Channel of Distribution-----------------------------------------------

Expectation of the

Consumers---------------------------------------

Consumer Education---------------------------------------------------

Catering the Rural

Area------------------------------------------------

LIC Awakes at a long period of

time--------------------------------

Large Number of Private

Companies-------------------------------

9

Consumer Grievance

Redressal--------------------------------------

Future Scenario of the Insurance

Sector---------------------------

FUTURE

OUTLOOK---------------------------------------------------

REFERENCES-------------------------------------------------------

----

Questionnaire : Market

Survey-----------------------------------------

----------

10

LITERATUR

E REVIEW

INTRODUCTION TO INSURANCE

WHAT IS INSURANCE?

11

Insurance is the method of spreading and transfer of

risks.

Losses of unfortunate few are shared by and spread

over to many exposed to the same risk.

Assets created by the owner in expectation of future

needs or benefits have a value.

Loss of assets for any reasons deprives the owner of

the expected benefit.

Insurance in this context is a mechanism that helps to

reduce the adverse consequences due to loss of assets.

PURPOSE AND NEED FOR INSURANCE

Assets are likely to be destroyed or made non-

functional due to perils like fire, floods, breakdowns,

lightning and earthquake.

Damage to assets caused by any peril is the risk that

assets are exposed to.

Insurance becomes relevant only if there are

uncertainties of occurrence of event leading to loss.

We can say that human life is an income generating

assets which can be lost on early death or disabilities

caused by accidents.

Insurance does not protect the assets but only

compensates the economic or financial loss.

12

ROLE OF INSURANCE IN ECONOMIC

DEVELOPM ENT

Investments are necessary for economic development.

Life insurance plays a major role in mobilization of

public savings.

Savings out of life insurance funds are utilized in

investments for growth.

Looking to general insurance business, industry, trade

would be seriously handicapped in the absence of

insurance cover relating to fire and engineering risks.

CLASSIFICATION OF INSURANCE

Life is full of uncertainty. Trials and tribulations abound in

each and every aspect of life. No one can truly predict or

even estimate what the future has in store for him. Life

offers no guarantees by itself, except the incidences of

death and taxation.

This lack of security present throughout life can be

overcome partially through insurance. Insurance can never

replace or repair a loss. But the monetary value offered by

insurance helps in adjusting to the new circumstances.

13

Despite offering innumerable options and immense scope,

insurance can be classified into four main categories.

Insurance of Person

Insurance of Property

Insurance of Interest

Insurance of Liability

Insurance of Person

Under the purview of this class of insurance, the risks

associated with human life in general can be covered up to

the limit specified. A person can insure his or her life and

his health against any unplanned contingencies.

In event of his death, his dependants will be reimbursed to

the full amount that he was insured for. Or if the insured

person meets with an accident or suffers from an illness

that cripples him forever, he will be compensated with the

complete sum assured anyway since he may not be able to

lead a normal life again.

In case, the accident is not that severe, he should be able to

recover after medical treatment and rehabilitation. If he has

opted for medical cover, then his medical expenses,

treatment and medication will be paid for by his insurance

policy.

14

Insurance of Property

Everyone possesses material value in the form of tangible

assets. Assets can be in the form of a landed estate or a

vehicle, share holdings or plain old paper money.

Since tangible property has a physical shape and

consistency, it is subject to many risks ranging from fire,

allied perils to theft and robbery. An individual's lifetime of

hard work can be wiped out in a blink of an eye.

But if a person judiciously invests in insurance for his

property prior to any unexpected contingency then he will

be suitably compensated for his loss as soon as the extent of

damage is ascertained.

Insurance of Interest

Every individual has to discharge certain specific duties.

Everyone is expected to maintain a standard of conduct. But

then, it is an intrinsic part of human nature to err. No one is

infallible and no one will ever be.

Owing to an occasional error or omission committed by us,

our clients or customers might suffer a loss. In turn we

might have to pay those damages or compensation out of

our own personal resources.

15

However, if our chosen profession qualifies for insurance of

interest, then our insurance policy will more than suffice in

arranging for the funds and court formalities that might

ensue in the aftermath of legal libel.

Insurance of Liability

Every person has to regulate his actions and behaviour so

as not to cause injury or damage to other people and their

property. Everyone is personally responsible and liable for

his actions.

