A Study On Life Insurance PDF

INTRODUCTION:
The insurance sector in India governed by Insurance Act, 1938, the Life
insurance corporation Act, 1956 and General insurance Business Act, 1972, Insurance
Regulatory and Development Authority(IRDA) Act, 1999 and other related Acts.
With such a large population and the untapped market area of this population
Insurance happens to be a very big opportunity in India.
Economy Today it stands as a business growing at the rate of 15-20 percent
annually. Together with banking services, it adds about 7 per cent to the countrys
GDP. All this growth the statistics of the penetration of the insurance in the country is
very poor. Nearly 80% of Indian populations are without Life insurance cover and the
Health insurance. This is an indicator that growth potential Life insurance sector is
immense in India. It was due to this immense growth that the regulations were
introduced in the insurance sector and in continuation Malhotra Committee was
constituted by the government in 1993 to examine the various aspects of the industry.
The key element of the reform process was participation of overseas insurance
companies with 26% capital. Creating a more efficient and competitive financial
system suitable for the requirements of t he was the main idea behind this reform.
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Insurance Definition
A promise of compensation for specific potential future losses in
exchange for a periodic payment. Insurance is designed to protect the financial well-
being of an individual, company or other entity in the case of unexpected loss. Some
forms of insurance are required by law, while others are optional. Agreeing to the
terms of an insurance policy creates a contract between the insured and the insurer. In
exchange for payments from the insured (called premiums), the insurer agrees to pay
the policy holder a sum of money upon the occurrence of a specific event. In most
cases, the policy holder pays part of the loss (called the deductible), and the insurer
pays the rest. Examples include car insurance, health insurance, disability insurance,
life insurance, and business insurance.
Insurance Advantages
River Forest Yachting Centers have been recognized by several of the
large insurance companies and designated as pre-approved hurricane coded marine
facilities. The insurance companies' engineers and safety inspectors have concluded
that based on the inland locations, construction methods, and meticulous maintenance;
RFYC facilities are superior to other options making it an excellent insurance
risk.RFYC offers inside storage to protect your boat not only from the sun and wind,
but also from lightning which is a major cause of claims during the summer months.
RFYC also offers outside land storage with tie down cleats and straps your boat down
in the event of a wind storm to keep it safe and secure.
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RFYC has also developed a members only Hurricane Club to protect the
boats of local customers who choose to stay in Florida and need a refuge from the
storm.
As a result of storing with RFYC, qualified boat owners may receive up to a
20% credit off of their hull premium while maintaining full Florida coverage which
we have been informed is a highly unusual credit, never before provided in the State
of Florida. RFYC is happy to provide insurance referrals upon reque
Some Areas of Future Growth:
Life Insurance:
The traditional life insurance business for the LIC has been a little more than a
savings policy. Term life (where the insurance company pays a predetermined amount
if the policy holder dies within a given time but it pays nothing if the policy holder
does not die) has accounted for less than 2% of the insurance premium of the LIC
(Mitra and Nayak, 2001). For the new life insurance companies, term life policies
would be the main line of business
Life Insurance Plans
Life insurance products assure your family will receive financial support,
even in your absence. Put simply, when you buy insurance you provide your family
with a sum of money, should something happen to you. It thus permanently protects
your family from financial crises.
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In addition to serving as a protective cover, when you buy insurance you
create a flexible money-saving scheme, which empowers you to accumulate wealth to
buy a new car, get your children educational solutions, and even retire comfortably.
Today, there is no shortage of investment options for a person to choose from.
Given the plethora of choices, it becomes imperative to make the right choice when
investing your hard-earned money, and online insurance is an ideal choice in todays
technology driven world. Buying Life insurance online is a way to make a unique
investment that helps you to meet your dual needs - saving for life's important goals,
and protecting your assets.
`From an investor's point of view, an investment can play two roles - asset
appreciation or asset protection. While most financial instruments have the underlying
benefit of asset appreciation, buying life insurance online gets you the unique
reassurance of asset protection, along with a strong element of asset appreciation.
When you buy life insurance online the core benefit is that the financial
interests of ones family remain protected from circumstances such as loss of income
due to critical illness or death of the policyholder. Simultaneously, buying life
insurance online gives a strong inbuilt wealth creation proposition. The customer
therefore benefits on two counts and online insurance products occupy a unique space
in the landscape of investment options available to a customer.
As your life stage and therefore your financial goals change, the
instrument in which you invest should offer corresponding benefits pertinent to the
new life stage. Online insurance products are the only investment option that offer
specific products tailor-made for different life stages. You are thus ensured that the
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benefits offered to the customer reflect the needs of the customer at that particular life
stage, and hence ensures that the financial goals of that life stage are met.
On the basis of which life stage you are in and the corresponding
insurance needs, ICICI prudential plans can be categorized into the following three
types:
Education Insurance Plan
Wealth creation plan
Protection Plan
Health Insurance:
The Health insurance expenditure in India is roughly 6% of GDP,
much higher than most other countries with the same level of economic development.
Of that, 4.7% is private and the rest is public. What is even more staking is that 4.5%
are out of pocket expenditure there has been an almost total failure of the public
health care system in India. This creates an opportunity for the new insurance
companies.
Thus, private insurance companies will be able to sell health insurance to
a vast number of families who would like to have health care cover but do not have it.
Pension:
The pension system in India is in its infancy. These are generally three
forms of plans: provident funds, gratuities and pension funds. Most of the pension
schemes are confined to government employees (and some large companies). The vast
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majority of workers are in the informal sector. As a result, most workers do not have
any retirement benefits to fall back after retirement.
Total assets of all the pension plans in India amount to less than USD 40
billion.
Therefore, there is a huge scope for the development of pension funds in India.
The finance minister of India has repeatedly asserted that a Latin American style
reform of the privatized pension system in India would be welcome. Given all the
pros and cons, it is not clear whether such a wholesale privatization would really
benefit India or not.
CHANGES IN INSURANCE PRODUCTS AND PLANS IN 2010:
By the end of 2010, IRDA made far reaching changes in ULIP plans.
ULIP have become more stable and better as IRDA has capped the charges, extended
the minimum period, assured.
There is also discussion on giving banks more autonomy by
implementing an open architecture so that banks can act as an agent for insurance
products from different insurance providers. The decision has not been taken yet.
Cashless schemes got the beating from the insurance companies and they
refused to honor cashless hospitalization because of high charges. IRDA has refused
to intervene in this dispute.
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TRENDS IN 2011:
The changes made in 2010 and other discussions initiated will set the trend
of insurance industry in 2011 and beyond.
Life insurance:
The changes in ULIP structure will make it more popular in 2011.However,
there is concern that insurance providers will discourage selling ULIPs and they may
back to traditional plans.
There will be emphasis on traditional plans such as whole life insurance,
endowment plan, and money back plan. The term insurance may get cheaper as the
premium is inversely proportional to the life expectancy.
Additionally we will see banks increasing their focus on insurance related
business. Till now, banks have been allowed to sell insurance from one provider from
one provider only. The banking sector may open up and act as agent for multiple
insurance providers. Customers will have another channel to buy insurance from.
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NEED OF THE STUDY:
India with about 200 million middle class household shows a huge untapped
potential for players in the in the insurance industry. Saturation of markers in many
developed economies has made the Indian market even more attractive for global
insurance majors. The insurance sector in India has come to a position of very high
potential and competitiveness In the market. Indians, have always seen life insurance
as a tax saving device, are now suddenly turning to the private sector that are
providing them new products and variety for their choice.
Consumers remain the most important centre of the insurance sector. After the
entry of the foreign players the industry is seeing a lot of competition and thus
improvement of the foreign players the industry is seeing a lot of competition and thus
improvement of the customer service in the industry. Computerization of operations
and updating of technology has become imperative in the current scenario. Foreign
players are bringing in international best practices in service through use of latest
technologies.
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OBJECTIVES OF THE STUDY:
Marketing objectives:
Increase repeat customers.
Decrease customer acquisition costs.
Generate brand equity, quantified by an increase in unsolicited
service requests.
Financial Objectives:
Profitability by the end of year one.
Steady, sustainable growth.
Decrease training costs by 2% a quarter.
SCOPE OF THE STUDY:
The study is basically made to analyze the various schemes to
highlight the diversity of investment that mutual fund offer
Through the study one would understand how common man could
fruitfully convert pittance into great penny by wisely investing into the right scheme
according to his risk abilities.
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METHODOLOGY OF THE STUDY:
The data collection methods include both the primary and secondary collection
methods.
Primary collection method: This method includes the data
collection from the personal discussion with the authorized clerks and members of the
ICICI Prudential Life Insurance
Secondary collection method: The lectures of the superintend of the

