A Project Study Report

On

ANALYSIS OF ICICI PRUDENTIAL LIFE INSURANCE

Submitted in partial fulfillment for the

Award of degree of

Master of Business Administration

Submitted by Submitted to ANAMOL SINGH MR. ANSHUL MATHUR

MBA III SEM Year (FACULTY GUIDE)

2010-2012 ARYA INSTITUTE OF ENGINEERING & TECHNOLOGY RIICO INSTITUTIONAL AREA, KUKAS, JAIPUR

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ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. SACHIN JAIN Designation manager, Dep’t marketing, for guiding me right from the inception till the

successful completion of the project. I sincerely acknowledge him for extending their valuable

guidance, support for literature, critical reviews of project and the report and above all the

moral support he/she/they had provided to me with all stages of this project.

I would also like to thank the supporting staff of ICICI LIFE INSURANCE

BANK Department, for their help and cooperation throughout our project.

ANAMOL SINGH

MBA III sem

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PREFACE

This project report has been prepared as per the requirement of the syllabus of MBA course

structure under which the students are required to undertake real life short term corporate

study..

Performing such study and surveying the market was a firsthand experience for me. I was

exposed to the professional set-up and faced the market, which was really a great experience.

During project period, I had very touching experiences. When business is involved,

experiences counts a lot, as we know, experience are an instrument, which leads towards

success. We all know that working in market on the grass route level has always been a

pleasure.

Now I take this opportunity to present the project report and sincerely hope that it will be as

much knowledge enhancing to the readers as it was to use during the fieldwork and the

completion of the report.

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EXECUTIVE SUMMARY

ICICI PRUDENTIAL Life insurance is the oldest life insurance company in the world. It is the

largest insurer in the UK and is the 28 th largest company in the world. In India, the company is

marketing life insurance products and unit linked investment plans. From my research at

ICICI , I found that the company has a lot of competition from other private insurers like HDFC,

Aviva, Birla Sun Life and Tata AIG. It also faces competition from LIC. To compete effectively

ICICI PRUDENTIAL could launch cheaper and more reasonable products with small premiums

and short policy terms (the number of year’s premium is to be paid). The ideal premium would

be between Rs. 5000 – Rs. 25000 and an ideal policy term would be 10 – 20 years.

ICICI must advertise regularly and create brand value for its products and services. Most of its

competitors like Aviva, HDFC, Max, Reliance and LIC use television advertisements to

promote their products. The Indian consumer has a false perception about insurance – they

feel that it would not benefit them if they do not live through the policy term. Nowadays

however, most policies are unit linked plans where a customer is benefited even if their death

does not occur during the policy term. This message should be conveyed to potential

customers so that they readily invest in insurance.

Family responsibilities and high returns are the two main reasons people invest in insurance.

Optimum returns of 16 – 20 % must be provided to consumers to keep them interested in

purchasing insurance.

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LIST OF CONTENTS 1. Introduction to the industry2. Introduction to the organization3. Research Methodology

3.1 Title of the study3.2 Duration of the study 3.3 Type of research3.4 Sample size3.5 Scope of the study3.6 Limitation of the study

4. Interpretation & analysis5. Facts & findings6. SWOT7. Conclusion8. Recommendation9. Appendix10. Bibliography

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“ life insurance is the bridge which covers the economic gap between the

time a man dies & the time he should die”

INTRODUCTION OF INDUSTRY

Insurance is a legal Contract that protects people from the financial costs those results from

loss of life, loss of health, lawsuits, or property damage. Insurance provides a means for

individuals & society to cope up with some of the risks faced in every day life by every body.

People purchase contracts of insurance, called a Policy, from various insurance companies.

Insurance can be divided into three categories:

1) Life Insurance

2) General Insurance

3) Health Insurance

Life insurance is a contract for payment of a sum of money to the person assured on the

happening of the event insured against. Usually the contract provides for the payment of an

amount on the date of maturity or at specified intervals or at unfortunate death. The contract

also provides for payment of premium periodically to the corporation by the assured.

General insurance includes many areas of insurance like marine, motor, engineering, health,

fire, etc. The contract provides for the payment of an amount on the happening of some

contingency. These types of contracts are annual in nature.

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History of insurance

In some sense we can say that insurance appears simultaneously with the appearance of

human society. We know of two types of economies in human societies: money economies

(with markets, money, financial instruments and so on) and non-money or natural economies

(without money, markets, financial instruments and so on). The second type is a more ancient

form than the first. In such an economy and community, we can see insurance in the form of

people helping each other. For example, if a house burns down, the members of the

community help build a new one. Should the same thing happen to one's neighbour, the other

neighbours must help. Otherwise, neighbors will not receive help in the future. This type of

insurance has survived to the present day in some countries where modern money economy

with its financial instruments is not widespread (for example countries in the territory of the

former Soviet Union).

Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in

which insurance is part of the financial sphere), early methods of transferring or distributing risk

were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia

BC, respectively.[8] Chinese merchants travelling treacherous river rapids would redistribute

their wares across many vessels to limit the loss due to any single vessel's capsizing. The

Babylonians developed a system which was recorded in the famous Code of Hammurabi, c.

1750 BC, and practised by early Mediterranean sailing merchants. If a merchant received a

loan to fund his shipment, he would pay the lender an additional sum in exchange for the

lender's guarantee to cancel the loan should the shipment be stolen.

Achaemenian monarchs of Ancient Persia were the first to insure their people and made it

official by registering the insuring process in governmental notary offices. The insurance

tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of

different ethnic groups as well as others willing to take part, presented gifts to the monarch.

The most important gift was presented during a special ceremony. When a gift was worth more

than 10,000 Derik (Achaemenian gold coin) the issue was registered in a special office. This

was advantageous to those who presented such special gifts. For others, the presents were

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fairly assessed by the confidants of the court. Then the assessment was registered in special

offices.

The purpose of registering was that whenever the person who presented the gift registered by

the court was in trouble, the monarch and the court would help him. Jahez, a historian and

writer, writes in one of his books on ancient Iran: "whenever the owner of the present is in

trouble or wants to construct a building, set up a feast, have his children married, etc. the one

in charge of this in the court would check the registration. If the registered amount exceeded

10,000 Derrik, he or she would receive an amount of twice as much.

A thousand years later, the inhabitants of Rhodes invented the concept of the 'general

average'. Merchants whose goods were being shipped together would pay a proportionally

divided premium which would be used to reimburse any merchant whose goods were

jettisoned during storm or sinkage.

The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when

they organized guilds called "benevolent societies" which cared for the families and paid

funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose.

The Talmud deals with several aspects of insuring goods. Before insurance was established in

the late 17th century, "friendly societies" existed in England, in which people donated amounts

of money to a general sum that could be used for emergencies.

Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of

contracts) were invented in Genoa in the 14th century, as were insurance pools backed by

pledges of landed estates. These new insurance contracts allowed insurance to be separated

from investment, a separation of roles that first proved useful in marine insurance. Insurance

became far more sophisticated in post-Renaissance Europe, and specialized varieties

developed.

Toward the end of the seventeenth century, London's growing importance as a centre for trade

increased demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee

house that became a popular haunt of ship owners, merchants, and ships’ captains, and

thereby a reliable source of the latest shipping news. It became the meeting place for parties

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wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today,

Lloyd's of London remains the leading market (note that it is not an insurance company) for

marine and other specialist types of insurance, but it works rather differently than the more

familiar kinds of insurance.

Insurance as we know it today can be traced to the Great Fire of London, which in 1666

devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to

insure buildings. In 1680, he established England's first fire insurance company, "The Fire

Office," to insure brick and frame homes.

The first insurance company in the United States underwrote fire insurance and was formed in

Charles Town (modern-day Charleston), South Carolina, in 1732. Benjamin Franklin helped to

popularize and make standard the practice of insurance, particularly against fire in the form of

perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance

of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire

prevention. Not only did his company warn against certain fire hazards, it refused to insure

certain buildings where the risk of fire was too great, such as all wooden houses. In the United

States, regulation of the insurance industry is highly Balkanized, with primary responsibility

assumed by individual state insurance departments. Whereas insurance markets have

become centralized nationally and internationally, state insurance commissioners operate

individually, though at times in concert through a national insurance commissioners'

organization. In recent years, some have called for a dual state and federal regulatory system

(commonly referred to as the Optional federal charter (OFC)) for insurance similar to that

which oversees state banks and national banks.

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FEATURES OF INDIAN INSURANCE INDUSTRY:

Low market penetration.

Ever-growing middle-class component in population.

Growth of consumer movement with an increasing demand for better insurance

products.

Inadequate application of information technology for business.

Adequate fillip from the Govt. in the form of tax incentives to the insured.

59% of the advisors are satisfied by the commission provided by the co. Those who are not

satisfied said that the commission provided is very low as compared other players in the

industry. Most of the advisors are satisfied by the working conditions.

This need has become even more important due to steady disintegration of the prevalent joint

family system, and emergence of nuclear families. The need to protect your family’s ever

growing needs is why you need Life Insurance.

