project repot icici

8/7/2019 Project Repot ICICI

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A

Project Study ReportOn

ICICI Prudential Life Insurance Private Limited

HYDERABAD(AP)

Titled

Financial Planning And Market Research Of LifeInsurance

Submitted in partial fulfillment for theAward of degree of

Master of Business Administration

Submitted By: - Submitted To:-AXITA JAIN Ms. BHUMIJA CHAUHAN

MBA Part IV Faculty ISIM

2009-2011

INTERNATIONAL SCHOOL OF INFORMATICS & MANAGEMENTJAIPUR


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Acknowledgement

I express my sincere thanks to my project guide, Mr. LOKESH JAIN, headtrainer of ICICI Prudential Life Insurance private Ltd.,Hyderabad , for guidingme right form the inception till the successful completion of the project. Isincerely acknowledge him for extending their valuable guidance, support forliterature, critical reviews of project and the report and above all the moralsupport he had provided to me with all stages of this project.I would also like to thank the supporting staff of ICICI Prudential LifeInsurance, Hyderabad, for their help and cooperation throughout our project.

RAKESH KUMAR SHARMA


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TABLE OF CONTENT

Executive summary ....4

Introduction of industry..6

History of life insurance in India ..8

Insurance sector reforms.11 Insurance Regulatory & Development Authority.14

Insurance market in India....15

ICICI prudential life insurance.17

Key benefits of life insurance..28

Scope of the study.30

Objective of project30

Products & services..33

Tools overview ..40

Investment allocation....47

Research Methodology....65

Interpretation of data ...76

Recommendations to company..85

Conclusion..87

Bibliography..93


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EXECUTIVE SUMMARY

The project was conducted in ICICI PRUDENTIAL LIFE

INSURANCE COMPANY LIMITED. The study was related to

understanding the products & services provided by the company.

Title of the project is FINANCIAL PLANNING AND MARKET

RESEARCH OF LIFE INSURANCE

Location: - Hyderabad(AP)

ICICI PRUDENTIAL has one of the largest distribution networks

amongst private life insurers in India, having commenced

operations in 200 cities & towns in India.

They began their operations in December 2000 after receiving

approval from Insurance Regulatory Development Authority

(IRDA). Today, our nation-wide team comprises of over 2000branches (inclusive of 1,074 micro-offices), over 274,500 advisors;

and 20 bancassurance partners.

As we all know that every topic of research has its own importance

& its slightly tough to-gather the information that is required

completely for a particular product.

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This report explained about the different portfolio adopted in

different product by ICICI PRUDENTIAL Life Insurance Company.

So that, it will help the company to get better return from their

investment in Equity as well as Debt instruments.

The company is providing different products for different customer

according to the needs & requirement of the customer. It will

increase the profitability of the company by attracting more & more

customer for giving better services to their investors.

It was really a good experience to work with ICICI PRUDENTIAL &

it will help me in the future.

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INTRODUCTION OF INDUSTRYA) INSURANCE IN INDIA:

The insurance sector in India has come a full circle from being an

open competitive market to nationalization and back to a

liberalized market again. Tracing the developments in the Indian

insurance sector reveals the 360-degree turn witnessed over aperiod of almost two centuries.

With largest number of life insurance policies in force in the world,

Insurance happens to be a mega opportunity in India. It is a

business growing at the rate of 15-20 percent annually and

presently is of the order of Rs 450 Billion. Together with banking

services, it adds about 7 per cent to the countrys GDP. Gross

premium collection is nearly 2 per cent of GDP and funds available

with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life

insurance cover while health insurance and non-life insurance

continues to be below international standards. In addition, this part

of the population is subject to weak social security and pension

systems with hardly any old age income security. This is an

indicator that growth potential for the insurance sector is immense.

A well-developed and evolved insurance sector is necessary for

economic development as it provides long-term funds for

infrastructure development and at the same time strengthens the

risk taking ability. It has estimated that, over the next ten years

India would require investments of the order of one trillion US

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dollar. The Insurance sector, to some extent, can enable

investments in infrastructure development to sustain economic

growth of the country.

Insurance is a federal subject in India. Two legislations govern the

sector- The Insurance Act- 1938 and the IRDA Act- 1999. The

insurance sector in India has come a full circle from being an open

to a liberalized market again. Tracing the developments in the

Indian insurance sector reveals the 360-degree turn witnessed

over a period of almost two centuries.

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.

B)HISTORICAL PERSPECTIVE ABOUT LIFEINSURANCE IN INDIA:

The history of life insurance in India dates back to 1818 when it

was considered as a means to provide for English Widows.

Interestingly in those days, a higher premium was charged for

Indian lives than the non-Indian lives, as Indian lives were

considered more risky for coverage.

The Bombay Mutual Life Insurance Society started its business in

1870. It was the first company to charge same premium for both

Indian and non-Indian lives. The Oriental Assurance Company

established in 1880. The General insurance business in India, on

the other hand, can trace its roots to the Triton (Tital) Insurance

Company Limited, the first general insurance company established

in the year 1850 in Calcutta by the British. Until the end of

nineteenth century, insurance business was almost entirely in the

hands of overseas companies.

Insurance regulation formally began in India with the passing of

the Life Insurance Companies Act of 1912 and the provident fund

Act of 1912. Several frauds during 20's and 30's sullied insurance

business in India. By 1938, there were 176 insurance companies.

The first comprehensive legislation was introduced with theInsurance Act of 1938 that provided strict State Control over

insurance business. The insurance business grew at a faster pace

after independence. Indian companies strengthened their hold on

this business but despite the growth that was witnessed, insurance

remained an urban phenomenon.

The Government of India in 1956, brought together over 240private life insurers and provident societies under one nationalized

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monopoly corporation and Life Insurance Corporation (LIC) was

born. Nationalization was justified because it would create much-

needed funds for rapid industrialization. This was in conformity

with the Government's chosen path of State lead planning and

development.

The (non-life) insurance business continued to thrive with the

private sector until 1972. Their operations were restricted to

organized trade and industry in large cities. The general insurance

industry was nationalized in 1972. India Assurance Company,

Oriental Insurance Company and United India Insurance Company

are subsidiaries of the General Insurance Company (GIC).

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Important milestones in the life insurance business inIndia:

1907: The Indian Mercantile Insurance Ltd. set up- the first

company to transact all classes of general insurance business

1912: The Indian Life Assurance Companies Act enacted as the

first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and

non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the

Insurance Act with the objective of protecting the interests of the

insuring public.

1956: 245 Indian, foreign insurers and provident societies were

took over by Central government and nationalized. LIC formed by

an Act of Parliament- LIC Act 1956- with a capital contribution of

Rs. 5 crores from the Government of India.

.

1957: General Insurance Council, a wing of the Insurance

Association of India, frames a code of conduct for ensuring fair

conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set

minimum solvency margins and the Tariff Advisory Committee set

up. 7

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1972: The general insurance business in India nationalized

through The General Insurance Business (Nationalization) Act,

1972 with effect from 1st January 1973. 107 insurers

amalgamated and grouped into four companies- the National

Insurance Company Limited, the New India Assurance Company

Limited, the Oriental Insurance Company Ltd. and the United India

Insurance Company Ltd. GIC incorporated as a company.

INSURANCE SECTOR REFORMS:

In 1993, Malhotra Committee- headed by former Finance

Secretary and RBI Governor R.N. Malhotra- formed to evaluate

the Indian insurance industry and recommend its future direction.

The Malhotra committee was setup with the objective of

complementing the reforms initiated in the financial sector.