department of market operations and so on., also the data collected from the news, magazines
of the Angel Broking and different books issue of this study.
LIMITATIONS OF THE STUDY:
This is a theoretical study only based on various sources such as news
papers websites, articles, college faculty an ICICI Prudential staff.
Study availability of secondary data.
The time constraint was one of the major problems.
The study is limited to selected insurance fund schemes.
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INDUSTRY PROFILE:
Life Insurance in its modern form came to India from England in the year
1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first
life insurance company on Indian Soil. All the insurance companies established
during that period were brought up with the purpose of looking after the needs of
European community and Indian natives were not being insured by these companies.
However, later with the efforts of eminent people like Babu Muttylal Seal, the
foreign life insurance companies started insuring Indian lives. But Indian lives were
being treated as sub-standard lives and heavy extra premiums were being charged on
them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life
insurance company in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance companies
came into existence to carry the message of insurance and social security through
insurance to various sectors of society. Bharat Insurance Company (1896) was also
one of such companies inspired by nationalism. The Swadeshi movement of 1905-
1907 gave rise to more insurance companies.
The United India in Madras, National Indian and National Insurance in
Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907,
Hindustan Cooperative Insurance Company took its birth in one of the rooms of the
Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian
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Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of
the companies established during the same period. Prior to 1912 India had no
legislation to regulate insurance business. In the year 1912, the Life Insurance
Companies Act, and the Provident Fund Act were passed.
The Life Insurance Companies Act, 1912 made it necessary that the premium
rate tables and periodical valuations of companies should be certified by an actuary.
But the Act discriminated between foreign and Indian companies on many accounts,
putting the Indian companies at a disadvantage
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to
176 companies with total business-in-force as Rs.298 crore in 1938. During the
mushrooming of insurance companies many financially unsound concerns were also
floated which failed miserably.
The Insurance Act 1938 was the first legislation governing not only life
insurance but also non-life insurance to provide strict state control over insurance
business. The demand for nationalization of life insurance industry was made
repeatedly in the past but it gathered momentum in 1944 when a bill to amend the
Life Insurance Act 1938 was introduced in the Legislative Assembly.
However, it was much later on the 19th of January 1956 that life insurance
in India was nationalized. About 154 Indian insurance companies, 16 non-Indian
companies and 75 provident were operating in India at the time of nationalization.
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Nationalization was accomplished in two stages; initially the management of
the companies was taken over by means of an Ordinance, and later, the ownership too
by means of a comprehensive bill. The Parliament of India passed the Life Insurance
Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of
India was created on 1st September, 1956, with the objective of spreading life
insurance much more widely and in particular to the rural areas with a view to reach
all insurable persons in the country, providing them adequate financial cover at a
reasonable cost.
Indian Insurance Industry:
The insurance business is growing at an annual rate of 21.9 per cent. Together
with banking services, it accounts for about 7.1 per cent to the countrys GDP.
However Insurance penetration tends to rise as income increases, particularly in life
insurance. India with about 200 million middle class households shows a potential for
insurance industry.
Saturation of markets in many developed economies has made in the Indian
market even more attractive for global insurance majors. The insurance sector was
opened up for private participation four years ago and the private players are active in
the liberalized environment. The insurance market have witnessed dynamic changes
which includes presence of a fair number of insurers both life and non-life segment.
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Most of the private insurance companies have formed joint venture partnering well
with recognized foreign players across the globe. The Indian insurance market
accounts only for 0.59 per cent of USD 2,627 billion global insurance market.
COMPANY PROFILE
ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY
LIMITED
ICICI Prudential Mutual Fund is one of the largest mutual fund houses in
India. ICICI Prudential Mutual Fund is a joint venture between prudential plc, one of
UK's largest players in the insurance & fund management sectors and ICICI Bank, a
well-known and trusted name in financial services in India. ICICI and Prudential
came together in 1993 to provide mutual fund products in India and today are the
largest private sector mutual fund company in India. ICICI Prudential Asset
Management Company, in a span of just over eight years, has forged a position of
pre-eminence in the Indian Mutual Fund industry as one of the largest asset
management companies in the country with assets under management of Rs.50,742.07
crores (as on May 31, 2007). The Company manages a comprehensive range of
schemes to meet the varying investment needs of its investors spread across 68 cities
in the country.
PRUDENTIAL:
Established in London in 1848, Prudential plc, through its businesses in the
UK, US and Asia, provides retail financial services products and services to more
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than 21 million customers, policyholders and unit holders worldwide with over
US$400 (as of 31st December, 2005) billion in funds under management. Prudential
employs some 23,000 staff worldwide.
In Asia, Prudential has life insurance and funds management operationsacross
across twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea,
Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Prudential has
championed customer-centric products and services for over 80 years, supported by
an extensive network of over 145,000 staff and agents across the region.
Key Indicators:
At inception- May1998(as on may31,2007)
Asset Under Management Rs.160 crores Rs59,573.08crores
Number of Funds Managed 241
Statutory:
ICICI Prudential Mutual Fund (erstwhile Prudential ICICI Mutual Fund) (the
Fund) was set up as a Trust sponsored by Prudential plc (through its wholly owned
subsidiary namely Prudential Corporation Holdings Ltd) and ICICI Bank Ltd. ICICI
Prudential Trust Limited (erstwhile Prudential ICICI Trust Limited) (Trust company)
is the Trustee to the Fund and ICICI Prudential Asset Management Company Ltd.
(erstwhile Prudential ICICI Asset Management Company Limited) (AMC) is the
Investment Manager to the Fund.
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ICICI Bank Ltd (ICICI Bank) and Prudential Plc (acting through its
wholly owned subsidiary namely Prudential Corporation Holdings Ltd) are the
promoters of the AMC and the Trust Company. ICICI Bank currently holds 51%
stake in both the companies and the balance 49% stake in both the companies is held
by Prudential plc (acting through its wholly owned subsidiary namely Prudential
Holdings Corporation Ltd).
Prudential Plc (acting through its wholly owned subsidiary namely
Prudential Corporation Holdings Ltd) transferred 6% of its shareholding in both the
companies to ICICI Bank w.e.f August 26, 2005. Subsequently in accordance with the
approval granted by the Board of Directors and the shareholders of the AMC and the
Trust Company the name of the AMC has been changed to ICICI Prudential Asset
Management Company Limited and the name of the Trust Company has been
changed to ICICI Prudential Trust Limited. SEBI has vide its letter no
IMD/PM/84968/07 dated January 23, 2007 conveyed its no objection to the said
change of names of the AMC & the Trust company.
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The said change of names has also been approved by the Registrar of
Companies, NCT of Delhi & Haryana, Ministry of Company Affairs, Govt of India.
The Board of Directors of the Trust company have at their meeting held on 20th
February 2007 accorded approval for the change of name of the Mutual Fund to ICICI
Prudential Mutual Fund as well as of the various schemes /plans/options there under.
SEBI has vide its Letter Nos IMD/PM/90168/07 & IMD/PM/90170/07 dated April
02, 2007 accorded approval for the same.
Award:
ICICI Prudential Dynamic Plan has been ranked ICRA MFR 1 in the category
Diversified Equity Defensive for its 1 year performance till December 31, 2006.
There were 69 schemes in the category. The rank is an outcome of an objective and
comparative analysis against various parameters including: risk adjusted returns, fund
size, sector concentration, portfolio turnover, liquidity, company concentration and
average maturity. The ranking methodology did not take into account entry and exit
loads. Ranking Source and Publisher: ICRA Online.)
NEW PLANS OF ICICI PRUDENTIAL:
ICICI Prudential launched TOP UP THE SIP
ICICI was the first AMC which has launched TOP UP THE SIP, in this the
feature allows an investor to increase his periodic investment through an automated
route in multiples of Rs.500.Till now; investors could not increase their SIP amounts.
They had to go in for a fresh plan. Why TOP UP?
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A Systematic Investment Plan (SIP) allows an investor to achieve his financial
goal by saving for it regularly Nilesh Shah.Deputy Managing Director, ICICI
Prudential AMC says: An SIP with TOP-UP gives the investors the advantage of
power of compounding which will enable them to reach their financial goal faster.
Products of ICICI Prudential mutual Fund:
ICICI Prudential mutual Fund schemes consist of various categories like Debt
Funds, Equity Funds and Balanced Funds.
Equity Funds:
Equity funds seek to provide maximum growth of capital with secondary
emphasis on dividend or interest income. They invest in common stocks with a high
potential for rapid growth and capital appreciation. An equity fund gives an exposure
to the stock market. The fund would have long-term growth potential but provide low
current income. They are not suitable for investors who are risk averse and are
focused on maximizing current income or conserving principal.
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INVESTMENT PHILOSOPHY:
The overriding objective of the AMC in managing its investments is to
produce a consistently above average long-term performance.
The AMC believes in a bottom-up approach to stock picking. This means that
the focus is on the fundamental quality of companies as opposed to a focus on favored
sectors and market movements.
The AMC will follow a structured investment process in order to identify the
best stocks for inclusion in the portfolio. This would involve consistently examining
all stocks under an internally developed research framework. A stock would be
considered or inclusion in the portfolio when the valuation does not adequately
capture its underlying fundamental value in the AMC's opinion based on the above
factors.
The AMC's portfolio management style is conducive to a low portfolio
turnover rate. However, the AMC will take advantage of the opportunities that present
themselves from time to time because of inefficiencies of the securities markets.
