A STUDY OF RECRUITMENT PROCESS OF ADVISORS IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED IN INDIA

[submitted in partial fulfillment of the requirement for

Master of business administrator, INSTITUTE OF Gautam Buddha Technical University, Lucknow ]

By:Kaifi Raza M.B.A IInd year ROLL NO - 1014270027

Khandelwal College of Management & Technology

PREFACE

The business of insurance is related to the protection of economic value of assets. The assets would have been created through the efforts of the owner, in the expectation that, either through the income generated there from the some other output, some of his needs would be met. If assets get lost earlier, being destroyed or made non-functional, through an accident or other unfortunate event, the owner and those deriving benefits there from suffer. Insurance is a mechanism that helps to reduce such adverse consequences.

Insurance plays a major role in different perspective. For economic development investments are necessary. Investments are made out of savings. A life insurance company is a major investment for the mobilization of saving of people, particularly from the middle and lower income groups. These savings are channeled in to the investments for economic growth. In order to amenable to statistical predictions, insurance risks must be handled on a large scale.

All organization face change in their environment with resultant change in their markets and in the ability to satisfy their markets. Each organization is faced with new marketing problems and opportunities in their existing and potential market. Marketing decision makers cope with these challenges in a variety of ways. The marketers is being required to forecast, forecast the risk and uncertainness in their own way, supported by market research.

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Man on earth can entirely eliminate knows no method but scientific method can minimize the element of uncertainties that can result from back of information without orientation, Market research is a process of collecting information about who, why and how of actual and potential consumers in a particular market.

This report is a outcome of summer training report at ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED at Delhi. This training is a part of the curriculum of MASTER OF BUSINESS ADMINISTRATION program at Khandelwal college of Management and Technology, Bareilly (U.P.).

ACKNOWLEDGEMENT

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EVERY PERSON I HAVE KNOWN WHO HAS BEEN TRULY HAPPY, HAS LEARNED HOW TO SERVE OTHERS .

Nothing concrete can be achieved without an optimal combination of inspiration and perspiration. No work can be accomplished without taking the guidance of the import. We wish to express our appreciation to all those with whom we worked / interacted and whose thoughts and insights helped us in completing our project on A STUDY OF RECRUITMENT PROCESS IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED IN INDIA . I would like to thank our Business Development manager: Mr. Zain Askari who has seen that I get each and every facility that regular employees at ICICI Prudential get. Unit manager: Mr VAIBHAV SHARMA who has been there as and when I required their help in no mater what respect. Never the less I have learnt the major managerial skills which would be helpful in my career. I would also like to thank our faculty in charge: Mr. Sajjan Choudhary and who helped me out when ever their helps were required in my project. Starting with the questionnaires till the end they were always very helpful. TEACHERS OPEN THE DOOR, BUT YOU MUST ENTER BY YOURSELF.

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TABLE OF CONTENT

1.) INTRODUCTION

2.) WHAT IS INSURANCE PURPOSE AND NEED OF INSURANCE ROLE OF INSURANCE IN ECONOMIC DEVELOPMENT NEED FOR LIFE INSURANCE ADVANTAGES OF LIFE INSURANCE HISTORY OF LIFE INSURANCE IN INDIA

11 12 15 16 17 23

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3.) THE IRDA MISSION POWER AND FUNCTIONS OF IRDA INSURANCE COMPANIES IN INDIA

26 26 27 30

4.) ICICI PRUDENTIAL LIFE INSURANCE PARTNERS ICICI BANK PRUDENTIAL PLC OUR VISION

39 40 40 43 45

5.) PRODUCTS OF ICICI PRUDENTIAL SAVING PLANS PROTECTION PLANS CHILD PLANS RETIREMENT PLANS HEALTH PLANS INVESTMENT PLANS RURAL PLANS RIDERS

47 47 48 49 51 53 53 60 65

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6.) MARKET SHARE OF ICICI PRUDENTIAL VIS-A-VIS OTHER PRIVATE PLAYERS (2011) 69

7.) RECRUITMENT OF INSURANCE ADVISOR BE AN ADVISOR BEING AN ADVISOR WITH ICICI PRUDENTIAL OPPORTUNITIES AND ROLES OF ADVISORS REQUISITS TO BE AN ADVISOR WITH ICICI PRU TECHNIQUES USED IN RECRUITMENT

76 77 78 82 83 85

8.) RESEARCH METHODOLOGY INTRODUCTION OF PROBLEM LITERATURE SURVEY DEVELOPMENT OF WORK HYPOTHESIS PREPARING THE RESEARCH DESIGN DETERMINING RESEARCH DESIGN DATA COLLECTION METHOD ANALYSIS

89 91 91 91 92 93 94 97

9.) RESULT AND RECOMMENDATIONS OUTCOME OF PROJECT -7-

99 100

LIMITATIONS AND SUGGESTIONS

101

10.)BIBLIOGRAPHY

107

INTRODUCTION

A well development and evolved insurance sector is needed for economic development as it is provides long term funds for infrastructure development and the same time strengthen the risk taking ability.

Life insurance is also now being regarded as a versatile financial planning tool in India. India being a country having a huge population of around one billion people with only 33.2% of the insurance population in India possessing life insurance. The country has a vast potential that has been left untapped till now.

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Therefore, what this has led to is the flooding of life insurance market with a number of private players which in collaboration with recognized foreign companies promises to deliver the best of services at the least price. All these companies are trying to grasp the maximum of market share in life insurance sector. For that they are developing a channel i.e. recruiting world-class insurance advisors/agents who sell their products or policies. Who are these advisor/agents? Who can become an advisor/agent? How they are recruited in ICICI PRUDENTIAL LIFE INSURANCE COMPANY? How much they can earn as an insurance advisor/agent? , these are some questions we have tried to answer in the project.

This report is trying to give the detail about recruitment and selection process of the life insurance advisors. Thus by going through the report one will get to know about the life insurance and recruitment and selection process of life advisors/agents in ICICI PRUDENTIAL.

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WHAT IS INSURANCE

The business of insurance is related to the protection of the economic values of assets. Every asset has a value; the assets would have been created through the efforts of the owner. The asset

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is valuable to the owner, because he expects to get some benefits from it. The benefit may be an income or something else. It is a factory or a cow, the product generated by is sold and income generated. In the case of a motor car, it provides comfort and convenience in transportation. There is no direct income.

Every asset is expected to last for a certain period of time during which it will perform. After that, the benefit may not be available. There is a life-time for a machine in a factory or a cow or a motor car. None of them will lose for ever. The owner is aware of this and he can so manage his affairs that by the end of that period of life-time, a substitute is made available. Thus, he makes sure that the value of income is not lost. However, the asset may get lost earlier. An accident or some other unfortunate event may destroy it or make it non financial. In that case, the owner and those deriving benefits there from, would be deprived of the benefit and the planned substitute would not have been ready. There is an adverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effect of such adverse situation.

business of insurance is related to the protection of the economic value of assets. The asset would have been created through the efforts of the owner, in the expectation that, either through the income generated there from or some other output, some of his needs would be met. However, if the asset gets lost earlier, being destroyed or made non-functional, through an accident or other unfortunate event, the owner and those deriving benefits there from suffer.