The reforms was aimed at creating a more efficient and

competitive financial system suitable for the requirements of the

economy keeping in mind the structural changes currently

underway and recognizing that insurance is an important part of

the overall financial system where it was necessary to address the

need for similar reforms. In 1994, the committee submitted the

report and some of the key recommendations included:a) Structure: Government stake in the insurance Companies must

brought down to 50%. Government should take over the holdings

of GIC and its subsidiaries so that these subsidiaries can act as

independent corporations. All the insurance companies must have

greater freedom to operate.

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b) Competition: Private Companies with a minimum paid up capital

of Rs.1bn should allow entering the sector. No Company should

deal in both Life and General Insurance through a single entity.

Foreign companies were allowed to enter the industry in

collaboration with the domestic companies. Postal Life Insurance

was allowed to operate the rural market. Only one State Level Life

Insurance Company should be allowed to operate in each state.

c) Regulatory Body:

The Insurance Act should be changed. An Insurance Regulatory

body should be set up. Controller of Insurance- a part of the

Finance Ministry- should be made independent.

d) Investments:

Mandatory Investments of LIC Life Fund in government securitiesto was reduced from 75% to 50%. GIC and its subsidiaries are not

to hold more than 5% in any company (there current holdings to be

brought down to this level over a period of time)

e) Customer Service:

LIC should pay interest on delays in payments beyond 30 days.Insurance companies must be encouraged to set up unit linked

pension plans. Computerization of operations and updating of

technology to be carried out in the insurance industry. The

committee emphasized that in order to improve the customer

services and increase the coverage of insurance policies, industry

should be opened up to competition. But at the same time, the

committee felt the need to exercise caution as any failure on the

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part of new players could ruin the public confidence in the industry.

Hence, it was decided to allow competition in a limited way by

stipulating the minimum capital requirement of Rs.100 Crores.

The committee felt the need to provide greater autonomy to

insurance companies in order to improve their performance and

enable them to act as independent companies with economic

motives. For this purpose, it had proposed setting up an

independent regulatory body- The Insurance Regulatory and

Development Authority.

A reform in the Insurance sector was initiated with the passage of

the IRDA Bill in Parliament in December 1999. The IRDA since its

incorporation as a statutory body in April 2000 has fastidiously

stuck to its schedule of framing regulations and registering the

private sector insurance companies. Since being set up as an

independent statutory body the IRDA has put in a framework of

globally compatible regulations. The other decision takensimultaneously to provide the supporting systems to the insurance

sector and in particular the life insurance companies was the

launch of the IRDA online service for issue and renewal of licenses

to agents. The approval of institutions for imparting training to

agents has also ensured that the insurance companies would have

a trained workforce of insurance agents in place to sell theirproducts The Government of India liberalized the insurance sector

in March 2000 with the passage of the Insurance Regulatory and

Development Authority (IRDA) Bill, lifting all entry restrictions for

private players and allowing foreign players to enter the market

with some limits on direct foreign ownership. Under the current

guidelines, there is a 26 percent equity cap for foreign partners in

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.

an insurance company. There is a proposal to increase this limit to

49 percent.

The opening up of the sector is likely to lead to greater spread and

deepening of insurance in India and this may also include

restructuring and revitalizing of the public sector companies. In the

private sector 12 life insurance and 8 general insurance

companies have been registered. A host of private Insurance

companies operating in both life and non-life segments have

started selling their insurance policies since 2001.

THE INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY:

Reforms in the Insurance sector were initiated with the passage of

the IRDA Bill in Parliament in December 1999. The IRDA since itsincorporation as a statutory body in April 2000 has fastidiously

stuck to its schedule of framing regulations and registering the

private sector insurance companies.

The other decisions taken simultaneously to provide the

supporting systems to the insurance sector and in particular the

life insurance companies launched the IRDAs online service forissue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has

also ensured that the insurance companies would have a trained

workforce of insurance agents in place to sell their products, which

are expected to be introduced by early next year.

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Since being set up as an independent statutory body the IRDA has

put in a framework of globally compatible regulations. In the

private

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.

sector 12 life insurance and 6 general insurance companies have

been registered.

INSURANCE MARKET IN INDIA:

The India Insurance market despite having a highly elaborate

history spanning almost two centuries, has come of age only in

last 50 years after the formation of the Life Insurance Corporation

(LIC) of India in 1956 and the entry of private companies into the

market in 2000.

Traditionally the Indian Insurance Market had centered on the life

insurance until recently, a host of other insurance policies covering

a diverse range of issues and objects like Medical Insurance,

Accident Insurance, Fire Insurance, Automobile Insurance and

other policies which fall under the category of general insurance

are being provided by various private insurance companies.A) PERFORMANCE OF THE INDIAN INSURACE MARKET-A

REPORT:

The following points will provide you an insight into the insurance

market in India and its fast expanding prospects. The report is well

supported by data based on detailed analysis that would help

investors, financial service providers and global banking players toventure into the Indian insurance market.

Taking into account the changing socioeconomic demographics

rate of GDP growth, behavior of consumers, and occurrences of

natural calamities at regular 11

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intervals the market of Life Insurance in India is expected grow to

the value around US $ 41.44 billion by the year 2009. The Market

is expected to grow at a compounded annual growth rate (CAGR)

of more than 200% year over year (YOY) from year 2006 onwards.

65% of the general insurance market is controlled by private

house that already exists in the market.

However in automobile insurance, public sector covers a

substantial 68% of the total market value.

Among individual companies that are worthy of mentioning,

ICICI Lombard enjoys a whopping 53% market share in Accident

Insurance while the remaining 47% is shared by New India

Assurance and United India Insurance both belonging to the public

sector

The other key players of the market include:

A) In Public Sector:

Life insurance Corporation(LIC) of India, National Insurance

Company Limited, Oriental Insurance Limited, New India

Assurance Company Limited and United India insurance Company

Limited.

B) In Private Sector:

ICICI prudential Life Insurance, Bajaj Allianz, SBI Life, HDFC

Standard, Birla Sunlife, Aviva Life Insurance, Kotak Mahindra old

mutual, Max New York Life and Met life, Tata AIG Life, ING Vysya.

Thus, the ever increasing population of the country will ensure

constant boom in the India Insurance market in the distant future.

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ABOUT

COMPANY

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ICICI Prudential Life Insurance

Overview:-

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. 47.80 billion, with ICICI Bank holding a

stake of 74% and Prudential plc holding 26%.

They began their operations in December 2000 after receiving

approval from Insurance Regulatory Development Authority

(IRDA). Today, their nation-wide team comprises of over 2100

branches (inclusive of 1,116 micro-offices), over 290,000 advisors;

and 18 bancassurance partners.

ICICI Prudential is 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 they

grow their distribution, product range and customer base, we

continue to tirelessly uphold our commitment to deliver world-class

financial solutions to customers all over India.

The ICICI Prudential Edge

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The ICICI Prudential edge comes from their commitment to their

customers, in all that they do - be it product development,

distribution, the sales process or servicing. Here's a peek into what

makes us leaders.

1. their products have been developed after a clear and thorough

understanding of customers' needs. It is this research that helps

us develop Education plans that offer the ideal way to truly

guarantee your child's education, Retirement solutions that are a

hedge against inflation and yet promise a fixed income after you

retire, or Health insurance that arms you with the funds you might

need to recover from a dreaded disease.

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 andhassle-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 32,000 plus strong team is

given the opportunity to learn and grow, every day in a multitude of

ways. We believe this keeps them engaged and enthusiastic, so

that they can deliver on our promise to cover you, at every step in

life.

