Professional Documents
Culture Documents
An Introduction to insurance
A system under which the insurer, for a consideration usually agreed upon in advance,
promises to reimburse the insured or to render services to the insured in the event that
method of coping with risk. Its primary function is to substitute certainty for
deaths and accidents. Losses can be predicted with reasonable accuracy, and this
accuracy increases as the size of the group expands. From a theoretical standpoint, it is
From the standpoint of the insurer, an insurable risk must meet the following
requirements:
allow a reasonably close calculation of the probable frequency and severity of losses.
2. The insured objects must not be subject to simultaneous destruction. For example, if
all the buildings insured by one insurer are in an area subject to flood, and a flood
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3. The possible loss must be accidental in nature, and beyond the control of the
insured. If the insured could cause the loss, the element of randomness and
4. There must be some way to determine whether a loss has occurred and how great
that loss is. This is why insurance contracts specify very definitely what events must
From the viewpoint of the insured person, an insurable risk is one for which the
toward risk. At the same time, the potential loss must be severe enough to cause
financial hardship if it is not insured against. Insurable risks include losses to property
resulting from fire, explosion, windstorm, etc.; losses of life or health; and the legal
manufacture. Uninsurable risks include losses resulting from price changes and
debasement are usually not insurable by private parties but may be insurable by
governmental institutions. Very often contracts can be drawn in such a way that an
“uninsurable risk” can be turned into an “insurable” one through restrictions on losses,
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Life insurance may be defined as a plan under which large groups of individuals can
equalize the burden of loss from death by distributing funds to the beneficiaries of
those who die. From the individual standpoint life insurance is a means by which an
estate may be created immediately for one's heirs and dependents. It has achieved its
greatest acceptance in Canada, the United States, Belgium, South Korea, Australia,
Ireland, New Zealand, The Netherlands, and Japan, countries in which the face value
In the United States in 1990 nearly $9.4 trillion of life insurance was in force. The
assets of the more than 2,200 U.S. life insurance companies totaled nearly $1.4
trillion, making life insurance one of the largest savings institutions in the United
States. Much the same is true of other wealthy countries, in which life insurance has
become a major channel of saving and investment, with important consequences for
Life insurance is relatively little used in poor countries, although its acceptance has
been increasing.
Types of contracts
The major types of life insurance contracts are term, whole life, and universal life, but
innumerable combinations of these basic types are sold. Term insurance contracts,
issued for specified periods of years, are the simplest. Protection under these contracts
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expires at the end of the stated period, with no cash value remaining. Whole life
contracts, on the other hand, run for the whole of the insured's life and gradually
accumulate a cash value. The cash value, which is less than the face value of the
Universal life contracts, a relatively new form of coverage introduced in the United
States in 1979, have become a major class of life insurance. They allow the owner to
decide the timing and size of the premium and amount of death benefits of the policy.
In this contract, the insurer makes a charge each month for general expenses and
mortality costs and credits the amount of interest earned to the policyholder. There are
two general types of universal life contracts, type A and type B. In type-A policies the
death benefit is a set amount, while in type-B policies the death benefit is a set amount
group, industrial, and credit. The ordinary insurance market includes customers of
whole life, term, and universal life contracts and is made up primarily of individual
of employers who arrange group contracts to cover their employees. The industrial
insurance market consists of individual contracts sold in small amounts with premiums
collected weekly or monthly at the policyholder's home. Credit life insurance is sold to
if the insured dies before the installment payments are completed, the seller is
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Insurance may be issued with a premium that remains the same throughout the
according to the age of the insured. Practically all ordinary life insurance policies are
issued on a level-premium basis, which makes it necessary to charge more than the
true cost of the insurance in the earlier years of the contract in order to make up for
much higher costs in the later years; the so-called overcharges in the earlier years are
not really overcharges but are a necessary part of the total insurance plan, reflecting
the fact that mortality rates increase with age. The insured is not overpaying for
protection, because of the claim on the cash values that accumulate in the early years;
the policyholder may borrow on this value or may recapture it completely by lapsing
the policy. The insured does not, however, have a claim on all the earnings that accrue
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The insurance sector in India has come a full circle from being an open
again. Tracing the developments in the Indian insurance sector reveals the
The business of life insurance in India in its existing form started in India
in the year 1818 with the establishment of the Oriental Life Insurance
Company in Calcutta.
are:
• 1912: The Indian Life Assurance Companies Act enacted as the first statute to
• 1928: The Indian Insurance Companies Act enacted to enable the government
businesses.