The business of insurance done by insurance companies (called insurers) is to bring together persons with common interests (sharing the same risks) collecting the share or contribution - 12 -

(called premium) from all of them, and paying out compensations (called claims) to those who suffer.

PURPOSE AND NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental occurrences. Such possible occurrences are called perils, Fire, floods, breakdown, lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset, we say that the asset is exposed to that risk. Perils are the events. Risks are the consequential losses or damages. The risk to a owner of a building, because of the peril of an earthquake, may be a few lakhs or few crores of rupees, depending on the cost of the building and the contents in it.

The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of a human being, death is certain, but the time of death is uncertain, In the case of a person who is terminally ill, the time of death is not uncertain, though not exactly known. He cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril cannot be avoided through insurance. The peril can sometimes be avoided, through better safety and damage control management. Insurance only tries to reduce the impact of the risk and the owner

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of the assets and those who depend on that asset. It only compensates the losses and that too, not fully.

Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of non economic losses are love and affection of parents, leadership of managers, sentimental attachments to family heirlooms, innovative and creative abilities, etc.

There are two type of insurance: Life insurance Non-life insurance or General insurance These insurance are provided both by government and private insurance companies. Now, what an insurance company is?

The IRDA Act, 1999 amending the Insurance Act, 1938 in Section 2 sub-section 7(a) state: Indian Insurance Company means any Insurer being a company-

(a) which is formed and registered under Companies Act, 1956(1 of 1956); (b) in which aggregate holding of equity shares by a foreign company either by itself or through its subsidiary companies or its nominees do not exceed twenty six percent paid up equity capital of such Indian Insurance Company;

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whose sole purpose is to carry on life insurance business or general insurance business or re-insurance business.

The important activities of a life insurance company are:a) Procuring from prospective buyers proposals to grant life insurance cover; b) Checking up and specifying the terms of acceptance called Understanding; c) Issue contractual documents called policy incorporating various terms and condition; d) Provide after sales services including payment of money as per contract; e) Conducting other supporting activities like, investment of funds, carrying out solvency measures, finalization of accounts, getting or causing audit of accounts, actuarial valuation including updating mortality tables; and f) Developing new products, sales promotion activities including publicity, training of its personal (Sales/ administration).

ROLE OF INSURANCE IN DEVELOPMENT OF THE ECONOMY

Every rupee invested in life insurance contributes in three ways to the development of the economy.

i.

Firstly, it relieves those insuring from the worry and anxiety they may have about how they or their family would meet the cost of certain events, such as the marriage of the

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children, the premature death of the main income provider or maintaining a regular income in their retirement. If an individual is free from these worries he can perform better in his job. ii. Secondly, it directs peoples savings. The insurer invests these funds in various business enterprises, government bonds, loans to public and private projects including infrastructure and socially orientated projects. Thus the insurance premium provides the much needed funds for the development of the nations economy. iii. Thirdly, these savings act as an anti inflationary force in the nations financial structure. Inflation happens when prices of good go up. One of the causes is when a lot of buying takes place, due to the spending of a major portion of income by people. Savings in insurance reduce buying, as people will have less money to spend.

LIFE INSURANCE

NEED FOR LIFE INSURANCE

Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children and loved ones need not be compromised. Insurance planning equips you to smooth out the uncertainties and adversities that life might send your way, so that the best that life has to offer, secure in the knowledge that your beloved ones are well provided for.

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As life insurance became more established, it was realized what a useful tool it was for a number of situations, including

a) Temporary needs/ threats The original purpose of life insurance remains an important element, namely providing for replacement of income on death etc. Typically the case of the breadwinner dying an early death.

b) Regular Saving Providing for ones family and oneself, as a medium to long-term exercise (through a series of regular payment of premiums). This has become more relevant in recent times as people seek financial independence from their family. c) Investment Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlike regular saving products, investment products are traditionally lump sum investment, where the individual makes a one-time payment. d) Retirement Provision for ones own later years becomes increasingly necessary, especially in a changing cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in ones old age. Generally identified as the problem of living too long.

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ADVANTAGE OF LIFE INSURANCE

(1) It is superior to a traditional saving vehicle As well as providing a secure vehicle to build up savings etc, it provides peace of mind to the policyholder. In the event of untimely death, of say the main earner in the family, the policy will pay out the guaranteed sum assured, which is likely to be significantly more than the total premiums paid. With more traditional savings vehicles, such as fixed deposits, the only return would be the amount invested plus any interest accrued.

(2) It encourages saving and forces thrift Once an insurance contract has been entered into, the insured has an obligation to continue paying premiums, until the end of the term of the policy; otherwise the policy will lapse. In other words, it becomes compulsory for the insured to save regularly and spend wisely. In contrast savings held in a deposit account can be accessed or stopped easily.

(3) It provides easy settlement and protection against creditors Once a person is appointed for receiving the benefits (nomination) or a transfer of rights is made (assignment), a claim under the life insurance contract can be settled easily. In addition, creditors have no rights to any monies paid out by the insurer, where

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the policy is written under trust. Under the Married Womens Property Act (M.W.P Act), the money available from the policy forms a kind of trust which cannot be attached by judgment creditors.

(4) It helps to achieve the purpose of the Life Assured If someone receives a large sum of money, it is possible that they may spend the money unwisely or in a speculative way. To overcome this, the person taking the policy can instruct the insurer that the claim amount is given in installments.

(5) It can be enchased and facilitates quick borrowing: Some contracts may allow the policy to be surrendered for a cash amount, if a policyholder is not in a position to pay the premium. A loan, from certain policies, can be taken for a temporary period to tide over the difficult. Some lending institutions will accept a life insurance policy as collateral for a personal or commercial loan.

(6) Tax Relief The policyholder obtains Income Tax rebated by paying the insurance premium. The specified forms of saving which enjoy a tax rebate, under section 88 of the Income

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Tax Act, include Life Insurance Premiums and contributions to a recognized Provident Fund etc., section 10 (10D) & other sub-sections of Section 80 of the Income Tax Act.

There are certain questions which are frequently asked to the insurance advisors. Some of them are with answers:

1.) what if I already have life insurance?

As an individual, for the extent of financial protection you need is different from that as a married man which in turn is different from that as a parent. At each life stage, it is necessary to re-evaluate the amount of protection and provision you require and adjust for the same.

Below are some of the events in your life for which you should re-evaluate and plan your life insurance needs:

Life stages Marriage

Birth of a child Schooling of a child Marriage of child Retirement

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2.) how much insurance do I need?

The main purpose of life insurance is to provide a financial cushion to your loved ones in the event that something unfortunate should happen to you. One must provide enough, so as to generate a future income stream that will take care of the financial needs of their dependants.

How much insurance you need depends on your annual income, your expenses and your existing assets. Use our Insurance Calculator to get a rough estimate of how much you should insure yourself for.

3.)Why plan for retirement?

For too many people, the joy of retirement after years of hard work is eclipsed by the financial uncertainties that it brings. Despite all the planning and saving, you can never sure whether your money will last a lifetime. Retirement planning offers a way to ensure a more enjoyable, stress free tomorrow.

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Inflation is always a concern for people who are near to their retirement. Inflation implies the change in the worth of money over a period. By the time you retire, your money will be worth a lot less than what it is today. So, its important to factor this in when you invest for your golden years.