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The AMC will endeavor to balance the increased cost on account of higher
portfolio turnover with the benefits derived there from.
The funds offered under this category are:
ICICI Growth Plan
ICICI Prudential Tax Plan
ICICI Prudential FMCG Plan
ICICI Prudential Technology Plan
ICICI Prudential Power
ICICI Prudential Index Fund
ICICI Prudential Dynamic Plan
ICICI Prudential Discovery Fund
ICICI Prudential Emerging STAR Fund
ICICI Prudential Infrastructure Fund
ICICI Prudential Service Industries Fund
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Balanced Funds:
Balanced funds are more evenly invested in equities and income securities.
Balanced and equity-income funds are suitable for conservative investors who want
high current yield with some growth. If you seek to generate long-term capital
appreciation and current income, an investment in the balanced fund would be ideal.
It gives you an exposure to the stock market without the entire risk of the stock
market
The AMC proposes to invest in a mix of equities and fixed income securities
with the aim of generating capital appreciation, while at the same time minimizing the
volatility inherent in pure equity schemes. With this aim, the AMC would allocate the
assets between equity and fixed income instruments within the limits laid down for
each scheme.
The funds offered under this category are:
ICICI Prudential Balanced Fund
ICICI Prudential Child Care Plan-Stud
Plan
ICICI Prudential Child Care Plan - Gift
Plan
ICICI Prudential Blended Plan
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Debt Funds:
The funds are suitable for investors who want to maximize current income and
who do not wish to assume a high degree of capital risk in order to do so. Since bond
prices fluctuate with changing interest rates, there is some principal risk involved
despite the fund's conservative nature.
The AMC aims to identify securities, which offer superior levels of yield at
lower levels of risks. With the aim of controlling risks, the investment team of the
AMC will carry out rigorous in-depth credit evaluation of the securities proposed to
be invested in. The credit evaluation includes a study of the operating environment of
the company, the past track record as well as the future prospects of the issuer, the
short as well as longer-term financial health of the issuer. Rated debt instruments in
which the Scheme invests will be of investment grade as rated by a credit rating
agency. In case a debt instrument is not rated, specific approval of the Board of the
AMC will be obtained for such an investment.
In addition, the investment team of the AMC studies the macro economic
conditions, including the politico-economic environment and factors affecting
liquidity and interest rates. The AMC would use this analysis to attempt to predict the
likely direction of interest rates and position the portfolio appropriately to take
advantage of the same.
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The funds offered under this category are
ICICI Prudential Liquid Plan
ICICI Prudential Liquid Plan- Dividend Option
ICICI Prudential Income Plan
ICICI Prudetial Gilt Fund Investment Plan
ICICI Prudetial Gilt Fund
ICICI Prudetial Monthly Income Fund
ICICI Prudetial Fixed Maturity Plan
ICICI Prudetial Short Term Plan
ICICI Prudetial Long Term Plan
ICICI Prudetial Flexible Income Plan
ICICI Prudential Sweep Plan
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Features of ICICI Prudential Mutual Fund schemes:
Each Fund scheme of ICICI Prudential is diversified based on its
objective
Each Fund Scheme has its own portfolio.
Each Fund scheme is managed by a specified Fund Manager
Almost every Fund Scheme has a feature of SIP (Systematic
Investment Plan).
For the SIP investors there is an additional advantage that they can
avail the facility of Auto Debit of the amount every month.
Most of the fund schemes are given plans like Growth, dividend and
Dividend reinvestment.
Trigger option is one of the additional features of ICICI Prudential
Fund schemes where the investors can direct AMC to withdraw their funds when the
NAV is down.
Every investor will be sent his/her Account information before the
third working days of the market.
The investor is also provided with the additional feature i.e. Switch
option. Therefore the customer can switch from one fund scheme to another.
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The investor is also having Dividend redemption as and when it is
declared. All the investors who opted for Dividend redemption will be sent cheques.
An investor can redeem the amount he invested any time he wants.
(Only if it is open ended scheme) Where as the investor will be charged a certain
percent as entry/exit load.
ICICI Prudential also provides an option to investors i.e. SWP
(Systematic withdrawal plan).
Every investor is been provided with the information of NAV (Net
Asset Value) as and when he wants. The investor can also get required information on
the website of www.icicipruamc.com
2010 AWARDS:
Ms Chanda Kochhar, Managing Director & CEO, conferred the
Outstanding Woman Business Leader of the Year award by CNBC TV18
ICICI Bank awarded the most Tech-friendly Bank award by
Business World
Ms Chanda Kochhar featured in Business Today's list of 30 most
powerful women leaders for the 8th consecutive year
Ms. Chanda Kochhar, Managing Director & CEO, ranked 92nd in
Forbes list of the Most Powerful Women in the world
Ms.Chanda Kochhar, Managing Director & CEO was ranked 10th
in the International Fortune list of 50 most powerful women in business
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ICICI Bank was voted as the Most Trusted Brand among private
sector banks in the 2010 Economic Times - Brand Equity Most Trusted Brands
Awards and ranked 7th in the list of Top 50 service brands
ICICI Bank received the 2010 World Finance UK award for:
Excellence in Remittance Business, Worldwide
Excellence in NRI Services, Worldwide
Excellence in Private Banking Business, APAC Region
ICICI Bank UK, HiSAVE has been awarded 'Best Online Savings
Account Provider 2010 ' by Your Money ,direct consumer awards,UK
ICICI Bank UK, HiSAVE has been commended for 'Best Internet
Account Provider 2010' and 'Best Fixed Rate Account Provider 2010' by Moneyfacts,
an independent consumer finance leading aggregator
Ms.Chanda Kochhar, MD & CEO was awarded the Financial
Express Best Banker Award
For the sixth time in a row, ICICI Bank has received the Most
Preferred Auto Loan Brand in the Financials Services category at the CNBC
Consumer Awards
ICICI Bank has won Gold in the Readers Digest Trusted Brands
2010 Consumer award in the Finance category for a) Best Bank and b) Best Credit
Card Issuing Bank
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ICICI Bank won the Best Trade Finance Bank and Best Foreign
Exchange Bank, India at the Finance Asia Country Awards for Achievement, Hong
Kong
ICICI Bank won the Best Local Bank by Trade and Forfaiting
Review, UK
2011 AWARDS:
ICICI Bank received the "Best Foreign Exchange Bank (India)", by Finance
Asia ICICI Bank won the "Vanilla hedging instruments and Structured
hedging instruments India Winner, 2011" for "Interest Rate and Currency
Products", by Asia Risk Corporate Rankings
ICICI Bank won the Best Lokal Bank- Gold by Trade and forfaiting
Awards,UK.
Mr. N. Vaghul, Former Chairman, ICICI Bank, received the "Lifetime
Achievement Award", by Businessworld
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Ms. Chanda Kochhar, Managing Director & CEO was ranked 10th in
the list of "Top 50 Women In World Business 2011", by Financial Times
Ms. Chanda Kochhar, Managing Director & CEO, featured in the Hall
Of Fame of Most Powerful Women in Indian business by Business Today
Ms. Chanda Kochhar, Managing Director & CEO, awarded the Skoch
Challenger Awards 2011, for Banking. The Skoch awards recognizes best practices in
people, projects and institutions for inclusive growth
Ms. Chanda Kochhar, Managing Director & CEO, in the list of 25
most powerful professional Association in the following categories:
o "Best Financial Inclusion Initiative" (first prize)
o "Best Online Bank" ( runner up)
o "Best use of Business Intelligence" ( runner up)
o "Technology Bank of the year" ( runner up)
2012 AWARDS:
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Insurance:
In financial sence: The financial definition focuses on an arrangement
that redistributes the cost of unexpected losses.That is the collectin of a small
premium pament from all exposed and distributed to those suffering loss.
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In legal sence: The legal definition focuses on a contractual arrangement
whereby one party agress to compensate another party for losses. The financial
definition provides for the losses whereas the legal definition for the legally
enforceble contract that spells out the legal rights, duties and obligations of all the
parties to the contract.
Costs and Benefits of Insurance
The purpose of insurance mode of risk transfer is to provide economic
against the losses that may be incurred but to chance events such as
Death
Disability
Economic losses
One party (the insure) for a set amount of money,(premium) agrees to pay the
other party (insured or beneficiary),a sum of money (benefit ) upon the occurrence of
an event which may or may not occur. Insurance provides economic protection
against losses that may be incurred due to chance events that may or may not occur
during the effective time of the contract called a policy. The insurance of business
organisations is essential in the sence that advertisements, if not guarded, may affect
the business itself the business owners personal property and may also threaten the
continued operation of the business and threaten the continued operation of the
business and threaten he owners financial well-being.
Insurance Device
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The fundamental characteristics of insurance are:
It involves transfer of risk from the individual to the group,and
There is sharing (pooling) of losses on some equitadle basis such that
fortuitous losses will be indemnified(paid).
More specifically, the cost and benefits of insurance are:
Benefits:
Reimbursement for losses
Reduction in tension and fear
Avenue for investment life insuarance investment officer attractive
return.
Prevention of losses
Credit multiplication
Costs of insurance to society
Cost of Business operations- social wastage of resources
Fraudulent and exaggerated claims- Malacious and undesirable transfer
of wealh
FINANCIAL SYSTEM
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Meaning of Financial System:
The economic development of any country depends upon the existence of a
well organized financial system. A financial system is a complex. Well-integrated set
if sub-system of financial institution, market, instruments and services which
facilitates the transfer and allocation of funds efficiently and effectively.
A financial system of financial sector functions as an intermediary and
facilitates the flow of funds from the areas of surplus to the areas of deficit. A
financial system is a composition of various institutions, markets, regulations and
laws, practices, money manager, analysts, transactions and claims and liabilities.
Features of financial system:
1. Financial system provides an ideal linkage between depositors and investors,
thus encouraging both savings and investments.
2. Financial system facilitates expansion of financial markets over space and
time.
3. Financial system promotes efficient allocation of financial resources for
socially desirable and economically productive purposes.
4. Financial system influences both the quality and the pace of economic
development.
33
FINANCIAL MARKETS:
The financial market plays a crucial role in the economic development of a
country by facilitating the allocation of scarce resources. By transferring resources