Following are the reasons:

Lifestyle Maintenance.

Costs of Education.

Mortgage and Debt protection.

Hardships Protection.

Replacement of Income.

Retirement Expenses.

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MAJOR PLAYERS IN INSURANCE SECTOR

LIFE INSURANCE

BUSINESS

NON-LIFE INSURANCE BUSINESS

Life Insurance Corporation

ICICI Prudential Life Insurance

HDFC Standard Life Insurance

Max New York Life Insurance

Birla Sun Life Insurance

OM Kotak Mahindra Life Insurance

Reliance Life Insurance

Allianz Bajaj Life Insurance

Dabur CGU Life Insurance

ING Vyasa Life Insurance

SBI Life Insurance

PNB Life Insurance

BOB Life Insurance

General Insurance Corporation

National Insurance Company

The New India Assurance Company

The Oriental Insurance Company

United India Insurance Company

Reliance General Insurance

TATA-AIG Insurance

Royal Sundaram Alliance General Ins.

Bajaj Allianz General Insurance

ICICI Lombard Insurance

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Insurance companies

Insurance companies may be classified into two groups:

Life insurance companies, which sell life insurance, annuities and pensions products.

Non-life, General, or Property/Casualty insurance companies, which sell other types of

insurance.

General insurance companies can be further divided into these sub categories.

Standard Lines

Excess Lines

In most countries, life and non-life insurers are subject to different regulatory regimes and

different tax and accounting rules. The main reason for the distinction between the two types of

company is that life, annuity, and pension business is very long-term in nature — coverage for

life assurance or a pension can cover risks over many decades. By contrast, non-life insurance

cover usually covers a shorter period, such as one year.

In the United States, standard line insurance companies are "mainstream" insurers. These are

the companies that typically insure autos, homes or businesses. They use pattern or "cookie-

cutter" policies without variation from one person to the next. They usually have lower

premiums than excess lines and can sell directly to individuals. They are regulated by state

laws that can restrict the amount they can charge for insurance policies.

Excess line insurance companies (aka Excess and Surplus) typically insure risks not covered

by the standard lines market. They are broadly referred as being all insurance placed with non-

admitted insurers. Non-admitted insurers are not licensed in the states where the risks are

located. These companies have more flexibility and can react faster than standard insurance

companies because they are not required to file rates and forms as the "admitted" carriers do.

However, they still have substantial regulatory requirements placed upon them. State laws

generally require insurance placed with surplus line agents and brokers not to be available

through standard licensed insurers.

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Insurance companies are generally classified as either mutual or stock companies. Mutual

companies are owned by the policyholders, while stockholders (who may or may not own

policies) own stock insurance companies. Demutualization of mutual insurers to form stock

companies, as well as the formation of a hybrid known as a mutual holding company, became

common in some countries, such as the United States, in the late 20th century. Other possible

forms for an insurance company include reciprocals, in which policyholders 'reciprocate' in

sharing risks, and Lloyds organizations.

Insurance companies are rated by various agencies such as A. M. Best. The ratings include

the company's financial strength, which measures its ability to pay claims. It also rates financial

instruments issued by the insurance company, such as bonds, notes, and securitization

products.

Reinsurance companies are insurance companies that sell policies to other insurance

companies, allowing them to reduce their risks and protect themselves from very large losses.

The reinsurance market is dominated by a few very large companies, with huge reserves. A

reinsurer may also be a direct writer of insurance risks as well.

Captive insurance companies may be defined as limited-purpose insurance companies

established with the specific objective of financing risks emanating from their parent group or

groups. This definition can sometimes be extended to include some of the risks of the parent

company's customers. In short, it is an in-house self-insurance vehicle. Captives may take the

form of a "pure" entity (which is a 100% subsidiary of the self-insured parent company); of a

"mutual" captive (which insures the collective risks of members of an industry); and of an

"association" captive (which self-insures individual risks of the members of a professional,

commercial or industrial association). Captives represent commercial, economic and tax

advantages to their sponsors because of the reductions in costs they help create and for the

ease of insurance risk management and the flexibility for cash flows they generate.

Additionally, they may provide coverage of risks which is neither available nor offered in the

traditional insurance market at reasonable prices.

The types of risk that a captive can underwrite for their parents include property damage,

public and product liability, professional indemnity, employee benefits, employers' liability,

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motor and medical aid expenses. The captive's exposure to such risks may be limited by the

use of reinsurance.

Captives are becoming an increasingly important component of the risk management and risk

financing strategy of their parent. This can be understood against the following background:

heavy and increasing premium costs in almost every line of coverage;

difficulties in insuring certain types of fortuitous risk;

differential coverage standards in various parts of the world;

rating structures which reflect market trends rather than individual loss experience;

insufficient credit for deductibles and/or loss control efforts.

There are also companies known as 'insurance consultants'. Like a mortgage broker, these

companies are paid a fee by the customer to shop around for the best insurance policy

amongst many companies. Similar to an insurance consultant, an 'insurance broker' also

shops around for the best insurance policy amongst many companies. However, with

insurance brokers, the fee is usually paid in the form of commission from the insurer that is

selected rather than directly from the client.

Neither insurance consultants nor insurance brokers are insurance companies and no risks are

transferred to them in insurance transactions. Third party administrators are companies that

perform underwriting and sometimes claims handling services for insurance companies. These

companies often have special expertise that the insurance companies do not have.

The financial stability and strength of an insurance company should be a major consideration

when buying an insurance contract. An insurance premium paid currently provides coverage

for losses that might arise many years in the future. For that reason, the viability of the

insurance carrier is very important. In recent years, a number of insurance companies have

become insolvent, leaving their policyholders with no coverage (or coverage only from a

government-backed insurance pool or other arrangement with less attractive payouts for

losses). A number of independent rating agencies, such as Best's, Fitch, Standard & Poor's,

and Moody's Investors Service, provide information and rate the financial viability of insurance

companies.

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Global insurance industry

Life insurance premium written in 2005

Non-life insurance premium written in 2005

Global insurance premiums grew by 11% in 2007 (or 3.3% in real terms) to reach $4.1 trillion.

The macro-economic environment was characterized by slower economic growth in 2007 and

rising inflation. Profitability improved in life insurance and fell slighlty in the non-life sector

during the year. Life insurance premiums grew by 12.6%, accelerating in the advanced

economies with the exception of Japan and Continental Europe. Non-life insurance premiums

grew by 7.6% during the year. Figures for premium income are not yet available for 2008, but

the insurance industry is likely to see a slowdown in new business and falling investment

revenue.

Advanced economies account for the bulk of global insurance. With premium income of

$1,681bn, Europe was the most important region, followed by North America ($1,330bn) and

Asia ($814bn). The top four countries accounted for nearly 60% of premiums in 2007. The US

and UK alone accounted for 42% of world insurance, much higher than their 7% share of the

global population. Emerging markets accounted for over 85% of the world’s population but

generated only around 10% of premiums.

Complexity of insurance policy contracts

Insurance policies can be complex and some policyholders may not understand all the fees

and coverages included in a policy. As a result, people may buy policies on unfavorable terms.

In response to these issues, many countries have enacted detailed statutory and regulatory

regimes governing every aspect of the insurance business, including minimum standards for

policies and the ways in which they may be advertised and sold.

For example, most insurance policies in the English language today have been carefully

drafted in plain English; the industry learned the hard way that many courts will not enforce

policies against insureds when the judges themselves cannot understand what the policies are

saying.

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Many institutional insurance purchasers buy insurance through an insurance broker. While on

the surface it appears the broker represents the buyer (not the insurance company), and

typically counsels the buyer on appropriate coverage and policy limitations, it should be noted

that in the vast majority of cases a broker's compensation comes in the form of a commission

as a percentage of the insurance premium, creating a conflict of interest in that the broker's

financial interest is tilted towards encouraging an insured to purchase more insurance than

might be necessary at a higher price. A broker generally holds contracts with many insurers,

thereby allowing the broker to "shop" the market for the best rates and coverage possible.

Insurance may also be purchased through an agent. Unlike a broker, who represents the

policyholder, an agent represents the insurance company from whom the policyholder buys.

An agent can represent more than one company. An independent insurance consultant

advises insureds on a fee-for-service retainer, similar to an attorney, and thus offers

completely independent advice, free of the financial conflict of interest of brokers and/or

agents. However, such a consultant must still work through brokers and/or agents in order to

secure coverage for their clients.

Redlining

Redlining is the practice of denying insurance coverage in specific geographic areas,

supposedly because of a high likelihood of loss, while the alleged motivation is unlawful

discrimination. Racial profiling or redlining has a long history in the property insurance industry

in the United States. From a review of industry underwriting and marketing materials, court

documents, and research by government agencies, industry and community groups, and

academics, it is clear that race has long affected and continues to affect the policies and

practices of the insurance industry.

All states have provisions in their rate regulation laws or in their fair trade practice acts that

prohibit unfair discrimination, often called redlining, in setting rates and making insurance

available.

