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ICICI PRUDENTIAL LIFE INSURANCE CORPORATION

INTRODUCTION OF THE STUDY


ICICI Prudential Life Insurance is one of the branded priate life insurance
co!panies in India" #hich offers different t$pes of insurance coer to its custo!ers%
Their !ain ai! is to proide better insurance coer at eer$ step in life #ith !a&i!u!
custo!er satisfaction% The pro'ect ai!s at an in(depth stud$ of ICICI Prudential life
insurance )or*ani+ation stud$)% In this stud$ arious financial benefits of insurance
products for Custo!ers are anal$sed and their financial e&pectations about such an
insurance products is studied throu*h a sure$% In addition to that an atte!pt has been
!ade to su**est ne# serices for the potential custo!ers to #ithstand the hea$
co!petition in ,RTA in the present scenario and !a-e the ICICI prudential presence felt
in the !ar-et in ,RTA% The pro'ect also tries to identif$ the challen*es in ,RTA b$
#hich the custo!er can *et the best insurance option alon* #ith product%
T% .O/N COLLE0E 1
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
1. INTRODUCTION
The !ost i!portant aspect for an$ financial serices institution dealin* #ith
toda$2s re*ulator$ fra!e#or- is the need to build an inte*ration" ris-" co!pliance
and re*ulator$ eniron!ent% The *lobali+ation of business" the proliferation of"
and dependenc$ on" technolo*$" and the preseration of a trusted and secure
eniron!ent to facilitate financial institutions" all re3uire financial serice
or*ani+ations to hae in place the !echanis!s to ensure sound and reliable
securit$ and priac$% The industr$2s landscape is continuousl$ chan*in* and
increasin* in co!ple&it$ across financial serices" causin* fir!s to face a dierse
arra$ of challen*es and concerns% Role of Priate sector has *ro#n rapidl$ in the
serice industr$" especiall$ #ith reference to Insurance !ana*e!ent%
The insurance industr$" as an inte*ral part of the financial serices industr$
does not stand apart for! the profound chan*es in the financial sector% Recentl$
#e are #itnessin* an enhanced co!petition in the insurance industr$ probabl$
due to the openin* up of this sector to priate participants% There is a close inter(
action bet#een insurance and econo!ic *ro#th% As econo!$ *ro#" the liin*
standards of people increase% As a conse3uence" de!and for insurance increases%
As the assets of people and of business enterprises increase in the *ro#th
process" the de!and for *eneral insurance also increases% In fact" #ith the
#idenin* of the econo!$" the de!and for ne# t$pes of insurance products
e!er*es% Insurance no# e&tends not onl$ to product !ar-et but also to serice
industries includin* finance% It is e3uall$ true that *ro#th itself is facilitated b$
insurance%
The *lobal consolidation of the financial serices sector is in lar*e part drien
b$ ac3uisition actiit$% Co!panies co!petin* for a *rater share of consu!er
funds are see-in* 3uic- access to ne# !ar-ets" ne# products and ne# channels of
distribution" both do!esticall$ and econo!icall$%
T% .O/N COLLE0E 4
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
COMPANY PROFILE
ICICI Prudential Life Insurance Co!pan$ is a 'oint enture bet#een ICICI
5an-" a pre!ier finical po#erhouse and Prudential plc" a leadin* international
financial serices *roup head3uartered in the United 6in*do!% ICICI Prudential
#as a!on*st the first priate secotr insurance co!panies to be*in* operation in
Dece!ber 4777 affter receiin* approal for! Insurance Re*ulator$
Deelop!ent Authorit$ 8IRDA9%
ICICI
The #orld 5an-" the 0oern!ent of India and the Indian Idustr$" to
pro!ote industrial deelop!ent of India b$ prodidin* pro'ect and corporate
finance to Indian industr$" established ICICI Ltd%" in 1:;;
Since inception" ICICI has *ro#n fro! a deelop!ent ban- to a financial
con*lo!erat and has beco!e one of the lar*est public finacial institutions in
India% ICICI has thus far financed all the !a'or sectors of the econo!$" coerin*
<"=>= co!panies and 1<"=;1 pro'ects% As of ,arch ?1" 4777 ICICI had disbursed
a total of Rs% 1"1?"7@7 cores" since inception%
Prudential
Prudential Established in London in 1=>=" Prudential plc" throu*h its
businesses in the U6 and Europe" the US and Asia" proides retail financial
serices products and serices to !ore than 1< !illion custo!ers" polic$holder
and unit holders #orld#ide%
As of .une ?7" 477>" the co!pan$ had oer USA?77 billion in funds under
!ana*e!ent% Prudential has brou*ht to !ar-et an inte*rated ran*e of financial
serices products that no# includes life assurance" pensions" !utual funds"
ban-in*" inest!ent !ana*e!ent and *eneral insurance% In Asia" Prudential is the
leadin* European life insurance co!pan$ #ith a ast net#or- of 4> life and
!utual fund operations in t#ele countries(China" /on* 6on*" India" Indonesia"
.apan" 6orea" ,ala$sia" the Philippines" Sin*apore" Tai#an Thailand and
Bietna!%
T% .O/N COLLE0E ?
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
INDUSTRY PROFILE
ICICIPRUDENTIAL
ICICI Prudential e3uit$ base stands a Rs% 11%=; billion #ith ICICI 5an-
and Prudential plc holdin* @>C and 4<C sta-e respectiel$% In the financial $ear
ended ,arch ?1" 477<" the co!pan$ *arnered RS 1;=> core of ne# business
pre!iu! for a total su! assured of RS 1?" @=7 core and #rote nearl$ <1;"777
policies% The co!pan$ has a net#or- of about ;<"777 adisorsD as #ell as @ ban-
insurance and 1;7 corporate a*ent tie(ups% For the past four $ears" ICICI
Prudential has retained its position as the No% 1 priate life insurer in the countr$"
#ith a #ide ran*e of fle&ible products that !eet the needs of the Indian custo!ers
at eer$ step in life% 8###%iciciprulife%co!9
Promoter o ICICI !rudential Lie In"uran#e
1$ ICICI %an&
ICICI ban- 8NESED I5N9 is India2s second lar*est ban- and lar*est priate
sector ban- #ith oer ;7 $ears of financial e&perience and #ith assets of
Rs%1=14%4@ billion as on ?7
th
.une 477<% ICICI ban- offers a #ide ran*e of
ban-in* products and financial serice to corporate and retail custo!ers throu*h
a ariet$ delier$ channels and throu*h its speciali+ed subsidiaries and affiliates
in the areas !ana*e!ent% ICICI 5an- is a leadin* pla$er in the retail ban-in*
!ar-et and has oer 1? !illion retail custo!er accounts% The 5an- has a net#or-
of oer ;@7branches and e&tension counters" and 4"777 AT,s%
T% .O/N COLLE0E >
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
'$ Prudential Pl#.
Established in London in 1==>"Prudential plc" throu*h its business in the
U6 and Europe" the US and Asia" proides retail Finical serices products and
serice to !ore than 1<!illion custo!ers" polic$holder and unit holders
#orld#ide%
As of 'une?7" 477>"the co!pan$ had oer USA?77 billion in funds under
!ana*e!ent% Prudential has brou*ht to !ar-et an inte*rated ran*e of financial
serice products that no# includes life assurance" pensions" !utual funds"
ban-in*" inest!ent !ana*e!ent and *eneral insurance% In Asia" Prudential is the
leadin* European life insurance co!pan$ /on* 6on*" India" Indonesia" .apan"
6orea" ,ala$sia"the philippines"sin*apore"Tai#an"Thiland and Bietna!
T% .O/N COLLE0E ;
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Produ#t Proile
ICICI Prudential Life Insurance offers a ran*e of innoatie" custo!er(
centric products that !eet the needs of custo!ers at eer$ life sta*e% Its products
can be enhanced #ith up to ; riders" to create a custo!i+ed solution for each
polic$holder% 8ICICI Prudential Life Insurance F Product profile" 477?9
Sa(in)" Solution"
Secure Plus is a transparent and feature(pac-ed sain*s plan offers ? leels of
protection%
Cash Plus is transparent" feature(pac-ed sain*s plan that offers ? leels of
protection as #ell as li3uidit$ options%
Seen2s Protect is a traditional endo#!ent sain*s plan that offers life protection
alon* #ith ade3uate returns%
Cash5an- is an anticipated endo#!ent polic$ ideal for !eetin* !ilestone
e&penses li-e a child2s !arria*e" e&penses for a child2s hi*her education or purchase
of an asset%
Life Ti!e G Life Ti!e II offer custo!ers the fle&ibilit$ and control to custo!i+e
the polic$ to !eet the chan*in* needs at different life sta*e% Each offers four fund
options" Perseere" Protector" 5alancer and ,a&i!iser%
Life Lin- II is a sin*le pre!iu! ,ar-et Lin-ed Insurance Plan that co!bines life
insurance coer #ith the opportunit$ to sta$ inested in the stoc- !ar-et%
Pre!ier Life is a li!ited pre!iu!(pa$in* plan that offers custo!ers life insurance
coer till the a*e of @;%
Inest shield Life is a re*ular pre!iu! unit(lin-ed insurance plan #ith an
assurance of Capital 0uarantee and the facilit$ of e&tended insurance coer%
Inest Shield Cash is a ,ar-et Lin-ed plan that proides capital *uarantee on the
inested pre!iu!s and declared bonus interest alon* #ith fle&ible li3uidit$ options%
T% .O/N COLLE0E <
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Inest Shield 0old is a ,ar-et Lin-ed plan that proides capital *uarantee on the
inested pre!iu!s and declared bonus interest alon* #ith li!ited pre!iu! pa$!ent
ter!s%
Prote#tion Solution".
