Professional Documents
Culture Documents
ON
I would like to thanks Dr. Ajay Pratap Singh (project guide) for his
extensive guidance, cooperation and support.
Finally, I wish to express my gratitude to all those who have in one way or
other helped me in the successful completion of my project report.
VIVEK KUMAR
EXECUTIVE SUMMARY
Chapter 1 includes the introduction of the company wherein I told about the
Objectives of the study and profile of the ICICI Prudential.
Chapter 5 Bibliography.
TABLE OF CONTENTS
Declaration
Acknowledgement
Executive Summary
Chapter-1 Problem & Purpose:
- Sales Distribution
- Brand Values
- Achievements
- Products
1.2Overview of Industry
1.3Objectives of the study
1.4 Scope of the study
COMPANY PROFILE
ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion
(US$ 100 billion) at March 31, 2009 and profit after tax of Rs. 41.58 billion for the
year ended March 31, 2009. ICICI Bank is second amongst all the companies
listed on the Indian stock exchanges in terms of free float market capitalisation*.
The Bank has a network of about 1,308 branches and 3,950 ATMs in India and
presence in 18 countries. ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of
delivery channels and through its specialised subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture capital and
asset management. The Bank currently has subsidiaries in the United Kingdom,
Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong,
Sri Lanka, Qatar and Dubai International Finance Centre and representative
offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,
Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium
and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and
the National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
ICICI Prudential Life Insurance
Overview
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank -
one of India's foremost financial services companies-and Prudential plc - a
leading international financial services group headquartered in the United
Kingdom. Total capital infusion stands at Rs. 42.72 billion, with ICICI Bank
holding a stake of 74% and Prudential plc holding 26%.
ICICI Prudential is the first life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row,
ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by
The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'.
As we grow our distribution, product range and customer base, we continue to
tirelessly uphold our commitment to deliver world-class financial solutions to
customers all over India.
1. Our products have been developed after a clear and thorough understanding
of customers' needs. It is this research that helps us develop Education plans
that offer the ideal way to truly guarantee your child's education, Retirement
solutions that are a hedge against inflation and yet promise a fixed income after
you retire, or Health insurance that arms you with the funds you might need to
recover from a dreaded disease.
2. Having the right products is the first step, but it's equally important to ensure
that our customers can access them easily and quickly. To this end, ICICI
Prudential has an advisor base across the length and breadth of the country, and
also partners with leading banks, corporate agents and brokers to distribute our
products .
3. Robust risk management and underwriting practices form the core of our
business. With clear guidelines in place, we ensure equitable costing of risks,
and thereby ensure a smooth and hassle-free claims process.
4. Entrusted with helping our customers meet their long-term goals, we adopt an
investment philosophy that aims to achieve risk adjusted returns over the long-
term.
5. Last but definitely not the least, our 28,000 plus strong team is given the
opportunity to learn and grow, every day in a multitude of ways. We believe this
keeps them engaged and enthusiastic, so that they can deliver on our promise to
cover you, at every step in life.
vision:-
To be the dominant Life, Health and Pensions player built on trust by world-class
people and service.
Our values:-
Every member of the ICICI Prudential team is committed to 5 core values:
Integrity, Customer First, Boundaryless, Ownership, and Passion. These values
shine forth in all we do, and have become the keystones of our success.
ICICI Bank
ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the
second largest bank in the country, with consolidated total assets of $1 1 2.6
billion as of June 30 , 2008. ICICI Bank’s subsidiaries include India’s leading
private sector insurance companies and among its largest securities brokerage
firms, mutual funds and private equity firms. ICICI Bank’s presence currently
spans 19 countries, including India.
Established in London in 1848, Prudential plc, through its businesses in the UK,
Europe, US, Asia and the Middle East, provides retail financial services products
and services to more than 21 million customers, policyholder and unit holders
and manages over £256 billion of funds worldwide (as of June 30, 2008). In
Asia, Prudential is the leading Europe-based life insurer with life operations in
China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset
management companies in terms of overall assets sourced in Asia ex-japan, with
£34.3 billion funds under management (as of June 30, 2009) and operations in
ten markets including China, Hong Kong, India, Japan, Korea, Malaysia,
Singapore, Taiwan, Vietnam and United Arab Emirates.
Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the UK
and Europe, the US and Asia, provides retail financial services products and
services to more than 16 million customers, policyholders and unit holders
worldwide. As of June 30, 2004, the company had over US$300 billion in funds
under management. Prudential has brought to market an integrated range of
financial services products that now includes life assurance, pensions, mutual
funds, banking, investment management and general insurance. In Asia,
Prudential is the leading European life insurance company with a vast network of
24 life and mutual fund operations in twelve countries - China, Hong Kong, India,
Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand
and Vietnam.
Fact Sheet
The Company
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank,
a premier financial powerhouse, and Prudential plc, a leading international
financial services group headquartered in the United Kingdom. ICICI Prudential
was amongst the first private sector insurance companies to begin operations in
December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).
ICICI Prudential Life's capital stands at Rs. 42.72 billion (as of June 30, 2009)
with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For
the quarter ended June 30, 2009, the company garnered Retail Weighted New
Business Premium of Rs. 1,174 crores as against Rs 810 crores for the quarter
ended June 30, 2008, thereby posting a growth of 45% and has underwritten
over 6 lakh policies over this period. The company has assets held over Rs.
30,600 crore as on August 31, 2009.
ICICI Prudential Life is also the only private life insurer in India to receive a
National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The
AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI
Prudential's ability to meet its obligations to customers at the time of maturity or
claims.
For the past seven years, ICICI Prudential Life has retained its leadership
position in the life insurance industry with a wide range of flexible products that
meet the needs of the Indian customer at every step in life.
SALES DISTRIBUTION
Tied Agency
ICICI Prudential was a pioneer in offering life insurance solutions through banks
and alliances. Within a short span of two years, and with nearly a large number
of partners, B & A has emerged as a vital component of the company’s sales and
distribution strategy, contributing to approximately one third of company’s total
business. The business philosophy at B&A is to leverage distribution synergies
with our partners and add value to its customers as well as the partners.
Flexibility, adaptation and experimenting with new ideas are the hallmarks of this
channel.
Brand Values
Market Research reveals that the values people associate with ICICI Prudential
are, indeed, those that the company hopes to project: lifelong protection and
value for money. The core value is protecting your loved ones, throughout life’s
ups and downs. It is a powerful proposition; one, which ICICI Prudential, is taking
into the market place.
Achievements
In Keeping with its belief that a happy customer is the best endorsement, ICICI
Prudential has embraced the ‘SIX SIGMA’ approach to quality, an exercise that
begins and ends with the customer from capturing his voice to measuring and
responding to his experiences. This initiative is currently helping the company
improve processes, turnaround times and customer satisfaction levels. Another
Novel introduction is the ICICI Prudential Lifestyle Rewards Club, India’s first
rewards programme for Life Advisors; it allows ICICI Prudential Advisors to
redeem points for items ranging from kitchenware to gold, white goods, and even
international holidays.
PRODUCT/SERVICES PROFILE
LifeTime Gold is a unit-linked plan that offers customers the flexibility and
control to customize the policy to meet the changing needs at different life
stages. It offers 7 fund options - Preserver, Protector, Balancer, Flexi Balanced
Multiplier, R.I.C.H and Flexi Growth.
LifeStage RP is unit linked plan that provides you with an option of lifecycle-
based portfolio strategy that continuously re-distributes your money across
various asset classes based on your life stage. This will help you achieve the
right Asset Allocation to meet your desired financial goals.
LifeLink Super is a single premium unit linked insurance plan which combines
life insurance cover with the opportunity to stay invested in the stock market.
Premier Life Gold is a limited premium paying plan specially structured for
long-term wealth creation.
InvestShield Life New is a unit linked plan that provides premium guarantee
on the invested premiums and ensures that the customer receives only the
benefits of fund appreciation without any of the risks of depreciation.
LifeStage Assure a unit linked insurance plan that provide upto 450 % of first
year premium guarantee on maturity, with the additional advantage of a lifecycle
based portfolio strategy that allocates the investor’s money across various asset
classes based on his life stage and risk appetite.