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• 1956: 245 Indian and foreign insurers and provident societies taken over by the
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government
of India.
The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance
India are:
• 1907: The Indian Mercantile Insurance Ltd. set up, the first company to
frames a code of conduct for ensuring fair conduct and sound business
practices.
• 1968: The Insurance Act amended to regulate investments and set minimum
the general insurance business in India with effect from 1st January 1973.
• 107 insurers amalgamated and grouped into four companies viz. the
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company.
RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance
the reforms initiated in the financial sector. The reforms were aimed at
the overall financial system where it was necessary to address the need for
similar reforms…"
In 1994, the committee submitted the report and some of the key
recommendations included:
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1) Structure
Government should take over the holdings of GIC and its subsidiaries so
2) Competition
single entity
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3) Regulatory Body
4) Investments
GIC and its subsidiaries are not to hold more than 5% in any company
time)
5) Customer Service
plans
improve the customer services and increase the coverage of the insurance
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Many may not be aware that the life insurance industry of India is as old
as it is in any other part of the world. The first Indian life insurance
company was the Oriental Life Insurance Company, which was started in
about 100 in non-life) mainly with regional focus flourished all across the
the industry in two phases in 1956 (life) and in 1972 (non-life). The
insurance business of the country was then brought under two public
In line with the economic reforms that were ushered in India in early
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line with global norms. So far in the private sector, 12 life insurance
By any yardstick, India, with about 200 million middle class households,
market even more attractive for global insurance majors. Table 1 reflects
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With the per capita income in India expected to grow at over 6% for the
next 10 years and with improvement in awareness levels, the demand for
the life insurance market will grow from Rs.218 billion in 1998 to
WINDS OF CHANGE
Reforms have marked the entry of many of the global insurance majors
into the Indian market in the form of joint ventures with Indian
companies. Some of the key names are AIG, New York Life, Allianz,
Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry of
new players has rejuvenated the erstwhile monopoly player LIC, which
The following are the key winds of change brought about by privatisation.
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This has been possible due to improved awareness levels thanks to the
scope for expansion is still unlimited as virtually all the players are
innovative products offered by the new players, mainly from the stable of
variety of benefits as riders from which they can choose. More customers
are buying products and services based on their true needs and not just
for long-term protection and savings. However, there are still some key
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Customer Service: Not unexpectedly, this was one area that witnessed
the most significant change with the entry of new players. There is an
selling is emerging through much better trained sales force and advisors.
way to go and various customer surveys indicate that the standards are
Though it is too early to predict, the wide spread of bank branch network
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October) of the 13 life insurance payers in India based on the first year
premium figure 4.
open. It is also a sector which will lead to benefits across the full spectrum, from
the individual who will now have wider choices, to the economy which will see
increased savings, to the infrastructure sector which can look forward to long
urban and rural markets. This will create huge employment opportunities not
only within insurance companies but also as agents and consultants of insurance
companies.
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SUMMARY
Overall, the life insurance and pension sector is set for rapid changes and
growth in the years ahead. Delivering service, building trust and being
innovative are key areas in which any company will have to excel in order
to do well in the long road ahead. Different companies will take different
withdraw any amount over and above Rs 15,000, provided they have
set by the company and it will be imperative for any serious player to
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THE PROBLEM
confused about the brand and the policy he/she should take and from
Primary objectives-
Life Insurance.
PRUDENTIAL.
Secondary objectives-
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Research Methodology
Data is collected from both primary & secondary sources. As a primary source
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
services group headquartered in the United Kingdom. ICICI Prudential was amongst
the first private sector insurance companies to begin operations in December 2006
ICICI Prudential's equity base stands at Rs. 6.75 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In the year ended March 31,
2008, the company had issued over 430,000 policies, for a total sum assured of over
Rs 8,000 crore and premium income in excess of Rs. 980 crore. The company has a
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Partners
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset
Management Company, which has today emerged as one of the leading mutual funds
in India. The two companies bring together two of the strongest financial service
brands in Asia, known for their professionalism, excellent quality of service and long
term commitment to YOU. Riding on the success of this relationship, the two
companies joined hands once more in 2000, to form ICICI Prudential Life Insurance,
ICICI Bank has 74% stake in the company, and Prudential plc has 26%.