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LIFE INSURANCE IN INDIA

HISTORY OF LIFE INSURANCE IN INDIA

The history of life insurance in India dates back to 1818 when it was conceived 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 was 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. Till 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 the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after

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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 240 private life insurers and provident societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalization was justified on the grounds that 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 till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companies- National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC).

Life insurance business in India was nationalized with effect from 1st September, 1958. From this date, the life insurance business transacted by 154 Indian life insurers, the Indian business of 16 foreign insurers and 75 provident societies was taken over by Government of India Act, 1956, passed by the Parliament on 18-6-56. The Life Insurance Corporation of India (LIC) which had been established w.e.f. 19-5-1956 as a body corporate having perpetual succession and common seal with power to acquire, hold and dispose property and to sue and be sued in its name.

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Under Section 30 of the Act, from the appointment date i.e. 1-9-56, LIC acquired the exclusive privilege of carrying on life insurance business in India and the certificate of registration granted to any insurer under the Insurance Act, 1938 ceased to have effect from the said date.

Now the above, provision of section 30 have been altered by insertion of Section 30A consequent to the enactment of the IRDA Act, 1999. As a result the exclusive privilege given to the LIC has been withdrawn.

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 capital for foreign partners in 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 14 life 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.

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THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY(IRDA)

BACKGROUND
A faster development and wider impact of the insurance industry were to be achieved through a process of insurance reforms resulting in the liberalization of the market and in the passage of the Insurance Regulatory and Development Authority (IRDA) Act, 1999. The reforms procedures recognized simultaneously the need for development of the sector in addition to the traditional concept of regulation and thus conferred on the Authority the obligation to develop the sector as well.

MISSION STATEMENT

The IRDA main mission was stated as follows:

To protect the interest of and secure fair treatment to policyholders:

To bring about speedy and orderly growth of the insurance industry, for the benefit of the common man, and to provide long terms funds for accelerating growth of the economy;

To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates:

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To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regard;

To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievances redressed machinery;

To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players;

IRDA POWERES AND FUNCTIONS

Subject to the provisions of IRDA Act (1990), IRDA will: regulate, promote and ensure orderly growth of the insurance business and re-insurance business, which will include the following main functions (excerpts):

Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;

Protection of the interest of the policy holders in matters concerning assigning off policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and others terms and conditions of contracts of insurance;

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Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents.

Promoting and regulation professional organizations connected with the insurance and reinsurance business;

Levying fees and other charges for carrying out the purposes of the Act;

Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;

Specifying the percentage of life insurance and general insurance business to be undertaken by the insurer in the rural or social sector.

Impact Of Liberalization

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The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LIC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service quality of the insurance. As a result LIC down the years have seen the declining phase in its career. The market share was distributed among the private players. Though LIC still holds the 75% of the insurance sector but the upcoming natures of these private players are enough to give more competition to LIC in the near future. LIC market share has decreased from 95% (2002-03) to 81 %( 2004-05).The following companies has the rest of the market share of the insurance industry.

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INSURANCE COMPANIES:

IRDA has so far granted registration to 12 private life insurance companies and 9 general insurance companies. If the existing public sector insurance companies are included, there are currently 13 insurance companies in the life side and 13 companies operating in general insurance business. General Insurance Corporation has been approved as the "Indian rein surer" for underwriting only reinsurance business. Particulars of the life insurance companies and general insurance companies including their web address is given below:

LIFE INSURERS Public Sector Life Insurance Corporation of

Websites

www.licindia.com India Private Sector ICICI Prudential Life Insurance www.iciciprulife.com Co. Limited Allianz Bajaj Life Insurance www.allianzbajaj.co.in Company Limited Birla Sun-Life Insurance www.birlasunlife.com Company Limited

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HDFC Standard Life Insurance www.hdfcinsurance.com Co. Limited ING Vysya Life Insurance www.ingvysayalife.com Company Limited Max New York Life Insurance www.maxnewyorklife.com Co. Limited MetLife Insurance Company www.metlife.com Limited Om Kotak Mahindra Life www.omkotakmahnidra.com Insurance Co. Ltd. SBI Life Insurance Company www.sbilife.co.in Limited TATA AIG Life Insurance www.tata-aig.com Company Limited AMP Sanmar Assurance www.ampsanmar.com Company Limited Dabur CGU Life Insurance Co. www.avivaindia.com Pvt. Limited GENERAL INSURERS Public Sector National Insurance Company www.nationalinsuranceindia.com Limited New India Assurance Company www.niacl.com Limited

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Oriental Insurance Company www.orientalinsurance.nic.in Limited United India Insurance Company www.uiic.co.in Limited Private Sector Bajaj Allianz General Insurance www.bajajallianz.co.in Co. Limited ICICI Lombard General www.icicilombard.com Insurance Co. Ltd. IFFCO-Tokio General Insurance www.itgi.co.in Co. Ltd. Reliance General Insurance Co. www.ril.com Limited Royal Sundaram Alliance www.royalsun.com Insurance Co. Ltd. TATA AIG General Insurance www.tata-aig.com Co. Limited Cholamandalam General www.cholainsurance.com Insurance Co. Ltd. Export Credit Guarantee www.ecgcindia.com Corporation HDFC Chubb General Insurance Co. Ltd. REINSURER General Insurance Corporation - 32 www.gicindia.com

of India

PROTECTION OF THE INTEREST OF POLICY HOLDERS:

IRDA has the responsibility of protecting the interest of insurance policyholders. Towards achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide for: policy proposal documents in easily understandable language; claims procedure in both life and non-life; setting up of grievance redressal machinery; speedy settlement of claims; and policyholders' servicing. The Regulation also provides for payment of interest by insurers for the delay in settlement of claim. The insurers are required to maintain solvency margins so that they are in a position to meet their obligations towards policyholders with regard to payment of claims. It is obligatory on the part of the insurance companies to disclose clearly the benefits, terms and conditions under the policy. The advertisements issued by the insurers should not mislead the insuring public. All insurers are required to set up proper grievance redress machinery in their head office and at their other offices. The Authority takes up with the insurers any complaint received from the policyholders in connection with services provided by them under the insurance contract.

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Insurance Company LIC ICICI Prudential Bajaj Allianz HDFC Standard Life SBI Life Birla Sun Life Max New York Life` TATA AIG Aviva OM Kotak Mahindra ING Vyasa Reliance MetLife

Market Share (Fig. in %) 71.44 11.35 7.06 2.37 1.81 1.49 0.98 0.79 0.89 0.86 0.57 0.37 0.24

Market Share of Life Insurance Companies as of May 2011.

Life Insurance: Major Players

Name of Company

First year Premium

(2010-11, $ million) Public Sector LIC 4548 Private Sector ICICI Prudential 364

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Bajaj Allianz Birla Sun Life HDFC Standard Life

198 143 112 Source: IRDA

Non-life Insurance: Major Players

Name of Company

First year Premium (2010-11, $ million) Public Sector

New India Assurance National Insurance Oriental Insurance United India Insurance Private Sector

967 879 698 679

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ICICI Lombard Bajaj Allianz ECGC IFFCO Tokio

203 196 119 117

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ICICI PRUDENTIAL

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. This joint venture is formed in the - 37 -

year Dec, 2000 and ICICI Prudential was amongst the first private sector Insurance companies to begin operation in Dec, 2000 after receiving approval from the Insurance Regulatory Development Authority (IRDA).