Life0uard is a protection plan" #hich offers life coer at er$ lo# cost% It is
aailable in ? options% Leel ter! assurance" leel ter! assurance #ith return of
pre!iu! and sin*le pre!iu!%
/o!e Assure is a !ort*a*e reducin* ter! assurance plan desi*ned specificall$ to
help custo!ers coer their ho!e loans in a si!ple and cost(effectie !anner%
8###%icicipruife%co!9
C*ild Plan"
S!art 6id education plans proide *uaranteed educational benefits to a child
alon* #ith life insurance coer for the parent #ho purchases the polic$% The polic$ is
desi*ned to proide !one$ at i!portant and !ilestones in the child2s life% S!art 6id
plans are also aailable in unit(lin-ed for! both sin*le pre!iu! and re*ular pre!iu!%
Retirement Solution"
Foreer Life is a retire!ent product tar*eted at indiiduals in thirties%
Secure Plus Pension is a fle&ible pension plan that allo#s one to select bet#een ?
leels of coer%
Mar&et+lin&ed retirement !rodu#t"
Life Ti!e Pension II is a re*ular pre!iu! ,ar-et(lin-ed pension plan
lifeti!e Pension II is a sin*le pre!iu!" !ar-et(lin-ed pension plan%
Inest Shield Pension is a re*ular pre!iu! Pension plan #ith a capital *uarantee
on the inestible pre!iu! and declared bonuses%
T% .O/N COLLE0E @
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
0olden EearH is a li!ited pre!iu! pa$in* retire!ent solution that offers
ta&benefits up toRs%177"777 uIs =7c" #ith fle&ibilit$ in both the accu!ulation and
pa$out sta*es%
ICICI Prudential also launched )Salaa! Jinda*i) a social sector *roup insurance
polic$ tar*eted at the econo!icall$ underpriile*ed of the societ$%
Healt* "olution
/ealth AssureH Is a re*ular pre!iu! plan #hich proides lon* ter! coer a*ainst
< critical illnesses b$ proidin* polic$holder #ith financial assistance" irrespectie of
the actual !edical e&penses%

/ealth Assure PlusH Is a re*ular pre!iu! plan #hich proides lon* ter! coer
a*ainst < critical illnesses b$ proidin* financial assistance" irrespectie of the actual
!edical e&penses" as #ell as an e3uialent life insurance coer
,rou! In"uran#e Solution"
ICICI Prudential also offers 0roup Insurance Solutions for co!panies see-in* to
enhance benefits to their e!plo$ees%
ICICI Pru 0roup 0ratuit$ PlanH ICICI Pru2s *roup *ratuit$ plan helps e!plo$ers fund
their statutor$ *ratuit$ obli*ation in a scientific !anner% The plan can also be
custo!i+ed to structure sche!es that can proide benefits be$ond the statutor$
obli*ations%
ICICI Pru 0roup Superannuatin* PlanH ICICI Pru offers a fle&ible defined
contribution(superannuatin* sche!e to proide a retire!ent -itt$ for each !e!ber of
the *roup% E!plo$ees hae the option of choosin* fro! arious annuit$ options or
optin* for a partial co!!utation of the annuit$ at the ti!e of retire!ent%
T% .O/N COLLE0E =
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
ICICI Pru% 0roup Ter! PlanH ICICI Pru2s fle&ible *roup ter! solution helps proide
affordable coer to !e!bers of a *roup% The coer could be unifor! or based on
desi*nationIran- or a !ultiple of salar$% The benefit under the polic$ is paid to the
beneficiar$ no!inated b$ the !e!ber on hisIher death%
'$ Fle-i%le Rider o!tion"
ICICI Pru Life offers riders" #hich can be added to the basic polic$ at a !ar*inal
cost" dependin* on the specific needs of the custo!er%
Accident Gdisabilit$ benefitHIf death occurs as the result of an accident durin* the
ter! of the polic$"the beneficiar$ receies an additional a!ount e3ual to the ridr su!
assured under the polic$%If the death occurs #hile traelin* in an authori+ed !ass
trasport echicle"the beneficiar$ #ill be entitled to t#ice the assured as additional
benefit%
Accident 5enefit HThis rider potion pa$s the su! assured under the rider on death
due to accident%
Critical Illness 5enefitH protects the insured a*ainst financial loss in the eent of :
specified critical illnesses% 5enefits are pa$able to the insured for !edical e&penses
prior to death%
Inco!e 5enefitH This rider pa$s the 17C of the su! assured to the no!inee eer$
$ear" till !aturit$"in the eent of the death of the life assured%It is aailable on
S!art-id" Secure Plus and Cash Plus
Kaier of Pre!iu!H In case of total and per!anent disabilit$ due to an accident"
the pre!iu!s are #aied till !aturit$% This rider is aailable #ith Secure Plus and Cash
Plus%8ICICI Prudential Life Insurance(Product profile"477?9
T% .O/N COLLE0E :
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
OR,ANI.ATION STRUCTURE
T% .O/N COLLE0E 17
CEO / MANA,IN, DIRECTOR
SALES /
DISTRIDUTION
DIRECTOR
HUMAN
RESOURCE
DIRECTOR
FINANCE
DIRECTOR
MIS /
PLANIN,
DIRECTOR
OPERATIONS
DIRECTOR
HR HEAD
T / D
HEAD
NATIONAL
MANA,ER
0RANCH
MANA,ER
E1PENESES
MANA,ER
PURCHASE
MANA,ER
FACILITY
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
'.Fun#tion o (ariou" De!artment"
ICICI Prudential perfor!s arious function in its da$ Fto(da$ #or-in*%Follo#in*
are the i!portant Functions ICICI Prudential% 8###%iciciprulife%co!9

Sale" Di"tri%ution
1$ Tied A)en#2
Tied a*enc$ is the lar*est distribution channel of ICICI Prudntial"co!prisin* a
lar*e adisor force that tar*atets arieous custo!er se*!ents%The stren*th of tied
a*enc$ lies in an a**ressie strate*$ of e&ppandin* and procurin* 3ulit$
bussiness% Kith focus on sales G people deelop!ent" Tied a*enc$ has as a
robust" predictable and sustainable bussinesss !odel%
'$ 0an#a""uran#e and Allian#e"
ICICI Prudential #as a pioneer in offerin* life insurance solution throu*h
ban-s AND ALLIANCES% Kithin ashort span of t#o $ears" and #ith nearl$
alar*e nu!ber of partners"5GA has e!er*ed as a ital co!ponent of the co!pan$
sales Gdistribution strate*$
Contributin* to appro&i!atel$ one third of co!pan$2s total business%
The business philosoph$ at 5Ga is to leera*e distribution s$ner*ies #ith
our partners and add alu to its custo!ers as #ellas the partners% Fle&ibilit$"
adaptation and e&peri!entin* #ith ne# ideas are the hall!ar-s of this channel%
T% .O/N COLLE0E 11
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
,rou!
The *roup business of ICICI Prudential has been in e&istence for oer
4$ears%Toda$"#e are the Nu!ber 1pla$er a!on* priate life insurance co!panies
in *roup 5usiness e&cludin* ,ort*a*e Reducin* Ter! Assurance 8,RTA7#ith a
!ar-et shsre of 4<C8FE 477;(477<9%
Ke offer the entier *u!ut opf prouducts includin* 0ratuit$"
Superannuatin* ter! Insurance" Leae Encase!ent" E!plo$ee Deposit Lin-ed
Insurance 8EDLI9" ,ort*a*e Reducin* Ter! Assurance 8,RTA9GInfor!al
0roup Ter! coers%
Cu"tomer Ser(i#e / O!eration"
The Operation depart!ent oils the #or- processes bet#een the custo!er
and the co!pan$ to to ensure consistent and 3ualit$ serice to the custo!er% To
strea!line the operations" the Operations" the Operations depart!ent interfaces
bet#een the clients and the a*ents" the branches and the under#riters" and
!ana*es #or- process%
The Bision at Custo!er Serice is to delier 2Korld Class Serice2 at
eer$ opportunit$% Units such as the : to : contact center" Outbound Call Center"
Custo!er Care and Luer$ Resolution Unit are all co!!itted to proidin*
effectie solutions to oer la-hs of custo!ers across the countr$%
Inormation Te#*nolo)2
The Infor!ation Technolo*$ function at ICICI Prudential is co!!itted to
enable business throu*h the use of technolo*$% It is se*!ented into > *roup to
enable hi*hest leels of delier$ to the custo!erH Life Asia Solutions 0roup that
proides fle&ibilit$ in desi*nin* better product offerin*s to end(users" the
Solutions 0roup( Keb that proides real(ti!e infor!ation to custo!ers and is
responsible for custo!er relationship !ana*e!ent" IT Architecture G Corporate
T% .O/N COLLE0E 14
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Solutions 0roup is in char*e of deelopin* and !aintainin* a blueprint for the IT
architecture for the enterprise as #hole%
This tea! #or-s as an in house RGD Solution 0roup" e&plorin* ne#
technolo*ical initiaties and also caters to infor!ation needs of corporate
functions the or*ani+ation% IT Infrastructure *roup is responsible for proidin*
hard#are" soft#are" net#or- serices to the #hole or*ani+ation% This *roup runs
the MDi*ital Nerous S$ste!N the Enterprise at the hi*hest leels of efficienc$ and
proides robust" scalable and hi*hl$ aailable platfor! for deplo$!ent of
business application%
Mar&etin)
The ,ar-etin* function at ICICI Pru coers an arra$ of actiities F brand
and !edia !ana*e!ent" channel support" direct !ar-etin* and corporate
co!!unications% The 5rand and Co!!unications tea! is in char*e of
adertisin*" consu!er research" !edia plannin* G bu$in* and public RelationsD
that helps deelop and nurture ICICI Prudential2s corporate identit$ effectiel$
co!!unicatin* its aried product offerin*s to the custo!er% Channel !ar-etin*
proides support to the sales force b$ strea!linin* the desi*n and deelop!ent of
collateralNs and sales tools across distribution channels%
The Direct !ar-etin* tea! #as set up to *enerate hi*h 3ualit$ leads for
profitable business% The tea! achiees this throu*h tar*et database ac3uisition
and co!!unicatin* custo!i+ed product infor!ation throu*h e(!ailers"
tele!ar-etin* and innoatie direct !ailers%
T% .O/N COLLE0E 1?
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Finan#e
Finance function in ICICI Prudential is co!!itted to create an
infrastructure is ali*ned to shareholder e&pectations% Finance basicall$ co!prises
of four functions% Corporate Plannin* and ,IS proide feedbac- on business
strate*ies% This includes driin* the bud*etin* process" proidin* strate*ic inputs
for decision(!a-in* and !ana*e!ent reportin* and anal$sis% The Accounts
function includes preparation and !aintenance of financial records" funds
!ana*e!ent" and e&pense processin* and treasur$ operations% Co!pliance
ensures that eer$ action is #ithin the re*ulator$ fra!e#or-%
This includes reie#in* co!pliance re3uire!ents and supportin* the
ethical fra!e#or- of ICICI Pru life% Internal audit proides assurance to the
!ana*e!ent oer the or*ani+ation2s control fra!e#or- and includes process ris-
!ana*e!ent" infor!ation securit$ and business continuit$ assess!ent%
Human Re"our#e
The People strate*$ of ICICI Prudential is ) To a co!!itted tea! #ith a
culture of innoation" learnin* and *ro#th% The /u!an Resource Function at
ICICI Prudential dries the people strate*$ of the business% Kith its initial focus
on operational e&cellence to delier benefits and serices to staff !e!bers" /R is
no# co!!itted to buildin* capabilit$ throu*h state of the art processes% A robust
perfor!ance !ana*e!ent s$ste!" co!pensation s$ste! and a se*!ented trainin*
architecture enable it to delier alue to the or*ani+ation%
0u"ine""
E&cellence The 5usiness E&cellence function is co!!itted a 3ualit$
!indset across the or*ani+ation% ICICI Prudential is first or*ani+ation in the
Insurance Industr$ that has adopted the Si& Si*!a ,ethodolo*$ for process
efficienc$ and !easure!ent% The tea! is also driin* the ,alcol! 5aldri*e
fra!e#or- across the or*ani+ation" an interention that e&a!ines !ana*e!ent of
-e$ inputs for business e&cellence% 8###%iciciprulife%co!9
T% .O/N COLLE0E 1>
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
DISTRI0UTION
ICICI Prudential has one of the lar*est distribution net#or-s a!on*st
priate life insurers in India" hain* co!!enced operations in <: cities and to#n
in India% These areH A*ra" Ah!edabad" A'!er" Allababad" A!ritsar" to custo!ers%
Auran*abad" 5an*alore" 5areill$" 5hopal" 5huhaneshar" Calicut"
Chandi*arh" Chennai" Coi!batore" Dehradu!" Dur*apur" Faridabad" 0oa"
0untur" 0ur*aon" 0u#ahati" 0#alior" /$derabad" /ubli" Indore" .alandhar"
.a!na*ar" .a!shedpur" .odhpur" 6anpur" 6arnal" 6ochi" 6ol-ata" 6olhapur"
6ota" 6otta$a!" Luc-no#" Ludhiana" ,aduria" ,eerut" ,ubai" ,$sore" Na*pur"
Nasi-" Noida" Ne# Delhi" Patiala" Pune" Raipur" Ra'-ot" Ranchi" Rour-ela" Sale!"