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Vision & Values

Vision:

To be the dominant Life, Health and Pensions player built on trust

by world-class people and service.

ICICI Prudential Life Insurance Company hopes to achieve by:

Understanding the needs of customers and offering them

superior products and service

Leveraging technology to service customers quickly,

efficiently and conveniently

Developing and implementing superior risk management

and investment strategies to offer sustainable and stable

returns to our policyholders

Providing an enabling environment to foster growth and

learning for our employees

And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching

commitment to 5 core values -- Integrity, Customer First,

Boundaryless, Ownership and Passion. Each of the values

describe what the company stands for, the qualities of our people

and the way we work.

They believe that we are on the threshold of an exciting new

opportunity, where we can play a significant role in redefining and

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reshaping the sector. Given the quality of our parentage and the

commitment of our team, there are no limits to our growth.

Our values :

Every member of the ICICI Prudential team is committed to 5 core

values: Integrity, Customer First, Boundaryless, Ownership, and

Passion. These values shine forth in all we do, and have become

the keystones of our success.

Promoters

ICICI Bank

ICICI Bank Limited (NYSE:IBN) is India's largest private sector

bank and the second largest bank in the country, with consolidated

total assets of $121 billion as of September 30 , 2008. ICICI

Banks subsidiaries include Indias leading private sector insurance

companies and among its largest securities brokerage firms,

mutual funds and private equity firms. ICICI Banks presence

currently spans 19 countries, including India.

Prudential Plc

Established in London in 1848, Prudential plc, through its

businesses in the UK, Europe, US, Asia and the Middle East,

provides retail financial services products and services to more

than 21 million customers, policyholder and unit holders and

manages over 256 billion of funds worldwide (as of June 30,

2008). In Asia, Prudential is the leading Europe-based life insurer

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with life operations in China, Hong Kong, India, Indonesia, Japan,

Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand,

and Vietnam. Prudential is one of the largest asset management

companies in terms of overall assets sourced in Asia ex-japan,

with 34.3 billion funds under management (as of June 30, 2008)

and operations in ten markets including China, Hong Kong, India,

Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United

Arab Emirates.

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Management Profile

Board of Directors

The ICICI Prudential Life Insurance Company Limited Board

comprises reputed people from the finance industry both from

India and abroad

Mr. K.V. Kamath, Chairman

Ms. Chanda Kochhar, Director

Mr. Barry Stowe, Director

Mr. Adrian OConnor, Director

Prof. Marti G. Subrahmanyam, Director

Mr. Mahesh Prasad Modi, Director

Ms. Rama Bijapurkar, Director

Mr. Keki Dadiseth, Director

Ms. Shikha Sharma, Managing Director

Mr. N.S. Kannan, Executive Director

Mr. Bhargav Dasgupta, Executive Director

Promoters:-

ICICI Bank

ICICI Bank is India's second largest bank and largest private

sector bank with over 50 years presence in financial services and

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with assets of over Rs 3569.32 bn (USD 88 billion) as on June 30,

2007. The 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 in the areas of investment banking, life and non-life

insurance, private equity and asset management.

Prudential Plc

Established in London in 1848, Prudential plc, through its

businesses in the UK and Europe, the US and Asia, provides retail

financial services products and services to more than 20 million

customers, policyholder and unit holders and manages over 256

billion of funds worldwide (as of June 30, 2007). In Asia, Prudential

is the leading European life insurance company

For the past six years, ICICI Prudential has retained its leadershipposition in the life insurance industry with a wide range of flexible

products that meet the needs of the Indian customer at every step

in life.

Management Team

The ICICI Prudential Life Insurance Company Limited

Management team comprises reputed people from the finance

industry both from India and abroad.

Ms. Shikha Sharma, Managing Director & CEO

Mr. N. S. Kannan, Executive DirectorMr. Bhargav Dasgupta, Executive Director

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Ms. Anita Pai, Executive Vice President Customer Service &

Technology

Dr. Avijit Chatterjee, Appointed Actuary

Mr. Puneet Nanda, Executive Vice President & Chief Investment

Officer

Ms. Shikha Sharma

Managing Director & CEO

ICICI Prudential Life Insurance Company Limited

Ms Shikha Sharma is the Managing Director & CEO of ICICIPrudential Life Insurance Company. ICICI Prudential was

amongst the first private sector companies in India to be awarded

a life license in December 2000, and since its inception the

company has established itself as Indias leading private life

insurer, offering a complete range of products to meet the varying

needs of the Indian customer.

Ms Sharma, is a B.A. (Hons.) graduate, has a Post Graduate

Diploma in Software Technology, from the National Centre for

Software Technology, Mumbai and completed her Masters of

Business Administration from the Indian Institute of Management -

Ahmedabad.

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She began her career with ICICI, one of India's largest financial

services providers, in 1980. She has been instrumental in setting

up various group businesses for the company, including

investment banking and retail finance.

Mr. N. S. Kannan

Executive Director


N. S. Kannan is the Executive Director of ICICI Prudential Life

Insurance Company. Kannan has been with the ICICI group forover 15 years. He looks after the corporate centre including the

Finance and accounts functions, Investor/analyst relationship,

Investment Management, Corporate Strategy, Corporate

Communications, Human Resources and Business Intelligence.

Prior to current assignment, he was in-charge of business

functions including retail business, group business, marketing &investments management.

He joined the ICICI group in 1991 as a project officer. During his

tenure at ICICI group, he has handled project finance operations,

infrastructure financing, structured finance and treasury

operations.

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Mr. Bhargav Dasgupta

Executive Director -


Bhargav Dasgupta joined ICICI Prudential Life Insurance

Company Ltd as Executive Director in October 2006, and is

responsible for sales, distribution, product development, and

marketing for the retail and group businesses of the company.

Prior to joining ICICI Prudential Life, Bhargav was with ICICI Bank.He began his stint with ICICI in 1992 in the Projects & Corporate

Finance Division. Since then he has held key leadership positions

in diverse business areas of the Group.

From being Deputy Head of the Oil & Gas Strategic Business Unit

to setting up the Technology Management Group, Bhargav movedon to develop the strategic plan for the Groups Business Process

Outsourcing and International

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Key Benefits of Life Insurance

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The table below gives a general guide to the plansthat are appropriate for different life stages.

Life Stage Primary Need Life Insurance ProductYoung & Single Asset creation Wealth creation plans

Young & Justmarried

Asset creation & protectionWealth creation andmortgage protection plans

Married with kidsChildren's education, Assetcreation and protection

Education insurance,mortgage protection &wealth creation plans

Middle aged withgrown up kids

Planning for retirement & assetprotection

Retirement solutions &mortgage protection

Across all life-stages

Health plans Health Insurance

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Instrument Safety LiquidityPost TaxReturns

TaxEfficiency

LifeCover

ProvidentFund

High Low Good Good None

Shares Low Average Uncertain Low NoneKVPs,NSCs,etc

High Low Low Low None

Bonds, FixedDeposits

Average Average Average Low None

MutualFunds

Average High High Average None

PostalSavingsSchemes

High Low Low Average None

LIFEINSURANCE

HIGH LOW GOOD HIGH YES


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SCOPE&

OBJECTIVE

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Scope of the study

The insurance industry in India is about many decades old. The

life insurance corporation of India was the lone player in the

country for around 5 decades. It is during the later half fifties till

nineties, public sector owned companies are providing insurance

to public.