For the year ended March 31, 2006, the company garnered Rs 24.12 billion of weighted new business premium and wrote 837,963 policies. The sum assured in force stands at Rs 458.88 billion. The company has a network of over 72,000 advisors; as well as 9 banc assurance partners and over 200 corporate agent and broker tie-ups. It is also the only life insurer in India to be assigned AAA credit rating from Fitch Ratings. For the past five years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. ICICI Bank and Prudential Plc hold 74 percent and 26 percent stake respectively.

PARTNERS

ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company, which has today emerged as one leading mutual funds in India. Riding on the success of this relationship, the two companies joined hands ones more in 2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading edge life insurance solutions.

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ICICI BANK
ICICI Bank is India's second-largest bank with total assets of about Rs. 2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05 bn (US$ 449 mn) for the year ended March 31, 2005). ICICI Bank has a network of about 614 branches and extension counters and over 2,200 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 specialized 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 banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Centre and representative offices in the United States, United Arab Emirates, China, South Africa and Bangladesh. Our UK subsidiary has established a branch in Belgium. ICICI Bank is the most valuable bank in India in terms of market capitalization. ICICI Bank's equity shares are listed in India on the 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).

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ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees At June 5, 2006, ICICI Bank, with free float market capitalization of about Rs. 480.00 billion (US$ 10.8 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.

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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 transactionbanking services. The merger would enhance value 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.

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PRUDENTIAL PLC

Established as the Prudential Mutual Assurance and Loan Association in 1848, today it is an international financial services company with a product range which extends from personal banking insurance, pensions and retail investments, to institutional fund management and property investments. Its portfolio of well-known and respected brands, including Prudential, M&G Investments, Jackson National Life, Prudential Corporation Asia and Egg, has attracted more than 19 million customers (and policy holders and unit holders) worldwide. Across the Group it has 234 billion of funds under management (at 31 December 2005). Prudential has significant operations in the UK, the US and Asia, contributing to a diversity of earnings. Worldwide it employ more than 20,000 people and our shareholders number 60,942 (at 31 December 2005). We are listed on the London and New York stock In Asia, Prudential Corporation Asia has 23 operations in 12 countries. These include strategic partnerships with some of the regions leading players, including CITIC Group (for life business in China), ICICI Bank (for life and mutual fund business in India) and Bank of China International (for Mandatory Provident Fund business in Hong Kong). Prudential Corporation Asia offers a wide range of savings, protection and investment products tailored to the needs of our customers in each of the 12 markets in which itoperate. In addition to its life insurance operations Prudential has asset management businesses in India, Hong Kong, Japan, Taiwan, Malaysia, Singapore, Korea, Vietnam and China managing over 26 billion (as of 30 June 2005).

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Our vision:
To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service. This we hope 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, Boundary less, Ownership and Passion. Each of the values describes what the company stands for, the qualities of our people and the way we work. - 43 -

We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.

PRODUCTS OF ICICI PRUDENTIAL

SAVINGS PLANS

ICICI Prudential offers a variety of policies that give you the benefits of protection and the opportunity to save for important assets or events, like a home, a car or a wedding.

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee* and the facility of extended insurance cover.

*The capital guarantee is applicable only on the invested premium and the declared bonus interests.

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee* along with flexible liquidity options.

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A unit-linked insurance plan with an assurance of Capital Guarantee*, which offers you the benefit of a limited premium payment and coverage term.

A market linked insurance plans that meets your Investment and Protection needs.

Complete market-linked insurance plans that adapt itself to your changing protection and investment needs, throughout a lifetime.

An insurance plan that gives added protection savings and multiple options, all in one!

An insurance plan that gives added protection savings, multiple options, plus the power of liquidity.

A traditional endowment savings plan that offers both high returns and protection.

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An endowment savings plan that allows you to get back substantial survival benefits without having to wait till the maturity date.

PROTECTION PLANS

ICICI Prudential Life Insurance offers LifeGuard - a set of pure protection plans. Choose from amongst three different product structures to insure your life and provide total security to your family, at a very affordable cost.

Level Term Assurance with return of premium

On death the entire sum assured will be paid. On maturity, all the premiums paid will be returned.

Level Term Assurance without return of premium

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 On death the entire sum assured will be paid. No survival or maturity benefits.

You can also enhance the above two policies by adding Accident & Disability Benefit Rider and Waiver of Premium Rider (WOP).

Level Term Assurance - Single premium

On death the entire sum assured will be paid. No survival or maturity benefits

CHILD PLANS

As a responsible parent, you will always strive to ensure a hassle-free, successful life for your child. However, life is full of uncertainties and even the best-laid plans can go wrong. Heres how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. SmartKid is especially designed to provide flexibility and safeguard your childs future

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education and lifestyle, taking all possibilities into account. For further information on our SmartKid Education Plans

1. SmartKid regular premium 2. SmartKid unit-linked regular premium 3. SmartKid unit-linked regular premium II 4. SmartKid unit-linked single premium II

All these plans offer you:

Financial Benefits: Regular payments at critical stages in your childs life, like Board examinations, Graduation and Post-graduation. Total peace of mind, even if you are not around o Sum Assured is paid immediately: Ensures that your loved ones stay financially secure, even in your absence o All future premiums are waived: Ensuring that your family is not financially burdened in your absence o Policy benefits continue: The educational benefits of the policy continue, ensuring that your child can realize his or her dreams without any hassles. Development Allowance: SmartKid guarantees regular income to secure your childs educational career and also ensures his or her all-round development, for a nominal additional amount. The Income Benefit Rider takes care of this through an annual

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payment of 10% of the sum assured, to your child, till the maturity of the policy, in the unfortunate event of the death of the parent. All SmartKid plans can be enhanced with the Accident & Disability Benefit Rider and Income Benefit Rider.You can also an Accident Benefit Rider to a SmartKid Regular Premium policy,and a Waiver of Premium Rider (WOP) to SmartKid unit-linked regular premium policy.

RETIREMENT PLANS

Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. For you, this increase will mean a longer retirement life, stretching into a couple of decades. ICICI Prudential presents Retirement Solutions that combine the best of insurance and investment. These solutions are developed to ensure your peace of mind for the years to come.For further information on our Retirement Solutions Choose from amongst 6 retirement plans:

A flexible unit-linked retirement solution that offers flexibilities during the accumulation as well as payout phase.

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A regular premium unit-linked pension plan with an assurance of Capital Guarantee*

*The capital guarantee is applicable only on the invested premium and the declared bonus interests

A regular premium linked pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns.

A single premium linked pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns.

A regular premium pension plan that gives you the flexibility to choose between 3 levels of sum assured for the same level of total annual contribution

A regular premium pension plan that helps you save for your retirement while providing you with life insurance protection.

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Choose from 5 Annuity options at the time of vesting 1. Life Annuity 2. Life Annuity with return of purchase price 3. Life Annuity guaranteed for 5, 10, 15 years 4. Joint Life, Last Survivor without return of purchase price 5. Joint Life, Last Survivor with return of purchase price

HEALTH PLANS

Comprehensive Cancer Protection Plan

A Long-term Critical Illness Protection Plan.