Sili*uri" Surat" Thane" Thrissur" Trich$" Triandru!" Udaipur" Badodra" Bapi"
Baranasi" Bashi" Bi'a$a#ada and Bi+a*%
The Co!pan$ has seen 5ancassurance tie(ups" hain* a*ree!ents #ith
ICICI ban-" Federal 5an-" South Indian 5an- of India" Lord 6rishna 5an- and
so!e co(operatie ban-s" as #ell as oer 1<7 corporate a*ents and bro-ers% It has
also tied up #ith or*ani+ations li-e Dhan for distribution of Salaa! Jinda*i" a
polic$ for the sociall$ and econo!icall$ underpriile*ed sections of societ$%
ICICI Prudential has recruited and trained about ;7"777 insurance adisors
to interface #ith and adise custo!ers% Further" it leera*es its state(of(the(art IT
infrastructure to proide superior 3ualit$ of serice%
'.3.PRO4ECT IN THE 0AC5,ROUND OF THE OR,ANISATION

ICICI Prudential Life Insurance Co!pan$" #hich #as established in Dece!ber
4777" #as the first priate sector insurance co!pan$ in India% It has 'oint enture bet#een
ICICI 5an- and Prudential Plc 8a pre!ier financial po#er house9%It has #ide ran*e of
fle&ible insurance products that !eets the needs of Indian custo!er step in life%

T% .O/N COLLE0E 1;
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
/o!e assure Gall other insurance product are such insurance coer #hich is a
!ort*a*e G ris- reducin* ter! assurance plan desi*ned specificall$ to help custo!ers
coer their ho!e loan and life in si!ple and cost(effectie !anner% Due to the increasin*
de!and for houses especiall$ in cities" housin* finance industr$ is at present #itnessin*
real estate price hi-e% Thus it is a er$ bi* opportunit$ for ICICI Prudential to capture the
!ar-et in !ort*a*e reducin* ter! assurance plan%
/ence the stud$ focuses on understandin* this insurance coer in detail in order
to anal$ses its financial benefits and find out the financial e&pectations ICICI housin*
finance custo!ers fro! such an insurance coer% This stud$ thus enables to forecast ne#
sche!es that #ill be helpful in attractin* !ore custo!ers%
1.6 PRO0LEM IDENTIFICATION
ICICI Prudential life Insurance is hain* #ide ran*e of insurance coer in India
and /o!e assure is one a!on*st it% Thou*h the$ hae a potential and *reat deal of sales
force in 5an*alore" unfortunatel$ the$ still haen2t *ot !uch presence in !ort*a*e
reducin* ter! assurance plan na!ed )/o!e Assure)% /ousin* finance is in industr$"
#hich has ast potential for *ro#th in the $ears to co!e% /ence it is an opportunit$ for
ICICI Prudential to capture the !ar-et in !ort*a*e reducin* ter! assurance% Therefore if
ICICI Prudential is able to co!e out #ith innoatie insurance coer for ho!e loan as
per the financial e&pectations of custo!er than it is er$ eas$ to attract custo!ers and
there b$ !a-e their presence felt in the !ar-et%
T% .O/N COLLE0E 1<
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
LITERATURE RE7IE8
'.1 INSURANCE
Insurance is a contract bet#een t#o parties #hereb$ one part$ called insurer
underta-es in e&chan*e for a fi&ed su! called pre!iu!s" to pa$ the other part$
happenin* of a certain eent% It is a protection a*ainst a financial loss arisin* on the
happenin* of an une&pected eent% Insurance Co!panies collects pre!iu! to proide for
this protection% A loss is paid out of this pre!iu! collected fro! the insurin* public% The
Insurance Co!pan$ acts as a trustee to the a!ount collected throu*h pre!iu!%

In"uran#e i" )enerall2 #la""iied in t*ree main #ate)orie"9
Life Insurance
/ealth insurance and
0eneral Insurance
To *et insurance an indiidual or an or*ani+ation can approach to an insurance
co!pan$ directl$" throu*h Insurance A*ent of the concerned co!pan$ of or throu*h
Inter!ediaries% 8.ulia /ol$o-e" )Insurance)" 47749
'.' 0ENEFITS OF INSURANCE
Insurance is the instru!ent of securit$" sain* and peace of !ind% It proide seeral
benefit b$ pa$in* a s!all a!ount of pre!iu! to an insurance co!pan$ asH 8.ulia
/ol$oa-e" )Insurance)" 47749
Safe*uards oneself and one2s fa!il$ for future re3uire!ents
Peace of !ind(in case of financial loss
Encoura*e sain*
T% .O/N COLLE0E 1@
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Ta& rebate
Protection fro! the clai! !ade b$ creditors
Securit$ a*ainst a personal loan" housin* loan or other t$pes of loan
Proide a protection coer to industries" a*riculture" #o!en and child
'.3 8OR5IN, OF AN INSURANCE SECTOR
The sole purpose of insurance is to rei!burse the insured for losses on propert$"
health" crops" life etc% Insurance can *enerall$ be defined as proision a*ainst loss1 i%e% in
the eent that the s$ste! is not lon*er able to handle the loss b$ its o#n !eans% Insurance
is the poolin* of ris- in order to spread the losses of a fe# 8indiidualsIco!panies9% A
nu!ber of indiiduals contribute financiall$ to a pool of funds that can be used to
rei!burse the contributors of da!a*es incurred%
The idea of insurance is based on the assu!ption that the ris- that all contributors
#ill incur da!a*es a the sa!e ti!e is lo#% In other #ords" each contributor helps the
other contributor to recoer financiall$ fro! a loss that the$ #ould other#ise be unable to
cope #ith indiiduall$% This principal can onl$ #or- if the insured ris-s of the indiidual
!e!bers of the insured co!!unit$ are si!ilar% The insurance industr$ !aintains e3uit$
of ris- b$ settin* pre!iu!s accordin*l$%
The insurance sectors consist of three !ain pla$ersH polic$holders 8the insured9"
Pri!ar$ insurers 8insurance co!panies9" and re(insurers 8the insurance co!panies that
insure the pri!ar$ insurers9% The interaction of these tree pla$ers can be obsered in
dia*ra! 1% Polic$holders are confronted #ith the possibilit$ of a loss 8a tornado for
e&a!ple9 and the$ approach a pri!ar$ insurer to spread their ris- of this happenin* for
the!% The pri!aries insure a*rees as lon* as the polic$holder is #illin* to pa$ the
pre!iu!% This pre!iu! is set based on the insurance co!pan$2s assess!ent of the ris-
that a tornado #ill actuall$ ta-e place" as #ell s the eentualit$ that the polic$holder #ill
T% .O/N COLLE0E 1=
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
be unable to coer the loss the!seles% The hi*her the ris-" the hi*her the pre!iu!% The
pri!ar$ insurer also ta-es out insurance a*ainst the possibilit$ of its polic$holders
clai!in* a loss b$ pa$in* a pre!iu! to a reinsurance co!pan$% There insurance
co!pan$ also sets its pre!iu!s based on the ris- it e&pects is associated #ith the pri!ar$
insurers clai!in* losses%
Khen a polic$holder clai!s a loss fro! a pri!ar$ insurer" #ho conse3uentl$
clai!s fro! the reinsurance co!pan$" the polic$holder Ms pre!iu! is recalculated 8in
accordance #ith the ter!s of the polic$9 based on the ne# infor!ation and a ne#
esti!ation of ris-% 86no&" )Life Insurance)" 1::<9
The de*ree of ris- that insurance co!panies face is influenced b$ t#o factorsH the
probabilit$ that an eent #ill occur 8e%*% a tornado9 #hich result in loss to the polic$
holderD and the probabilit$ that the polic$ holder #ill not be able to coer the econo!ic
loss associated #ith the eent%
T% .O/N COLLE0E 1:
POLICE/OLDER
RE(INSURER
PRI,ARE INSURER
TORNADO
RE(ASSESS PRE,IU,S
RE(ASSESS PRE,IU,S
CLAI,S
FRO,
CLAI,S
FRO,
Fi)'.1: 8or&in) an in"uran#e "e#tor
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Traditionall$ ris-s calculated based on obserations of the past% The !ore
obserations that hae been !ade in the past the !ore accurate the calculation of the ris-
is%
The accurac$ of the ris- calculation is also influenced b$ ho# #ell the interaction
of all the ariables in understood 8Nutter" 1::<D S#iss Re" 1::>9 0loball$" the insurance
industr$ is do!inated b$ four European and U%S% reinsurance co!panies% There are other
reinsurance co!panies based in Australia and .apan but the$ do not pla$ as lar*e a role%
The fact that that the *lobal reinsurance !ar-et is do!inated b$ onl$ four !a'or
co!panies is i!portant for the industr$ as a #hole re*ardless of #here in the #orld
pri!ar$ insurers are located% The si+e of the *lobal insurance !ar-et2s financial loss
resere is currentl$ 8US9 A1<7 billion a $ear% If the industr$ #ere to incur losses because
of a hurricane in the Caribbean" !udslides in ,e&ico" and drou*ht in the North A!erican
0reat Plains si!ultaneousl$ 8i%e% in the sa!e $ear9" the chances are that the reseres
#ould be depleted and the industr$ !a$ not be able to coer all clai!s and could *o
ban-rupt% Eu*ene Leco!te 8in Deerin*" 1::>9" President of the Insurance Institute for
Propert$ Loss Reduction" states that t#o eents could conceiabl$ ta-e a#a$ A@7(=7
billion of the A1<7 billion in surplus% If that happened" )$ou2d cripple the industr$% It
#ouldn2t be able to ta-e on ne# ris-s% It #ouldn2t hae the capacit$ to under#rite the
future% Ke2d hae !assie" !assie aailabilit$ proble!s%) This is the -ind of ris- that
the industr$ !a$ be facin* if cli!ate chan*e is happenin*" and especiall$ if it #ere to
happen rapidl$" 86no&" )Life Insurance)" 1::<9
T% .O/N COLLE0E 47
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
'.6 INSURANCE INDUSTRY+,LO0AL
Insurance and ris- !ana*e!ent is an i!!ense *lobal industr$% ,assie sources
of insurance co!pan$ inco!e include annuities" other retire!ent and inest!ent
products alon* #ith profits that insurance under#riters earn on their o#n assets and
reseres% For e&a!ple" the National Association of Insurance Co!!issioner
8NAIC9 esti!ates that life and health insurers earned about A4>7 billion in net
inest!ent inco!e in each of the first fie $ears of the 4777s%
Insurance is uni3ue in the financial serices field because it is re*ulated pri!aril$
at the state leel 8#hile ban-in* and inest!ents are re*ulated pri!aril$ b$ po#erful
federal a*encies such as the Securities and E&chan*e Co!!ission9% This !ean that
insurance fir! !ust deal #ith up to ;7 different sets of state re*ulations and ;7 different
state re*ulator$ a*encies%
At the sa!e ti!e" the$ !ust deelop do+ens of different pre!iu! rate structures
that appropriatel$ reflect the costs of !eetin* local ris-s and fulfillin* state re3uire!ents%
As a result" fe# insurance under#riters offer all of their insurance products in all ;7
statesD !an$ do business onl$ in a li!ited nu!ber of states% 8###%internationalinsurance%or*9
