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