A Long-term Critical Illness Protection Plan with Life Cover.

INVESTMENT PLANS

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Lifelink Super is a unique single premium plan that combines the security of a life insurance policy with the opportunity to enjoy potentially high returns on your investments.

Low Allocation Charges: The premium allocation charges are amongst the lowest across products. Allocation charge for single Premium of Rs 500,000 or more is 0%.

Death Benefit: There are 2 options for sum assured - 500% of the single premium or 125% of the single premium. In the event of an unfortunate death, the beneficiary will receive higher of the value of units or the initial death benefit (adjusted for partial withdrawals*).

Liquidity: In order to meet liquidity requirements, one can make partial withdrawals from the accumulated value of the policy after completion of three policy years.

Flexibility:Choose from four fund options, based on your investment objective and risk appetite. If at a later stage your financial priorities change, you can switch between the various fund options, absolutely free, 4 times a year.

GROUP SOLUTIONS

In an era of competitive parity, the only asset that makes a decisive difference between corporate success and failure is the quality of human capital. Employee benefits have proven to be an excellent tool to optimize the

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retention of talent and improve an organisations bottom line. The quality of an organisations employee benefits establishes and maintains a company's image as a caring employer. Optimum care of employees is a long-term investment that results in a sustained competitive advantage for an organisation in the times to come.

ICICI Pru Group Solutions Advantage

An integrated basket of employee benefit solutions that offer incomparable flexible benefits. Sound investment management that focuses on safety, stability and profitability of the portfolio. Personalized financial planning for your employee that takes care of his/her changing financial needs at every stage of life. Quality service initiatives and transparency across all operations, promising superlative operational efficiency.

Group Term Insurance : Helps provide affordable cover to members of a group.

Group Gratuity Plan : Helps employers fund their statutory gratuity obligation in a flexible and hassle-free manner.

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Group Superannuation Plan : A flexible scheme (defined benefit and defined contribution) to provide a retirement kitty for each member of the group.

Group Term Insurance

ICICI Pru's 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, and can be extended to all employees between the ages of 18 and 65 years. The benefit under the policy is paid on the event of the members death to the beneficiary nominated by the member. It is a oneyear renewable policy where one master policy covers all proposed employees comprising the group, with a minimum group size of 25 persons. New members can join the group and outgoing members can leave the group at any point during the policy term.

Highlights include:

Greater convenience for the employees with relaxed underwriting and medical requirements. "Free Cover Limits" with simplified underwriting depending upon the number of employees in the group and the level of cover chosen. Guaranteed benefit : On death during the term of the contract (while in service), the sum assured will be paid to the beneficiary of the employee. - 54 -

 Choice of additional coverage in form an Accident and Disability Benefit Rider and Critical Illness Cover Premium is viewed as a business expense in the year of payment.

Group Gratuity Plan

ICICI Pru's group gratuity plan helps employers fund their gratuity obligation in a scientific manner. Employers can avail of the tax benefits as applicable to approved gratuity funds. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.

Highlights include:

Wider choice of investments with Market Linked Plans - to meet the diverse financial goals. We offer the following investment options (short-term debt, debt, balanced, growth and capital guarantee on the short-term debt plan) where investments will be made in accordance with the fund objectives Transparency through Daily disclosure of Unit Value and regular disclosure of the portfolio of each of the investment option Flexibility through switching and contribution redirection option to enable reshuffling of portfolio

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 Bundled Life Cover greater value to the employee by packaging life insurance cover with the gratuity, with minimal amount of underwriting. Actuarial services to provide a scientific estimation of the gratuity liability. Low explicit charge structure with the conditions for exit specified upfront. Enhanced service levels through faster claim settlement, easier access to information and regular statements Complete end to end solution in the legal and regulatory approval process for scheme set up or transfer

Employee Benefits

The contribution made by the employer is not included in the value of taxable perquisites in the hands of the employee. Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10)

Employer Benefits

Annual contribution up to 8.33% of salary bill in a financial year is allowed a deduction for the purpose of computation of profits and gains of business. Contribution towards past service liability is allowed as deduction as per the Income Tax rules.

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Group Superannuation Plan

ICICI Prus Superannuation Scheme (for both Defined Benefit and Defined Contribution funds) offers substantial benefits to both employers and employees. The employer and employee can avail of tax benefits applicable to an approved superannuation trust. The scheme will provide for a retirement fund for each participating employee. An employee would be able to choose from various annuity options or opt for partial commutation of corpus at retirement.

Highlights include:

Wider choice of investments with Market Linked Plans - to meet the diverse financial goals.We offer the following investment options (short-term debt, debt, balanced, growth and capital guarantee options on short-term debt, debt and balanced) where investments will be made in accordance with the fund objectives. Control - Each member/employer can exercise greater control over investments by choosing one or more of the investment options. Multiple Annuity Options - 5 annuity options and open market option Transparency - Transparency through Daily disclosure of Unit Value and regular disclosure of the portfolio of each of the investment option. Flexibility - Flexibility through switching and contribution redirection option to enable reshuffling of portfolio

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 Low explicit charge structure with conditions for exit specified upfront. Enhanced service levels through faster claim settlement, easier access to information and regular statements. Complete end to end solution in the legal and regulatory approval process for scheme set up or transfer

RURAL PLANS

ICICI PruLife Rural Products are designed to meet the needs of the rural consumers. These products offer the following features:

1. Low and Affordable Premiums 2. Life Cover 3. Savings Option 4. Hassle free procedure

ICICI Prudential offers 2 specially designed rural plans.

1. ICICI Pru Mitr Endowment Plan 2. ICICI Pru Suraksha - Regular Premium

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ICICI Pru Mitr Endowment Plan

ICICI Pru Mitr offers the following features:

Life Cover and Savings Regular Premiums Age at entry : 18 - 45 Yrs Premium Mode : Half Yearly / Yearly Term : 5,10,15 Yrs Sum Assured : Rs.5,000 -20,000 Premium / Year : Rs. 507 - 553 ( SA: Rs.10,000) Maturity/Death benefit : Sum Assured

ICICI Pru Suraksha - Regular Premium

ICICI Pru Suraksha is a regular premium policy with the following features:

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 Individual policy Only Life cover Term - 3 & 5 Yrs Age independent premium Age at entry : 18 - 45 Yrs Sum Assured : Single Premium / Year : Rs 50 200 Maturity/Death benefit : Rs.5,000 - 20,000 Death Benefit : Sum Assured

Investment Plans

You can hedge your investments with investment like LifeLink Super vehicles that provide you with a diversified portfolio.

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Savings Plans

Endowment policies are a good way of putting aside your savings today for a future goal whether it's to buy a house in India or fund your entrepreneurial vision. Our savings-oriented policies are designed to make your savings grow and have them available to you at the end of a fixed number of years or through the term of the plan.

SecurePlus - an insurance plan that gives added protection savings and multiple options, all in one! CashPlus - an insurance plan that gives added protection savings, multiple options, plus the power of liquidity. LifeTime II - a complete market-linked insurance plan that adapts itself to your changing protection and investment needs, throughout a lifetime.