Insurance under#ritin* does not earn consistent leels of profits% Insurance
co!panies so!eti!es face a $ear of losses" rather than profits" due to natural disaster
such as hurricanes" floods or an oerl$ actie fire season% /ealth insurance can be a
particularl$ difficult sector in #hich to earn stead$ profits" because costs often e&ceed
pro'ections% Occasionall$" insurance under#riters *o bro-e" and fir!s that rate the
financial stabilit$ of insurance under#riters al#a$s list !ore than a fe# that are not
financiall$ sound%
The insurance industr$ includes a #ide ariet$ of sectors and serices% The !ost
obious are insurance under#riters that coer the ris-s and issue the policies" alon* #ith
the a*encies that sell insurance% /o#eer" there are also lar*e nu!bers of consultin*
T% .O/N COLLE0E 41
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
fir!s" clai!s" processin* fir!s" date collection fir!s and !$riad other speciali+ed fields
serin* the industr$%
In addition" three is the insurance bro-ers2 niche" #hich has traditionall$ posted
eniable profits% Nor!all$" insurance bro-ers2 F co!panies that are supposed to eniable
profits% Nor!all$" insurance bro-ers(co!panies that are supposed to represent the interest
of !a'or corporate clients #hile findin* these custo!ers the best coera*e at the best
ra*es( #ould be little -no#n to the *eneral public% /o#eer" scandal roc-ed the
bro-era*e sector durin* 477>" and re*ulators2 efforts to control this sector continue to
create ast chan*es% ,ean#hile" so!e !e!bers of the bro-era*e industr$ are pro!otin*
the idea of i!portant chan*e for! #ithin" includin* the abolition of incentie pa$!ents
and a focus on actin* as adocates for clients%
The bi**est challen*es facin* the insurance industr$ toda$ lie in the health
coera*e sector" #here soarin* costs" !alpractice liabilit$ suits and a rapidl$ a*in*
U%S%population !a-e it e&tre!el$ difficult for insurers to forecast future costs and
appropriatel$ price their products% ,ean#hile" health coera*e under#riters face *ro#in*
de!and for! patients for !ore choices of proiders and treat!ents% Accordin* to Stee
Cocheo" 8#riter of A5A Insurance 'ournal9 in A!erica alone" the insurance business
e!plo$s about 4%; !illion people% Life and health insurance in the United States #ill be
about a A @4; billion in *ross reenues business in 477<" co!pared to onl$ about A;77
billion in 4774% U%S% life insurance fir!s holds about A?%= trillion in assets%
8###%internationalinsurance%or*9
Recent re*ulator$ chan*e hae hei*htened co!pletion #ithin the insurance
industr$ an area in #hich co!petition has al#a$s been fierce% Finical serices !e*a(
fir!s hae resulted" !an$ of #hich offer a co!plete ran*e of financial serices and
products to their custo!ers" fro! chec-in* account to inest!ent products to life
insurance% For e&a!ple" ban-s are slo#l$ *ainin* !ar-et share in the sale of insurance
products" particularl$ annuities and life insurance% Inest!ent co!panies li-e ,errill
L$nch are ea*er to sell insurance to their custo!ers as #ell% 5an- holdin* co!panies
T% .O/N COLLE0E 44
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
hae been a**ressiel$ ac3uirin* insurance a*encies% Co!petition #ill onl$ beco!e
!ore intense% Khile there are tens of thousands of s!all insurance industr$ co!panies in
the U%S% alone" the industr$ tends to be concentrated in fe# hundred !a'or co!panies"
!an$ of #hich en'o$ brands that are household na!e% A handful of these leadin* fir!s"
such as AI0" operate on a trul$ *lobal scale% 8###%internationalinsurance%or*9
TA0LE '.1: THE 8ORLD;S LEADIN, INSURANCE COUNTRIES9 '<<=
>Dire#t !remium" ?ritten9 U.S @ %illion"$
Ran& Countr2
Non+Lie
Premium
Lie
Premium
Amount
A C*an)e
rom !rior
2ear
A O total
?orld
!remium"
1%
United States
;1:%: >=7%; 1"777%? 17%@ ?=%:;
4%
.apan
:17%7 ?;>%< >>;%< 7%4 1<%:<
?%
United 6in*do!
@@%7 1;:%@ 4?<%@ @%: :%71
>%
0er!an$
@>%: <7%: 1?;%= :%@ ;%1@
;%
France
>>%< =7%> 14;%1 =%= >%@<
<%
Ital$
?1%< ;4%> =>%1 4?%7 ?%47
@%
South 6orea
1<%1 ?:%? ;;%> :%@ 4%11
=%
Canada
4=%; 47%@ >:%4 =%< 1%=@
:%
Spain
47%> 4?%= >>%? 41%< 1%<=
17%
The Netherlands
1=%: 47%= ?:%= 4%4 1%;1
1:%
India
?%4 14%? 1;%; ( 7%;:
SourceH Fortune ,a*a+ine" 477@
T% .O/N COLLE0E 4?
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Sure$ conducted b$ Fortune !a*a+ine in 477@ has found the #orld leadin*
insurance countries #ith respect to the direct pre!iu! #ritten% United States #as found
to be the hi*hest in its ran- because the$ possess the hi*hest percenta*e of total #orld
pre!iu!s 8?=C9 as sho#n in the table4%1 India stands 1:
th
position in insurance industr$
and its percenta*e of total #orld pre!iu! is found to be onl$ 7%;C% the table belo#
sho#s the total direct pre!iu!s #ritten for arious life insurance pre!iu!s and non(life
insurance pre!iu!s of arious countries% Their respectie percenta*es of total #orld
pre!iu!s are as sho#n in the fi*ure4%4
Fortune !a*a+ine has also conducted a sure$ on top ten *lobal lifeIhealth
insurance co!panies in 477@ based on their reenue obtained and IN0 *roup of
T% .O/N COLLE0E 4>
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Netherlands #as found to be the top !ost #ith A=="174 !illion reenue% The Table4%4
and Fi*ure 4%? belo# sho#s the top ten *lobal lifeIhealth insurance co!panies%
Ta%le'.' To! ten )lo%al lieB*ealt* in"uran#e #om!anie"9 %2 re(enue9 '<<=
RAN5S COMPANY RE7ENUE >@million"$ COUNTRY
1 IN, ,rou! 1CD9'E6 Net*erland"
' A1A 13F9E3D Fran#e
3 A""i#uraGioni ,enerali 1<19D11 Ital2
6 A(i(a D396DE U.5
C Prudential ==9136 U.5
= Ni!!on Lie In"uran#e C=9='6 4a!an
E Sumitomo Lie In"uran#e CC9CD6 4a!an
D Met lie C39'EC U.S
F Ae)on 6C9F3F Net*erland"
1< Le)al/,eneral ,rou! 3D9CE6 U.&
T% .O/N COLLE0E 4;
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
COMPANY COUNTRY
1% IN0 0roup Netherlands
4% AOA France
?% Assicura+ioni 0enerali Ital$
>% Aia U%6
;% Prudential U%6
<% Nippon Life Insurance .apan
@% Su!ito!o Life Insurance .apan
=% ,et life U%S
:% Ae*on Netherlands
17% Le*alG0eneral 0roup U%6
T% .O/N COLLE0E 4<
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Revenue
in US$
Million
1 2 3 4 5 6 7 8 9 10
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
'.C INSURANCE INDUSTRY INDIA:
'.C.1 Introdu#tion
India is the lar*est de!ocrac$ in the #orld hain* a population !ore than one
billion% It is ;
th
lar*est in the #orld in ter!s of purchasin* po#er parit$8PPP9% India 0DP
*ro#th rate is oer < percent per $ear on aera*e for the last decade and sain* rate is
around 4< percent of 0DP%
The per capita spend on insurance in India is A:"co!pared #ith A4";77 in the US
and A;7(177 in Southeast Asia% The rise in the nu!ber of nuclear fa!ilies #ill proide an
i!petus for *ro#th% /o#eer" this needs to be supported #ith parallel deelop!ents in
the industr$%
Throu*h IndiaNs econo!ic deelop!ent" it beco!es the !ost lucratie insurance
!ar-ets in the #orld% 5efore the $ear1::: there #ere !onopol$ of sate run Life
Insurance Corporation of India 8LIC9 in life insurance sector and 0eneral Insurance
Corporation of India 80IC9 #ith its four subsidiaries in *eneral sector% In the #a-e of
refor! process and passin* Insurance Re*ulator$ Deelop!ent Act 8IRDA9 throu*h
India Parlia!ent in 1:::" Indian Insurance #as opened for priate co!panies% It has been
three $ears since the Indian insurance !ar-et has opened up" and the ne# entrants into
the !ar-et hae set up shop in eer$ !a'or cit$%
The public sector co!panies hae alread$ established the!seles in the !ar-et% 5ut
there are !ultiple challen*es faced b$ these insurance co!panies" of #hich t#o are
critical
Desi*nin* of products suitin* the !ar-et
Usin* the ri*ht distribution channel to reach the custo!er%
T% .O/N COLLE0E 4@
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Khile the co!panies hae been 3uite successful in dealin* #ith the first of these
challen*es usin* the e&istin* product features and leera*in* the technical -no#(ho# of
their partners" !ost are still *rapplin* #ith the ri*ht channel !i& for reachin* potential
custo!ers%
Innoatie products" s!art !ar-etin*" and a**ressie distribution hae enabled
fled*lin* priate insurance co!panies to si*n up Indian custo!ers faster than an$one
e&pected% Indians" #ho had al#a$s seen life insurance as a ta& sain* deice" are no#
suddenl$ turnin* to the priate sector and snappin* up the ne# innoatie products on
offer 8###%indiansure%co!9
There are presentl$ 14 *eneral insurance co!panies #ith four public sector
co!panies and ei*ht priate insurers% Accordin* to esti!ates" priate insurance
co!panies collectiel$ hae a 17C share of the non(life insurance !ar-et%
'.C Hi"tor2 o In"uran#e "e#tor in India
The business of life insurance in India in its e&istin* for! started in India in the
$ear 1=1= #ith the establish!ent of the Oriental Life Insurance Co!pan$ in Calcutta%
So!e of the i!portant !ilestones in the life insurance business in India areH
1:14H the Indian Life Assurance Co!panies Act enacted as the first statute to re*ulate
the life insurance business%
1:4=H the Indian Insurance Co!panies Act enacted to enable the *oern!ent to
collect statistical infor!ation about both life and non(life insurance businesses%
1:?=HEarilare le*islation consolidates and a!ended to b$ the# insurance Act #ith the
ob'ectie of protectin* the interests of the insurin* public%
1:;<H4>; India and forei*n insurance and proident societies ta-e oer b$ the central
*oern!ent and nationalised%LIC for!ed b$ an Act of Parlia!ent"i+%LIC Act"
T% .O/N COLLE0E 4=
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
1:;<"#ith a capital contribution of Rs%; crore fro! the 0oern!ent of India%The
*eneral insurance busines in India" on the other hand" can trace its roots to the Triton
Insurance Co!pan$ Ltd%" the first *eneral insurance co!pan$ established in the $ear
1=;7 in Cacutta b$ 5ritish%
So!e of the i!portant !ilestones in the *eneral insurance business in India areH
1:7@DThe India ,ercantile Insurance Ltd%set up" the first co!pan$ to transact all
classes of *eneral insurance business%
1:;@H0eneral Insurance Council" a #in* of the Insurance Association of India" fra!es