In determining premiums and premium rate structures, insurers consider quantifiable factors,

including location, credit scores, gender, occupation, marital status, and education level.

However, the use of such factors is often considered to be unfair or unlawfully discriminatory, 16

and the reaction against this practice has in some instances led to political disputes about the

ways in which insurers determine premiums and regulatory intervention to limit the factors

used.

An insurance underwriter's job is to evaluate a given risk as to the likelihood that a loss will

occur. Any factor that causes a greater likelihood of loss should theoretically be charged a

higher rate. This basic principle of insurance must be followed if insurance companies are to

remain solvent. Thus, "discrimination" against (i.e., negative differential treatment of) potential

insureds in the risk evaluation and premium-setting process is a necessary by-product of the

fundamentals of insurance underwriting. For instance, insurers charge older people

significantly higher premiums than they charge younger people for term life insurance. Older

people are thus treated differently than younger people (i.e., a distinction is made,

discrimination occurs). The rationale for the differential treatment goes to the heart of the risk a

life insurer takes: Old people are likely to die sooner than young people, so the risk of loss (the

insured's death) is greater in any given period of time and therefore the risk premium must be

higher to cover the greater risk. However, treating insureds differently when there is no

actuarially sound reason for doing so is unlawful discrimination.

What is often missing from the debate is that prohibiting the use of legitimate, actuarially sound

factors means that an insufficient amount is being charged for a given risk, and there is thus a

deficit in the system. The failure to address the deficit may mean insolvency and hardship for

all of a company's insureds. The options for addressing the deficit seem to be the following:

Charge the deficit to the other policyholders or charge it to the government (i.e., externalize

outside of the company to society at large).

Insurance patents

New assurance products can now be protected from copying with a business method patent in

the United States.

A recent example of a new insurance product that is patented is Usage Based auto insurance.

Early versions were independently invented and patented by a major U.S. auto insurance

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company, Progressive Auto Insurance (U.S. Patent 5,797,134) and a Spanish independent

inventor, Salvador Minguijon Perez (EP   patent   0700009 ).

Many independent inventors are in favor of patenting new insurance products since it gives

them protection from big companies when they bring their new insurance products to market.

Independent inventors account for 70% of the new U.S. patent applications in this area.

Many insurance executives are opposed to patenting insurance products because it creates a

new risk for them. The Hartford insurance company, for example, recently had to pay $80

million to an independent inventor, Bancorp Services, in order to settle a patent infringement

and theft of trade secret lawsuit for a type of corporate owned life insurance product invented

and patented by Bancorp.

There are currently about 150 new patent applications on insurance inventions filed per year in

the United States. The rate at which patents have issued has steadily risen from 15 in 2002 to

44 in 2006. Inventors can now have their insurance U.S. patent applications reviewed by the

public in the Peer to Patent program. The first insurance patent application to be posted was

US2009005522 “Risk assessment company”. It was posted on March 6, 2009. This patent

application describes a method for increasing the ease of changing insurance companies

LIFE INSURANCE

Life insurance is the only tool to secure out life in future. It also provides a safe guard to the

uncertainty of our life. Life insurance is the cheapest investment tool in which we can earn

more in a short period of time.

In the words of D S Hansell “Insurance may be defined as a social device providing financial

compensation for the effects of misfortune, the payment being made from the accumulated

contributions of all the parties participating in the scheme”.

The function of insurance is to protect you against losses you can’t afford. Insurance reduces

anxiety over a possible loss and absorbs the financial brunt of its consequences.

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India has traditionally been a high savings oriented country being on par with the thrifty Japan.

Insurance sector in the United States of America is as big in size as the banking industry there.

This gives us an ideal of how important the sector is. Insurance sector changeless the savings

of the people to long- term investments. In India where infrastructure is said to be of critical

importance, this sector will bring the nations own money for the nation.

The global life insurance market stands at $ 1,521.2 billion while the non-life insurance

market is placed at $922.4 billion.

India takes the 23rd position with US $ 9.933 billion annual premium collections and a

meager 0.41% share.

Out of the billion people is India; only 35 million people are covered by insurance.

Indian insurance market is set to touch $25 billion by 2010, on the assumption of a 7 per

cent real annual growth in GDP.

In 3 years time we would expect the 10% of the population to be under some sort of an

insurance cover. This assuming a premium of Rs. 5000 on an average, amounts to 100 million

x Rs. 5000= Rs. 500 bn.

This has made the sector the hottest one in India after IT. With social security and security to

the people at large being the agenda for opening the sector, the role of the regulator becomes

all the more serious and one that would be carefully watched at every step.

Types of life insurance

Life insurance may be divided into two basic classes – temporary and permanent or

following subclasses - term, universal, whole life and endowment life insurance.

TEMPORARY TERM

Term assurance: provides for life insurance coverage for a specified term of years for a

specified premium. The policy does not accumulate cash value. Term is generally

considered "pure" insurance, where the premium buys protection in the event of death

and nothing else.

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The three key factors to be considered in term insurance are: face amount (protection or

death benefit), premium to be paid (cost to the insured), and length of coverage (term).

Various insurance companies sell term insurance with many different combinations of

these three parameters. The face amount can remain constant or decline. The term can

be for one or more years. The premium can remain level or increase. A common type of

term is called annual renewable term. It is a one year policy but the insurance company

guarantees it will issue a policy of equal or lesser amount without regard to the

insurability of the insured and with a premium set for the insured's age at that time.

Another common type of term insurance is mortgage insurance, which is usually a level

premium, declining face value policy. The face amount is intended to equal the amount

of the mortgage on the policy owner’s residence so the mortgage will be paid if the

insured dies.

A policy holder insures his life for a specified term. If he dies before that specified term

is up, his estate or named beneficiary receives a payout. If he does not die before the

term is up, he receives nothing. In the past these policies would almost always exclude

suicide. However, after a number of court judgments against the industry, payouts do

occur on death by suicide (presumably except for in the unlikely case that it can be

shown that the suicide was just to benefit from the policy). Generally, if an insured

person commits suicide within the first two policy years, the insurer will return the

premiums paid. However, a death benefit will usually be paid if the suicide occurs after

the two year period.

Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until the policy

matures (pays out), unless the owner fails to pay the premium when due (the policy

expires OR policies lapse). The policy cannot be canceled by the insurer for any reason

except fraud in the application, and that cancellation must occur within a period of time

defined by law (usually two years). Permanent insurance builds a cash value that

reduces the amount at risk to the insurance company and thus the insurance expense

over time. This means that a policy with a million dollar face value can be relatively

expensive to a 70 year old. The owner can access the money in the cash value by

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withdrawing money, borrowing the cash value, or surrendering the policy and receiving

the surrender value.

The four basic types of permanent insurance are whole life, universal life, limited pay

and endowment.

Whole life coverage

Whole life insurance provides for a level premium, and a cash value table included in

the policy guaranteed by the company. The primary advantages of whole life are

guaranteed death benefits, guaranteed cash values, fixed and known annual premiums,

and mortality and expense charges will not reduce the cash value shown in the policy.

The primary disadvantages of whole life are premium inflexibility, and the internal rate of

return in the policy may not be competitive with other savings alternatives. Riders are

available that can allow one to increase the death benefit by paying additional premium.

The death benefit can also be increased through the use of policy dividends. Dividends

cannot be guaranteed and may be higher or lower than historical rates over time.

Premiums are much higher than term insurance in the short-term, but cumulative

premiums are roughly equal if policies are kept in force until average life expectancy.

Cash value can be accessed at any time through policy "loans". Since these loans

decrease the death benefit if not paid back, payback is optional. Cash values are not

paid to the beneficiary upon the death of the insured; the beneficiary receives the death

benefit only. If the dividend option: Paid up additions is elected, dividend cash values

will purchase additional death benefit which will increase the death benefit of the policy

to the named beneficiary.

Accidental Death

Accidental death is a limited life insurance that is designed to cover the insured when

they pass away due to an accident. Accidents include anything from an injury, but do

not typically cover any deaths resulting from health problems or suicide. Because they

only cover accidents, these policies are much less expensive than other life insurances.

It is also very commonly offered as "accidental death and dismemberment insurance",

also known as an AD&D policy. In an AD&D policy, benefits are available not only for 21

accidental death, but also for loss of limbs or bodily functions such as sight and hearing,

etc.

Accidental death and AD&D policies very rarely pay a benefit; either the cause of death

is not covered, or the coverage is not maintained after the accident until death occurs.

To be aware of what coverage they have, an insured should always review their policy

for what it covers and what it excludes. Often, it does not cover an insured who puts

themselves at risk in activities such as: parachuting, flying an airplane, professional

sports, or involvement in a war (military or not). Also, some insurers will exclude death

and injury caused by proximate causes due to (but not limited to) racing on wheels and

mountaineering.

Accidental death benefits can also be added to a standard life insurance policy as a

rider. If this rider is purchased, the policy will generally pay double the face amount if

the insured dies due to an accident. This used to be commonly referred to as a double

indemnity coverage. In some cases, some companies may even offer a triple indemnity

cover.