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 Save'n'Protect - a traditional endowment savings plan that offers both high returns and protection. CashBak - an endowment savings plan that allows you to get back substantial survival benefits without having to wait till the maturity date. Premier Life - A market linked insurance plans that meets your Investment and Protection needs.

Retirement Plans

Many of us picture ourselves enjoying the fruits of our labour after retirement - going on a dream vacation, or helping our child's career take wing. Financing all this will depend on our personal savings and investments, so its important to save for the future from today. Our retirement plans are designed to help you systematically save, so that you can enjoy all the things you have dreamed of when you retire.

LifeTime Pension II : A regular premium linked deferred pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns. SecurePlus Pension : A regular premium deferred pension plan that gives you the flexibility to choose between 3 levels of sum assured for the same level of total annual contribution.

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 LifeLink Pension II : A single premium linked deferred pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns. ForeverLife : A regular premium deferred pension plan that helps you save for your retirement while providing you with life insurance protection.

Child Plans

As a responsible parent, you want to ensure a hassle-free, successful life for your child. However, life is full of uncertainties and even the best-laid plans can go wrong. SmartKid Education Plans are designed to provide flexibility and to safeguard your child's future education and lifestyle, taking all possibilities into account.

SmartKid Child Plans has a bouquet of three products which can help you secure your childs education.

Unit-linked Regular Premium Unit-linked Single Premium Regular Premium SmartKid

RIDERS

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ICICI Prudential gives you the freedom to form your very own comprehensive insurance policy by adding the rider benefits to the basic life insurance policy. Add from the following list of benefits to increase the scope of your policy, at a nominal cost.

Critical Illness Rider Accident & Disability Benefit Rider Accident Benefit Rider Income Benefit Rider Waiver of Premium Rider (WOP)

Accident & Disability Benefit Rider

1. Benefits payable on death due to an accident

If the policyholder dies due to an accident, 100% of the rider sum assured is paid in addition to the basic sum assured. In case the policyholder dies in a land surface, mass public transport system wherein the policyholder was traveling as a fare-paying passenger, then 200% of the rider sum assured is paid.

2. Benefits payable in case of permanent disability due to an accident

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 If the policyholder survives an accident but becomes permanently disabled then the premium for the basic plan is completely waived off to the extent of the rider sum assured. Plus, 10% of the rider sum assured is paid for the next 10 years, which helps in providing that extra money and takes care of sudden financial set back that occurs after a tragic disability.

Accident & Disability Benefit rider is available with Save n Protect, Cashbak, SmartKid Child Plans, Golden Years, PremierLife, LifeTime, LifeTime II, LifeTime Pension II, ForeverLife, SecurePlus, CashPlus, SecurePlus Pension, LifeGuard ROP, LifeGuard WROP, Group Term Plan, InvestShield Life, InvestShield Cash, InvestShield Gold and InvestShield Pension . In case of Golden Years, PremierLife, Lifetime II, Lifetime Pension II, SecurePlus, CashPlus, LifeGuard ROP and LifeGuard WROP, the waiver of premium benefit is not available.

Premiums paid under this rider are eligible for tax benefits under Section 80C.

Accident Benefit Rider

If the policyholder dies due to an accident, 100% of the rider sum assured is paid in addition to the basic sum assured.

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Accident Benefit rider is available with SavenProtect, CashBak, SmartKid regular premium, ForeverLife, SecurePlus, CashPlus and SecurePlus Pension.

Premiums paid under this rider are eligible for tax benefits under Section 80C.

Waiver of Premium Rider (WOP)

On total and permanent disability due to an accident, all future premiums for both the base policy and rider(s) will be waived till the end of the term of the rider or death of the life assured, if earlier.

Waiver of Premium rider is available with SecurePlus, CashPlus, LifeGuard ROP, LifeGuard WROP, SmartKid Unit-linked regular premium II, Lifetime II, LifeTime Pension II, SecurePlus Pension, InvestShield Life, InvestShield Cash and InvestShield Pension.

Premiums paid under this rider are eligible for tax benefits under Section 80C. MARKET SHARE OF ICICI PRUDENTIAL VIS-A-VIS OTHER PRIVATE PLAYERS (2010-11)

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INSURANCE COMPANY ICICI PRUDENTIAL HDFC MAX NEW YORK SBI LIFE TATA AIG ALLIANZ BAJAJ OM KOTAK ING VYSYA MET LIFE AVIVA

MARKET SHARE (%) 38 14 8 7 6 5 3 2 1 1

ICICI PRUDENTIAL WITH OTHER PRIVATE PLAYERS INDIVIDUALLY

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ICICI PRUDENTIAL VS HDFC

ICICI PRU VS BIRLA SUNLIFE

28%

ICICI PRU BIRLA SUNLIFE

72%

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ICICI PRUDENTIAL VS MAX NEWYORK

ICICI PRU MAX NEWYORK

83%

ICICI PRU VS SBI LIFE

40 30 20 10 0 ICICI PRU SBI LIFE

ICICI PRU SBI LIFE

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ICICI PRU VS TATA-AIG

ICICI PRU TATA AIG

86%

ICICI PRU VS ALLIANZ BAJAJ 40 30 20 10 0 ICICI PRU ALLIANZ BAJAJ

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ICICI PRU VS OM KOTAK

7%
ICICI PRU OM KOTAK

93%

ICICI PRU VS ING VYSYA

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ICICI PRU VS METLIFE

97%

3% 3%

ICICI PRU MET LIFE

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ICICI PRU VS AVIVA

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BE AN ADVISOR

Being an insurance advisor aspire to provide state of the art customer services and opportunities and venues for enterprising people to grow and prosper.

Backed by latest technology, they will offer their customers:-

Complete and diversified product portfolio. Faster and more accurate service. Multi channel distribution system. High quality financial advises.

Eligibility norms provided by IRDA for becoming an insurance advisor

Person should be at least 18 years of age; Person have completed 10+2; Person should attained 100 hours training.

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Other than this the person should possess

Good communication skills Relationship skills Confidence Self motivation Persuasion Urge to be financially independent

BEING AN ADVISOR WITH ICICI PRU

Being an ICICI Prudential advisor can be an enriching and exciting career option. Its an opportunity to associate with an industry leader, be in touch with the latest and finest insurance practices from around the globe, and grow both personally and professionally.

Here are some of the benefits of being an ICICI Prudential Life Insurance Advisor : Unlimited earning potential A clear career path

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 All round support through exclusive advertising, your own in-house consultant, and worldclass training A comprehensive benefit package

What does it take to be an ICICI Prudential advisor?

At ICICI Prudential, we believe that our Advisors are our ambassadors to the customers. They are a key source of business for the organization, and are the continuing link with our clients. That is why, we take a lot of care in recruiting and developing our advisor force, so that we continue to set higher standards of quality in service and salesmanship. To cater to the needs of the knowledge-oriented marketplace, we look for graduates who are service-oriented, good communicators and enjoy meeting new people. Prior sales experience is an added benefit. Some of the qualities we seek are:

self- motivation a master communicator a go-getter a graduate

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TRAINING

At ICICI Prudential, we understand the importance of training in a dynamic business environment. Our advisors go through both generic and specific, professional programs that help them remain well-informed and knowledgeable about the companys products in the market. There is a further focus on soft skills such as communication, managing long-term relationships and selling skills, which are very relevant in a service-driven industry like life insurance.