a code of conduct for ensurin* fair conduct and sound business practices%
1:<=HThe Insurance Act a!ended to re*ulate inest!ent and set !ini!u! solenc$
!ar*ins and the Tariff adisor$ Co!!ittee set up%
1:@4H The 0eneral Insurance 5usiness 8Nationali+ation9 Act"1:@4 nationali+ed
the*eneral insurance business in India #ith effect fro! 1
st
.anuar$
1:@?H17@ insurers a!al*a!ated and *rouped into four co!panies i+%The national
Insurance Co!pan$ Ltd%and the United India Insurance Co!pan$ Ltd%Oriental
Insurance Co!pan$%8###%irda%co!9

'.C.3 In"uran#e Se#tor reorm"
In 1::?" ,alhotra Co!!ittee" headed b$ for!er Finance secretar$ and R5I
0oernor R%n%,alhotra" #as for!ed to ealuate the India Insurance Industr$ and
reco!!end its future direction% The ,alhotra co!!ittee #as set up #ith the ob'ectie of
co!ple!entin* the refor! initied in the financial sector% The refor!s #ere ai!ed at
Pcreatin* a !ore efficient and co!petitie Financial s$ste! suitable for the re3uire!ents
of the econo!$ -eepin* in !ind the structural chan*es currentl$ under#a$ and
reco*nisin* that insurance is an i!portant part of the oerall Financial s$ste! #here it
#as necessar$ to address the need for si!ilar refor!s%NN In1::>" the co!!ittee sub!itted
the report and so!e of the -e$ reco!!endations includedH
T% .O/N COLLE0E 4:
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
i$ Stru#ture
0oern!ent sta-e in the insurance Co!panies to be brou*ht do#n to ;7C
0oern!ent should ta-e oer the holdin*s of 0IC and its subsidiaries so that
these subsidiaries can act as independent corporations
All the insurance co!panies should be *ien *reater freedo! to operate
ii$ Com!etition
Priate Co!panies #ith a !ini!u! paid up capital of Rs%1bn should be allo#ed
to enter the industr$
No Co!pan$ should deal in both Life and *eneral Insurance throu*h a sin*le
entit$
Forei*n co!panies !a$ be allo#ed to enter the industr$ in collaboration #ith the
do!estic co!panies
Postal Life Insurance should be allo#ed to operate in the rural !ar-et
Onl$ one State Leel Life Insurance Co!pan$ should be allo#ed to operate in
each state
iii$ Re)ulator2 0od2
The Insurance Act should be chan*ed
An Insurance Re*ulator$ bod$ should be set up
Controller of Insurance8Currentl$ a Part fro! the Finance ,inistr$9should be
!ade independent
T% .O/N COLLE0E ?7
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
i($ In(e"tment"
,andator$ Inest!ent of LIC Life fund in *oern!ent securities to be reduced
fro!@;Cto;7C
0IC and its subsidiaries are not to hold !ore than ;Cin an$ co!pan$8There
current holdin*s to be brou*ht do#n to this leel oer a period of ti!e9
7$ Cu"tomer "er(i#e
LIC should pa$ interest on dela$s in pa$!ents be$ond?7da$s%
Insurance co!panies !ust be encoura*ed to set up unit lin-ed pension plans%
Co!puteri+ation of operation and updatin* of technolo*$ to be carried out in the
insurance indust$%The co!!ittee e!phasi+ed that in order to i!proe the
custo!er serice and increase the coera*e of the insurance industr$ should be
opened up to co!petition%5ut at the sa!e ti!e"the co!!ittee felt the need to
e&ercise caution as an$ failure on the part of ne# pla$ers could ruin the public
confidence in the industr$%/ence"it #as decided to allo# co!petition in a li!ited
#a$ b$ stipulatin* the !ini!u! capital re3uire!ent of Rs%177crores%
The co!!ittee felt the need to proide *reater autono!$ to insurance Co!panies in
order to i!proe their perfor!ance and enable the! to act as independent co!panies
#ith econo!ic re*ulator$ bod$%8B%A Aadhani" P,ar-etin* of Financial
SericesQ"477<$.
'$T*e In"uran#e Re)ulator2 and De(elo!ment Aut*orit2
Refor! in the Insurance sector #ere initiated #ith the passa*e of the IRDA 5ill in
Parlia!ent in Dece!ber 1:::%The IRDA since its incorporation as a statutor$ bod$ in
April 4777 has fastidiousl$ stuc- to its schedule of fra!in* re*ulation and re*isterin* the
priate sector insurance co!panies%
T% .O/N COLLE0E ?1
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
The other decisions ta-en si!ultaneousl$ to proide the supportin* s$ste!s to the
insurance sector and in particular the life insurance co!panies #as the lunch of the
IRDANs online serice for issue and rene#al of licensees to a*ents%
The approal of institutions for i!partin* trainin* has also ensured that the
insurance co!panies #ould hae a trained #or-force of insurance a*ents in place to sell
their products" #hich are e&pected to be introduced b$ earl$ ne&t $ear% Since bein* set up
as an independent statutor$ bod$ the IRDA has put in a fra!e#or- of *loball$
co!patible re*ulations% In the priate sector 14life insurance and <*eneral insurance
co!panies hae been re*istered%
At the ti!e of priati+ation" it #as esti!ated that onl$44Cof the insurable
population in India had life insurance% KhatNs in a countr$ of oer one billion" life
insurance pre!iu! for!s onl$ 1%=Cof 0%D%P indicatin* the e&tend of underinsurance%
,ore recent fi*ures put this nu!ber at4%;Cof 0%D%P" possibl$ an indication of the priate
insurers alread$1777 crores RS thatNs 'ust one(#a$ of ie#in* the action in the insurance
sector% The !ar-et hain*1? priate pla$ers in the life se*!ent
The furious pace of chan*e can be best *au*ed b$ loo-in* at the nu!ber of
opportunites that hae opened up for alternatie distribution channels since priati+ation%
5ancassurance"corporate a*ents"third part$ ad!inistarors"and bro-ers hae depend the
!ar-et% The Indian insurance !ar-et toda$ *ro#in* at 47C% The scope for further *ro#th
can be esti!ated throu*h lo# penetration leels% India is one of the lo#est penetrated
!ar-ets and IRDA% The re*ulator$ authorit$" re3uires eer$ insurer to *et al!ost 1;C
business fro! the ruler !ar-et" here N0O G self help *roup pla$ piotal role%
A /u*h opportunit$ lies in ta-in* insurance to the Indian !asses% The need of the
hour is 8B%A Aadhani" P!ar-etin* of Financial sericesNN" 477<9
A#areness leel
Innoatie products
Tailor !ade solutions
T% .O/N COLLE0E ?4
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
INDUSTRY PLAYERS
In the t#o $ears of insurance !ar-et liberali+ation 8April4(Dece!ber ?1"477<9as
!uch as 4> priate sector co!panies includin* 'oint entures #ith leadin* forei*n
insurance co!panies hae entered the Indian insurance sector%Of this"thirteen #ere under
the life insurance cate*or$"ten under *eneral insurance and one in the reinsures cate*or$%
Kith an annual *ro#th rate of 1;(47Cand the lar*est nu!ber of life insurance
policies in force" the potential of the Indian insurance industr$ is hu*e% Total alue of
policies in force" the potential of the India insurance industr$ is hu*e% Total alue of the
Indian insurance !ar-et 8477>(7;9 is esti!ated at Rs% >;7 billion 8USA 17 billion9%
Accordin* to *oern!ent sources" the insurance and ban-in* sericesNs *ross
do!estic product 80DP9 is @C out of #hich the *ross pre!iu! collection for!s a
si*nificant part% The funds aailable #ith the state(o#ned Life Insurance Corporation
8LIC9 for inest!ents are =C of 0DP 8###%indiainfoline%co!9
Till date" onl$ 47C of the total insurable population of India is coered under
arious life insurance sche!es" the penetration rates of health and other non(life
insuranceNs in India is also #ell belo# the international leel% These facts indicate the of
i!!ense *ro#th potential of the insurance sector%
The $ear 1::: sa# a reolution in the Indian insurancesector" as !a'or structural
chan*es too- place #ith the endin* of 0oern!ent !onopol$ and the passa*e of the
Insurance Re*ulator$ and Deelop!ent Authorit$ 8IRDA9 5ill" liftin* all entr$
restrictions for priate pla$ers and allo#in* forei*n pla$ers to enter the !ar-et #ith so!e
li!its on direct forei*n o#nership%
Thou*h" the e&istin* rule sa$s that a forei*n partner can hold 4<C e3uit$ in an
insurance co!pan$" a proposal to increase this li!it to >:C is pendin* #ith the
*oern!ent% Since openin* up of the insurance sector in 1:::" forei*n inest!ents of
Rs%=%@ billion hae poured into the Indian !ar-et and 41 priate co!panies hae been
*ranted licenses% Toda$ the Indian *eneral insurance !ar-et is alued at Rs 1>"777 crore%
T% .O/N COLLE0E ??
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
It is pro#in* at a rate of 47 per cent and is e&pected to reach Rs%>;" 777 crore in about 17
$ears% Priate pla$ers hae alread$ *ained a 17 percent share in three $ears%
Life Insurance Corporation 8LIC9" has lost !ore than =7C !ar-et share after
postin* a !ar*inal 1%:C*ro#th in business #hen co!pared to the fiscal $ears4774(477?"
#hile priate pla$ers *re# b$ !ore than 1;?C durin* 477?(7>% Despite the flat *ro#th of
!ar-et leder LIC" the life insurance industr$ as a #hole *re# b$ a !odest 17%;C to !op
up Rs 1="@17crore 8Rs 1=@%@@ billion9 inpre!iu! inco!e for ne# businesses in 477?(7>%
LICNs !ar-et share in ter!s of pre!iu! collection co!e do#n to =@C in ,arch
end 477>" fro! :>%?C in 4774(7?" accordin* to data co!piled b$ IRDA% The state o#ned
insurer !opped up Rs% 1<"4=; crore 8Rs 1<4%=;billion9 in pre!iu! fro! ne# businesses
durin* 477>(7;" #hich is !ar*inall$ hi*her than Rs 1;":@@ crore 8Rs 1;:%@@ billion9 in
477;(7<8###%indiainfoline%co!9
The table 4%> sho#s the life insurance businesses of arious life insurance
co!panies fro! April(Sept 477< in #hich LIC is found to be the hi*hest% Fro! the table
it can be seen that out of arious insurance co!panies"
LIC is still the leadin* insurance co!pan$ in India% A!on*st the Priate pla$ers
in Insurance ICICI prudential life insurance is found to be leadin*% Thou*h the$ are far
behind LIC" other priate co!panies are not too far behind ICICI prudential life
insurance% The fi*ure 4%; belo# sho#s the !ar-et share of arious life insurance
co!panies%
T% .O/N COLLE0E ?>
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Ta%le '.6: Lie In"uran#e Mar&et S*are
Lie In"uran#e %u"ine"" in A!ril+Se!t '<<=
Sl%
No
Insurer
Total Pre!iu!
under#ritten
8in Rs Cr%9
Total No% Of
Policies Issued
,ar-et Share
5ased on
Se!t A!r+Se!t Se!t A!r+Se!t Premium Poli#2
1 Tata AI0 1;%1> ;?%7> 1;;>; ;??7< 1%1; 7%@4
4 O, 6ota- ;%1@ 4<%1> ?>=? 1<;=@ 7%>< 7%1:
? 5irla Sun Life 1<%:: =4%>1 =1=@ ?@4?4 1%;4 7%>?