If due to lack of control over his actions or prejudiced

behaviour, a person incurs any liability then he has to

provide compensation out of his personal resources.

Liabilities: legal, civil or criminal can have severe

repercussions on social standing and prestige besides the

financial status.

By investing in liability insurance, an individual can ward off

any liabilities he might incur due to his actions and

behaviour. Besides, the premiums payable on liability

insurance are fairly minimal when compared to the

damages that have to be compensated in the long run.

16

----------

17

LEGISLATIV

E AND

REGULATO

RY

MATTERS

18

INSURANCE REGULATORY & DEVELOPMENT

AUTHORITY (IRDA) ACT, 1999 .

Under this Act an authority called IRDA has been set

up.

This is a corporate body established for the purpose

and objects as set out in the explanation to the title.

The Authority replaces “Controller” under Insurance

Act 1938.

The first schedule amends Insurance Act 1938.

It states that if Authority is superceded by Central

Government, the Controller of Insurance may be

appointed till such time as “Authority” is reconstituted.

CONSTITUTION OF IRDA.

The Insurance Regulatory and Development Authority

consists of the following members:

1. Chairperson.

2. Less than five whole time members.

3. Less than four part time members.

Members should be persons of Ability, Integrity &

Standing.

They should have experience in the fields of

19

1. Life Insurance

2. General Insurance

3. Actuarial Science

4. Finance

5. Economics

6. Law

7. Accountancy

8. Administration

Chairperson, members, officers and other employees of

Authority shall be public servants.

FUNCTIONS OF IRDA

1. To issue certificate of registration, renew, withdraw,

suspend or cancel such registration.

2. To protect the interest of policyholders/insured in the

matter of insurance contract with the insurance

company.

3. To specify requisite qualification, code of conduct and

training for insurance intermediaries and agents.

4. To specify code of conduct for surveyors/loss

assessors.

5. To promote efficiency in the conduct of insurance

business.

20

6. To promote and regulate professional organizations

connected with the insurance and reinsurance

business.

7. To undertake inspection, conduct enquiries and

investigations including audit of insurers and

insurance intermediaries.

8. To control and regulate the rates, terms and conditions

to be offered by the insurer regarding general

insurance business not so controlled by Tariff Advisory

Committee u/s 604 of Insurance Act, 1938.

9. To regulate investment of funds by the insurance

companies.

10. To adjudicate dispute between insurers and

intermediaries of insurance.

LIFE INSURANCE CORPORATION OF INDIA

ACT, 1956

Life insurance business was nationalized in India with

effect from 19th January 1956.

The life insurance business of 154 Indian life offices

constituted by 16 non-Indian insurers operation in

India and 75 Provident Societies was taken over by the

Government of India.

21

LIC of India Act was passed by the Parliament on 18th

June 1956 and it came into effect from 1st July 1956.

----------

22

REPORT

CARD OF

LIFE

INSURANC

E SECTOR

23

REPORT CARD: THE CURRENT

SCENARIO

During the first half of the current financial year, the 13 life

insurers have underwritten first year premium of

Rs.5,43,595.87 lakhs towards 87,38,024 policies. Of this

individual business accounted for Rs.4,41,760.09 lakhs for

87,32,435 policies. The group business accounted for

Rs.1,01,835.78 lakhs for 5,589 policies.

Interestingly about 60% of the business done by the

life insurers during the current financial year has been in

the second quarter. Correspondingly 63% of the policies

underwritten during the six month period have been

accounted for in July to September 2003.

Analysis of individual business statistics shows that

LIC accounted 88% of the business in the terms of

premium. As against this the private insurers captured 12%

of the premium. In terms of group business LIC captured

93.63% of the premium. The twelve private insurers

captured only 6.37% of the premium in the total group

business.

A review of the performance of the private players

further reveals of rapid business expansion. The latest

quarterly figures released by the Insurance Regulatory

Development Authority (IRDA) show that ICICI Prudential

Life Insurance Company is continued to lead with a

24

premium income of Rs.70.2 Crore in the first quarter of this

year followed by HDFC Standard Life Insurance. “The

maximum growth in the first quarter has come from unit-

linked products (ULIP’s) which contributed over 60% of

business, along with retirement products,” said Saugata

Gupta, head of marketing at ICICI Prudential Life

Insurance. She added, “In fact we have identified

retirement solutions and child plans as two growth areas

and have decided to invest the

Resources necessary to raise awareness and build brand

recognition and loyalty in these two segments.”