from the savers to the borrowers, it directs resources from the idle to the productive
sector, thus accelerating investment activities in the economy. The allocation function
of the financial market has been described succinctly by Stiglitz (1994): Financial
markets essentially involve the allocation of resources. This can be thought of as the
brain of the entire economic system, the locus of central decision-making; if they fail.
Not only will the sectors profit be lower than would otherwise have been, but the
performance of the entire economic system may be impaired.
The importance of financial development was amply acknowledged by
classical economists (Adam Smith and others), who believed that there is a close
relationship between capital accumulation and the process of economic development.
However, the importance of financial factors in the development process was largely
ignored and forced saving were considered the best means of financing development.
But the resultant financial repression is thought to be a major cause of low savings
rates and the underdevelopment of the financial sector.
Meaning of Financial Market:
A financial market is a mechanism that allows people to easily buy and sell
financial securities, commodities and other fungible items of value at low transaction
costs and at prices that reflect the efficient market hypothesis. Financial markets have
evolved significantly over several hundred years and are undergoing constant
innovation to improve liquidity
34
Insurance Trends in India:
With the de-regulation in Indian Insurance industry, the monopoly of public
sector companies in life insurance and general insurance has come to an end. This has
Insurance Regulatory &
augmented the innovative practices initiated by the private players. Growth in the
Development Authority
interactive technology such as internet has further created a wave of excitement in the
insurance market. Indian economy and Indian Insurance sector is committed to a
double digit growth. Heres a glimpse of Insurance Industry over 190 years.
LIC,GIC,private
Capital market
insurance
Background: intermediaries
companies &
reinsurance
Insurance is a Rs450 billion industry in India. The value of the market is
determined by gross premium incomes. The life insurance segment writes about
*Stock80%
exchange
of the overall market value. Indian Insurance market was at its all time high in 2003 bankers
*Merchant
with a growth of about 17.4% over the pervious year. Since 2001 Insurance is
*Underwriters
*Stockbrokers
growing at the rate of 15-20 % annually. The growth in the insurance industry is
*Retail
affected by volatility in real estate rates, GDP rates and long term interest investors
rates.
Fluctuations in exchange rates also affect the growth in this sector. *Flls
The gross
premium as a percentage of the GDP has gone up from 2.3 in the year 2000 to 4.8 in
2006. Together with banking services, it adds about 7% to the countrys GDP.
35
History of Indian Insurance:
The ancient origin of insurance is Emersion, whose brilliant and learned Traits
des Assurances, first published in 1783, is still read with respect and admiration.
The result shows that insurances were known to the ancients such as Romans,
Phoenicians Rhodians, although the business of underwriting commercial risks was
probably not highly developed. The histories of Livy and Suetonius shows that the
contractors who undertook to transport provisions and military stores to the troops in
Spain stipulated that the government should assume all risk of loss by reason of perils
of the sea or capture and this was probably the first time when insurance process was
known. There were friendly societies organized, for the purpose of extending aid to
their unfortunate members from a fund made up of contributions from all. These
societies undoubtedly existed in China and India in the earliest times. The earliest
traces of Insurance in the ancient Indian history was in the form of marine trade loans
or carriers contracts, which can be found in Kautilyas Arthashastra, Yajnyavalkyas
Dharmashastra and Manus Smriti. These works show that the system of credit and
the law of interest were well developed in India. They were based on clear
appreciation of hazard involved and the means of safeguarding against it.
36
British-India Period:
Insurance in India without any regulations started in the nineteenth century. It
was a typical story of a colonial era where a few British insurance companies
dominated the market serving mostly large urban centers. Company started by
Europeans in Calcutta was the first life insurance company on Indian Soil.
Bombay Mutual Life Assurance Society indicated the birth of first Indian life
insurance company in the year 1870, and covered Indian lives at normal rates. 1930s
was the last of the old-style crises in the Indian economy because it marked the
beginning of the end of the colonial state and an acceleration of the pace of
industrialization as entrepreneurs moved their capital out of the countryside.
Independent India reduced its vulnerability to external economic shocks by close
control of foreign exchange and by promoting a massive change in the export
schedule. Till the end of nineteenth century insurance business was almost entirely in
the hands of overseas companies.
Post Independence era of Indian Insurance:
The insurance business grew at a faster pace after independence. Indian
companies strengthened their hold on this business but despite the growth that was
witnessed, insurance remained an urban phenomenon. During Mrs. Gandhis tenure
(from 1966-1968), there was a split within the business community of protectionists
and those who wanted more open trade. But what maintained the momentum was the
commitment of Two Ministers, Ashok Mehta and Subramaniam towards liberalization
of the economy. This was seconded with high hope of getting increased foreign aid.
37
Deregulation actually helped the poorest in India as it would eventually create
more employment and faster growth. Yet the intense fears of liberalization in the
lower middle class and among working class employees of the state sector, pose
serious risks in freeing the economy. It might be preferable to introduce liberalization
during an economic upswing when the risk of switching jobs is less traumatic. The
three liberalization episodes in Indian economic policy have followed clear cyclical
patterns.
Economic policy has swung broadly between controls and greater openness,
with a tendency toward decontrolling larger and more important segments of the
economy.
Nationalization Phase of Indian Insurance:
1944: The Nationalization of insurance industry gathered momentum in 1944
when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative
Assembly.
1956: 154 Indian insurance companies, 16 non-Indian companies and 75
provident societies were taken over by the central government and nationalized. LIC
formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of
Rs.5 Crore from the Government of India.
1972: The General Insurance Business (Nationalization) Act, which
nationalized the general insurance business in India with effect from 1st January
1973. 107 insurers amalgamated and grouped into four companies viz. the National
38
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd.
Nationalization was accomplished in two stages; initially the management of
the companies was taken over by means of an Ordinance, and later, the ownership too
was taken by means of a comprehensive bill. However, it was only in 1956, LIC was
nationalised, with the objective of spreading life insurance much more widely and in
particular to the rural areas with a view to reach all insurable persons in the country,
providing them adequate financial cover at a reasonable cost.And as of 2007, LIC is
Indias leading Insurance company, with 2000 branches, which probably is the
highest number of branches across India insurance sector.
Liberalization of Indian Insurance:
1994: Insurance sector invited private participation to induce a spirit of
competition amongst the various insurers and to provide a choice to the consumers.
1997: Insurance regulator IRDA was set up as there felt the need:
a) To set up an independent regulatory body, that provides greater autonomy
to insurance companies in order to improve their performance,
b) To enable them to act as independent companies with economic motives.
c) To protect the interest of holders of insurance policies.
d) To Amend the Insurance Act, 1938, the Life Insurance Corporation Act,
1956 and the General insurance Business (Nationalization) Act, 1972
39
e) To end the monopoly of the Life Insurance Corporation of India and
General Insurance Corporation and its subsidiaries.
In the first year of insurance market liberalization (2001) as much as 16
private sector companies including joint ventures with leading foreign insurance
companies have entered the Indian insurance sector. Of this, 10 were under the life
insurance category and six under general insurance. Thus in all there are 25 players
(12-life insurance and 13-general insurance) in the Indian insurance industry till date.
Indian Insurance in 21st Century:
2000: IRDA starts giving licenses to private insurers: ICICI prudential and
HDFC Standard Life insurance first private insurers to sell a policy
2001: Royal Sundaram Alliance first non life insurer to sell a policy
2002: Banks allowed tosell insurance plans. As TPAs enter the scene,
insurers start setting non-life claims in the cashless mode
2007: First Online Insurance portal, www.insurancemall.in set up by an
Indian Insurance Broker, Bonsai Insurance Broking Pvt Ltd.
The Government of India liberalised the insurance sector in March 2000 with
the passage of the Insurance Regulatory and Development Authority (IRDA) Bill,
40
lifting all entry restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership.
Minimum capital requirement for direct life and Non-life Insurance company
is INR1000 million and that for reinsurance company is INR 2000 million. In the
2004-05 budgets, the Government proposed for increasing the foreign equity stake to
49%, this is yet to be effected. Under the current guidelines, there is a 26 percent
equity cap for foreign partners in direct insurance and reinsurance Company. (World
Bank Economic Review-2000).
Online Insurance in India:
Internet access in India has doubled every year over the last five years and
forecasts predict this growth to quadruple every year over the next three years.
According to marketer report on India online, in 2007, about 33.2 million people in
India accessed internet and thats about 2.9% of Indian population. This figure is
going to be 71.6 million people, which will be about 6% of population by 2011.
Considering limited access of human-insurance agents in rural areas, there will more
demand of purchasing insurance online from these areas, followed by semi-urban
areas.
The insurance portals that are active in online distribution are
www.icicilombard.com,www.bajajallianz.co.in,www.insurancemall.in,www.bimaonli
41
ne.com,www.insurancepandit.com.Recently,Compare Choose Buy portals like
Bonsai Insurance Brokers www.insurancemall.in, have been developed for providing
comparison of different types of insurance policies, their premiums and their purchase
online. The policy details are stored digitally and all transactions are made over secure
channels. E-insurance offers a new gateway of incomes and provides additional
market penetration, which is a need of an hour for Indian Insurance Segment.
The First Movers in Distribution of Insurance goes to 3 companies in India :
1. ICICI Lombard General Insurance
2. Bajaj Allianz General Insurance
3. www.insurancemall.in (Created by Bonsai Insurance Broking.)
INVESTMENT OF ICICI PRUDENTIAL LIFE IN THE YEAR
1987: (In Crores)
42
PERCENTAGE OUT
TYPES OF INVESTMENT 31-3-87
OF TOTAL
1. Central Govt. Sec. 4675 39.60
2. State Govt. & other Govt. 1683 14.26
Guaranteed Marketable Sec.