The ICICI Prudential providing different products for different

consumer & according to it they have set the different portfolio for

different products. Many products do well in the market & many fail

in the market.

In this study we come to analyze different portfolio of different

products which are doing well in the market.

Objective of project

The objective of this project was to assist ICICI prudential life

insurance in positioning the important role of life insurance sector

as an investment being a leading private life insurance company.

For the company to successfully achieve this it needs to

understand the general publics priorities & feedback so as to

provide them the best solutions through use of superior & flexible

products & services.

First:-

The first & foremost objective of the study is to analyzedifferent sectors on which the icici prudential makes the portfolio.

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Second:-The next objective of the study is to know how different

products will perform in the market.

Third:-The next objective of the study is to analyze the product

performance with the benchmark set by the company

Therefore, here we come to analyze the different graph of different

product with portfolio, performance & compare with the benchmark

set by the company.

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PRODUCTS&SERVICES

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H) PRODUCTS:

INSURANCE SOLUTION FOR INDIVIDUALS:

ICICI Prudential Life Insurance offers a range of innovative,customer-centric product that meets the needs of customers atevery stage.

a) SAVINGS & WEALTH CREATION PLANS:

Save n Protect

Cash back.

Life Time Gold

Life Stage RP

Life Link Super

Premier life Gold.

Invest Shield Cash Back.

b) PROTECTION SOLUTION:

Pure protect

Life Guard

Home Assure

Life Stage Assure

c) CHILD PLANS:

Smart Kid New ULRP

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d) RETIREMENT SOLUTION:

Forever Life Life Time Super Pension

Life Stage Pension

Life Link Super Pension

Immediate Annuity

e) HEALTH SOLUTION:

Health Assure Plus

Cancer

Hospital Care

Crisis Cover

Diabetes Care Active

Medi Assure

Health saver

f) GROUP INSURANCE SOLUTION:

ICICI Prudential also offers group insurance solution forcompanies seeking to enhance benefit to their employees.

Group Gratuity Plan

Group Superannuation Plan

Group Immediate Annuities

Group Term plan

g) FLEXIBLE RIDER OPTIONS:

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ICICI Prudential Life Insurance offers flexible riders, which can be

added to the basic policy at a marginal cost, depending on the

specific needs of the customer.

Accidental & Disability Benefit

Critical Illness Benefit

Wavier of premium

Income Benefit Rider

Insurance Plans - At a GlanceBroadly, insurance plans can be distinctly

divided into ULIP (Unit Linked Insurance Plans) and traditional

plans. A brief detail of both segments:

Traditional Plans

This Traditional Plan provides safety & security to the consumer

who doesnt want to take any type of risk due to the fluctuation in

the market. This plan provides happiness & security for the family.

This term plan insures the policyholders life & provides total

security to the family, at a very affordable cost.

These are the oldest types of plans available. These plans cater

to customers with a low risk appetite. Some of the common

features of traditional plans are:

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Steady Investment

1. Major chunk of investible funds are in debt

instruments.

2. Steady and almost assured returns over the long term.

Features

Death benefit is Sum Assured + guaranteed & vested bonus.

Helps in asset creation as they are for a long tenure.

Premium to Sum Assured ratios are fixed for each plan and

age.

Characteristics of Traditional Plan

1. It provides financial assistance to the family &prevents

the liquidation of existing assets incase of a financial

emergency.

2. It provides complete financial assistance incase of the

death of the life assured & is available at an extremely

cost effective price.

Benefits of Traditional Plan

1. The policy holder does not have to spend a huge

amount of money for buying the insurance plan.

2. The policyholder & his/her family can enjoy peace of

mind even after the maturity of the policy.

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3. The policyholder can opt for a cover which matches

with his/her Net Worth.

4.The family of the policyholder is rest assured that they

can take care of their daily financial needs without any

difficulty even in an event of financial emergency.

ULIP:-

UNIT LINKED INSURANCE PLAN (ULIP) is a life insurance

solution that provides the client with the benefits of protection &

flexibility in investment. It is a solution which provides for life

insurance where the policy value at any time varies according to

the underlying assets at the time.

Unit Linked Insurance Product

ULIPs have gained high acceptance due to attractive features they

offer. These include:

1.Flexibility

Flexibility to choose Sum Assured.1) Flexibility to choose premium amount.

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2) Option to change level of Premium /Sum Assured even

after the plan has started.

3) Flexibility to change asset allocation by switching

between funds.

2. Transparency

Charges in the plan & net amount invested are known

to the customer.

Convenience of tracking ones investment performance

on a daily basis.

3. Liquidity

Option to withdraw money after few years (comfortrequired in case of exigency).

Low minimum tenure.

Partial / Systematic withdrawal allowed

4. Fund Options

A choice of funds (ranging from equity, debt, cash or a

combination).

Option to choose your fund mix based on desired

asset allocation.

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TOOLS

OVERVIEW

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Tools Overview

Asset Allocator

Assets are to be allocated to the investor by seeing the following

question:-

Are you an aggressive investor who wants to ride the equity

markets? Or are you more conservative, comfortable investing in

assured return products? Risk Analyzer will in finding out whatyour asset allocation should be, keeping in mind your risk capacity

and your risk behavior.

Inflation Erosion index

Inflation can easily erode the corpus that we set aside for our post-

retirement needs. This erosion happens due to the fact that our

corpus might not earn an interest that keeps pace with rising costs.

To find out how inflation will impact your expenses in the future,

use our inflation index calculator to find out how your current

expenses will grow in the future. You need to enter your current

expense figures in the Inflation Index Calculator, your expected

rate of inflation, and the no. of years in the future you will incur the

expense.

Power of Compounding

The most powerful boost your money can get is time. Invested

properly over a long period of time, money can grow to many times

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its original amount - the longer the tenure of investment, the

greater will be the corpus amount.

The name of the game is to invest early and to invest regularly. To

further gain an understanding of this concept, try doing your own

experiments with ourSimple Compounding Calculator.

Human Life Value Calculator

Investment in insurance is an essential requirement for one's

financial planning to be complete. However, the quantum of

insurance that one needs is a function of one's income, assets,

liabilities and future goals.

Use the Life Value Calculator to find out how much insurance

cover is needed by you.

Life Stage Profiler

The 'Wheel of Fortune' is an interactive game developed by ICICI

Prudential to help you chose the ideal insurance solution. Based

on your responses to certain key questions, we will recommend a

suite of products that will address your financial and insurance

needs.

Modern portfolio theory

Modern portfolio theory (MPT) proposes how rational investors will

use diversification to optimize their portfolios, and how a risky

asset should be priced. The basic concepts of the theory are

Markowitz diversification, the efficient frontier, capital asset pricing

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model, the alpha and beta coefficients, the Capital Market Line

and the Securities Market Line.

Risk and return

The model assumes that investors are rational, meaning that given

two assets that offer the same expected return, investors will

prefer the less risky one. Thus, an investor will take on increased

risk only if compensated by higher expected returns. Conversely,

an investor who wants higher returns must accept more risk. The

exact trade-off will differ by investor based on individual risk

aversion characteristics. The implication is that a rational investor

will not invest in a portfolio if a second portfolio exists with a more

favorable risk-return profile - i.e. if for that level of risk an

alternative portfolio exists which has better expected returns

Asset Allocation: The key to investing

In the process of personal financial planning an individual must

select assets that will generate adequate returns to meet the

financial goals, and at the desired levels of risk. This is known as

asset allocation. Go through our Risk Analyzer to learn what yourasset allocation strategy should be.