> ,a& Ne#
Eor-
14%11 >?%<= <71; >?4<7 7%= 7%;
; IN0 B$as$a ?%7@ 14%;= >@=? 47??: 7%4? 7%4?
< /DFC
Standard
11%44 ;<%1: 114>; @11;@ 1%44 7%=1
@ ,et Life 1%=4 @%4> 471> @>:; 7%1? 7%7:
= Allian+ 5a'a' 14%>> >@%1= 1>?<= ;@<7@ 7%=@ 7%@@
: ICICI
Prudential
;4%7@ 1=;%74 44<>= 11?17; ?%>1 1%4:
17 S5I Life 14%?1 ?4%:@ >;=4 1;>7< 7%<1 7%1=
11 Aia ;%>1 44%1> ;?47 4@1<? 7%1> 7%?1
14 A,P San!ar 1%@; <%;< >7>; 1?;;@ 7%14 7%1;
Total 16F.6= CFC.36 1<C1D= 6F='6D 1<.FC C.=D
1? LIC :;4%4? >=>7%<? =4>1@@; =4%7; =>%?4
,rand Total 11<1.<F C63C.FE DE3D<'6 1FDCF6C 1<<.<< 1<<.<<
T% .O/N COLLE0E ?;
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Fi*H 4%; !ar-et share of life insurance co!panies in India%
The sure$ conducted b$ business line research bureau of 5usiness line sho#ed that"
ICICI prudential led the chart for priate pla$ers #ith a !ar-et share of 1%4:C follo#ed
b$ 5irla Sun Life 7%>?C" /DFC Standard Life 7%=1C" S5I Life 7%1=C" Tata AI0" and
Allian+ 5a'a' 1Ceach% ICICI Prudential doubled itNs business to Rs% @;1 crore 8Rs @%;1
billion9 last fiscal fro! Rs ?<> crore 8Rs ?%<> billion9 in 4774(477?%
'.C.C.1 Li"t o Lie In"urer"
T% .O/N COLLE0E ?<
84.32
0.15
0.31
0.19
0.72
0.23
0.09
0.43
0.18
1.29
0.77
0.81
0.5
Tata AIG OM Kotak Birla Sun i!"
Ma# $"% &ork I$G '(a)(a *+,- Stan.ar.
M"t i!" Allian/ Ba0a0 I-I-I 1ru."ntial
SBI i!" A2i2a AM1 San3ar
I-
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Follo#in* are the lists of life insurers in India%Earlier there #as an onl$ ei*ht
priate life insurer in India" but no# has increased to 1? as listed belo#% 8###%irda%co!9
1% ALLIANJ 5A.A. LIFE INSURANCE CO%LTD
4% A,P SAN,AR ASSURANCE CO%LTD
?% 5IRLA SUN LIFE INSURANCE CO%LTD
>% DA5UR C0U LIFE INSURANCE CO%LTD
;% /DFC STANDARD LIFE INSURANCE CO%LTD
<% ICICI PRUDENTIAL LIFE INSURANCE CO%LTD
@% IN0 BESEA LIFE INSURANCE CO%PBT%LTD
=% LIFE INSURANCE CORPORATION OF INDIA
:% ,AO NEK EOR6 LIFE INSURANCE CO%LTD
17% ,ETLIFE INDIA INSURANCE CO%PBT%LTD
11% O, 6OTA6 ,A/INDRA LIFE INSURANCE CO%LTD
14% S5I LIFE INSURANCE CO%LTD
1?% TATA AI0 LIFE INSURANCE CO%LTD
T% .O/N COLLE0E ?@
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
'$ Li"t o non+lie in"urer"
There are ten non(life insurers in India and follo#in* are list of those ten non(
insurer in India%8###%irda%co!9
1$ 0A4A4 ALLIAN. ,ENERAL INSURANCE CO.LTD
'$ ICICI LOM0ARD ,ENERAL INSURANCE CO.LTD
3$ IFFCO TO5YO ,ENERAL INSURANCE CO.LTD
6$ NATIONAL INSURANCE CO.LTD
C$ NE8 INDIA ASSURANCE CO.LTD
=$ ORIENTAL INSURANCE CO9LTD
E$ RELIANCE ,ENERAL INSURANCE CO.LTD
D$ ROYAL SUNDARAM ALLIANCE INSURANCE CO.LTD
F$ TATA AI, LIFE INSURANCE CO.LTD
1<$ UNITED INDIA INSURANCE CO.LTD
'.C.C.3 Rein"ure"
There is onl$ one reinsurer in India and it is na!ed 0ENERAL INSURANCE
CORPORATION OF INDIA%8###%irda%co!9
'.C.= Ne? !rodu#t" in t*e Mar&et
Kith the de!o*raphic chan*es and chan*in* life st$les" the de!and for insurance
coer has also eoled ta-in* into consideration the needs of prospectie polic$holder for
pac-a*ed products% There hae been innoations in the t$pes of products deeloped b$
the insurers" #hich are releant to the people of different a*e *roups" and suit their
re3uire!ents%
A nu!ber of ne# products hae been introduced in the life se*!ent #ith
*uaranteed additions" #hich #ere subse3uentl$ #ithdra#nItoned do#nH sin*le pre!iu!
!ode has been populari+edD unit lin-ed productD and onIriders includin* accident deathD
disburse!ent" critical illness" fi&ed ter! assurance ris- coer" *roup hospital and sur*ical
T% .O/N COLLE0E ?=
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
treat!ent" hospital cash benefits" etc% Co!prehensie pac-a*ed products hae
been populari+ed #ith features of endo#!ent% !one$ bac-" #hole life" sin*le pre!iu!"
re*ular pre!iu!" rebate in pre!iu! for hi*her su! assured" pre!iu! !ode rebate" etcH
to*ether #ith riders to the base products%
In the case of the ne# insurers a si*nificant contribution to the life pre!iu! #as
fro! unit(lin-ed polices% Khile LIC as been a si*nificant pla$er in traditional life
insurance products" it is no# *earin* up to !eet the co!petition and intends to introduce
!ore unit(lin-ed product in the !ar-et% There is a need to deelop product for !etin* the
post(retire!ent custo!er hori+on of insurer" lac- of aenues for inest!ent force the! to
search for plans to par- their sain*s in arious sche!es includin* insurance%
8###%blonnet%co!9
'.C.E Future !o""i%ilitie" o India in"uran#e mar&et
Insurance is a colossal sector in India that is *ro#in* at a speed$ rate of 1;(47C
Accordin* to business line research bureau" there is hu*e potential *ro#th of India
Insurance sector in ne&t ;to17 $ear and 'ob opportunities are li-el$ to increase !anifold
and there could be a hu*e in flo# of funds into the countr$%
In areas of reinsurance hu*e capacit$ is li-el$ to be created #ith pla$ers li-e
S#iss Re and ,unich re obserin* the unfoldin* sa*a of liberali+ation of insurance
industr$ in India%
Substantial shift in the distribution of insurance in India is li-el$ to ta-e place and
!an$ of these chan*es #ill echo international trends% Korld #ide insurance products
!oe in a continuu! fro! pure serice products to pure co!!odit$ products%
T% .O/N COLLE0E ?:
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Korld #ide interest in E(co!!erce and India2s predo!inant position in
infor!ation technolo*$ and soft#are deelop!ent is also li-el$ to be a !a'or factor in
the !ar-etin* of insurance products in the i!!ediate future% 0ro#th pattern of Indian
insurance industr$ is so#n belo#%
Fro! the fi*ure 4%<"it can be seen that fro! 1::7(4777%there #as fluctuations in the
*ro#th of India insurance industr$ ran*in* fro! ;Cto1;C%5$ 4774"*ro#th rate
increased and reached >7Cand a*ain decreased %5ut there after Indian Insurance Industr$
#ould be stable"and due to this total real pre!iu! #ould rise up tre!endousl$ till 4714%
8###%insure!a*ic%co!9
T% .O/N COLLE0E >7
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
A%out ICICI Prudential Lie In"uran#e
ICICI Prudential Life Insurance co!pan$ is a 'oint enture bet#een ICICI ban-
and prudential plc%It #as one of the first pla$ers to co!!ence operations #hen the
insurance industr$ #as opened to the priate sector in 4777%
In the financial $ear ended ,arch?1" 477<" the co!pan$ *arnered Rs1;=>crore of
ne# business pre!iu! for a total su! assured of Rs%1?"@=7crore and #rote nearl$
<1;"777 policies%The co!pan$ has a net#or- of about;<"777 adisorsD as #ell as @ has
retained its position as the No%1priate life insurer in the countr$"#ith a #ide ran*e of
fle&ible products that !eet the needs of the India custo!er at eer$ stepin life%To -no#
!ore about the co!pan$"please isit
E&cept for historical infor!ation contained herein" state!ents in this release
#hich contain #ords or phrases such as 2#ill2" 2#ould2" 2ai!2" 2#ill li-el$ result2" 2beliee2"
2e&pect2" 2#ill continue2" 2anticipate2" 22esti!ate2" 2intend2" 2plan2" 2conte!plate2" 2see- to2"
2future2" 2ob'ecties2" 2*oals2" 2pro'ect2" 2should2" 2#ill pursue2" and si!ilar e&pressio7ns or
ariations of such e&pressions !a$ constitute 2 for #ord loo-in* state!ents2% These
for#ard(loo-in* state!ents inole a nu!ber of ris-s" uncertainties and other factors that
could case actual result to differ !ateriall$ fro! those su**ested b$ the for#ard(loo-in*
state!ents% These ris- and uncertainties include" but are not li!ited to ICICI 5an-2s
abilit$ to successfull$ i!ple!ent its strate*$ in the field of insurance" our *ro#th and
e&pansion" technolo*ical chan*es" inest!ent inco!e" cash flo# pro'ections" our
e&posure to !ar-et ris-s as #ell as the other ris-s detailed in the reports filed b$ ICICI
5an- 8'oint pro!oters of ICICI(Prudential Life Insurance Co!pan$ Li!ited9#ith the
securities and E&chan*e Co!!ission of the United States% ICICI 5an- underta-es no
obli*ation to up date for#ard(loo-in* state!ent to reflect eents or circu!stances after
the date thereof%
T% .O/N COLLE0E >1
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
ICICI Pru. to!" !remium in#ome #*art
It lo**ed a pre!iu! inco!e of Rs::7 crore in the financial $ear 477<(7@% This
reflects a 1?; per cent *ro#th oer last $earNs 8477<(7@9 inco!e of Rs>;7crore%Ne#
business inco!e rose b$ 17< per cent to Rs@;1 crore deposit a 1; per cent lapse rate in
polic$ rene#als" the co!pan$2s rene#al pre!iu! increased b$?4;per cent to Rs4?=
crore%
At present ICICI Prudential Life has around a >7 per cent share a!on* the
priate insurance industr$ in retail sales% The total su! assured since its inception has
risen to Rs1<" 777crore #ith Rs="1@? crore added in fiscal477@%
ICICI Prudential Life chief e&ecutie officer and !ana*in* director Shi-h Shar!a
said that oer =7per cent of the >%?<la-h policies sold #ere unit(lin-ed plans" #ith
pension plans accountin* for 'ust 4=per cent of ne# businesses%
22Ke intend to co!e out #ith !ore pension and annuit$ products in the current
fiscal 8477<(7@9 as #e find this as undeeloped !ar-et" 22said Shar!a%
Not enou*h products e&ist in the !ar-et toda$ as the industr$ continues to a#ait
ta& refor!s% Toda$ polic$holders can *et total ta& e&e!ption up to Rs 17"777 under