Criticism of insurance companies

Some people believe that modern insurance companies are money-making businesses which

have little interest in insurance. They argue that the purpose of insurance is to spread risk so

the reluctance of insurance companies to take on high-risk cases (e.g. houses in areas subject

to flooding, or young drivers) runs counter to the principle of insurance.

Other criticisms include:

Insurance policies contain too many exclusion clauses. For example, some house

insurance policies do not cover damage to garden walls.

22

Introduction to the organization

Company Profile

Overview ICICI Bank is India's second-largest bank with total assets of Rs. 3,744.10 billion (US$ 77

billion) at December 31, 2008 and profit after tax Rs. 30.14 billion for the nine months ended

December 31, 2008. The Bank has a network of 1,438 branches and about 4,644 ATMs in

India and presence in 18 countries. ICICI Bank offers a wide range of banking products and

financial services to corporate and retail customers through a variety of delivery channels and

through its specialized subsidiaries and affiliates in the areas of investment banking, life and

non-life insurance, venture capital and asset management. The Bank currently has

subsidiaries in the United Kingdom, Russia and Canada, branches in United States,

Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and

representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,

Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and

Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National

Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on

the New York Stock Exchange (NYSE). ICICI Prudential Life Insurance Company is a joint

venture between ICICI Bank, a premier financial powerhouse, and prudential plc, 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).

23

ICICI Prudential equity base stands at Rs. 925 crores with ICICI Bank and Prudential policy

holding 74% and 26% stake respectively. In the period April- December 2004, the company

garnered Rs 860 crores of new business premiums for a total sum assured of over Rs 7,360

crores and wrote nearly 345,000 policies. Today the company is the No. 1 private life insurer in

the country.

Vision

The company’s vision is “to make ICICI Prudential the dominant Life and Pensions player built

on trust by world-class people and service.”

They hope to achieve this by:

Understanding the needs of customers and offering them superior products and service.

Leveraging technology to device customers quickly, efficiently and conveniently.

Developing and implementing superior risk management and investment strategies to

offer sustainable and stable returns to their policyholders.

Providing an enabling environment to foster growth and learning for their employees.

And above all, building transparency in all their dealings

The success of the company is due to its unflinching commitment to 5 core values-

Integrity,

Customer First,

Ownership,

Passion,

24

MISSION OF THE ICICI BANK

To identify and support initiatives, which are, designed to improve the capacity

of the poorest of the poor to participate in the larger economy.

These initiatives must be cost effective, capable of large-scale replication and

should have the potential for both near and long-term impact.

To leverage technology in order to overcome constraints and enhance the

History

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and

was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%

through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs

listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-

stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional

investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World

Bank, the Government of India and representatives of Indian industry. The principal objective

was to create a development financial institution for providing medium-term and long-term

project financing to Indian businesses. In the 1990s, ICICI transformed its business from a

development financial institution offering only project finance to a diversified financial services

group offering a wide variety of products and services, both directly and through a number of

subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and

the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging

competitive scenario in the Indian banking industry, and the move towards universal banking,

the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI

Bank would be the optimal strategic alternative for both entities, and would create the optimal

legal structure for the ICICI group's universal banking strategy. The merger would enhance

value for ICICI shareholders through the merged entity’s access to low-cost deposits, greater

opportunities for earning fee-based income and the ability to participate in the payments

system and provide transaction-banking services. The merger would enhance value for ICICI

Bank shareholders through a large capital base and scale of operations, seamless access to

25

ICICI's strong corporate relationships built up over five decades, entry into new business

segments, higher market share in various business segments, particularly fee-based services,

and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of

Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned

retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital

Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and

ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and

by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.

Consequent to the merger, the ICICI group's financing and banking operations, both wholesale

and retail, have been integrated in a single entity.

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, and Prudential

Policy, a leading international financial services group which has its headquarters in U.K.ICICI

Prudential was amongst the first private sector companies to begin operation in December

2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI

Prudential total equity is 6.75 Bn with ICICI Bank & Prudential Policy In the end of year 2003-

04, ICICI Prudential had issued over 7.8 lackhs policies, for a total sum assured of over 16000

crores and premium collection is over 951 crores.

The company has a network of about 33000 advisors: as well as 12 banc assurance tie-ups.

Today the company stands first in private life insurance in India with a market share of nearly

40%.

Foundation of ICICI

1955 The Industrial Credit and Investment Corporation of India Limited (ICICI) was

incorporated at the initiative of World Bank, the Government of India and representatives

of Indian industry, with the objective of creating a development financial institution for

providing medium-term and long-term project financing to Indian businesses.

1994 ICICI established Banking Corporation as a banking subsidiary.formerly Industrial

Credit and Investment Corporation of India. Later, ICICI Banking Corporation was

26

renamed as 'ICICI Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to

undertake normal banking operations - taking deposits, credit cards, car loans etc.

2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank,

and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established

1904) in the 1960s.

2002 The Boards of Directors of ICICI and ICICI Bank approved the reverse merger of

ICICI, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, into

ICICI Bank. After receiving all necessary regulatory approvals, ICICI integrated the

group's financing and banking operations, both wholesale and retail, into a single entity.

o Also in 2002, ICICI Bank bought the Shimla and Darjeeling branches that

Standard Chartered Bank had inherited when it acquired Grind lays Bank.

o ICICI started its international expansion by opening representative offices in

New York and London.

2003 ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the UK it

established an alliance with Lloyds TSB.

o It also opened an Offshore Banking Unit (OBU) in Singapore and representative

offices in Dubai and Shanghai.

2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between that

country, India and South Africa.

2005 ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about

US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in

Moscow. ICICI renamed the bank ICICI Bank Eurasia.

o Also, ICICI established a branch in Dubai International Financial Centre and in

Hong Kong.

2006 ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened

representative offices in Bangkok, Jakarta, and Kuala Lumpur.

2007 ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in

Maharashtra State, and which had 158 branches in Maharashtra and another 31 in

Karnataka State. Sangli Bank had been founded in 1916 and was particularly strong in

rural areas

27

.ICICI also received permission from the government of Qatar to open a branch in Doha.

ICICI Bank Eurasia opened a second branch, this time in St. Petersburg.

2008 The US Federal Reserve permitted ICICI to convert its representative office in New

York into a branch.

.

ICICI Group

ICICI Bank also has banking subsidiaries in UK, Canada and Russia

28

Present-ScenarioICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National

Stock Exchange of India Limited. Overseas, its American Depositary Receipts (adrs) are listed

on the New York Stock Exchange (NYSE). As of December 31, 2008, ICICI is India's second-

largest bank, boasting an asset value of Rs. 3,744.10 billion and profit after tax Rs. 30.14

billion, for the nine months, that ended on December 31, 2008.

SALES DISTRIBUTION

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large

advisor force that targets various customer segments. The strength of tied agency lies

in an aggressive strategy of expanding and procuring quality business. With focus on

sales & people development, tied agency has emerged as a robust, predictable and

sustainable business model.\

ICICI Prudential was a pioneer in offering life insurance solutions through banks and

alliances. Within a short span of two years, and with nearly a large number of partners,

B & A has emerged as a vital component of the company's sales and distribution

strategy, contributing to approximately one third of company's total business.

The business philosophy at B&A is to leverage distribution synergies with our partners

and add value to its customers as well as the partners. Flexibility, adaptation and

experimenting with new ideas are the hallmarks of this channel.

GROUP

The Group Business of ICICI Prudential has been in existence for over 2 years. Today,

we are the Number 1 player among private life insurance companies in Group Business

excluding Mortgage Reducing Term Assurance (MRTA) with a market share of 26 %

( FY 2004-2005). We offer the entire gamut of products including Gratuity,

Superannuation Term Insurance, Leave Encashment, Employee Deposit Linked

29

Insurance (EDLI), Mortgage Reducing Term Assurance (MRTA) & Informal Group Term

covers.

CUSTOMER SERVICE & OPERATIONS

The Operations department oils the work processes between the customer and the

company to ensure consistent and quality service to the customer. To streamline the

operations, the Operations department interfaces between the clients and the agents,

the branches and the underwriters, and manages work processes.

The Vision at Customer Service is to deliver 'World Class Service' at every opportunity.

Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and

Query Resolution Unit are all committed to providing effective solutions to over lakhes of

customers across the country.

INFORMATION TECHNOLOGY

The Information Technology function at ICICI Prudential is committed to enable

business through the use of technology. It is segmented into 4 groups to enable highest

levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in

designing better product offerings to end-users, the Solutions Group- Web that provides

real-time information to customers and is responsible for customer relationship

management, IT Architecture & Corporate Solutions Group is in charge of developing

and maintaining a blueprint for the IT architecture for the enterprise as a whole. This

team works as an in house R&D Solution Group, exploring new technological initiatives

and also caters to information needs of corporate functions in the organization. IT

Infrastructure group is responsible for providing hardware, software, network services to

the whole organization. This group runs the 'Digital Nervous System' of the Enterprise at

the highest levels of efficiency and provide robust, scalable and highly available

platform for deployment of business application.