State of the art infrastructure training facilities coupled with an excellent faculty, guarantee an exceptional learning environment. For advisors who might be occupied with their daily business/professional routines, ICICI Prudential also offers convenient training options such as online and self-learning are also provided by the organization.

A 17-day training schedule covers the mandatory IRDA training requirements and ICICI Prudential product-training module. Revision session ensure that the candidates thoroughly understand the course contents and are well prepared for the licensing examination. Theoretical

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training is interspersed with practical appointment settings with potential customers, giving advisors a feel of how their business will work from the very first day. All through, the Unit Manager and the management provide continuous support to the advisors in achieving independence towards garnering business.

CAREER

At ICICI Prudential, career development is emphasized upon from the very day the advisor joins the system. Though individual meetings with his or her manager, the advisor can discuss various issues related to business development and career enhancement. Expectations from the organization in terms of chalking a career in the insurance industry are also discussed.

Tiger Team: ICICI Prudential offers the Tiger Team programme for identified high potential advisors. Hand picked by the management, these advisors are placed on a fast-track career path and recognized as Tiger trainers. The advisors can participate in this programme, subject to certain criteria being fulfilled.

Pinnacle Program: Absorption into the management is another career enhancement option provided at ICICI Prudential through the Pinnacle Program. This program helps advisors build a full time career as a unit manager in the organization, offering great potential for managing a

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team of advisors and personal development. Fast track Pinnacle programme is also available to advisors who are able to meet the performance criteria within the stipulated time.

OPPORTUNITIES FOR BEING AN ADVISOR

To be a part of world class sales team Work from your office or residence Work fulltime or part time

Earn commission, bonuses and incentives Flexible career

Unlimited earning potential

ROLE OF AN ADVISOR

1. Identify clients/prospects 2. making appointment 3. conduct financial review meeting with prospect 4. close sale 5. get referrals 6. provide services to clients/prospects

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7. follow internal sales and reporting system

TASK ASSIGNED TO ME

I was assigned the task to recruit 3 TIED AGENCIES for ICICI PRUDENTIAL in the 2 months of my summer training.

THE REQUISITES OF A TIDE AGENCY/ADVISOR IN ICICI PRU

1. One copy of date of birth proof (10th mark sheet, driving license, pan card). 2. One copy of 12th class/graduation mark sheet. 3. One residence proof. 4. 8 passport size photographs.

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ADVISOR QUALITY PARAMETER

We have to identify right kind of quality people to be advisors with ICICI PRU. For this purpose I targeted the following sets of people:

1. CA, CS, ICWA 2. DOCTORS 3. LAWYERS 4. TAX CONSULTANTS 5. MARKETING EXECUTIVES OF DIFFERENT BANKS 6. UNEMPLOYED 7. RETIRED PEOPLE 8. HOUSE WIVES 9. LOCAL POLITICIANS

TECHNIQUES USED IN RECRUITMENT

To approach the above mentioned people I used the following methods:

1. PROSPECTING: I decided to do prospecting in front of the BANKS AND FINANCIAL INSTITUTIONS as a large number of marketing executives visit these places throughout the day. I used to meet these people and offer them to join the INDIAS leading PVT. Sector group ICICI as FINANCIAL ADVISORS. I got the maximum recruitments through prospecting. The best thing about prospecting was that at the end of the day I used to have more than 100 references to call for the next day.

2. COLD CALLING: It was also a very successful technique in recruitment of advisors. Though the conversion rate was very low but I got very potential advisors through cold calling. I used business directories, yellow pages, telephone directories, news papers for the same purpose. The following procedure was used in recruiting through cold calling:

DATABASE

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TAKE ONE FROM THESE DATA

MADE A TELEPHONE CALL AND FIXED AN APPOINTMENT

GO TO THAT PERSON

TRY TO CONVINCE THEM AND CALL THEM TO CAREER SEMINAR OR FOR AN INTERVIEW WITH SALES MANAGER

TOOK REFERANCE FROM THEM

GIVE THEM FORM AND ALL NECESSARY ELEMENTS CLOSED THE CALL 3. TAKING REFRENCES: taking references is very essential in the insurance business as this business is based on contacts. I took references from the following:

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RELATIVES

DATABASE

FRIENDS

NAMES

NEIGHBOURS

CUSTOMES

4. PAMPHLET DISTRIBUTION: I distributed pamphlets at Railway Stations, Bus Stops, busy red lights, highlighting the advantages of being an advisor with ICICI PRU. I got a good response and call backs and was able to find some good prospects through this procedure.

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RESEARCH METHODOLOGY

- 86 -

Research design provides a systematic method of defining the problem and the research objectives, developing the research plan, implanting the research plan and presenting the findings. Thus marketing research process can be classified into five stages.

1. DEFINING THE PROBLEM/ THE RESEARCH OBJECTIVE

2. DEVELOPING THE RESEARCH PLAN

3. IMPLIMENTING THE RESEARCH PLAN

4. COLLECTING AND ANALYSING OF DATA

5. INTERPRETING AND REPORTING RESULT

Research is a scientific and systematic search for pertinent information on a specific topic. Research may be defined as a document prose work. Unless it is understood in its right spirit, it cant be undertaken with success.

The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim is to find out the truth which is hidden and which has not been discovered as yet.

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Research methodology includes the overall research design. Research design includes the decision regarding method of data collection and the whole sampling plan.

Survey method was adopted for this study. The survey was conducted with the help of questionnaire fieldwork as carried out to collect necessary data; the information thus gathered constituted primary data. Primary data has been collected from respondents chosen at random.

Sampling unit: It refers to the individuals who are to be surveyed for the purpose of research. Sampling techniques: Data collected and analyzed on the basis of questionnaire and survey method. Sampling method: In my study non-probability sampling has been exercised. Sampling size: Sampling size was approximately 200 end users.

1. Introduction of the problem

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All the ICICI PRU Life Insurance products are in the initial phase, so it is facing entry barriers due to various circumstances. Customer awareness about the products is minimum. Customers are not aware about the policies and their benefits in investing their money in it. Mostly the products are new so it will take time to penetrate in the market. The faith of customers towards private players is minimum.

2. Literature Survey

After formulating the problem, we wrote a brief summery of it. Then we studied some magazines, journals and also gone through internet where we collect some information, our college library was of grate help to us to undergo this project. Furthermore, our industry mentor provided lots of information regarding the completion of our summer training and report.

3. Development of working hypothesis

As we know that the role of the hypothesis is to guide the researcher by delimiting the area of research and to keep him on the right track. It sharpens his thinking and focuses attention on the more important facets of the problem. It also indicates the type of data required and type of methods of data analysis to be used.

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For developing our working hypothesis we discussed with our mentor, colleagues about the problem.

We studied the magazines and took the help of Internet.

4. Preparing the research design

Preparing the research design is very useful for any research as it provides maximum information. The function of research is to provide for the collection of the relevant evidence with minimal expenditure of efforts, time and money. Research design constitutes the blueprint for the collection, measurement and analysis of data.

We know that there are three types of research design. They are

Exploratory research design.

Descriptive and diagnostic research design.

Hypothesis-testing design.

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In our study we followed exploratory research design, which involves original field interviews with interested parties and individuals with a view to secure greater insight into the practical aspect of the problem.