Though "asset allocation" decisions are critical to one's financial

plan, it is one that very few understand and consciously keep in

mind when making an investment decision. There are two

questions to be answered in every asset allocation decision:

WHAT and HOW?

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WHAT?

Asset allocation decision is about dividing the investments

between asset classes such as

1) Equities,

2) Cash And Money Markets Equivalents,

3) Bonds,

4) Insurance,

5) Real Estate,

6) Derivatives.

7) Commodities,

8) Antiques And Art,

9) International Financial Instruments

The principal reason for diversifying investments across different

asset classes is to minimize the risk of a portfolio. It requires one

to avoid investments whose returns tend to move too closely with

each other. Given this, the common flaw with investing in "growth

stocks", "value stocks", "small caps" and "mid caps" is that their

returns are all highly correlated, making them all members of thesame asset class, "domestic equities".

HOW?

Once an individual has identified these asset classes, he/she

needs to know how to divide his/her investments in these asset

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classes. The key considerations in choosing the asset classes are

the level of return and the risk

The factors that one should consider in choosing exposures to

different asset classes are as follows:

1. Risk Tolerance:

The degree to which one can tolerate risk varies for different

people, and depends on the following:

Stage in life

Net-worth

Experience with investments

2. Investment objective:

This entails deciding the purpose for which the investments are

being made. Different objectives would demand that one tailor

their investment portfolio to meet these goals.

2. Time Horizon:

Medium term (3-5years)

Long term (5 years & above).

Benchmarks

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To ensure that ICICI maintain a strict discipline in managing

policyholders funds, they have clearly articulated benchmarks for

various unit-linked funds. In addition they also have strict deviation

limits vis--vis benchmarks that ensure that they do not take

undue exposure in any particular sector or stock. It is their

endeavor to give better returns than the benchmark to

policyholders for all the funds that they manage.

Therefore, they concentrate strictly on the market watch & analyze

present as well as future aspects of the investment change the

portfolio of the product according to market situation.

Rupee Cost Averaging

Rupee Cost Averaging is an effective market-timer mechanism

that eliminates the need to time the markets. All one has to do is to

invest a fixed, pre-decided amount of money on a regular basis

over a long period of time.

Since the amount invested per month is constant, one buys more

units when the price is low and fewer units when the price is high.

As a result the average unit cost will always be less than the

average sale price per unit, irrespective of the market rising, falling

or fluctuating.

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INVESTMENT ALLOCATION

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Investment allocation is to be done according to the age group.

This can be explain in above diagram

YOUNG AGE GROUP

In this the main invest is to be done more in equity fund, medium

in debt fund & less in cash i.e. government securities.

ADULT AGE GROUP

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High LowModerate

Young Adult Old

Cash

Equity

Debt

Cash Cash

EquityEquity

Debt Debt

Equity


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In this there is moderate concern in debt & equity fund & less in

cash.

OLD AGE GROUP

In this the main invest is to be done more in debt fund, medium in

equity fund & less in cash i.e. government securities.

Therefore while doing any policy for the customer the company

first will check the, what is the risk bearing capacity of the

customer & according to it they will suggest which policy is suitable

for customer.

KINDS OF FUNDS

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C a D e

L a r g M i d I n d F l e x i

E q u iB a l

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Cash Fund:

100% of the fund shall be invested in Money Market

Instruments and Short Maturity instruments. There is no negative

return in such funds, but there is a chance of getting low returns.

Debt Funds:

100% of the money is invested in low risk high quality fixed

income securities. In these funds no fluctuation in price are there

thats why there is less risk & fixed rate of return we get.

Equity Funds:

Large parts of funds are invested in stocks and balance in

Cash & Debt Instruments. There is high volatility in the market &

therefore there is high risk as well probability of return is high in

these funds.

Balance Funds:

Invest 30-50% in Equity Index Fund & balance 50-70% in

Debt Funds.It will balance the portfolio in the long run for getting

better returns from Equity as well as Debt funds.

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FLEXI GROWTH

Objective:

To generate superior long term returns from diversified portfolio of

equity and equity related instruments of large mid and small cap

companies. These funds are more dependent on the market thats

why high fluctuation is also possible.

In flexi growth the share of equity fund is 83% the share of debt

fund is 17% .This shows that as share market increases there is

more returns & vice-versa. Hence in this superior long term returns

will be generated. These funds are more dependent on the market

thats why high fluctuation is also possible.

In this fund there is also a proportion debt fund through which

there is surety of returns.

FLEXI BALANCED

Objective:

To achieve a balance between capital appreciation and stable

returns by investing in a mix of equity related instruments of large,

mid and small cap companies and debt and debt related

instruments

In flexi growth the share of equity fund is 53% the share of debt

fund is 47%.

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This shows that as share market increases there are moderate

returns. The level of risk is less in comparison of flexi growth.

Therefore to achieve a balance between capital appreciation and

stable returns by investing in a mix of equity related instruments of

large, mid and small cap companies and debt and debt related

instruments.

MAXIMISER

OBJECTIVE:

To generate long term capital appreciation through investment

primarily in equity & equity- related instruments. There is a main

objective of this fun is to appreciate the investment of investor

The maximiser fund has average return of 35.36%

This shows that the maximiser fund generates a long term capital

appreciation through investment primarily in equity & equity-

related instruments. In this fund all the money is invested in equity

instrument which are fully dependent on the market. There is also

no surety for returns in short term but gives higher returns in long

run.

Therefore it is preferred by young & adult persons because of this

reason

PROTECTOR

Objective:

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To generate a steady stream of income through investment in

various fixed income securities. We would seek to generate

adequate capital appreciation as well while maintaining suitable

balance between returns, safety and liquidity.

In this whole protector fund is managed in debt fund and invested

in

a) Debentures / Bonds

b) Government Securitiesc) Deposits With Banks

d) Accrued Interest / Cash / Call / Money At Short Notice /

Other Net Current Assets.

There Is No Investment In equity market thats why there is less

risk as well as less return in long run. It is more preferable by old

people.

PRESERVER

Objective:

To provide suitable returns through low risk investments in debt

and money market instruments while attempting to protect the

capital deployed in the fund.

In this whole preserver fund is managed in debt fund and invested

in

a) Debentures / bonds

b) Deposits with banks

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c) Accrued interest / cash / call / money at short notice / other

net current assets.

This shows that the maturity period of this fund is more for one

year & less for 1- 5 years

Therefore, to provide suitable returns through low risk investments

in debt and money market instruments while attempting to protect

the capital deployed in the fund. It is having a very short time

period & does not give better returns because low risk low return

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Extract the maximum from investment!

ICICI Prudential presents LifeLink Super a unique, single

premium market-linked investment-cum-insurance solution thatenables you to extract the maximum from your investment.

LifeLink Super offers attractive premium allocation along with

flexible investment options to give you the opportunity to enjoy

potentially high returns on your investments, without compromising

on the protection of your family.

Further, the Flexi Growth & Flexi Balanced funds invest their

equity component in companies across market capitalization

(large-cap, mid-cap & small-cap) and can freely swing allocation

between the various market caps, thus giving you superior long-

term returns.

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Choice of investment funds

Death Benefit

In case of the unfortunate event of death, your nominee will get the

higher of the fund value or Sum Assured (less any withdrawals

made).

You can choose amongst 2 options of the Sum Assured,

expressed as a multiple of the single premium :-

1). 500% Sum Assured (i.e. 5 times the single

premium)

2). 125% Sum Assured (i.e. 1.25 times the single

premium)

Survival / Maturity Benefit

On survival / maturity, the value of the units as on that date

will be paid to the policyholder.