The insurer has grown its premium income by almost

130% over the corresponding period last year. Similarly

Tata AIG Life Insurance has also grown by over 150% in

premium income from April-June 2002 to the same period

this year.

THE PECKING ORDER

COMPANY APR – MAR

2002 – 2003

APR - JUNE

2003 - 2004

ICICI Prudential 365 70.2

HDFC Standard 132.2 34.7

TATA AIG 61 26.5

25

Birla Sun Life 149 24.2

Allianz Bajaj 53.8 18.2

Max NewYork 76.8 17.5

OM Kotak 31.6 9.4

SBI Life 73 8.5

Aviva 21 7.2

ING Vysya 17.5 4.4

Premium Income Figures in Rs. Crore

26

0

50

100

150

200

250

300

350

400

PR

EM

IUM

INC

OM

E IN

Rs.

Cro

res

ICICIPrudential

HDFCStandard

TATA AIG Birla SunLife

AllianzBajaj

MaxNew York

OM Kotak SBI Life Aviva INGVysya

PRIVATE PLAYERS

HOW THEY STACK UP

APR-MAR 2002-03 APR-JUN 2003-04

27

COMPANY’s

PROFILE

28

ICICI PRUDENTIAL LIFE INSURANCE CO.

ICICI Prudential Life Insurance Company is a joint venture

between ICICI, a premier financial powerhouse and

Prudential, a leading international financial services group

headquartered in the United Kingdom.  ICICI Prudential

was amongst the first private sector insurance companies to

begin operations in December 2000 after receiving approval

from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential’s equity base stands at Rs.525 Crore with

ICICI Bank and Prudential holding 74% and 26% stake

respectively. As of September 30, 2003, the company had

issued over 450,000 policies, with a sum assured

exceeding Rs.11,000 Crore and premium income of nearly

Rs.800 Crore. Today the company is the #1 private life

insurer in the country.

DISTRIBUTION

ICICI Prudential has one of the largest distribution

networks amongst private life insurers in India, having

commenced operations in 41 cities and towns in India.

These are: Ahmedabad, Bangalore, Bhopal,

Bhubhaneshwar, Chandigarh, Chennai, Coimbatore,

29

Dehradun, Goa, Guntur, Gurgaon, Hyderabad, Indore,

Jaipur, Jalandhar, Jodhpur, Kanpur, Karnal, Kochi, Kolkata,

Kottayam, Lucknow, Ludhiana, Madurai, Mangalore,

Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala,

Pune, Rajkot, Surat, Thane, Thrissur, Vadodara, Vashi,

Vijayawada and Vizag.

The company has eleven banc assurance tie-ups, having

agreements with ICICI Bank, Allahabad Bank, Federal

Bank, South Indian Bank, Bank of India, Lord Krishna Bank,

and Punjab & Maharashtra Co-operative Bank, Goa State

Co-operative Bank, Indoor Paraspar Sahakari Bank, Manipal

State Co-operative Bank and Jalgaon People’s Co-operative

Bank, as well as some corporate agents. It has also tied up

with organizations like Dhan for distribution of Salaam

Zindagi, a policy for the socially and economically

underprivileged sections of society.

ICICI Prudential has recruited and trained over 25,000

insurance agents to interface with and advise customers.

Further, it leverages its state-of-the-art IT infrastructure to

provide superior quality of service to customers.

PRODUCTS

30

Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative,

customer-centric products that meet the needs of customers

at every life stage. Its 17 products can be enhanced with

up to 6 riders, to create a customized solution for each

policyholder.

Savings Solutions

- SecurePlus is a transparent and feature-packed savings

plan that offers 3 levels of protection.

- CashPlus is a transparent, feature-packed savings plan

that offers 3 levels of protection as well as liquidity options.

- Save n Protect is a traditional endowment savings plan

that offers life protection along with adequate returns.

- CashBak is an anticipated endowment policy ideal for

meeting milestone expenses like a child’s marriage,

expenses for a child’s higher education or purchase of an

asset.

Protection Solutions

LifeGuard is a protection plan, which offers life cover at

very low cost. It is available in 3 options - level term

assurance, level term assurance with return of premium

and single premium.

Child Solutions

31

SmartKid child plans provide guaranteed educational

benefits to a child along with life insurance cover for the

parent who purchases the policy. The policy is designed to

provide money at important milestones in the child’s life.

