venkatesh murthy
TRANSCRIPT
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ORGANIGZATION STUDY
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Presentation Sketch
India Economy & IndustryIndia Life Insurance Industry
ICICI Prudential Life Insurance Market
Introduction
Standing
GrowthRecognitions and awards
Need of the hour
SWOT Analysis
Suggestions
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0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00% China
India
Singapore
Hong Kong
Malaysia
Korea
US
UK
Japan
ONE OF THE FASTEST GROWING ECNOMIES
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CONTRIBUTION TO INDIAN ECONOMY
(i)Life Insurance is the only sector which garners
long term savings
(ii)Spread of financial services in rural areas and
amongst socially less privileged
(iii)Long term funds for infrastructure
(iv)Strong positive correlation between
development of capital markets and insurance/
pension sector
(v)Employment generation
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India life Insurance: An overview
COUNTRY
INDUSTRY
PRELIBERALIZATION
POPULATION : 1.12 Bn
LIFE INSURANC
E PENETRATION: 4.1%Pre 2000: Public monopoly
Market deregulated in 2000
ICICI entered in 2000 through partnership with
Prudential Plc, UK
Distribution through agency only; 2000 offices, 0.8
mn agentsPush' sales approach: Tax saving objective
Traditional product offerings
Pensions: Small part of savings
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Players in the insurance industryPlayers in the insurance industry
Public sectorlife insurance company:Public sectorlife insurance company:
Life InsuranceCorporation of IndiaLife InsuranceCorporation of India a state owned leviathana state owned leviathan
having a majority market share in the countryhaving a majority market share in the country
Private sectorlife insurance companies:Private sectorlife insurance companies:
ICICI Prudential Life InsuranceCompanyICICI Prudential Life InsuranceCompany
Birla Sun Life InsuranceCompanyBirla Sun Life InsuranceCompany
OK Kotak Mahindra Life InsuranceCompanyOK Kotak Mahindra Life InsuranceCompany Max New York Life InsuranceCompanyMax New York Life InsuranceCompany
Aviva Life InsuranceCompanyAviva Life InsuranceCompany
Metlife InsuranceCompanyMetlife InsuranceCompany
SBI Life Insurance CompanySBI Life Insurance Company
ING Vyaysya Life InsuranceCompanyING Vyaysya Life InsuranceCompany
HDFC Standard Life InsuranceCompanyHDFC Standard Life InsuranceCompany
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Why insurance???Why insurance???
PRIMARY REASONPRIMARY REASON
Life is fullofuncertaintiesLife is fullofuncertainties
Provides the muchrequiredProvides the muchrequiredRISK COVERRISK COVER Serves as afinancialbufferinthe wake ofanyunServes as afinancialbufferinthe wake ofanyun--favorable andunfavorable andun--foreseenforeseen
circumstancescircumstances
Ensures thatnearanddearones are notleftinfinancialdoldrums due toanyEnsures thatnearanddearones are notleftinfinancialdoldrums due toany
exigencyexigency
The riskcoverthatinsurance provides has noparallels inthe financial worldThe riskcoverthatinsurance provides has noparallels inthe financial world
SECONDARY REASONSECONDARY REASON
Moneybackplans provides an elementofliquiditybyreturningaportionofMoneybackplans provides an elementofliquiditybyreturningaportionof
the sumassuredatregularintervals. This is inadditiontothe riskcoverthe sumassuredatregularintervals. This is inadditiontothe riskcover
Unitlinkedplans investapercentage ofthe premiums inmarket securitiesUnitlinkedplans investapercentage ofthe premiums inmarket securities
andprovide returns. This combines marketlinkedreturns along withriskandprovide returns. This combines marketlinkedreturns along withrisk
covercover
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INTRODUCTION TO ICICI PRUDENTIAL
Pre 2000: Public monopoly
Market deregulated in 2000
ICICI entered in 2000 through partnership with Prudential Plc, UKVisionOur vision is to make ICICI Prudential Life InsuranceCompany the
dominant new insurer in the life insurance industry. This is to achieve
through our commitment to excellence, focus on service, speed and
innovation, and leveraging our technological expertise.
Mission
Building transparency in all our dealings can play a significant role
in redefining and reshaping the sector. Given the quality of their
parentage and the commitment of their team, they feel that there will
be no limits to their growth
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Integrity
Customer First Boundary less
Ownership
Passion
ICICI Prudential is currently the No. 1 private life insurer in the country.
For the financial year ended March 31, 2009, the company garnered
Rs1584 corer of new business premium for a total sum assured of
Rs13, 780 corers and wrote nearly 615,000 policies.
ICICI Prudential was the first life insurer in India to receive a National
Insurer Financial Strength rating of AAA (India) from Fitch ratings.
Values
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Premier Life Plan offered by ICICI Pru. Life Insurance CoPremier Life Plan offered by ICICI Pru. Life Insurance Co..