30

MARKETING

The Marketing function at ICICI Prudential covers an array of activities - brand and

media management, channel support, direct marketing and corporate communications.

The Brand and Communications team is in charge of advertising, consumer research,

media planning & buying and Public Relations; that helps develop and nurture ICICI

Prudential's corporate identity while effectively communicating its varied product

offerings to the customer. Channel marketing provides support to the sales force by

streamlining the design and development of collaterals and sales tools across

distribution channels. The Direct marketing team was set up to generate high quality

leads for profitable business. The team achieves this through target database

acquisition and communicating customized product information through e-mailers,

telemarketing and innovative direct mailers.

FINANCE

Finance function in ICICI Prudential is committed to create an infrastructure that is

aligned to shareholder expectations. Finance basically comprises of four functions. .

Corporate Planning and MIS provide feedback on business strategies. This includes

driving the budgeting process, providing strategic inputs for decision-making and

management reporting and analysis. The Accounts function includes preparation and

maintenance of financial records, funds management, and expense processing and

treasury operations. Compliance ensures that every action is within the regulatory

framework. This includes reviewing compliance requirements and supporting the ethical

framework of ICICI Prudential life. Internal audit provides assurance to the management

over the organizations' control framework and includes process risk management,

information security assessment and business continuity assessment.

HUMANRE SOURCE

The people strategy of ICICI Prudential is "To build a committed team with a culture of

innovation, learning and growth. The Human Resource Function at ICICI Prudential

31

drives the people strategy of the business. With its initial focus on operational

excellence to deliver benefits and services to staff members, HR is now committed to

building capability through state of the art processes. A robust performance

management system, compensation system and a segmented training architecture

enable it to deliver value to the organization.

BUSINESS

Excellence the Business Excellence function is committed to building a quality mindset

across the organization. ICICI Prudential is the first organization in the Insurance

Industry that has adopted the Six Sigma Methodology for process efficiency and

measurement. The team is also driving the Malcolm Baldrige framework across the

organization, an intervention that examines management of key inputs for Business

Excellence.

Strategy-1. Identify and support projects and programmes that are within its focus areas and,

have a large- scale and measurable – impact

are replicable in a cost effective manner; and

are time –bound.

2. Identify and support pilot projects within its focus areas.

3. Contribute towards improving the efficacy of assisted organizations through:

capacity building

providing access to research and information; and providing platforms for an

32

Business Overview

ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crore at March

31, 2006 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2006 (Rs. 1740

crore in fiscal 2004). ICICI Bank has a network of about 570 branches and extension counters

and over 2200 ATMs. ICICI Bank offers a wide range of banking products and financial

services to corporate and retail customers through a variety of delivery channels and through

its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life

insurance, venture capital and asset management. ICICI Bank set up its international banking

group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic

33

Assets> Rs.1, 25,000

Crores

Globally held (ADR, FII stake)

Second largest Bank in India

Rated by Moody’s above

sovereign rating

First Indian Bank to be

listed on NYSE

banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the

United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative

offices in the United States, China, United Arab Emirates, Bangladesh and South Africa.

ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai

and the National Stock Exchange of India Limited and its American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange (NYSE).

As required by the stock exchanges, ICICI Bank has formulated a Code of

Business Conduct and Ethics for its directors and employees.At April 4, 2006 ICICI Bank, with

free float market capitalization* of about Rs. 308.00 billion (US$ 7.00 billion) ranked third

amongst all the companies listed on the Indian stock exchanges.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was

reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in

the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura

Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to

institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative

of the World Bank, the Government of India and representatives of Indian industry.

The principal objective was to create a development financial institution for

providing medium-term and long-term project financing to Indian businesses. In the 1990s,

ICICI transformed its business from a development financial institution offering only project

finance to a diversified financial services group offering a wide variety of products and

services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In

1999, ICICI become the first Indian company and the first bank or financial institution from non-

Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards universal

banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI

with ICICI Bank would be the optimal strategic alternative for both entities, and would create

the optimal legal structure for the ICICI group's universal banking strategy. The merger would

enhance value for ICICI shareholders through the merged entity's access to low-cost deposits,

greater opportunities for earning fee-based income and the ability to participate in the

payments system and provide transaction-banking services. The merger would enhance value 34

for ICICI Bank shareholders through a large capital base and scale of operations, seamless

access to ICICI's strong corporate relationships built up over five decades, entry into new

business segments, higher market share in various business segments, particularly fee-based

services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the

Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its

wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI

Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI

and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002,

and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.

Consequent to the merger, the ICICI group's financing and banking operations, both wholesale

and retail, have been integrated in a single entity. *Free float holding excludes all promoter

holdings, strategic investments and cross holdings among    public sector entities.

Performance of ICICI Bank

Profit before tax for FY2009 was Rs. 51.17bn compared to Rs. 50.56bn for FY2008.

o Profit after tax for FY2009 was Rs. 37.58bn compared to Rs. 41.58bn for FY2008

due to the higher effective tax rate on account of lower proportion of income

taxable as dividends and capital gains.

15% increase in net interest income from Rs. 73.04bn in FY2008 to Rs. 83.67bn in

FY2009.

o NIM increased from 2.2% in FY2008 to 2.4% in FY2009.

Fee income decreased marginally from Rs. 66.27bn in FY2008 to Rs. 65.24bn in

FY2009.Lower corporate fees in H2-2009 due to slowdown in corporate activity.

o Reduced third party distribution and low disbursals impacted retail fees

Operating expenses (including direct marketing agency expenses) decreased 14% to

Rs. 68.35bn in FY2009 from Rs. 79.72bn in FY2008.

o The cost/average asset ratio for FY2009 was 1.8% compared to 2.2% for FY2008.

35

Operating profit increased 12% from Rs. 79.61bn in FY2008 to Rs. 89.25bn in FY2009

as lower treasury and other income were offset by higher net interest income and lower

operating and DMA expenses.

Balance Sheet Highlights Continued focus on capital, liquidity and risk containment.

Total capital adequacy of 15.5% and Tier-1 capital adequacy of 11.8% as per RBI’s

revised Basel II framework.

Maintained high liquidity levels in domestic business and overseas subsidiaries.

Decrease in loan book by 3.2% (decline of 8.4% excluding impact of exchange.

OVERVIEW

India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint

venture between ICICI Bank-one of India's foremost financial services companies-and

prudential plc- a leading international financial services group headquartered in the United

Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank holding a stake of

74% and Prudential plc holding 26%. We began our operations in December 2000 after

receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our

nation-wide team comprises of over 580 offices, over 234,000 advisors; and 22 bank

assurance partners.ICICI Prudential was the first life insurer in India to receive a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI

Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic

Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution,

product range and customer base, we continue to tirelessly uphold our commitment to deliver

world-class financial solutions to customers all over India.

Promise a fixed income after you retire or Health insurance that arms you with the funds you

might need to recover from a dreaded disease.

36

1. Ensure that our customers can access them easily and quickly. To this end, ICICI

Prudential has an advisor base across the length and breadth of the country, and also

partners with leading banks, corporate agents and brokers to distribute our products.

2. Robust risk management and underwriting practices form the core of our business. With

clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a

smooth and hassle-free claims process.

3. Entrusted with helping our customers meet their long-term goals, we adopt an

investment philosophy that aims to achieve risk adjusted returns over the long-term.

4. Last but definitely not the least, our 16,000 plus strong team is given the opportunity

to learn and grow, every day in a multitude of ways.

PRODUCTS OF THE COMPANY

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 20 products can be enhanced with up to 6

riders, to create a customized solution for each policyholder.

Savings Solutions

Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of

protection.

Cash Plus is a transparent, facture-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.

37

Cash Bank 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.

Life Time & Life Time II offer customers the flexibility and control to customize the policy

to meet the changing needs at different life stages. Each offer 4 fund options?

Preserver, Protector, Balancer and Maxi miser.

Life link II is a single premium Market Linked Insurance Plan which combines life

insurance cover with the opportunity to stay invested in the stock market.

Premier Life is a limited premium paying plan that offers customers life insurance cover

till the age of 75.

Invest Shield Life is a Market Linked plan that provides capital guarantee on the

invested premiums and declared bonus interest.

Invest Shield Cash’s a Market Linked plan that provides capital guarantee on the

invested premiums and declared bonus interest along with flexible liquidity option.

Invest Shield Gold is Market Linked plan that provides capital guarantee on the

invested premiums and declared bonus interest along with limited premium payment

terms.

Pension Term Assurance

Although available before April 2006, from this date pension term assurance became widely

available in the UK. Most UK product providers adopted the name "life insurance with tax

relief" for the product. Pension term assurance is effectively normal term life assurance with

tax relief on the premiums. All premiums are paid net of basic rate tax at 22%, and higher rate

tax payers can gain an extra 18% tax relief via their tax return. Although not suitable for all,

PTA briefly became one of the most common forms of life assurance sold in the UK until the

Chancellor, Gordon Brown, announced the withdrawal of the scheme in his pre-budget

announcement on 6 December 2006. The tax relief ceased to be available to new policies

transacted after 6 December 2006, however, existing policies have been allowed to enjoy tax

relief so far.