SmartKid child planed are also available with in unit-linked

form - both single premium and regular premium.

Market-linked Solutions

- LifeLink is a single premium Market Linked Insurance

Plan which combines life insurance cover with the

opportunity to stay invested in the stock market.

- LifeTime offers customers the flexibility and control to

customize the policy to meet the changing needs at

different life stages. It offers 3 investment options - Growth

Plan, Income Plan and Balanced Plan.

Retirement Solutions

- ForeverLife is a retirement product targeted at

individuals in their thirties.

Market-linked retirement products

- LifeTime Pension is a regular premium market-linked

pension plan

- LifeLink Pension is a single premium market-linked

pension plan.

32

Single Premium Solutions

- AssureInvest is a single premium savings product with

life cover for terms of 5, 7 or 10 years.

- ReAssure is a retirement product for senior citizens who

are on the verge of retirement or have just retired.

ICICI Prudential also launched ''Salaam Zindagi'', a social

sector group insurance policy targeted at the economically

underprivileged sections of the society.

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for

companies seeking to enhance benefits to their employees.

Group Gratuity Plan: ICICI Pru's group gratuity plan

helps employers fund their statutory gratuity obligation in a

scientific manner. The plan can also be customized to

structure schemes that can provide benefits beyond the

statutory obligations. 

Group Superannuation Plan: ICICI Pru offers a flexible

defined contribution superannuation scheme to provide a

retirement kitty for each member of the group. Employees

have the option of choosing from various annuity options or

opting for a partial commutation of the annuity at the time

of retirement.

Group Term Plan: ICICI Pru’s flexible group term solution

helps provide affordable cover to members of a group. The

33

cover could be uniform or based on designation/rank or a

multiple of salary. The benefit under the policy is paid to the

beneficiary nominated by the member on his/her death.

Flexible Rider Options

ICICI Pru Life offers flexible riders, which can be added to

the basic policy at a marginal cost, depending on the

specific needs of the customer.

1. Accident & Disability benefit: If death occurs as the

result of an accident during the term of the policy, the

beneficiary receives an additional amount equal to the sum

assured under the policy. If the death occurs while traveling

in an authorized mass transport vehicle, the beneficiary will

be entitled to twice the sum assured as additional benefit.

2. Accident benefit: This rider option pays the sum

assured under the rider on death due to accident.

3. Critical Illness Benefit: protects the insured against

financial loss in the event of 9 specified critical illnesses.

Benefits are payable to the insured for medical expenses

prior to death.

4. Major Surgical Assistance Benefit: provides financial

support in the event of medical emergencies, ensuring that

benefits are payable to the life assured for medical expenses

incurred for surgical procedures. Cover is offered against

43 different surgical procedures.

5.  Income Benefit: This rider pays the 10% of the sum

assured to the nominee every year, till maturity, in the

34

event of the death of the life assured. It is available on

SmartKid, SecurePlus and CashPlus.

6. Waiver of Premium: In case of total and permanent

disability due to an accident, the premiums are waived till

maturity. This rider is available with SecurePlus and

CashPlus.

ABOUT THE PARTNERS

ICICI Bank (NYSE:IBN) is India’s second largest bank with

an asset base of Rs. 106812 Crore. ICICI Bank provides a

broad spectrum of financial services to individuals and

companies. This includes mortgages, car and personal

loans, credit and debit cards, corporate and agricultural

finance. The Bank services a growing customer base of

more than 7 million customer accounts and 5 million

bondholders’ accounts through a multi-channel access

network. This includes about 450 branches and extension

counters, 1675 ATMs, call centres and Internet

banking (www.icicibank.com). ICICI Bank posted a net

profit of Rs.1, 206 Crore for the year ended March 31, 2003.

ICICI Bank is the only Indian company to be rated above the

country rating by the international rating agency Moody’s

and the only Indian company to be awarded an investment

grade international credit rating. The Bank enjoys the

35

highest AAA (or equivalent) rating from all leading Indian

rating agencies.

Established in 1848, Prudential is a leading international

financial services company in the UK, with some US$250

billion funds under management and more than 16

million customers worldwide. Prudential has brought to

market an integrated range of financial services products

that now includes life assurance, pensions, mutual funds,

banking, investment management and general insurance. In

Asia, Prudential is UK’s largest life insurance company with

a vast network of 23 life and mutual fund operations in

twelve countries - China, Hong Kong, India, Indonesia,

Japan, Korea, Malaysia, Philippines, Singapore, Taiwan,

Thailand and Vietnam. 