Unitlinkedinsurance planUnitlinkedinsurance plan
Minim
umcontri
butionis Rs.60,000 perann
umMinim
umcontri
butionis Rs.60,000 perann
um
Deathbenefitis higherofthe sumassuredorthe value inthe accumulationDeathbenefitis higherofthe sumassuredorthe value inthe accumulation
account whicheveris higheraccount whicheveris higher
Partial withdrawals are possible after3 years premiums are paid.Partial withdrawals are possible after3 years premiums are paid.
Flexibilitytochoose the premiumpayingtermFlexibilitytochoose the premiumpayingterm 3 year, 5 year, 7 yearor10 year3 year, 5 year, 7 yearor10 year
Minimum sumassuredis Rs.1,00,000. The multiple canbe aminimumof1 andaMinimum sumassuredis Rs.1,00,000. The multiple canbe aminimumof1 anda
maximumof25maximumof25
This planoffers the followinginvestmentoptionsThis planoffers the followinginvestmentoptions maximisermaximiser, protector, balancer, protector, balancer
andpreserverandpreserver
Minimumtopupis Rs.5,000Minimumtopupis Rs.5,000
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GROWTHAND STANDING
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AWARDS AND RECOGNISITONS
ICICI PruLife rankedas the Most TrustedPvtLife Insurance
brandinthe Brand Equity "Most Trusted Brands 2009" survey
ICICI PrudentialLife wona Goldawardfor
AboutULIPS.comand Health Savercampaign, innovationawardfor
www.taxguru08-09.comanda silverawardfor
its Insurance yogacampaignatthe ICICI
Group Marketing Excellence award
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ICICI PrudentialLife wonthe ICICI Group
Marketing Excellence Award 2008 inthree keycategories forits marketinginitiatives
ICICI PrudentialLifes website, www.iciciprulife.com wasawardedthe best website amongprivate life insurers at
the Web 18 and Frost & Sullivan Genius ofthe Web
Awards 2007 forcommendable workinthe online.
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RECOGNITIONS
ICICI PrudentialLife was recognizedas the mosttrustedbrandamongst
private life insurers inthe Economic Times-Most Trusted Brand survey 2008
IMM AwardforExcellence. Institute ofMarketing & Management
Organization with Innovative HR Practices. Indira GroupofInstitutes
Organization with Innovative HR Practices. Asia-Pacific H R CongressAwards forHR Excellence
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SWOTAnalysis
STRENGHTS
Brand equity of ICICI Bank.
ICICI Prudential is Indias No.1Pvt insurance company in terms of
market share. Since 2001.
Wide spread distribution network has helped to increase its
operation.
Two million policies, which is the highest ever done by Pvt Insurance
company in Asia is a very short span of time 4yrs from itsestablishment.
All categories can access its products.
High quality service delivered by the company.
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WEAKNESS
The products offeredare little expensive compare toLIC.
The products offeredare cannotbe affordable by
lowerincome group.
Lengthypre-offerformalities.
Huge employee turnover.
The operationofthe companyis limitedtomajorcitiesandtowns.
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OPPORTUNITIES
Indias tappedmarketis 4.6%, availabilityofuntappedpotentialmarketis huge.
Companycan extentits operations toruraland suburban
areas bydevelopingarequiredproducts.
Creatingaawareness program willhelps toknow the need
ofindividuals.
Strongbusiness ethics willhelptotapthe market.Analyzingcompetitors weakness, andmake use ofit.
Innovationofnew products basedonchanginglife styles.
Recruitingmore local expertise
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THREATS
Increasingnumberofprivate players inthe insurance market. Create ample choices, frequentand easymobilityforthe employees.
StiffcompetitionfromLIC andotherprivate players.
Restrictions andinterreference by IRDA.
Fluctuations inthe tax tariffhave directimpactonthe insurance.
Challenges fromnew companies enteringintomarket, like
Bharati Axa
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SUGGESTIONS
Due to the instance competition in the life of insurancemarket, the life insurance companys have to adopt better
strategies to attract more customers.
Keeping the cost, quality and return on investment intact is
necessary to tackle the competition.
Life insurance products are taken mainly by middle and higher
income groups. Hence they should regard as main targeted
income groups. Life insurance products which has suitable forlower income groups should also be released so that the market
shares increases.
Communication and coordination should be more effective.
Optimizing of machine, men-hours and money
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CONCLUTIONS
A number of factors like age, terms , sum assured, maturity
benefit, death benefit, withdrawal benefit, flexibility to increase thecontribution, surrender value, automatic premium payment,
additional credit, switching between funds, administrative
charges, top ups riders are taken in to consideration before
reaching a conclusion about the insurance policy.
Insurance is a unique feature i.e. risk cover for life. By the entry ofprivate insurance players in the market there are new products,
which also take care for the investment. Long term policies are
better than medium and short term policies. For better future
arrangements. Private life insurance companies are doing well in
the Indian market by providing innovative products and better
services to the customers
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Thankyou..
VenkateshaMurthy. N
Reg no: 08JPCM6067