ICICI Bank
ICICI Bank (NYSE:IBN) is India''s second largest bank with an asset base of Rs.
individuals and companies. This includes mortgages, car and personal loans, credit
and debit cards, corporate and agricultural finance. The Bank services a growing
customer base of more than 7 million customer accounts and 5 million bondholders
accounts through a multi-channel access network. This includes about 450 branches
and extension counters, 1675 ATMs, call centres and Internet banking
(www.icicibank.com). ICICI Bank posted a net profit of Rs.1,206 crore for the year
ended March 31, 2003. ICICI Bank is the only Indian company to be rated above the
country rating by the international rating agency Moody''s and the only Indian
enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies.
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PRUDENTIAL PLC
company in the UK, with around US$250 billion funds under management, and more
range of financial services products that now includes life assurance, pensions, mutual
UK''s largest life insurance company with a vast network of 22 life and mutual fund
operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea,
Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923,
Their aim is to spread Life Insurance widely and in particular to the rural areas and to
the socially and economically backward classes with a view to reaching all insurable
persons in the country and providing them adequate financial cover against death at a
reasonable cost.
adequately attractive.
Bear in mind, in the investment of funds, the primary obligation to its policyholders,
whose money it holds in trust, without losing sight of the interest of the community as
a whole; the funds to be deployed to the best advantage of the investors as well as the
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return.
Conduct business with utmost economy and with the full realization that the moneys
Act as trustees of the insured public in their individual and collective capacities.
Meet the various life insurance needs of the community that would arise in the
Involve all people working in the Corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service with
courtesy.
Promote amongst all agents and employees of the Corporation a sense of participation,
pride and job satisfaction through discharge of their duties with dedication towards
VISION
Pride of India"
MISSION
"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns, and by
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INDIVIDUAL ASSURANCES
The Corporation sold 2.39 crore policies for a Sum Assured of Rs.1,76,088 crore with
a First Premium Income of Rs.6,351.89 crore. Despite a slow-down due to the Iraq
war, reduced sale of single premium and short term premium paying policies as a
result of adverse market sentiments and withdrawal of some high yield guaranteed
return plans like “Jeevan Shree”, “Bima Nivesh” and “Jeevan Suraksha”, the
Corporation was still able to increase its total sales by 9.54% during the year. During
the year five new unique plans viz. “Anmol Jeevan”, “Komal Jeevan”, “Jeevan
Samriddhi”, “Jeevan Rekha” and “Jeevan Bharati” were introduced to bring vitality
and innovativeness to its product range. Value addition was also made in some of the
existing plans.
excellent business in the area of Pension and Group Schemes. The new business
65.49% over the last year, thanks to the Corporate customers, providing insurance
benefits to their employees through Group Insurance Schemes. The number of new
lives covered was 18.48 lakh, showing a growth of 26.45%. The growth on both these
counts has been the highest in the decade. Under the Social Security Schemes –
“Janashree Bima Yojana” and “Krishi Shramik Samajik Suraksha Yojana”, 7.46 lakh
lives have been covered under 6,071 schemes with a premium income of Rs.837.68
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The growth in the number of Agents from 7.92 lakh to over 9.60
lakh as at the end of the current year coupled with appointment of over
policies.
performance has been improving year after year. In the year 2001-02, the
same has touched the lowest ebb at 0.23% during 2002-03 and this
world.
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COMPETITIVE ADVANTAGE
LIC has been one of the pioneering organizations in India who introduced
LIC
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New payment related Modules pertaining to both ordinary & SSS policies
have been added to the Front End Package catering to Loan, Claims and
pay their Premium or get their Status Report, Surrender Value Quotation,
Loan Quotation etc. from ANY Branch in the city. The System has been
working successfully. More than 10,000 transactions are carried out over
this Network on any given working day. Such Networks have been
All 7 Zonal Offices and all the MAN centres are connected through a
Wide Area Network (WAN). This will enable a customer to view his
policy data and pay premium from any branch of any MAN city. As at
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May 2002, LIC has 91 centers in India with more than 1320 branches
IVRS has already been made functional in 59 centers all over the country.