Objectives of the studyMain Objective –

Recruitment of Tied Agents for the company.

Sub Objective –

36

To Look for all segments of people so that they can be introduced in the system.

To make Suggestions about A.improvements in recruitment methods.

B.Making convenient recruitment both for the company and the recruiter.

Characteristics of a good insurance sales

person

He should be speedy, needy and Greedy

He should be presentable.

37

He should have good Communication Skills.

He should be ready to serve with a smiling face.

38

RESEARCH

METHODOLOG

Y

39

Research Methodology

Research methodology is a way to systematically solve the

research problem. It may be understood as a science of

studying how research is done scientifically. In it we study

the various steps, the research process that are generally

adopted to study the research problem and basic logics

behind them. The basic steps in this research are shown in

the chart below

The Research Process

40

Define the research problem and its objectives

Review concepts and theories

Collection of data survey

Research design including sample design

Analysis of data

Interpretation and report writing

The research consisted of two stages. In the first stage, a

survey was conducted to collect the data about the people.

The second stage involved analysis of the data collected in

the first stage.

Data Collection

`Data has been collected both from primary as well as

secondary sources as described below.

Sample size

The sample size for the survey was 186. It consisted of 52

Businessmen, 54 Professionals, 44 HNI and 35 Students. In

addition, data about ICICI’s services was collected through

discussions with the ICICI employees.

Primary sources

The primary source of data was Questionnaire filled by

people at different places of Chandigarh,Panchakula

and Mohali. After the collection of data it was

arranged and the people who were found suitable and

interested were interviewed which consisted of 53

people.

Field work

41

Since the task was to recruit some people for the

company.so the first thing was to look for the people in the

field and various offices.Various CA,Lawyers and other

professionals were interviewed for the recruitment purpose.

Secondary sources

The secondary sources of data were the various websites

and insurance manuals. This mainly provided information

about the insurance sector and the company’s profile. These

helped in gaining knowledge about the industry. These

sources are listed in References.

Research design

The methodology consisted of Descriptive research.The

problem was solved by recruiting people into the

system.The information was collected through

Questionnaire is as follows-

General Information

Time that can be devoted for this profession

To know the awareness about ICICI PRUDENTIAL.

To know about their interest in becoming advisors.

To fix an interview if interested.

42

FINDINGS

&

43

DATA

ANALYSIS

AGE COMPOSITION: In this market survey most of the

people are between the age group of 26-55yrs which

indicates that this report has most of the emphasis (84%) on

those people who are well established in their related field

i.e. business, profession, job, etc..

AGE COMPOSITION NO. OF PEOPLELESS THAN 25YRS 626YRS TO 35YRS 25

44

36YRS TO 45YRS 4046YRS TO 55YRS 19MORE THAN 55YRS 10TOTAL 100

6

25

40

19

10

0

5

10

15

20

25

30

35

40

NO

. OF

PE

OP

LE

LESS THAN25YRS

26YRS TO35YRS

36YRS TO45YRS

46YRS TO55YRS

MORE THAN55YRS

AGE GROUPS

AGE COMPOSITION

Do you have any side business

Along with your occupation?

Yes 28

No 158

45

The above graph shows that there is good number of

people can be looking for some kind of extra business.

Would you be interested in earning 8000-

10000 Rs. Per Month through a side

business?

Yes 112

No 74

46

Above graph shows that more than half of people are

willing to earn some money in case they are provided

with some work.

How much time can you devote to

this?

0-1 hour 1-2 hour 2-3 hour

more than 3

47

40 20 14

8

Above graph indicates that a good number of people

are ready to spend at least an hour from their

schedule.

Have you heard of ICICI Prudential ;if yes, through

which source?

48

Newspaper 60

Television 32

Business magazine 46

Friends/Relatives 24

Others 0

It shows that a good number of people has the

information about ICICI Prudential.