Protection Solutions
LifeGuard is a protection plan, which offers life cover at low cost. It is available
in 3 options - level term assurance, level term assurance with return of premium
& single premium.
HomeAssure is a mortgage reducing term assurance plan designed specifically
to help customers cover their home loans in a simple and cost-effective manner.
Education Solutions
Retirement Solutions
LifeTime Super Pension is a regular premium unit linked pension plan that
helps one accumulate over the long term and offers 5 annuity options (life
annuity, life annuity with return of purchase price, joint life last survivor annuity
with return of purchase price, life annuity guaranteed for 5, 10 and 15 years & for
life thereafter, joint life, last survivor annuity without return of purchase price) at
the time of retirement.
LifeStage Pension is a regular premium unit linked pension plan that provides
you with a unique lifecycle-based strategy that continuously re-distributes your
money across various asset classes based on your life stage, eventually
providing you with a customized retirement solution.
Health Solutions
Health Assure Plus: Health Assure is a regular premium plan which provides
long term cover against 6 critical illnesses by providing policyholder with financial
assistance, irrespective of the actual medical expenses. Health Assure Plus
offers the added advantage of an equivalent life insurance cover.
Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis
as well as at different stages in the treatment of various cancer conditions.
Cancer Care Plus: is a wellness plan that includes all the benefits of Cancer
Care and also provides an additional benefit of free periodical cancer screenings.
ICICI Prudential Life also offers Group Insurance Solutions for companies
seeking to enhance benefits to their employees.
• Group Gratuity Plan: ICICI Prudential Life's group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner and also
avail of tax benefits as applicable to approved gratuity funds.
• Group Superannuation Plan: ICICI Prudential Life offers a flexible market
linked scheme that provides substantial benefits to both employers and
employees. Both defined contribution (DC) and defined benefit (DB) schemes are
offered to optimise returns for members of the trust and rationalise cost.
Members have the option of choosing from various annuity options or opting for a
partial commutation of the annuity at the time of retirement.
• Group Term Plan: ICICI Prudential Life's flexible group term solution helps
provide an affordable cover to members of a group. The cover could be uniform
or based on designation/rank or a multiple of salary. The benefit under the policy
is paid to the beneficiary nominated by the member on his/her death.
ICICI Prudential Life offers flexible riders, which can be added to the basic policy
at a marginal cost, depending on the specific needs of the customer.
Insurance carriers assume the risk associated with annuities and insurance
policies and assign premiums to be paid for the policies. In the policy, the carrier
states the length and conditions of the agreement, exactly which losses it will
provide compensation for, and how much will be awarded. The premium charged
for the policy is based primarily on the amount to be awarded in case of loss, as
well as the likelihood that the insurance carrier will actually have to pay. In order
to be able to compensate policyholders for their losses, insurance companies
invest the money they receive in premiums, building up a portfolio of financial
assets and income-producing real estate which can then be used to pay off any
future claims that may be brought. There are two basic types of insurance
carriers: direct and reinsurance. Direct carriers are responsible for the initial
underwriting of insurance policies and annuities, while reinsurance carriers
assume all or part of the risk associated with the existing insurance policies
originally underwritten by other insurance carriers.
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill
in Parliament in December 1999. The IRDA since its incorporation as a statutory
body in April 2000 has fastidiously stuck to its schedule of framing regulations
and registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to
the insurance sector and in particular the life insurance companies were the
launch of the IRDA’s online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have a trained workforce of insurance agents in
place to sell their products, which are expected to be introduced by early next
year.
Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life
insurance and 6 general insurance companies have been registered.
This study is based upon some objectives and these are as follows.
REVIEW OF LITERATURE
Customer Satisfaction
What is customer satisfaction?
Custo0mer satisfaction refers to how satisfied customers are with the products or
services they receive from a particular agency. The level of satisfaction is
determined not only by the quality and type of customer experience but also by
the customer’s expectations.
Why is it important?
• Meeting the needs of the customer is the underlying rationale for the
existence of community service organizations. Customers have a right to
quality services that deliver outcomes.
• Organizations that strive beyond minimum standards and exceed the
expectations of their customers are likely to be leaders in their sector.