3. Electricity (SEBs) 2603 22.05
4. Housing 1872 15.86
5. Water Supply & Sewerage 718 6.08
(Mun + Z.P)
6. State Road Transport Corpn. 180 1.52
7. Loans to Industrial Est. 37 0.31
8. Loans to Sugar Co-op 37 0.31
9. Development Authority 1 0.01
10. Roadways, Port, Railways - -
11. Power Generation - -
(Pvt. Sector)
12. Municipal Cop. - -
Total :- 11806 100.00
ANALYSIS OF INVESTMENTS IN 1987:
43
1) Major portion of the investment of the ICICI PRULIFE were captured
by the state Govt. securities.
2) Life Insurance Corporation concentrated only in the ICICI PRULIFE
sector and the Private sector was completely neglected.
3) 53.86% (1+2) of ICICI PRULIFES Investments are invested in the
securities.
4) 45.52% (3+4+5+6+9) of ICICI PRULIFE Investments were invested
in the Development of Infrastructure of the Country.
5) 0.62% (7+8) was given as loans for the growth of Industries in India.
ICICI PRULIFE INVESTMENTS IN THE YEAR 1997(In Crores)
PERCENTAGE
OUT OF TOTAL

4. Housing 10967 16.10
(Mun + Z.P)
44
10. Roadways, Port, Railways - -
11. Power Generation - -
(Pvt. Sector)
12. Municipal Cop. - -
Total :- 68068 100.00
1) This year ICICI PRULIFES investment in central Govt. securities
increased drastically.
2) ICICI PRULIFES investments in central Govt. securities increased
from 39.6% - 54.84%.
45
3) But there was a decline in the investment in State Govt. and other
Govt. securities; it reduced from 14.26% - 13.08%.
4) How ever there was an increase in the net investment in securities, it
increased by 26.10% (when compared to 1987) and at the end was 67.92% of
the total investments.
5) Investment in the development of infrastructure was 31.97% of the
total when compared to 45.52% in the previous year that means there was a decline
of 29.77% when compared to 1987.
6) This year loans to industrial estate's and sugar co-op increased from
marginal 0.62% to 1.1% and showed an increase of 77.42%
7) On the whole the ICICI PRULIFE showed a very good growth rate in
their investments in 1987 their total investments were 11806 crores but in this year
it showed an increase of 476.55%
8) ICICI PRULIFE's investments increased by almost 5 times in 10 years
which showed a great increase of 50% per year on an average.
9) Looking at the speed growth of ICICI PRULIFE OF INDIA it was
quite clear for every one that ICICI PRULIFE OF INDIA was heading towards
becoming the worlds no 1 insurance company.
10) Looking at current year the expected performance of the corporation
was increasing at a rapid pace.
46
INVESTMENT OF ICICI PRULIFE IN THE YEAR 2004(In Crores)
PERCENTAGE OUT
OF TOTAL