Maximum allocation

You get 100% allocation for premium of Rs.5 lakhs and

above (i.e. no entry load).

Choosing of best investment fund

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One can choose to invest their money amongst 4 unit funds,

to suit their risk-return objectives. The following Table gives

details of the 4 funds :

FundMaximum

InvestmentMinimum

InvestmentPotential

Risk-Reward

FLEXI GROWTH III FUND High

Equity and Equity relatedsecurities

100% 80%

Debt, Money Market andCash

20% 0%

MAXIMISER III FUND High


100% 75%


25% 0%

FLEXI BALANCED III FUND Moderate


100% 40%


60% 0%

BALANCER III FUND Moderate


100% 60%


40% 0%

PROTECTOR III FUND Low

Debt Instruments, Money 100% 100%

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Market and Cash

PRESERVER III FUNDCapital

Preservation

Debt Instruments 50% 0%

Money market 100% 50%

And depending on how the market performs, you have the

flexibility to switch between these funds to maximize your

gains, up to 4 times a year - absolutely FREE.

Claims

Overview

At ICICI Prudential Life every claim is a fulfillment of a promise that

we have made to our policyholder and we do our best to process

the claim in the most transparent and quick manner. We are

committed towards securing the future of your loved ones,

particularly in the time of need.

With Customer First being one of our core values, we periodically

review our claim processes and continue to invest towards

understanding our customer needs. We have developed and

implemented our claims processes to ensure the payment of

genuine and legitimate claims at the earliest with a prudent risk

philosophy that protects policyholder's interest at all times.

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In line with our philosophy of easing the financial burden on the

policyholder and their nominees, ICICI Prudential Life will make a

claim payment within 10 working days from receipt of the last

requirement.

They have a 4 step claim process

Intimation of claim to ICICI Prudential Life

ICICI Prudential Life to help the claimant to complete the

documentation

Claimant to submit the required documents

ICICI Prudential Life to take decision on the claim

They truly believe that a hassle free claims settlement is the

ultimate service that can provide to their customers.

Parameters to be considered by the company

The company considers the cause, circumstances of claim and

duration of the policy while asking for requirements e.g. For

accidental death, specific proofs such as post-mortem and police

report are required whereas for death due to an illness, the

company calls for records from hospital, test reports etc.

Claim be intimated to the company

Claim can be communicated through

Written Intimation

Nearest ICICI Prudential Life branch/Corporate Claims Cell

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E-mail at [email protected]*

Verbal Intimation*

SMS IClaim8 digit policy no to 56767

Toll free number 1800-22-2020

* Kindly note that claim will be formally registered only after receipt

of written intimation at branch/ Corporate Claims Cell

4. Why is it essential to produce all the records/ documents as

required by the company?

Claims are examined and settled by the company on the basis of

all records and proofs in connection with the claim. On notification

of a claim, the company informs the claimant about the required

documentation. For faster claims processing, we advise early and

complete submission of required documents.

Our officials can be contacted for any clarification/ assistance with

regard to the claim.

5. Where can a claimant get claim forms and list of documents

required for submission?

The claimant can get the claim intimation form

In the policy document as a part of our welcome kit

At the nearest ICICI Prudential Life Insurance Co. branch

From our advisor

In our website under claims section

6. Where can the claimant submit claim documents?

The claimant can submit the documents at

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Nearest ICICI Prudential Life Insurance Co. branch

Corporate Claims Cell

ICICI Prudential Life Insurance Company Ltd,Stanrose House, 4th floor,

Appasaheb Marathe Marg,

Prabhadevi, Mumbai 400 025.

7. What is the time frame within which the claim has to be reported

to the company?

A claim must be reported as soon as possible to enable the

company to process the claim, however, for disability claim the

company has stipulated period of 120 days from the date of

disability and for critical illness and major surgery claim the

company has a stipulated period of 60 days from the date of

diagnosis/ surgery respectively.

8. Once all the requirements are submitted, how long does it take

for the company to settle the claim?

The company settles the claim within 10 working days after all the

records, documents and necessary forms are submitted and the

documentation is completed. In case the claim warrants further

verification, the company keeps the claimant informed of the

same. Subsequently, when a decision is taken, it is communicated

to the claimant by means of a letter.

9. Who is entitled to receive the claim benefit?

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The nominee or the appointee (in case of minor nominee)

last recorded under the policy in case of policy on own life

The proposer in case the policy is not on own life

Assignee in case the policy is assigned

Life Assured himself/ herself in case of policy on own life for

living benefit claims i.e. claims under disability, critical illness

and major surgery rider

10. Procedure when there is no nomination or in case of pre-

deceased nominee at the time of death claim?

In such circumstances, it is termed as Open Title situation. The

company would require the proof of title/ succession certificate

issued by the competent court. The claim would be paid to the

person specified in the said proof. If the company has accepted

the claim but is waiting for such proof, then the company holds the

money till the proof is submitted and pays the interest as directed

by the IRDA from time to time.

11. How will the claimant receive the claim amount?

The company honours claim payments through cheque or ECS as

per the convenience of the claimant.

Cheque Payments:

A cheque is drawn on ICICI Bank

It is dispatched directly to the claimant at the address

mentioned in the intimation form/ claimants statement

In non-serviceable areas the cheque is sent to the local

branch with an instruction to forward it to the claimant

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Electronic Clearing Service:

ECS mandate along with cancelled cheque needs to be

submitted Funds will be transferred directly to the claimants bank

account

12. Under what circumstances is a claim declined by the

company?

A claim will be declined if the claim made does not comply to

Declaration & Authorization agreed at the proposal stage in

the application form

Terms & Conditions provided in the policy document

INSURANCE REGULATORY DEVELOPMENT AUTHORITY

Insurance Ombudsman

Insurance Ombudsman has been established through a

Government notification for quick disposal of the grievances of

insured customers. There are 12 offices in the country and

approaching an Insurance Ombudsman is cost free. The

Ombudsman is empowered to give award (decision) for insurance

contracts up to Rs.20 lakhs. Once the grievance is lodged, the

office of Ombudsman arranges a hearing which is attended by the

claimant and the representatives of the Insurer. Usually the award

of the Ombudsman is expected within three months of the hearing.

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The addresses of the Ombudsman offices are available on our

website and also on IRDA website (www.irdaindia.org).

RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY:

Research refers to the systematic method consisting of

enunciating the problem formulating a hypothesis, collecting the

facts or data, analyzing the facts and reaching a certain

conclusions either in the form of solutions towards the concerned

problem or in certain generalizations for some theoretical

formulation. It is a tool used to measure the characteristics of the

market to obtain the information needed for forecasting to evaluate

new product ideas & to assist the management in better decision-

making. With the passage of time and shifting of market from the

producer to consumer and his needs, the consumer is becoming

more involved in market. The necessitates the information on the

need preference and the evaluation of the consumers.

The purpose of methodology is to describe the research procedure

in solving the marketing problems effective research involves

following major steps, which we are going to discuss one at a time.

Defining the problem and research objectives.

Developing research plan.

Collecting information.

Analyzing the information.

Presenting the finding.

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OBJECTIVES:

To know the factors which increase the market potential of

ICICI Prudential life insurance ltd.?

To know customers perception about different products and

services provided by ICICI Prudential Life Insurance.

RESEARCH APPROACH:

This phase includes the preliminary groundwork for the actual

research process which is carried out. It includes under standing of

project scope , research objectives, study of relevant materials

from various source.