5. Determining sample design

Determining of sample design is very useful of research method because it saves time, money and energy, as we know that there will be different types of sample designs are available. Those important sample designs are: -

Deliberate sampling Sample random sampling Systematic sampling Stratified sampling Quota sampling Cluster sampling and area sampling Multistage sampling Sequential sampling

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In my survey I selected simple random sampling and area sampling. In my project my key area was Delhi. I covered some shopping malls and market in Delhi.

6. Data Collection Methods

Data collection methods are of two types i.e. primary and secondary. The primary data are those which are collected a fresh and for the first time and the secondary data on the other hand are those which have already been collected by some one else and which have already been passed through the statistical process.

So in my project I used both primary method of data collection. The data used in the research is primary in nature for this we collected the form through personal interview.

7. Analysis of data

This is the very important stage of research. After the data collection was done the collected data was analyzed with the help of various graphs in order to converge the specific required information that was meant to be generated by the research. So I did this analysis part because it provided a clear vision related to ICICI Prus products and to also understand the exact market condition of ICICI Pru Life Insurance Ltd. Apart from this with the help of analysis of data we

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can analyze the strengths and weakness of the products and can design a new marketing strategy accordingly.

PROBLEMS
The best way of understanding the problem is to discuss with own colleagues or with those who have some expertise in this field. In an organization the researcher can seek the help from a guide who is usually a experienced man and has several research problems in mind. Often, the guide puts the problems in general terms and it is up to the researcher to narrow it down and phrase the problem in operational term in private business units. The problem is usually marked by administrative agencies with whom the researcher discuss as to how the problem originally came about and what consideration are involved in its possible solution,

By using the above concept throughout the two moths project I have faced several problems but the main problem behind these all problems is that to find out potential customers and life advisors. This implies that I have to choose advisors those who have highly good networks with other people. Besides these the jobs, which has to be performed by a life advisor, will become much easier only when he\she has a good contact with other.

Some problem that I faced in a regular manner is summarized in the following points. People never get interested. People already have a license. - 93 -

 People want to know about product profile. People do not afford the training period. People are not interested to invest Rs. 1000/ People like to have a fixed salary job.

OBJECTIVES
My objective was to increase the customer i.e. influencing customers to take policies and to recruit good quality life advisor by minimizing the relevant cost and the question is how to make this relevant kind of customers and recruiting life advisors. For making this, the required objectives are as follows.

To increase the equity base of ICICI Pru Life Insurance by increasing the number of good quality life advisor. To hold market share and also to increase the competitive edge over others. Then only ICICI Pru will be able to the position of first rank. Again this is possible only

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when the company is recruiting good quality advisor those who are having much more contact. To make the advisor believe that that they can enjoy much more benefits as an advisor by holding his or her current job. The advisor should have an influencing personality.

So my research objective is to maximize the number of quality advisors with high potential and a thirst to work in this field so that the company can expand in its wing.

ANALYSIS
Market Research for the project was conducted in Delhi. It is a descriptive type of research and sampling for responses is simple random sampling. The sample size for the research is 100 for comparative analysis and 100 for recruiting Life Advisors.

Till date the customers still believe in government sector i.e. LIC but one thing can also be kept in mind that till 1999 LIC had a 100% market share. From the survey I have also found out that a very people are insured and the interesting fact is that the persons who are insured, very few know about the type of policy they have taken.

While recruiting Life Advisors one very significant thing I found out that the persons whose house hold income is in between 2-5 lakhs are or were involved in insurance business. The - 95 -

persons who are below the age of 21 years were not keen to join the insurance sector as compared to those who are in between 25-30 years of age. Also the persons who are in insurance business have a willingness to join the private companies.

In the survey I have also found out the persons who are working and the students were keen in taking on line training as compared to housewives and retired persons.

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OUTCOME OF THE SUMMER TRAINING

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Vaibhav Sharma . I was able to accomplish the task the target in two months. The list of my recruitments is given below:

NAME

PLACE

PREMA RANI

DELHI

OM PRAKASH

SHAHIBABAD

MAMTA SHARMA

SHAHIBABAD

JITENDRA KUMAR

NOIDA

RAJKUMAR GUPTA

SHAHIBABAD

TARUN KUMAR

GHAZIABAD

LIMITATIONS AND SUGGESTIONS LIMITATIONS:

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As we all know that for every good work there should be some leakages also. Here leakages means some drawbacks. What I had found in my quest SUMMER TRAINING which are expected to be as follows:

Lack of proper advertisement over the market. Growing awareness is very low. Segmented area is very specific. Network over the work is very exhaustive. Company always believes their own channels. Flow of information moves very slow. Carelessness in selection procedure. People are not interested to invest Rs. 1000

SUGGESTIONS AND RECOMENDATIONS

The insurance company has to continuously upgrade its products by continuously assessing the changing needs of the prospects and clients. There should be a up

gradation of the employees by giving them training from time to time and motivation with the ingredients of professionalism compliance and quality. like ethics, service,

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 The company has not exploited various sources which have a huge business potential. Still there are lot of willing and potential people who can give very good business to the company.

Better marketing activities are required, so that the awareness can be increased specially among corporate.

More products, which give assured returns, should be there for the investors because most of the investors ask about security part of the policies especially during the time of slow down of the economy and to tap the investors who at present investing in Fixed Deposit.

Better follow-up activity is required to tap the potential customers.

Tax saving scheme should be modified according to the requirements of the investors because a lot of persons are saving to reduce their tax liability.

The policies should be made such that it is viewed as hedging tools to earn riskfree returns i.e. it should be considered more than just a risk cover.

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 There should be other modes of training because most of the persons are not having time so that they can take training in centers. Moreover online training is not much fruitful.

Company should start creating their own database and give it to the advisors so that the advisors have more option in their hand.

The license free will reduce from 1000 to 500

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FIVE PERSISTENT CONCERNS:

As an ICICI Prudential Manager, you are fully committed to building a high performing, growing agency. This being true, it follows those five concerns must be constant in your annual planning.

The SEARCH for talent The EVALUTION of potential advisors The ATTRACTION of advisors The RETENTION of advisors The PRODUCTIVITY of advisors

Any manager who attains satisfying results in these five areas will enjoy

Satisfying sales results Outstanding persistency of business Superior policy owner service capabilities An enviable reputation as a ICICI Prudential agency builder A momentum which comes from the synergistic benefit of success

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CHART SHOWING HOW TO GET POTENTIAL ADVISOR: Putting it simply in a flow SEARCH Where to look for

ATTRACT How to attract to life Insurance

EVALUATE

How to evaluate

PRODUCTIVITY

RETENTION

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BIBLIOGRAPHY

BOOKS:

MARKETING MANAGEMENT by PHILIP KOTLER. RESEARCH METHODOLOGY by C.R. KOTHARY.

ARTICLES:

TATA YELLOW PAGES

TELEPHONE DIRECTORY OF BSNL

MAGAZINES AND NEWS PAPERS:

THE TIMES OF INDIA THE ECONOMIC TIMES BUSINESS STANDARD OUTLOOK MONEY BUSINESS TODAY

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WEBSITES:

WWW.ICICIPRULIFE.COM WWW.IRDAINDIA.ORG

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