4. Housing 12242 15.12
(Mun + Z.P)
10. Roadways, Port, Railways 25 0.03
11. Power Generation 276 0.34
(Pvt. Sector)
47
12. Municipal Cop. 4 0.049
Total :- 80945 100.00
1) Like the previous year this year also the major portion of the
investments was captured by central government securities.
2) There was an increase in investment in central Govt. securities from
54.84% - 56.68, it showed an Increase of 3.35%
3) Following the trend of past 11 years this year also the net investment
in securities increased, it was 54.84 in the previous year and rose to 56.68 in this
year, showing an increase of 2.5%.
4) Investment in the development of infrastructure at the beginning was
45.52% and at the end was 29.92%, which showed a decline of 34.27% which
was quite considerable
48
5) Loans to industries was stable at 0.9% of the total investments.
6) There is an important point to be seen in this year as this is the first
time ICICI PRULIFE started to invest in power generation of private sector.
7) It is from this year ICICI PRULIFE started directly investing in the
private sector.
8) The investment in the power generation of private sector was 0.34%
of the total investment.
9) From this year ICICI PRULIFE started investing in developing
transport i.e., railways, ports, roadways. The percentage of investment in this was
0.03% which was quite marginal.
10) ICICI PRULIFE started to help the municipal councils and
corporations from this year and the percentage of investment stood at 0.004% and
the amount invested was 4 crores.
49
PERCENTAGE OUT
OF TOTAL