Section 17 CCC of the Inco!e Ta& Act%
As such" #ithout ta& refor!s it is not conducie for custo!ers to inest !ore
under pension plans% On the *roup side" ICICI Prudential has not been as actie as it has
been a late entrant%
)Ke started tar*etin* *roup insurance this $ear 8477>(7;9 and hae been able to
tap around 177clients% The pre!iu! has been !inuscule as the sales c$cle is lon* and
aries bet#een si&(nine !onths to close a transaction"22 said Shar!a%
,ore oer" #ith the rate #ar ra!pant in(*roup ter!" ICICI Prudential has been
choosin* on the business it under#rites%
T% .O/N COLLE0E >4
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
)0roup ter! is aco!!odit$" and as business is purel$ rate(drien" this is not our
focus area" )she added%
'.E.' Dierent t2!e o term a""uran#e
,ort*a*e Protection 8Decreasin* Ter!9
,ort*a*ee Protection life assurance is desi*ned to ensure that $our capital
repa$!ent ,ort*a*e Protection life assurance is paid off should $ou die fro! a critical
illness% 8.ulia /olo$oa-e" )Insurance)" 47749
Le(el Term A""uran#e
This is the !ost popular t$pe of polic$ to proide life assurance coer oer a
fi&ed ter!% The cost is relatiel$ lo#" and it *enerall$ accepted as a suitable !ethod of
proidin* lo# cost fa!il$ coer" or to proide securit$ on an interest onl$ !ort*a*e%
If at the end of the of polic$ the life assured is still alie" the contract ceases and
no pa$!ent is !ade% In its !ost strai*htfor#ard fro! the su! assured does not ar$
durin* the ter! of the polic$% This is -no#n as leel ter! assurance" but sophistication2s
can be introduced%
For e&a!ple" the su!assured under a ter! assured under a ter! assurance can be
of a decreasin* nature% This !eans that the su! assured is reduced each $ear 8or
so!eti!e !ore fre3uentl$9 b$ a stated a!ount" perhaps reducin* to nil b$ the end of the
polic$ ter!% On the other hand the su! assured !i*ht be of an increasin* nature" bein*
enhanced each $ear b$ fi&ed annual rate of" sa$" 17C%
Decreasin* ter! assurance !i*ht #ell be used in connection #ith a !ort*a*e
#here the annual repa$!ents are reducin* the capital" a!ount of the loan outstandin*%
Increasin* ter! assurance !i*ht be utili+ed #hen it is considered essential to -eep the
su! assured in line #ith real !one$ alue%
Critical illness coer can be included #ithin the polic$% It is usuall$ far less
e&pensie if this coer is co!bined to pa$ on the first occurrences opposed to t#o
separate policies%
T% .O/N COLLE0E >?
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Con(erti%le term A""uran#e
This is a leel ter! polic$ #ith the conertible option added% This per!its us to
chan*e the polic$ to a #hole of life or endo#!ent 8dependin* on the insurer and ter!
offered at the ti!e of e&ercisin* the option9 at an$ ti!e #ithin the polic$ ter!% This #ill
be #ithout the need to proide further eidence of health% On a li-e for li-e basis" the
pre!iu! for this polic$ is *enerall$ !ore e&pensie than for leel ter! assurance%
Critical Illness coer can be included%
Famil2 In#ome 0eneit
This polic$ #ill pa$ our chosen re*ular inco!e oer the re!ainin* ter! of the
polic$ if #e #ere to die% On death the su! assured"is paid as an inco!e rather than a
lu!p su!"and these annual 8or !onthl$9a!ounts are paid fro! the date of death until
the e&pir$ date%Policies can be effected on sin*le or 'oint benefits" and inde& lin-ed
benefit are aailable%So!e insurer2s can also include critical illness #ithin this t$pe plan%
Rene?al Term A""uran#e
This t$pe of polic$ is *enerall$ suitable for -e$ person coer and for their #hore
re3uires coer for a personal loan etc% At the end of it2s ter!s 8;($ears for e&a!ple9" #e
hae hae the option to rene# the the polic$ #ithout the need to proide eidence of our
health at that ti!e% /o#eer" the pre!iu! #ill be releant to our a*e" #hich #ill in !ost
cases be si*nificantl$ hi*her at each rene#al% Nor!all$ such an option #ould stipulate
the sa!e su! assured for the further ter! to a !a&i!u! a*e of ;; or <7%
8*ole o lie
This t$pe of life assurance proides coer throu*hout all of our life% These
policies hae the option to include critical illness coer and can be set up in a ariet$ of
#a$s%
The$ can be set up on a 25alanced2 basis" #hich proides a leel su! assured throu*hout
the plan" or on a 2,a&i!u!2 basis #hich proides the chosen su! assured for the first 17(
T% .O/N COLLE0E >>
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
$ears of the polic$" #ith a reduced su! assured appl$in* thereafter 8unless pre!iu!s are
si*nificantl$ increased to sustain the initial su! assured9%
,ost of these policies are inest!ent based% The pre!iu!s bu$ units in a unit
trust fund and *ro# in alue dependin* on the perfor!ance of the funds8s9% The
insurance co!pan$ cancels so!e of the units to pa$ for the coer% Pre!iu!s are sub'ect
to reie#" nor!all$ after 17 $ears and eer$ ; $ears thereafter% If the alue of the polic$
is lo#" the insurer !a$ increase the pre!iu! to sustain the coer% 8.ulia /olo$a-e"
)Insurance)" 47749
'.E.3. Mort)a)e Redu#in) Term A""uran#e >MRTA$
,RT is a reducin* ter! life assurance speciall$ desi*ned to protect a loan
borro#er a*ainst death or TPD 8total per!anent disabilit$9 due to natural or accidental
causes% /o!e is one of the !ost i!portant assets" and #ith a substantial portion of
!onthl$ inco!e *oin* to#ards !ort*a*eD it !a-es *ood sense to protect it% ,ort*a*e life
Insurance ensures that if so!ethin* happens to !ort*a*e loan applicant" their !ort*a*e
loan is repaid and their ho!e is protected% 86enneth 5lac- .r%" )Life And /eath
Insurance)" 477;9%
'.E.6 0eneit" at a )lan#e
,uaranteed 0eneit to "ettle mort)a)e %alan#e
,RTA si!pl$ ensures that our !ort*a*e #ill be settled and thus securin* the
repa$!ent to our housin* loan% A *uaranteed benefit pa$!ent 8based on the table of
reducin* su!assured9 beco!es pa$able upon death or TPD 8sub'ect to standard
e&clusions on death or TPD9%
Li%eral Total Permanent Di"a%ilit2 Deinition
If $ou cannot perfor! $our o#n or si!ilar occupation b$ trainin*" education for
e&perience for a period of si& consecutie !onths" the TPD benefit beco!es pa$able if a
borro#er cannot perfor! an$ #or- to earn a liin* for the rest of hisIher lifeti!e%
T% .O/N COLLE0E >;
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
,uaranteed A##e!tan#e
Acceptance is *uaranteed for loan borro#in*s up R, 1;7" 777 entr$ a*es up to ;7
$ears ne&t birthda$ sub'ect to a pre(e&istin* condition% No !edical is needed and no
hassle%
Fle-i%le Co(era)e
E3uall$ applicable for co!pleted properties and properties under construction 8i%e%
full leel ter! coera*e durin* the period of construction9%
'6 Hour" 8orld?ide #o(era)e
Receie protection 4> hours a da$" an$#here in the #orld%
Sin)le Premium Pa2ment
En'o$ full protection b$ pa$in* a one(ti!e sin*le pre!iu! for entire duration of
custo!er2s loan%
Premium Finan#in)
Pa$ $our sin*le pre!iu! b$ a!orti+in* it oer the period of our loan #ith pre!iu!
financin*% Pre!iu! financin* eases our load and !a-in* it er$ affordable to custo!er%
86enneth 5lac- .r%")Life And /ealth Insurance)" 477;9%
T% .O/N COLLE0E ><
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
S 8 O T A N A L Y S I S
S t r e n ) t *
Stren*th !eans the factors" #hich sho#s a co!pan$ the #a$ to success %It onl$
because of stren*th a co!pan$ can success and achiees its *oal% The factors includes the
*ood#ill of the co!pan$" the product of the co!pan$" the satisfaction *ien b$ the
product to the custo!ers the !ar-etin* strate*ies applied" the !ana*e!ent" custo!er
serice and !an$ !ore% The !ost i!portant thin*s ith re*ard to the stren*th of a co!pan$
is the SINCERE AND EFFICIENT STAFF% The staff should be *ien proper trainin* and
deelop!ent
It is the leader in the priate sector proidin* co!plete solutions for lon*(ter!
protection and *oal oriented sain*s%
It is !ost accessible a!on* priate pla$er%
It adopts a transparent custo!er centric approach across its products and serice
delier$%
It is a trust#orth$ or*ani+ation #ith financial sta$in* po#er and proen capacit$
to delier on its pro!ise%
E!plo$ee stren*th
The adisors are its *reat stren*th and e&ternal staff of the or*ani+ation%
It proides i!!ense opportunities to adisors%
It offers the !ost enrichin* e&perience as an insurance adisor%
T% .O/N COLLE0E >@
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
PRODUCTS
It has the #idest ran*e of product and is the !ost established and successful pla$er in the !ulti channel
distribution !art%
5ancassurance is the other stren*th" #hich acts as a distribution channel of its product%
,ost Profitable products are offered then an$ other co!pan$%
CO,PANE AD,INISTRATION%
Steadil2 de#linin) e-!en"e ratio.
4771(74H@>C
4774(7?H;>C
477?(7>H4<C
477>(7;H1@C
477;(7<H1;C
477<(7@H14C
Hualit2 o !ortolio *i)*e"t !er"i"ten#2 >%a"ed on rene?a%le !oli#ie"$
4774(7?H=1%@C
477?(7>H=;%;C
477>(7;H:7C
477<(7@H:;C
T% .O/N COLLE0E >=
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
STRATE,IC TRAININ, A,ENDA
0enerall$ focused on the tree(pron*ed se*!ented trainin* strate*$%
CORE
PROFESSIONAL
LEADERSHIP DE7ELOPMENT
DELI7ER HI,H HUALITY TRAININ, PRO,RAMM.