• Customers are recognized as key partners in shaping service
development and assessing quality of service delivery.
1. Primary data
2. Secondary data
1) PRIMARY DATA: Primary data was collected from the different theories given
on the company’s website- www.iciciprulife.com.
2) SECONDARY DATA: Secondary data will consist of different literatures like
books which are published, articles, internet and company manuals.
SITUATION REVIEW
ICICI Prudential Life, introduced E-Portfolio statement for consumers. This first of
its kind service in the life insurance industry will provide consumers with a
customized e-statement with their complete investment details on a monthly
basis.
ICICI Prudential Life has always pioneered innovative initiatives towards
enhancing customer convenience. The E-Portfolio statement will provide the
customer a detailed summary of all his ULIP policies with the company. It will
also give the policyholder a fund wise break up of their investments in the
company’s equity and debt funds. Additionally, the statement will also advise the
policyholder on the ideal asset allocation strategy for the consumer. This will not
just help the customer in keeping a track of their investments but also to follow an
ideal asset allocation strategy enabling him to derive the benefit of long term
investment.
Customers can easily access their E-Portfolio statement by logging in on the
company website www.iciciprulife.com using their policy number and password.
The E-Portfolio statements will also be e-mailed to customers on a monthly basis
as a ready reckoner of their investments with the company.
The company is sensitive to the needs of the customers and realizes the
importance of innovative service offerings towards customer convenience and
satisfaction.
ICICI Prudential Life has a multi-channel distribution strategy to reach
customers.The company has scaled up its customer touch-points and actively
drives awareness and education campaigns amongst consumers towards
providing a seamless service delivery experience for customers across the
country.
SWOT ANALYSIS
STRENGTHS:
i. ICICI Prudential is the largest private player in India,
with a market share of around 36% amongst the private
players
ii. ICICI Prudential has deposited a paid up capital of Rs
925 crore with IRDA caution deposit, the highest among
all the life insurance company in India where as LIC has
deposited Rs 60 crore so far.
iii. ICICI Prudential is the first life insurance company to
offer ECS debit facility.
iv. ICICI Prudential is the first company to introduce unit
link life insurance and pension products. Presently the
maximum numbers of ranges are under ULIP life
insurance, investment as well as pension plan.
v. Products
• Flexibility to switch your fund value at your own discretion four times a
year viz. maximizer, protector, balancer, preserver.
• Greater transparency-policy holder knows what is happening to his
money and where the company has invested his money.
• Liquidity options-you can make complete or partial withdrawals any
time after 3 years.
• Life insurance plans are eligible for deduction under sec 80.
WEAKNESSES:
THREATS
i. The government players will become aggressive thus
growth is going to be tough.
ii. Entry of other players is not ruled out.
iii. Apprehension towards ICICI Prudential being a private
life insurance company.
iv. We expect the industry to rationalize in future that is
mergers and acquisitions will happen, which will impact
the industry and ICICI Prudential fortunes.
v. Products:
• Past performance of these plans is not indicative
of the future performance of the plan.
• The sum invested in the funds is subject to
market risks and there can be no assurance that
the objective of plan will be achieved.
CONCLUSION
After overhauling the all situation that boosted a number of Pvt. Companies
associated with multinational in the Insurance Sector to give befitting competition
to the established behemoth ICICI in private sector, we come at the conclusion
that
• There are very tough competition among the private insurance companies
on the level of new trend of advertising to lull a major part of Customers.
• ICICI is not left behind in the present race of advertisement.
• The entry of more Pvt. players in the Insurance Sector have expanded the
product segment to meet the different level of the requirement of the
customers. It has brought about greater choice to the customers.
• ICICI has vast market and very firm grip on its traditional customers and
monopoly of life insurance products..
SUGGESTIONS TO COMPANY:
Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI
invested, in terms of work force, in terms of market share, in terms of no. of
customers. All these positive stands of the company place at the number one
position. On second aspect whatever amount of money ICICI Prudential save,
can be used to increase the no. of policies, which will helpful to increase the
market share of the company. Since the customers think about the companies in
the industry, when they invest money in the life insurance industry. So it’s
necessary to increase the market share of the company. There are some
recommendations.
BIBLIOGRAPHY