4. Housing 14207 14.50
(Mun + Z.P)
(Pvt. Sector)
Total :- 98003 100.00
50
1) Total net investment in securities was 56.68% which raised to 70.52%
showing a growth rate of 24.41%.
2) A total investment in development activity in this year was Rs.27978
crores which was 28.54%of the total investment, remaining almost stable who
compared to 29.92% in the previous year.
3) Percentage of investments granted as loan has declined by 27.3% and
stood at 0.08% of the total investment.
4) Direct investment in private sector has raised by 141.17% and was
0.82% of the total when compared to 0.34% in the previous year.
51
PERCENTAGE OUT
OF TOTAL

4. Housing 15885 13.22
(Mun + Z.P)
(Pvt. Sector)
Total :- 117888 100.00
52
showing a growth rate of 1.87%, but the growth rate declined by 92.3%.
2) Total investments in development activity in this year were Rs.31150
crores which was 26.42% of the total investment, remaining almost near when
4) Direct investment in private sector has raised by 45% and was 1.25%
of the total when compared to 0.82% in the previous year.
53
PERCENTAGE OUT
OF TOTAL

4. Housing 17998 12.86
(Mun + Z.P)
(Pvt. Sector)
Total :- 139926 100.00
54
showing a growth rate of 2.52%, showing a good increase when compared to the
previous year.
2) Total investments in development activities in this year were Rs.34842
Crores which was 24.90% of the total investment, showing a decline of 6.95% when
4) Direct investment in private sector has decreased by 8% and was
1.15% of the total when compared to 1.25% in the previous year.
55
PERCENTAGE OUT
OF TOTAL

4. Housing 19054 10.99
(Mun + Z.P)
(Pvt. Sector)
Total :- 173370 100.00
56
1) Even this year investment in the central Govt. securities
increased like the past trend, it increased by 4.15% and stood at 63.41%
out of the total investments.
2) The total net investments in securities stood at 75.79% i.e.,
more than percentage of the total investments, shoeing a growth of
2.89%.
3) Total investment in the development of infrastructure
Rs.37395 crores, which is 21.56% of the total investment.
4) Investment in the private sector was 2.19% of the total
investment in 2008, showing a growth rate of 90.43%.
5) There is an important point to be noted that from past 4
years ICICI PRULIFE of India was investing 4 crores in the Municipal
Corporation but from this year this amount increased to 14 rores.
57
investment in development authority remains constant for the whole
period.
NVESTMENT OF ICICI PRULIFE IN THE YEAR 2011(In Crores)
PERCENTAGE OUT
OF TOTAL