38

Market trends

Life insurance premiums written in 2005

According to a study by Swiss Re, the EU was the largest market for life insurance premiums

written in 2005 followed by the USA and Japan.

Criticism

Although some aspects of the application process (such as underwriting and insurable interest

provisions) make it difficult, life insurance policies have been used in cases of exploitation and

fraud. In the case of life insurance, there is a motivation to purchase a life insurance policy,

particularly if the face value is substantial, and then kill the insured. Usually, the larger the

claim, and/or the more serious the incident, the larger and more intense will be the number of

investigative layers, consisting in police and insurer investigation, eventually also loss

adjusters hired by the insurers to work independently.

The television series Forensic Files has included episodes that feature this scenario. There

was also a documented case in 2006, where two elderly women are accused of taking in

homeless men and assisting them. As part of their assistance, they took out life insurance on

the men. After the contestability period ended on the policies (most life contracts have a

standard contestability period of two years), the women are alleged to have had the men killed

via hit-and-run car crashes

Recently, viatical settlements have thrown the life insurance industry into turmoil. A viatical

settlement involves the purchase of a life insurance policy from an elderly or terminally ill policy

holder. The policy holder sells the policy (including the right to name the beneficiary) to a

purchaser for a price discounted from the policy value. The seller has cash in hand, and the

purchaser will realize a profit when the seller dies and the proceeds are delivered to the

purchaser. In the meantime, the purchaser continues to pay the premiums. Although both

parties have reached an agreeable settlement, insurers are troubled by this trend. Insurers

39

calculate their rates with the assumption that a certain portion of policy holders will seek to

redeem the cash value of their insurance policies before death. They also expect that a certain

portion will stop paying premiums and forfeit their policies. However, viatical settlements

ensure that such policies will with absolute certainty be paid out. Some purchasers, in order to

take advantage of the potentially large profits, have even actively sought to collude with

uninsured elderly and terminally ill patients, and created policies that would have not otherwise

been purchased. Likewise, these policies are guaranteed losses from the insurers' perspective.

The criticism goes also in the direction of pointing out much lower payouts for life insurance

than for health or disability insurance in some countries (for example, UK).

Protection Solutions:

Life Guard is a protection plan, which offers life covers at very low cost. It is available in 3

options?

Child Plans:

Smart Kid education plans provide guaranteed educational benefits to a child along with life

insurance cover for the parents who purchase the policy. The policy is designed to provide

money at important milestones in the child’s life. Smart Kid plans are also available in unit-

linked from?

Retirement Solutions:

Forever Life is a retirement product targeted at individuals in their thirties.

Secured plus Pension is a flexible pension plan that allows one to select between 3 of

cover.

Market-linked retirement products:

Life Time Pension II is a regular premium market-linked pension plan.

Life Link Pension II is a single premium market-linked pension plan.

40

Invest Shield Pension is a regular premium pension plan with a capital guarantee on

invest able premium and declared bonuses.

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.

ICICI Prudential Group Gratuity Plan: ICICI Prudential? 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.

ICICI Prudential Group Super annuity Plan: ICICI Prudential offers a flexible defined

contribution Super annuity scheme to provide a retirement kitty for each member of the group.

Employees have the option of choosing from various annuity options of opting for a partial

commutation of the annuity at the time of retirement.

ICICI Prudential Group Term Plan: ICICI Prudential flexible group term solution helps provide

affordable cover to members of a group. The cover could be uniform or based on designation

rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by

the member on his/her death.

Flexible Rider Options:

ICICI Prudential Life offers flexible riders, which can be added to the basis policy at a marginal

cost, depending on the specific needs of the customer.

Accident & disability benefit: If death occurs as the result of an accident during the

tern of the policy, the beneficiary receivers an additional amount equal to the sum

assured under the policy. Accident Benefit. This rider option pays the sum assured

under the rider on death due to accident.

41

Critical Illnesses Benefit: protects the insured against financial loss in the event of 9

specific critical illnesses. Benefits are payable to the insured for medical expanses

prior to death.

Major Surgical Assistance Benefit: provides financial support in the event of medical

emergencies, ensuring benefits are payable to the life assured for medical expenses

incurred for surgical procedures. Cover is offered against 43 surgical procedures.

Income Benefit: This rider pays the 10% of the sum assured to the nominee every

year till maturity, in the event of the death of the life assured. It is available on

Secure Plus and Cash Plus.

Waiver of Premiums: In case of total and permanent disability due to an accident the

premiums are waived till maturity. This rider is available with Secure Plus and Cash

Plus.

Types of mortgage protection life insurance

Consumers interested in mortgage protection life insurance have two choices: level term

insurance and decreasing term insurance.

Level term mortgage protection life insurance is designed for homeowners with an

unchanging principle balance. Commonly this occurs when the homeowner has an interest-

only mortgage. As the name suggests, with an interest-only mortgage, the homeowner pays

the interest on the loan. The principle balance remains the same throughout the term of the

mortgage. Because the mortgage principle does not change, the amount of the mortgage

protection life insurance benefit remains the same throughout the term of the coverage.

Decreasing term mortgage protection life insurance is for homeowners with fixed-rate loans

or adjustable-rate loans in which the loan principal is reduced over time. Since the amount

needed to pay off the mortgage decreases, the amount of the mortgage protection life

insurance benefit decreases as well. The two sums—the principle balance and the death

benefit—are matched throughout the term of the insurance. When the mortgage protection life

insurance policyholder pays off the home loan, the amount of the benefit becomes zero.

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Low-cost alternative

There is no surrender value on either type of mortgage protection life insurance policy. Once

the mortgage is paid off or the property is sold, the policy becomes void. For this reason,

mortgage protection life insurance is less expensive than most traditional life insurance.

Hurdling the health barrier

The cost of traditional life insurance is calculated based on the policyholder’s health and life

expectancy. Young, healthy people have lower premiums than young unhealthy people, older

healthy people, and older unhealthy people. Because of existing health conditions, some

people find they do not qualify for traditional health insurance. They are uninsurable. Others

are insurable, but the premiums are so high that they cannot afford them. In these cases,

traditional life insurance cannot be used to protect a home. Many people who cannot afford

traditional life insurance find that they can easily afford mortgage protection life insurance.

Mortgage protection life insurance is often dismissed as inflexible compared to traditional life

insurance, but the truth is that many life insurance beneficiaries use the money to pay off their

homes. In worst case scenarios, mortgage protection life insurance may be the only thing that

keeps a family from losing its home. It can be a home saver.

ADVANTAGES OF LIFE INSURANCE

It is a general belief that life insurance is meant only for those with families. It is true that Life

Insurance Policies like whole-life insurance, joint-life-insurance, pension-life-insurance etc are

essential for family's financial security, but they are equally important for individuals. Term

Insurance policies protect your financial resources against the uncertainties of life so you can

protect your family's future.

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Some of the life insurance advantages are:

If an estate owner has not accumulated enough assets for his family,

Insurance quote helps create an instant estate for the sake of the Family’s security.

Life Insurance provides the option to pass equal assets to the children who are not

active in the Family business at the time the family business is passed on.

Life Insurance policies can help secure the future of children for college/educational

purposes as the amount of life Insurance Policy increases on a minor’s or parent’s life.

The growth of a cash-value policy is tax-deferred - you do not pay taxes on the cash

value accumulation until you withdraw funds from the policy.

Life Insurance can be useful in paying estate taxes, along with other estate settlement

amounts. Federal Estate Taxes are due nine months after death.

If there’s a Business Transfer, life insurance can provide ready cash to finance a

transaction between business owners who are ready to buy the deceased owner’s

share from his or her estate after death.

If there’s a home mortgage, one can pass the family residence to their spouse/children

to free them of any mortgage if one has a Life Insurance Policy for the same. It is

preferred to have a decreasing term policy that decreases in face amount as the

mortgage balance is paid down.

Life Insurance helps retain your Business from the loss of a key employee. Untimely

death of a key employee can pose severe financial loss to the business.

The right insurance proceeds can provide liquidity to pay off personal loans or business

loans.

Charitable Remainder Trusts provide tax benefits. Life Insurance helps replace a

charitable gift.

A lot of Insurance products presently provide good returns, which could be a beneficial

way for saving necessary funds for retirement years.

Benefits are available immediately and may be used to help pay expenses such as final

illness and funeral costs, eliminating the need to sell estate assets to cover these costs.

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Disadvantages Premiums increase as you grow older.

Coverage may terminate at the end of the term or may become too expensive to

continue.

Generally, the policy doesn't offer cash value or paid-up insurance. Life insurance, to

many, is a necessary evil. Many policyholders swear by them in protecting their families

from loss of income and hefty debt obligations in the event of their untimely death. With

several types of life insurance on the market, generally speaking, two varieties still

remain the most popular: term and whole life, or "cash value" life insurance. Both

varieties have pros and cons.