----------

49

S TRENGTH S

W EAKNES SES

O PPORTUNITI ES

50

T HREAT S

ANALYSIS

SWOT ANALYSIS

51

ICICI Prudential is one of the most powerful, world class

Life Insurance Co., gaining appreciation for their strong

work ethics, excellent performance, professionalism and

team work which led them to progress in today’s

challenging environment. Though with its excellence

performance and every efforts has been made to present

the most authentic and truly representative findings, but

some uncontrollable factors do affect the performance and

thus bring about some deviations and hurdles in progress.

So, with its strengths and good quality, the company is

having some weaknesses, and threats and opportunities. Its

SWOT analysis is as below:

Strengths

ICICI Prudential is the largest private player in the

insurance industry in India.

Excellent services.

Customization of Products as per customer’s needs.

Brand Image.

Business Experience.

Strong Financial Base.

Innovative products, Technology, organization culture

and climate.

The company has a large network of branches which

is helpful to customer for the payment.

52

Weaknesses

Lot of competitors are in the market offer same

product by the title difference in the premium and

offerings.

Target only higher income group whereas other

companies are trying to catch middle-lower level

people.

Higher premiums as compared to the other companies

Clients face problems to get insured due to large

number of formalities.

High targets for financial advisors and for the sales

department.

Opportunities

Huge market is literally untapped. Out of estimated

320 million insurable markets only 20% of the

population is insured.

In a conservative society of India where people are

more inclined towards risk free investments such as

Bank FD’s and savings rather than equity and high risk

investments insurance offers the best of both worlds –

53

The security with high returns. So there exists high

potential for insurance company like ICICI prulife

In the pension field where people want good life after

their retirement.

Indian people are more emotional towards their

children that’s why children plans are selling like hot

cakes.

Health insurance and pension Schemes, an estimated

market potential of approximately $15 billion.

Threats

Weak perception of private players in the minds of

Indian people due to frequent financial scams

Large number of insurance players

Existing wrong business practices of companies like –

LIC First premium is paid by their agents where – as

IRDA suggests that even forms to be filled by the

clients themselves

Players like Allianz Bajaj and Birla sun life with low

premium for the similar plans

Entry of many other private companies with equally

strong experience and financial strength of foreign

partners making the competition difficult and

saturating the urban markets.

54

LIC has woken up from sleep and is following

competitive strategies. Its huge surplus in Life Fund

gives a capability to lodge Price war.

Current Government policies do not encourage Gross

Domestic Savings. If the Tax Liability of the service

class rises, the customer will have little money to

invest.

For the Insurance sector Government set the authority

that is IRDA (Insurance Regulatory and Development

Authority) which is undertaken to track record of all

the companies and change rules day by day more rigid

which is very difficult for the companies.

----------

----------

Recommendations

There should Be a weekend batch of training for the people who can

not take there full six days from there busy schedule.

There should be some fixed salary with some fixed targets as other

companies are doing.

Advertising should be given in the newspapers so that more number

of people can come for the interview.

Various MBA institutes should be targeted to get people with good

marketing as well as interpersonal skills.

55

Presentation about advisor as a career opportunity should be given in

the various seminars an get togethers.

The Indian economy has demonstrated its resilience with

the GDP growing by 4.3% in the last year, which compares

quite favorably with most countries round the world. This

was despite poor monsoons, global economic slowdown and

heightened geo-political uncertainty due to Iraq war, high

oil prices and border tensions. Inflation which arouse to

round about 6.5%, has come of o a most stable 5%. This

bodes well for the Indian economy which is expected to post

GDP growth in excess of 5.5% in financial year 2004.

Growth is likely to be boosted by large infrastructural

projects and high retail credit along with positive trends in

various macro variable trends like appreciating Rupee,

strong forex reserves, benign inflation and stable interest

rates.

The equity outlook is positive with the Indian corporate

sector looking fundamentally strong on account of

operational efficiency improvements achieved in recent

years. Companies are expected to build on recent gains as

economic recovery picks up steam especially with a good

start to monsoons. However, it would also be prudent to

recognize the inherent risks if there is a second consecutive

monsoons failure in an agriculture dependant economy like

56

India. Also, with elections looming large we could see some

slackening in the pace of reforms which is another

downside risk.

The fixed income outlook is stable. A lot income outlook is

stable. A lot depends on the inflation and monsoon trends

going forward. While economic recovery and credit

overtake could gap the upside, liquidity in the system is

likely to protect the downside resulting in fairly flat market

----------

57

REFERENCES

1.www.iciciprulife.com

2.www.financialexpress.com

3.www.insuranceguide.com

58

59