4. Housing 19944 9.34
(Mun + Z.P)
(Pvt. Sector)
Total :- 213477 100.00
58
1) Investment in central Govt. securities goes up even further
from 63.41% - 64.3%, showing growth rate of 1.4%
2) Net investment in securities increased 75.79% - 78.88%,
showing a net increase of 4.08%
3) Investment in the development of infrastructure was
21.56%, which reduced to 18.84%.
4) Loans granted reduced by 20% and stood at 0.04%.
5) Direct investment in Pvt. Sector was 2.19% in the
previous year and raised by 32.42% and stood at 2.9% of the total
investment.
59
GRAPH SHOWING NET INVESTMENTS YEARY
60
FINDINGS
1) ICICI PRUDENTIAL LIFE has invested Rs.4675 crores in the year
1987 which is 39.60% of its profits in the central govt. sector and the investment has
increased to 37330 crores in the next decade i.e. in the year 1997 which is 54.84% out
of profits.
2) It has drastically increased its investments in the central government.
3) There was a decline in the investment in state government. It has
reduced from 14.26% to 13.08%.
4) ICICI PRULIFE has decreased its investment in the year 1997 in
infrastructure from45.02% to 31.97%.
5) Looking at the speed growth of ICICI PRULIFE it is quite clear that
ICICI PRULIFE is heading towards becoming the worlds no 1 insurance company.
6) As the years passing on the investment of ICICIPRULIFE in central
government is increasing compared to other avenues of investment.
7) The net investment in the securities has been increased.
61
SUGGESTIONS
1) ICICI PRULIFE is also investing a certain part of its profits in the state
road transport corporation and power generation (Pvt. Sector) but there is a stable
growth in these investments.
2) In the year 2005 the total investment in securities has increased to
70.52%, which shows a tremendous growth rate of 24.42%.
3) ICICI PRULIFE has decreased giving loans, and the percentage
decrease by 27.3%.
4) The investments in the private sector also raised drastically from the
year 2004-2005, which is 141.17%.
62
CONCLUSIONS
1) ICICI PRUDENTIAL is suggested to expand its portfolio to other
sectors.
2) There is a need of increase it investments in Housing, Power
generation etc.
3) More Insurance policies need to be introduced that suit all
classifications of people.
4) Well qualified Investment analyst need to be appointed in order to
proper allocation of portfolio for companys growth.
5) More plans have to be introduced by ICICI PRULIFE in order to
compete with competitors.
6) ICICI Prulife has to introduce more tax benefits plans in order to
attract more policy holders in the market.
63
BIBLIOGRAPHY
Books
Securities Analysis and Portfolio Management by Prasanna
chandra. (Tata McGraw Hill production)
Securities Analysis and Portfolio Management by
V.A.Avadhani. (Himalaya Publishing House)
The Indian Financial System by Bharat V. Pathak.(Pearson
Education)
Financial Management by M.Y. Khan & P.K. Jain (Tata McGraw-Hill
Publishing Co. Ltd.)
Financial Management by Dr .S.N. Maheshwari.(Sultan Chand &
Sons)
Websites
www.iciciprulife.com
www.Irdaonline.org
www.moneycontrol.com
64
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INTRODUCTION:

Insurance happens to be a very big opportunity in India.

Economy Today it stands as a business growing at the rate of 15-20 percent

introduced in the insurance sector and in continuation Malhotra Committee was

A promise of compensation for specific potential future losses in

life insurance, and business insurance.

River Forest Yachting Centers have been recognized by several of the

large insurance companies and designated as pre-approved hurricane coded marine

RFYC facilities are superior to other options making it an excellent insurance

in the event of a wind storm to keep it safe and secure.

As a result of storing with RFYC, qualified boat owners may receive up to a

of Florida. RFYC is happy to provide insurance referrals upon reque

Some Areas of Future Growth:

would be the main line of business

Life Insurance Plans

your family from financial crises.

create a flexible money-saving scheme, which empowers you to accumulate wealth to

Today, there is no shortage of investment options for a person to choose from.

and protecting your assets.

reassurance of asset protection, along with a strong element of asset appreciation.

due to critical illness or death of the policyholder. Simultaneously, buying life

in the landscape of investment options available to a customer.

Education Insurance Plan

Wealth creation plan

The Health insurance expenditure in India is roughly 6% of GDP,

Thus, private insurance companies will be able to sell health insurance to

any retirement benefits to fall back after retirement.

benefit India or not.

CHANGES IN INSURANCE PRODUCTS AND PLANS IN 2010:

the minimum period, assured.

There is also discussion on giving banks more autonomy by

to intervene in this dispute.

of insurance industry in 2011 and beyond.

The changes in ULIP structure will make it more popular in 2011.However,

back to traditional plans.

There will be emphasis on traditional plans such as whole life insurance,

premium is inversely proportional to the life expectancy.

Additionally we will see banks increasing their focus on insurance related

providing them new products and variety for their choice.

improvement of the customer service in the industry. Computerization of operations

Increase repeat customers.

Decrease customer acquisition costs.

Generate brand equity, quantified by an increase in unsolicited

Profitability by the end of year one.

Steady, sustainable growth.

Decrease training costs by 2% a quarter.

SCOPE OF THE STUDY:

The study is basically made to analyze the various schemes to

highlight the diversity of investment that mutual fund offer

according to his risk abilities.

Primary collection method: This method includes the data

ICICI Prudential Life Insurance

Secondary collection method: The lectures of the superintend of the

of the Angel Broking and different books issue of this study.

LIMITATIONS OF THE STUDY:

This is a theoretical study only based on various sources such as news

papers websites, articles, college faculty an ICICI Prudential staff.

Study availability of secondary data.

The time constraint was one of the major problems.

The study is limited to selected insurance fund schemes.

Starting as Indian enterprise with highly patriotic motives, insurance companies

one of such companies inspired by nationalism. The Swadeshi movement of 1905-

1907 gave rise to more insurance companies.