The importance of advisors:

ICICI Prudential Life Insurance Co. Ltd. Aspires to provide state of the art of customer’s

service & opportunities & avenues for enterprising people to grow & prosper. The

company wish to grow exponentially that is backed by the latest technology, hence

offering its customers:

Faster & more accurate service.

Multi-channel distribution systems.

Highly trained professional sales people offering quality pre & post sales service.

It is in the above mentioned areas of personal specialization where the importance of an

advisor clearly stands out the advisor not only contribute in bring in new business for the

company, but also plays an important part in offering world-class pre & post sales service to

the clients to the clients with the support of the organization. But the company in its principles

clearly states out that an advisor to means “much more than a salesman or a saleswoman, we

at ICICI Prudential recognize out advisors as the ambassadors of our organization in the

market place & we consider the advisor force would be our biggest differentiating factor in the

coming years”. The advisor is an important asset not only for the organization from the

business point of view but also to the society on the whole as he/she is someone who provide

valuable service to the community be helping people attain financial security & build funds for

their future needs thereby assisting them in getting their financial freedom.

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If looked from the other side of the business where the company is operating the competitive

Indian market & more so in the business of life insurance where the customers looks for self-

belief & faith then the advisor certainly holds the vital link in the overall business proposition.

They represent the company’s face & words on which the customers can trust because the

customers know that face. The advisor helps to create a web for the business to grow & driving

the customer to come to the company with complete trust & faith.

Roles of life insurance Risks and uncertainties are part of life's great adventure -- accident, illness, theft, natural

disaster - they're all built into the working of the Universe, waiting to happen.

Role 1: Life insurance as "Investment"

Insurance is an attractive option for investment. While most people recognize the risk hedging

and tax saving potential of insurance, many are not aware of its advantages as an investment

option.

You cannot compare an insurance product with other investment schemes for the simple

reason that it offers financial protection from risks, something that is missing in non-insurance

products.

In fact, the premium you pay for an insurance policy is an investment against risk. Thus,

before comparing with other schemes, you must accept that a part of the total amount invested

in life insurance goes towards providing for the risk cover, while the rest is used for savings.

In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the

term. In other words, if you take a life insurance policy for 20 years and survive the term, the

amount invested as premium in the policy will come back to you with added returns. In the

unfortunate event of death within the tenure of the policy, the family of the deceased will

receive the sum assured.

Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your

money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to

your funds will be limited. One can withdraw 50 per cent of the initial deposit only after 4 years.

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The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-

12 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this

amount can become immediately available to the nominee of the policyholder on death.

Role 2: Life insurance as "Risk cover"

First and foremost, insurance is about risk cover and protection - financial protection, to be

more precise - to help outlast life's unpredictable losses. Designed to safeguard against losses

suffered on account of any unforeseen event, insurance provides you with that unique sense of

security that no other form of investment providesTo provide such protection, insurance firms

collect contributions from many people who face the same risk. A loss claim is paid out of the

total premium collected by the insurance companies, who act as trustees to the

monies.Insurance also provides a safeguard in the case of accidents or a drop in income after

retirement. An accident or disability can be devastating, and an insurance policy can lend

timely support to the family in such times. It also comes as a great help when you retire, in

case no untoward incident happens during the term of the policy.

With the entry of private sector players in insurance, you have a wide range of products and

services to choose from. Further, many of these can be further customized to fit

individual/group specific needs. Considering the amount you have to pay now, it's worth buying

some extra sleep

Role 3: Life insurance as "Tax planning"

Insurance serves as an excellent tax saving mechanism too. The Government of India has

offered tax incentives to life insurance products in order to facilitate the flow of funds into

productive assets. Under Section 88 of Income Tax Act 1961, an individual is entitled to a

rebate of 20 per cent on the annual premium payable on his/her life and life of his/her children

or adult children. The rebate is deductible from tax payable by the individual or a Hindu

Undivided Family. This rebate is can be availed upto a maximum of Rs 12,000 on payment of

yearly premium of Rs 60,000. By paying Rs 60,000 a year, you can buy anything upwards of

Rs 10 lakh in sum assured. (depending upon the age of the insured and term of the policy)

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This means that you get a Rs 12,000 tax benefit. The rebate is deductible from the tax payable

by an individual or a Hindu Undivided Family.

RESEARCH METHODOLOGY

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In this section of my project, the requirement is to describe the sources of collecting primary

and secondary data. For collecting primary data, method adopted was focus group method.

Source of primary data

The primary are those which are collected afresh and for the first time,and thus happen to be

original in character.we collect primary data during the course of doing experiments in an

experimental research but in cause we do research of the descriptive type and perform

surveys,whether sample surveys or census surveys,then we can obtain primary data either

through observation or through direct communication with respondents in one form or another

or through personal interviews.

1.Natural Market

When we are collected the primary data from the our relatives ,friend and neighbors called

natural market.

.Relatives

.Friends

.Neighbors

2. Survey – serve refers to the method of securing information concerning a phenomena

under study from all or a selected number of respondents of the concerning universe.

Serve through we collected the data from the method of interview and questionnaires.

(a)Interview method- The interview method of collecting the data involve presentation

of oral-verbal stimuli and reply in terms of oral-verbal response.

(b)Questionnaires- In this method a questionnaire is sent to the person concerned

with a requested to answer the questions and returned the questionnaires.

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3.Seminar (Focus Group)- we are conducted a seminar and gather the information about

our product.

Source of Secondary Data

1. Yellow Pages

2. Database of different companies LI\GI Agents

3. Tele calling leads

Title of the study Analysis of icici prudential life insurance

Duration of the study 45 dayes

OBJECTIVE OF STUDY

In the short span of time, since the insurance sector has opened up, ICICI prudential

Life Insurance has, literally, dictated the market’s evolution. Catering to all age and

income segments, the company started out with the traditional insurance policies that

were easy to understand. The idea was entice the customers used to LIC’s style of

functioning.

Soon, ICICI prudential Life Insurance Company began exploring new areas. It

introduced new products like the market-linked products where returns are linked to the

market performance of the underlying assets.

ICICI prudential Life Insurance leads in virtually all parameters:50

Size of agent force

Number of policies sold

Total sum assured

Premium income, and

Productivity of agents

Type of research

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Discriptive research

This chapter discusses the types of quantitative study that fall under the broad heading of

descriptive quantitative research. This type of research involves either identifying the

characteristics of an observed phenomenon or exploring possible correlations among two or

more phenomena. In every case, descriptive research examines a situation as it is. It does not

involve changing or modifying the situation under investigation, nor is it intended to detect

cause–effect relationships. Examples of descriptive research that yields quantitative data are

correlation studies, developmental designs, observation studies, and survey research.

SCOPE OF STUDY

ICICI prudential has increased its market share among private life insurers to nearly

40% from 33% as of end-December. The company’s first-year premium income in the

April-March period stood at Rs. 464.6 crore, accounting for 39.3% of the Rs. 1,364 crore

premium booked by all private life insurers together.

Considering the entire life insurance market, including the Rs. 9,780 crore booked by

LIC, ICICI prudential market share works out to be around 4.17%. The life insurance

market continues to be dominated by LIC which has about 87.8% of the shares. This is

only a marginal dip from its 88.2% share in end-December. These comparisons are only

for the first year or new business premium.

The gap between ICICI prudential and the second-in-line private insurer is vast. In fact,

this status has led some analysts to wonder if the company is not a trifle too aggressive.

But other say this has more to do with the company’s customer-centric focus, its pan-

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India presence, and superior risk-management and investment strategies. ICICI

prudential is not, however, Resting on its laurels.

Company’s customer-centric approach is studied during the training period and the

findings of the research work will definitely focus on the present condition and future

requirement (if any) relating to products of the company.

Sample size and method of selecting sample Sample size- 100

Method of selecting sample- judgmental

LIMITATIONS

As the movement throughout the city is not possible due to certain constraints so the

movement was quite restricted.

People are not ready to go for training. As the training period is of 17 days and it

involves full day, so it becomes difficult for them to leave their offices or shops for such

a long time.

The compulsion of selling 12 policies in a year also restricts them from becoming

advisors. If they do not fulfill this target, then their license is cancelled after a year.

Lack of trust on any company of Private Sector.

Lack of knowledge about the products of ICICI Prudential and their total and blind faith

on LIC.

Sometimes, fresh graduates want to become advisors but the company denies making

them an advisor as they are very fickle-minded and also unreliable.

There is a problem in targeting Chartered Accountants. ICAI, which is the governing

body of Chartered Accountants, does not allow them to become advisors. However,

now they have permitted some CA’s to become advisors, but these are only those ones

who are doing jobs somewhere and not allowed the ones who are doing their practice.

So, still this decision is very dicey.

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Sometimes, even those people want to become advisors for the company who are not a

localities but then the major problem that they face is that they have got no natural

market, so they are very susceptible about their performance and whether they will be

able to generate business for the company or not, so they avoid to take up this

challenge.