Research approach can be of two types:

Quantitative approach,

Qualitative approach

Since this research involves plenty of primary data collection and

survey method where a sample of population is studied, the

research approach is quantitative one.

RESEARCH DESIGN:

Research design is a conceptual structure within which research is

conducted. Purpose of research design is to provide the collection

of relevant evidence with minimum expenditure of effort, time &

money. Research purpose may be grouped into four categories:

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Exploratory

Descriptive

Diagnosis and

Experimental

We are following an exploratory and descriptive research design

because it provides opportunity for considering many different

aspects of a problem or study.

In the study, our purpose was to explore the as much investment

option as much possible to customer in insurance sector.

Objective of investing in insurance vary from customer to

customer, these objectives can be:

Long term capital gain, short term capital gain, tax benefit, high

return and high risk, medium return and low risk etc. And to satisfy

all these objectives there are various option available to invest ininsurance market.

DEFINING THE RESEARCH PROBLEM:

A research problem of our study is Market Potential of ICICI

Prudential life insurance ltd.

FORMULATION OF PROJECT HYPOTHESIS

This step involved formulating the expected outcome of the project

study, which would be tested for its validity during analysis and

interpretation. If the organizational assumption (null hypothesis)

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turns out to be different than our beliefs, it would be substantiated

else; the alternative hypothesis would become valid.

HYPOTHESIS TESTING

It involves testing the validity of the project hypothesis that was

made initially. If it turns to be true than the null hypothesis is

proved to be correct or else alternative hypothesis will be true

Null Hypothesis

The ICICI PRUDENTIAL LIFE INSURANCE COMPANY enjoys a

good market value and follows effective strategies.

Alternate Hypothesis

The ICICI PRUDENIAL LIFE INSURANE COMPANY does not

enjoy a good market value and follows poor strategies.

SAMPLE DESIGN

Sample design is a plan for obtaining a sample from a givenpopulation. It is a technique or procedure for selecting items for

sample. It lay down the number of items or respondent to be

included in the sample.

Type of universe:

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First step in developing any sample design is to clearly define the

set of object called universe. Universe can be finite or infinite or

finite. In this research, universe is set of people who interested in

investing into insurance.

SAMPLE FRAME

It was based on the database provided by ICICI Prudential Life

Insurance ltd., Sriganganagar branch out of which prospective

candidates for insurance products were selected.

SAMPLING TECHNIQUE

Sampling technique is a technique to be used in selecting theitems from the sample. There are two types of sampling technique

probability sampling and non probability sampling technique.

Probability sampling:

Simple random sampling

Systematic random sampling

Stratified sampling cluster sampling etc.

Non probability sampling

In this research study we following simple random sampling

technique in which each and every respondent have equal

opportunity to get selected into sample.

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SAMPLE TECHNIQUE

Its a probabilistic sampling because 100 customers were chosen

from the population where each customer had an equal chance of

being selected.

SAMPLING UNIT

Sampling unit is a geographical location such as city state district

village etc. where research is conducted. In our research study

sampling unit is Sriganganagar.

SAMPLE SIZE

It refers to number of items to be selected from universe to

constitute sample. In this research sample size is of 100

respondents who interested in investing into insurance.

DATA COLLECTION

Data collection method is the method to be used for collecting data

for study. Method for collecting primary data and secondary data

differ since primary data are to be collected originally while

secondary data are already available. This step involved

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designing, means for requisite information collection and the

responses were sought out on the various aspects of the products

and services provided by the company.

METHOD OF DATA COLLECTION

1) PRIMARY DATA:

Primary data are the fresh data that can be collected either by

experiment or through survey. In this research survey method is

used to collect the primary data for the research. There is various

ways for collecting primary data these are:

By observation method

Through personal interview

Though telephone interview

By questionnaire

Through schedules

In this research primary data are collected through personal

interview method with the help of structured questionnaire was

adopted, taking into consideration the availability of time and other

resources.

The questionnaire was prepared in such a manner that the

investor had to fill it in order to give the relevant information about

the customer satisfaction at their relative issuance company.

The primary data collected through the questionnaires was

analyzed to rank the factors that contributed to the customer

satisfaction as per the insurance company.

2) SECONDARY DATA:

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Secondary data consists of information that exists somewhere,

that has been collected for purpose of helping in the project. The

secondary sources of data were the various websites and

insurance manuals. This mainly provided information about the

insurance sector and the companys profile. These helped in

gaining knowledge about the industry. These sources are listed in

references.

DESIGNING OF QUESTIONNAIRE:

A questionnaire is the most common research instrument. Aresearch instrument should avoid bias and also develop a

device, which will facilitate effective communication. A

questionnaire is the set of questions or with or without blank

space for recording answers. These questions can secure the

relevant facts or opinions from informed and interested

respondents included in the sample survey. While preparing thequestionnaire almost attention was given to sex, age,

occupation & social contacts. The questionnaire includes close-

ended questions and proper care was taken to minimize

ambiguity. In order to get the information through questionnaire,

we adopted personal interview method s it helped both purpose

o getting the information, which was mentioned, in the

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questionnaire and some vital additional information with the

respondents expressed while talking to them.

DATA ANALYSIS AND INTERPRETATION:

After the data was collected it was compiled, classified and

tabulated manually. Then the task f drawing inferences was

accomplished. Finally the result and follow up suggestions are

given.

1. RATING SCALES: By providing alternatives within a

question so as to keep the study within the frame and

also letting the investor compare an select various

alternatives in a question.

2. COMPARATIVE ANALYSIS Of TRENDS: On the basis of

answers given by the investors comparison charts of

different alternatives were prepared so as to compare and

predict objects like future requirement of funds, invest

able surplus etc.

3. GRAPHICAL ANALYSIS AND INTERPRETATION: The

obtained data was put into pie charts so as to depict the

exact trends in an easily absorbable manner.

LIMITATIONS OF THE STUDY

Although sincere efforts were made to collect maximum and

accurate information from the available sources. And study is

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carried out with full devotion, even this report is subjected to

following limitation and constraints:

1) Time Constraint: due to shortage of time a deep and

detailed study could not be taken of.

2) Companys Private: some data relating to the company

was not available because of privacy and security policy

of the insurance company.

3) Technical constraints: the use of deeper statisticaltechniques like analysis of variance, multiple regression

analysis could not be adopted due to lack of time and

expertise.

4) Limited study: insurance is a very vast area and it was not

possible to study each and every aspect of insurance

within this time.

5) Questionnaire contains some personal questions such as

what is the average investments per month, which

respondents found difficult to answer hence sometimes

they were not much co-operative to fill the full

questionnaire.

6) The market was limited to the operations in the market as

specified by the project guide of the company.

7) The information collected was limited to the selected

customers.

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8) Getting the appointment with the people was difficult as

most of the people were busy and it was difficult to

contact them again & again.

9) As on telephone calling to get appointments, people do

not respond properly and refused to give appointments.

10) Some of the telephone numbers that were being provided

by the company were outdated, wrong or had changed.

11) Even other fixations of appointments of personal interview

were found unavailable for interview and for filling the

agency form.

12) People provided false data, as they were scared about

providing actual data such as their telephone number,

age, etc.

13) Some persons contacted assumed me as insuranceagents &thus does not entertained for the actual purpose

of the research

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AGE COMPOSITION:-

In this market survey most of the people are between the age

group of 25 to 55 yrs, which indicates that this report has most ofthe emphasis (84%) on those people who are well established in

their related field i.e. business, profession, job etc.