T% .O/N COLLE0E >:
CORE
7ALUES
LEADER
SHIP
DE7ELO
PMENT
PROFES
SIONAL
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
CAPA0ILITY DE7ELOPMENT ROAD MAP

LE7EL I7
S5ILL FOR SENIOR MANA,ER
LE7EL III: S5ILL FOR MANA,ERS
LE7EL II: S5ILL FOR TEAM LEADERS

LEBEL IH S6ILL FOR ADBISORS
T% .O/N COLLE0E ;7
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
8EA5NESS
The first and fore!ost thin* that a custo!er puts for#ard is that it is a PRIBATE
SECTOR CO,PANE%
The other difficult that the co!pan$ is find is the less nu!ber of branches that the
co!pan$ hae in the countr$%
The ad!inistration e&pense char*ed to the custo!ers is bit hi*her than the LIC of
India%
Lar*e nu!ber of co!petitors%
OPPORTUNITIES
The follo#in* are the opportunities that can be utili+ed b$ the co!pan$ for its
0ro#thH
Less than 4;C of the insurable population in India has been insured%
India is the second lar*est population countr$ in the #orld but its share is onl$ 7%;C
of the total insurance in the #orld%
0ro#th rate of population1%=C
Life insurance !ar-ets 1@C to 44C*ro#ths b$ 477@%
Insurance pre!iu! constitutes 'ust about ;Cof the total 0DP% It is e&pected to *o up
to 1=C in the ne&t 17 $ears%
Per capital life insurance pre!iu! in a $ear in our countr$ #or- out to USA ; as
a*ainst the #orld fi*ure of USA44;%
E&pensie !edical care%
Opportunit$ to earn !ore !one$%
Opportunit$ to o#n business #ith lo# inest!ent%
Opportunit$ to share benefit of Life Insurance #ith societ$%
T% .O/N COLLE0E ;1
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
THREATS
T*e ollo?in) are "ome o t*e t*reat" a#ed %2 t*e #om!an2:
As there a lot of priate co!panies enterin* the areas of insurance business the
co!pan$ is facin* a lot of Co!pton fro! the!%
One of the challen*es is to chan*es the !indset of the people to par- their hard
earned !one$ in lon*(ter! insurance%
As Indian people2s !indset is !ore orthodo& and traditional the co!pan$ lac-s the
trust of the people it is a ne# co!pan$% People #ill *o to the old and trusted LIC
instead of inestin* in a ne# priate co!pan$%
T% .O/N COLLE0E ;4
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
7i"ion
)To be the do!inant Life and Pensions pla$er built on trust b$ #orld class people
and serice)%
This the$ hope to achiee b$H
Understandin* the needs of custo!ers and offerin* the! superior products and
serice
Leera*in* technolo*$ to serice custo!ers 3uic-l$" efficientl$ and conenientl$
Deelopin* and i!ple!entin* superior ris- !ana*e!ent and inest!ent
strate*ies to offer suitable returns to their polic$holders
proidin* an enablin* eniron!ent to foster *ro#th and learnin* for their
e!plo$ees
And aboe all" buildin* transparenc$ in all their dealin*s%
The success of the co!pan$ #ill be founded in its unflinchin* co!!it!ent to
; core alues(Inte*rit$" Custo!er first" 5oundar$ less" O#nership and Passion%
Each of the alue describes #hat the co!pan$ stands for" the 3ualities of their
people and the #a$ the$ #or-%
T% .O/N COLLE0E ;?
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
MISSION
Tailored to !eet the specific and eer chan*in* financial ris- e&posures
#hile facin* our custo!ers%
Promoter o ICICI !rudential Lie In"uran#e
1$ ICICI %an&
ICICI ban- 8NESED I5N9 is India2s second lar*est ban- and lar*est priate
sector ban- #ith oer ;7 $ears of financial e&perience and #ith assets of
Rs%1=14%4@ billion as on ?7
th
.une 477<% ICICI ban- offers a #ide ran*e of
ban-in* products and financial serice to corporate and retail custo!ers throu*h
a ariet$ delier$ channels and throu*h its speciali+ed subsidiaries and affiliates
in the areas !ana*e!ent% ICICI 5an- is a leadin* pla$er in the retail ban-in*
!ar-et and has oer 1? !illion retail custo!er accounts% The 5an- has a net#or-
of oer ;@7branches and e&tension counters" and 4"777 AT,s%
'$ Prudential Pl#.
Established in London in 1==>"Prudential plc" throu*h its business in the
U6 and Europe" the US and Asia" proides retail Finical serices products and
serice to !ore than 1<!illion custo!ers" polic$holder and unit holders
#orld#ide%
As of 'une?7" 477>"the co!pan$ had oer USA?77 billion in funds under
!ana*e!ent% Prudential has brou*ht to !ar-et an inte*rated ran*e of financial
serice products that no# includes life assurance" pensions" !utual funds"
ban-in*" inest!ent !ana*e!ent and *eneral insurance% In Asia" Prudential is the
leadin* European life insurance co!pan$ /on* 6on*" India" Indonesia" .apan"
6orea" ,ala$sia"the philippines"sin*apore"Tai#an"Thiland and Bietna!%
T% .O/N COLLE0E ;>
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
O04ECTI7E OF THE STUDY
To stud$ the perfor!ance and achiee!ents of ICICI PRUDENTIAL LIFE
INSURANCE CO,PANE%%
To -no# the consu!er a#areness to#ards polic$ of ICICI PRUDENTIAL LIFE
INSURANCE CO,PANE%
To !a-e brief stud$ of custo!er serice and also custo!er opinion or attitude
to#ards arious polic$ of ICICI PRUDENTIAL LIFE INSURANCE CO,PANE %
To stud$ of !ar-etin* strate*ies adopted b$ ICICI PRUDENTIAL LIFE
INSURANCE CO,PANE%
To stud$ the arious adanta*es and le*al aspects proided for insurance polic$
holders%
To *ie su**estions and reco!!endations to sole the proble! faced b$ the different
polic$ holders of ICICI PRUDENTIAL LIFE INSURANCE CO,PANE%
T% .O/N COLLE0E ;;
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Su**estions and Reco!!endations %
SU,,ESTIONS
The respondent2s for *ettin* better serices fro! ICICI prudential offices and its
e!plo$ees has for#arded a nu!ber of su**estions% A fe# pro!inent su**estion that
can be considered b$ ICICI Prudential Life Insurance are as underH
1. 0ran#* IA)ent relation"*i!%
The branch is re3uired to hae re*ular contact #ith its a*ents% It should conduct
!eetin* once in a #ee- or at least once in a !onth% This #ill help the a*ents to -eep in
touch #ith their branch%
'. 0u"ine"" A""o#iate IA)ent relation"*i!%
A business associate bein* at a hi*her post is re3uired to hae the leadership
3ualities% /e has to !otie and encoura*e his a*ents% Educate the! about the products
and #hen re3uired%
3. Full time a)ent"
It #as obsered that there are fe# full ti!e a*ents in the co!pan$% Dedication and
hard #or-in* can brin* *ood results% The co!pan$ is re3uired to !a-e the entire a*ent
a#are about the career opportunit$ pro*ra!% It should tr$ to *et !ore full ti!e a*ents%
6.Hualitie" o an a)ent
T% .O/N COLLE0E ;<
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
Khile appointin* an a*ent" the co!pan$ shipload obserer that the a*ent" first of
all should be *ood hu!an bein*" #ith their 3ualities li-e co!!unication s-ill" anal$+e
s-ill" (!otiation etc%
C$ Im!ro(ement in "er(i#e"
The procedure" The docu!entation and lead(ti!e should be reduced% The
custo!ers should be si!ple% Lon*er the ti!e" co!pan$ ta-es to co!plete the procedure"
The !ore the custo!er #ill loose the confidence and trust in the co!pan$ and it beco!es
difficult to retain custo!ers%
=$ Trainin) to a)ent"
Trainin* Pro*ra! should be conducted on products" !otiation and
co!petition re*ularl$% It #ould be better if the trainin* Pro*ra! is !ore interactie%
E$ Inormation to a)ent"
The co!pan$ should *ie all -ind of infor!ation relatin* to the co!pan$ and its
perfor!ance to their a*ents% The *ood results of the co!pan$ #ill !a-e the!feel proud
about the co!pan$%
D$ Mar&etin) "trate)2
If the fir! !ar-etin* strate*$ is to be successful" it !ust hae a !ar-etin*
!i& and a tar*et !ar-et for #hich the !ar-etin* !i& is prepared% so the co!pan$ should
ta-e the initiation to help those a*ents #ho are nit clear about their tar*et custo!er
dependin* Upon their capacit$%
F$ Ad(erti"in) and Pu%li#it2
,ore publicit$ is needed throu*h !ass co!!unication !edia% ,ore
adertise!ents are necessar$ all the co!!on public to ta-e Life Insurance Policies%
T% .O/N COLLE0E ;@
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
1<$ Settlement o #laim" and tran"er o !oli#e"
There should be 3uic- settle!ent of clai!s and transfer of polic$ is necessar$ for
transferrin* policies fro! one place to another place%
T% .O/N COLLE0E ;=
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
CONCLUSION
The aboe !entioned chapter starts #ith introduction and brief bac-*round about
ICICI Prudential #ith its detailed co!pan$ profile #hich ision" !ission arious
function and product profile of the co!pan$% This chapter sho#s ho# the pro'ect in
/o!e Assure is er$ releant for ICICI Prudential% The proble! identified and the
ob'ectie out for the stud$ is also detailed in this chapter%
The stud$ #as li!ited to fe# Direct ,ar-etin* and Direct Sellin* Tea!s of ICICI
5an- in 5idar due to shorta*e of ti!e% The pro'ect #as concentrated onl$ on the
financin* features of !ort*a*e reducin* ter! assurance plan na!ed 22/o!e Assure22 of
ICICI Prudential Life insurance%
T% .O/N COLLE0E ;:
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION
BIBLIOGRAPHY
0OO5S

1% .ulia /ol$o-e"22Insurance22"Tata ,c 0ra# /ill edition" Ne# Delhi"477<
4% B%A Aadhani" 22,ar-etin* of Finacial Serices22 /i!ala$a Publications" Ne# Delhi"
477>%
?% 6enneth 5lac- .r"22life and health insurance"22 Lo# Price Edition"Ne# Delhi477@
>% 6no&")Life insurance22" Tata ,c 0ra# /ill Edition"NEK DEL/I "1::<
;% ICICI Prudential Life Insurance Product ,anual"477@
8e%"ite"
1% ###%iciciprulife%co!
4% ###%birlasunlife%or*
?% ###%insure!a*ic%co!
>% ###%businessline%co!
;% ###%indianfoline%co!
<% ###%irda%co!
@% ###%international insurance %or*
=% ###%iciciban-%co!


T% .O/N COLLE0E <7
ICICI PRUDENTIAL LIFE INSURANCE CORPORATION

T% .O/N COLLE0E <1

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