It was a great problem to get appointments form people in the month of March, as most

of them were busy in filing their returns.

Some people ask about comparative analysis with LIC.

Some people consider IRDA fees of Rs. 1000 as a constraint.

Non-availability of part-time training.

All small towns are not open for doing this business.

One person cannot take Life Insurance Agency of two different Companies.

Time constraint is the biggest constraint in taking up the stud

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DATA ANALYSIS

1.What is your annual income? a) less than 100000 b) 100000-300000 c) 300000-500000 d) more than 500000

Inference:

As per the analysis we can say that most of the people fall under the group of annual income of Rs.300000-500000 i.e.40% they can be called as middle income group. The next 30% are under or have annual income of Rs.100000-300000. Only 15% have income more than 500000 and remaining 10% have less than 100000as their annual income

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2. Do you have any insurance plan? a) yes b)no

Inference:

It can be interpreted from the chart that 84% of the people have insurance plans and most

have them have life insurances, it means that they are less aware about other insurances or

are less interested in taking insurance for their vehicle, house etc. Only 16% people do not

have or are not interested in taking insurance.

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3.What is your motive of taking insurance plan? a) protection b) saving c) tax benefits d) investment

Inference:

People have or want to have insurance plans mostly for the safety or protectioni.e.30% it is the basic reason behind taking insurance. 26% have it for savings, and 22% for tax rebateand remaining 22% for investment purpose.

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4.In which scheme you have invested or would like to invest?

a) traditional

b) modern

Inference:

It can be said that people have equal preference for making investment or have invested in Traditional and Modern scheme i.e.57% and 43%respectively.

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5.which company you would prefer? a) icici prudential b) hdfc standerd life c) LIC d) others

a) icici prudential

30%

b) hdfc standerd life

20%

c) LIC44%

d) other6%

a) icici prudential

b) hdfc standerdlifec) LIC

d) other

Inference:

The most preferred company is LIC . people still have preference for public company and they have more trust on LICi.e.44%, the next preferred company is HDFC(32%), 16% prefer ICICI and remaining 8% go for other companies

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6. Why? a) efficient financial advisor b) brand value c) others

Inference:

People prefer a particular company mostly because of its brand valuei.e. 64% , 26% prefer because of efficient financial advisors and remaining 10% for other reasons. Still people see brand or the companies name as the criteria for purchasing insurance rather the advice or services of financial advisors.

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7. Which fund do you prefer? a) government securities b) equity fund c) debentures

Inference:

customers have somewhat equal preference for Government securities, debentures and equity fund. As they like to have safety and assured returns out of their investments.

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8. Is it a right time to invest in unit linked insurance plan? a) yes b) no

Inference:

People are not interested in investing their money in ULIP in this scenerio or time of recession ,it does not seem them to be a safe option.

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FACTS AND FINDINGS

We find that 47% of the respondents fall in the age group of 18 – 25 years, 25% fall in

the age group of 26 – 35 years and 17% fall in the age group of 36 – 49 years.

Therefore most of the respondents are relatively young (below 26 years of age). These

individuals could be induced to purchase insurance plans on the basis of its tax saving

nature and as an investment opportunity with high returns.

In India, the largest life insurance company is Life Insurance Corporation of India. It has

been in existence in India since 1956 and is completely owned by the Government of

India. Today the organization has grown to 2048 offices serving 18 crore policies and

has a corpus of over 340000 crore INR.

The outlook of insurance as a product should be changed from something which you

pay for your whole life (whole life policy) and do not receive any benefit (the nominee

only receives the benefit in case of your death) to an extremely useful investment

opportunity with the prospects of good returns on savings, tax saving opportunities as

well as providing for every milestone in your life like marriage, education, children and

retirement.

ICICI PRUDENTIAL is faced with a large amount of competition. There are 18

insurance companies in India inclusive of LIC. Hence to capture a larger part of the

market the company could introduce more reasonable plans with lesser premium

payable per annum.

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SWOT ANALYSIS

Environmental Scan

Internal Analysis External Analysis

Strength Weaknesses Opportunities Threats

SWOT Matrix

STRENGTH

ICICI Prudential Life Insurance Company Limited is right now the market leader in Private

Insurer segment.

Strong brand name Customer loyalty Product Quality Good reputation among customers

WEAKNESS

The company right now has lesser number of agents (i.e. financial advisors) than LIC of India,

which affects their sales in comparison to LIC of India.

Insufficient product promotion Unawareness about the product

OPPURTUNITY64

ICICI Prudential Life Insurance Company Limited can give LIC of INDIA agents an opportunity

to join ICICI Prudential Life Insurance Company Limited as ICICI Prudential has got more

incentive packages & servicing quality better than LIC of INDIA. Doing this they can reduce

their cost of training and can exploit their experience.

THREAT

Other big brand names like BIRLAS, TATA, HDFC, SBI and AVIVA, RELIANCE etc.

Emergence of substitute products Resistance to change Non- response from the target customers .

POLITICAL

Right one ICICI Prudential Life Insurance Company Limited, can go for opening up more &

more offices, as the present political environment is business friendly.

ECONOMIC

Insurance as we have already discussed is very essential for every person on this face of

earth. Being an insurance company, the responsibility of the company also increases by many

multiples, as they have to keep an eye on each & every happening going around & provide

better & fast service to customers. Along with this, insurance is also very important for building

up the infrastructure of any country. The money collected from the people is invested in many

sectors to develop the infrastructure & hence ultimately make the life of the citizens better.

SOCIAL

ICICI Prudential Life Insurance Company Limited enjoys a good brand name; they can use it

for their profit.

TECHNOLOGICAL

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ICICI Prudential Life Insurance Company Limited uses latest technology for their operations,

which give them an edge over the competition.

Support provided by the Unit Manager

Fields visits for the incumbents.

Training on products & selling skills.

Regular business reviews to monitor the progress.

The UM acts both as a coach & a mentor.

The UM recognizes the high performers.

Helps in becoming financially independent.

But the expectations from the team

To achieve the sales targets given.

To participate in all the meetings being placed

Attending all the training programs being arranged.

Report for the weekly reviews at the office.

Regularly following the sales process.

And the advisors are also required to follow the weekly reporting process

CONCLUSION

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1. ICICI PRUDENTIAL has interested and profitable planes for different age group.

2. There are lots of scopes of life insurance in Indian only 2.5 people are secure with life

insurance so the insurance sector is its booming stage this boom will more increase in 2

or 3 years.

3. Good profile insurance advisor could do the better job. If ICICI PRUDENTIAL mentions

the level of advisor them they may give great sales to the company.

4. ICICI PRUDENTIAL has tuff competition with LIC as well as TATA AIG, BAJAJ

ALLIAZE, BIRLA SUNLIFE INSURANCE, SAHARA, ING VYSYA, OM KOTAK

MAHINDRA, HDFC INSURANCE, SBI LIFE AND RELIANCE LIFE INSURANCE, PNB

LIFE INSURANCE.

5. ICICI PRUDENTIAL LIFE INSURANCE COMPANY has great goodwill in market in

liberalized Indian market there are approximately 13 big companies in Indian market

and ICICI PRUDENTIAL is the No.1 private insurance company. I found this fact in my

recent survey.

6. If the company starts to concentrate on village segment market. Then company can get

great business.

7. I got the good profile people near by bank and share market. When I concentrated on

the 20-25 year age group people I found good result.

8. Within 20-25 year age group the sincerity level is high. They are career oriented and

want to earn more.

9. In the age group people made interest to purchase the kids plan and pension plan and

money back plan.

10. In the age group of 30-35 years the people who earning more then 3 lakh p.a. made

interest to purchase ULIP.

11. I found that in insurance sector a person should have great communication and

convenience skill.

12.People made interest in the business opportunity of ICICI PRUDENTIAL because there

are lots of chances to increase earning and make high place in the company.

13. People took interest in pinnacle programme and also life the professional environment

of the company.

14. In my survey I found that low percentage of people is aware with the life insurance.

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15. It was great experience to communicate with different people. I learnt through cross-

question by peoples.

AWARDS

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RECOMMENDETATION

After going through the above table regarding market share of various companies in the

financial year 2003-04, there is no reason why ICICI prudential should rejoice of being the

number one company in the country. The growth that companies like BIRLA SUNLIFE, SBI

LIFE INSURANCE, TATA-AIG, BAJAJ ALLIANZ, OM KOTAK MAHINDRA, AVIVA, ING

VYASA, METLIFE & AMP SANMAR have produced that can be quite a big unseen threat for

the company in the coming years. So the company should start thinking of what they want from

the market & where they want to see themselves after a span of 10 years because if the

popularity of these companies continues then one day they will become good competitors of

ICICI Prudential & then the consequences can be quite disturbing for the company.

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BIBLIOGRAPHY Philip Kotler Marketing Management

Fact sheets of ICICI standard Life Company

Websites

www.google.com www.yahoo.com www.wikipedia.com

Newspapers

Economics times

Times of India

Magazines

Business Today

Business World

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