AGE COMPOSITION NO. OF PEOPLELess than 25 Years 25

26 years 45 years 2546 years 55 years 4056 years and above 10

TOTAL 100

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OCCUPATION SCENARIO:-

In this market survey more than half of the people are

businessman(53%) and rest of the people belongs to profession

and service. It indicates that this report has total emphasis (98%)on those people who are well established, experienced, decision

makers.

OCCUPATION NO. OF PEOPLEBusiness 53

Profession 23Service 22

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Student 02

TOTAL 100

COMPANIES BRAND IMAGE:-

A study found that out of 100 people about 50% people know

about LIC, 25% people know about ICICI PRUDENTIAL, 5%

people know about HDFC standard Life Insurance, 10% people

know about BAJAJ Allianz Life Insurance & 10% know about SBI

Life Insurance.

COMPANY NO. OF PEOPLE

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LIC 50ICICI PRUDENTIAL life 25HDFC Standard Life 5BAJAJ Allianz Life 10

SBI Life 10TOTAL 100

INCOME SCENARIO:

More than half of the people have annual income below 1.5Lakh

and rest of the people belongs to high level of income group

(48%). It includes that this report has balanced research and

findings without focusing on any specific income group. People of

diverse income group helped us to study the absolute picture of

life insurance as a tool of investment.

ANNUAL INCOME PERCENTAGE (%)Less than Rs.60000 30Rs.60000- Rs.1.5Lakh 20

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Rs.1.5Lakh - Rs.2.5Lakh 35More than 2.5Lakh 13

TOTAL 100

MOST PEFERABLE INVESTMENT AREA:-

According to this market survey we have found out that most of

people go for Life Insurance & post Office schemes for long term,

safe & high Return investment (58%). It indicates that report has

proved now people are much aware of life insurance & investment

& invest their hard earned money into it.

MOST PREFERABLE INVESTMENTAREA

PERCENTAGE (%)

Bank F.Ds 16NSCs/ Post office schemes 22

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Mutual fund 20Share market/ Equities 6Life Insurance Plans 36

TOTAL 100

MOST IMPORTANT CRITERIA WHILE INVESTMENT:-

Now a days people are concerned for tax benefits, insurance,

security, liquidity & high returns. Hence life insurance is the only

source of investment which covers all these criteria so now people

are getting aware of life insurance sector & gradually it will be thetop most priority for the general public to invest.

MOST IMPORTANT CRITERIAWHILE INVESTMENT

PERCENTAGE (%)

High returns 14Liquidity 20

Security 20Insurance cover 22

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Tax benefits 26TOTAL 100

AWARENESS IN LIFE INSURANCE:-

The market research depicts that most of the people (89%) are

aware of the various plans, procedures, benefits, & working of life

insurance sector in todays economy in this region.

AWARENESS IN LIFEINSURANCE

PERCENTAGE (%)

Low 11

Medium 61High 28

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TOTAL 100

MOST IMPORTANT CRITERIA IN LIFE INSURANCE:-

As about 90%people of this region are aware of life insurance

sector hence they have certain important criteria in life insurance

to satisfy their needs. In this survey half (50%) of the people want

insurance policies for childrens & education. The second

important criteria for them are to create wealth & assets through it

as it gives more flexibility options & higher amount of rate of

returns. People buy retirement solutions just to save tax under

section 80cc, as it is apart to section88limit of Rs.1Lakh.

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RECOMMENDATIONS TO COMPANY:Since ICICI Prudential Life Insurance co. ltd is the largest in terms

of FDI invested, in terms of work force, in terms of market share, in

terms of no. of customers. All these positive stands of the

company place at the number one position. On second aspect

whatever amount of money ICICI Prudential save, can be used to

increase the no. of policies, which will helpful to increase the

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MOST IMPORTANTCRITERIA IN LIFE

INSURANCEPERCENTAGE (%)

Creating wealth/ Assets 32Childrens education & Marriage 50Retirement 6Disability & illness accidents 12

TOTAL 100


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market share of the company. Since the customers think about the

companies in the industry, when they invest money in the life

insurance industry. So its necessary to increase the market share

of the company. There are some recommendations.

Open some more branches in semi urban and rural area.

ICICI Prudential has almost its branches in urban area or

metros. So in order to increase the no. of customer, ICICI

Prudential should increase the approach towards potential

customers. For that it has to increase the branches in the

semi urban cities like C, D grade cities. And the rural

marketing is the best option for ICICI Prudential to increase

its base in the market

Improve customer services.

In order to take the advantage of being industry leader in

private sector, ICICI Prudential has to improve its customerservices. According to my experience in the company, a

good number of customers forget to pay their premium at

time so it causes a big loss to the company. ICICI Prudential

has already collaborated with the ICICI bank for its

Bancassurance facility and then can include another feature

in it. ICICI bank can offer a bank account with the lifeinsurance policy in which an ATM card will be provided. This

card will have all the information regarding the policy as like

future premium payment dates, payment made, money value

of the policy at that date, value of the unit linked plan and all

other information what the customer want. This will help the

customer to pay premium on time and save their losses. This

will be mutually helpful for both sister companies, ICICI bank

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will get new account and ICICI prudential will be able to more

efficient services to their customers.

Bring some unit linked life insurance plans in the market.

Being a market leader doesnt ensure the leadership in the

future. Since after increment in FDI from 26% to 49% all

player will have the opportunity to capture the market share.

So in order to maintain its position ICICI Prudential should

Introduce some new market linked insurance plan, which will

give a competitive advantage to the ICICI Prudential against

its competitors.

Trained the financial advisors more efficiently.

In the changed scenario, more efficient training will be

needed, so ICICI Prudential should provide good and

efficient training to their financial advisors. Because they are

the one who interact directly with the customers. So goodtraining will give them the right way to deal with the potential

customers.

CONCLUSION

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GIST OF REPORT:-

Finance Is the Blood of Any Business

This is true, without finance no business will work in the market.

Proper use of finance will help in increasing money & vice versa.

Therefore efficient & effective use of finance will give better

returns.

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Doing project in ICICI PRUDENTIAL Life insurance helps me in

enhance my knowledge & skill. This was a very great experience

to do work practically.

The gists of report are as follows:-

ICICI PRUDENTIAL has one of the largest distribution

networks amongst private life insurers in India, having

commenced operations in 200 cities & towns in India.

They began their operations in December 2000 after

receiving approval from Insurance Regulatory Development

Authority (IRDA). Today, our nation-wide team comprises of

over 2000 branches (inclusive of 1,074 micro-offices), over

274,500 advisors; and 20 bancassurance partners.

The company is providing different products for different

customer according to the needs & requirement of the

customer. It will increase the profitability of the company by

attracting more & more customer for giving better services to

their investors.

This report explained about the different portfolio adopted in

different product by ICICI PRUDENTIAL Life Insurance

Company. So that, it will help the company to get better

return from their investment in Equity as well as Debt

instruments.

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In the report there is an analysis of the products actual

performance with the benchmark set by the company. If any

product not works above the benchmark then the portfolio is

again revised & set new benchmark.

In the report there is an analysis of the products actual

performance with the benchmark set by the company. If any

product not works above the benchmark then the portfolio is

again revised & set new benchmark.

The report also include the assets held with the company

which shows that in equity fund they have invested 55% of

the total investment & rest of the investment is in debt funds

i.e. 45%. These are varying with the market situations.

In this report there is investment allocation which shows that

according to the age & risk taking appetite product is to be

design &offer to the customer, which is very essential in the

competitive market.

The report also includes that choice of fund by taking the

different points into consideration while select

project repot icici

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