This would enable customers to ring up LIC and receive information (e.g.
Fund, LIC Housing Finance and their products. Efforts are on to upgrade
Center, Overseas Branches, Divisional Offices and also all Branch Offices
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INTERNET
LIC has given its policyholders a unique facility to pay premiums through
Internet absolutely free and also view their policy details on Internet
INFORMATION KIOSKS
LIC has set up 150 Interactive Touch screen based Multimedia KIOSKS
payments.
INFO CENTRES
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Vision
must have of its goals before it sets out to reach them. It describes
aspirations for the future, without specifying the means that will be used
statement."
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Mission Statement
form. It makes concrete the leader's view of the direction and purpose of
priorities. In turn, goals are specific objectives that relate to specific time
periods and are stated in terms of facts. The primary goal of any business
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MISSION
“To make ICICI Prudential the dominant Life and Pensions player
and service.
conveniently .
employees .
The success of the company will be founded in its unflinching commitment to 5 core
values –
• Integrity
• Customer First
• Boundaryless
• Ownership
• Passion
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Strategic Intent
long term. It must convey a significant stretch for your company, a sense
which are normally dealt with by company visions and missions, but
"To achieve great things, you need ambitious visions. And it does not
matter that vision cannot be laid out in details. It is the direction that
counts."
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needs and the success factors required for meeting these needs.
players (including the market leader LIC) have aggressively recruited and
networks. If at all there was any major difference between players it was
only in time lag in launching of services. Every player would like the
customers to believe that its service standards are the best or that its
agents are the most informed and ethical, but is debatable whether there
be ‘everything to everybody’.
risky. Some players justify the above strategy on the basis that the Indian
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values. Corporate strategy is the overall managerial game plan for a diversified
1. Young professionals
2. Newly married
4. Nearing retirement
Clearly the company has a First-order fit among its activities, because they are
aligned with its overall strategy. There is a hint of Second-order fit as well, because
Communication strategy
To give the consumer a rational and tangible reason to buy - first of all insurance and
advertising, such as for ICICI Pru Smart Kid, retirement solutions or Lifetime.
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Distribution strategy
agents and direct marketing - in addition to advisors and financial service consultants.
All channels sell all the products. Some of their bancassurance partners are ICICI
Bank, Citibank, Federal Bank, South Indian Bank, Allahabad Bank, Bank of India and
Investment strategy
consistent returns over the long term. Policyholders investing its market-linked
products can select from three fund options - each with a varying degree of risk and
can check the NAV of the policy on a biweekly basis in leading newspapers.
Bonus strategy
For their endowment products - CashBak, Save ’n’ Protect and SmartKid - there are
guaranteed additions for four years, after which bonuses are declared on a yearly basis.
There are two products with guaranteed returns - ReAssure and AssureInvest. It
believes that there is a place for assured return products in its product portfolio. It
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Its promoters have infused Rs 100 crore into the company taking its capital base to
Rs625 crore — the highest in the industry. The capital infusion is a clear indication
that the promoters are willing and able to commit the necessary resources upfront to
Its focus was to expand reach, and in line with this, the company has nearly doubled
the number of locations in which it operates, from 24 as of March 31, ‘03 to 46 today.
ICICI Prudential Life Insurance (ICICI PruLife) has gone live with PeopleSoft Human
The solution has enabled the company to achieve real time, collaborative and efficient
management of its human capital. More than two thousand employees of ICICI
Prudential will be empowered by this online, easily accessible, personalized tool that
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STRENGTHS
WEAKNESSES
More or less all players (including the market leader LIC) have
was any major difference between players it was only in time lag
in launching of services.
Opportunities
like Reliance and Sahara will soon enter the fray. According to a UN
enterprising.
premia forms only 1.8 per cent of the GDP, indicating the extent of
underinsurance
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ICICI Prudential Life Insurance Company has recruited talent at a lateral level from
various industries, such as FMCG, banking, telecom, etc, for its middle and senior
management teams. Says Shubhro Mitra, Chief, Human Resources, ICICI Prudential
Life, "The candidates must have the requisite qualifications in their functions and
relevant experience, however not necessarily in the field of insurance. In fact, only
two people amongst the senior management team has any experience in insurance —
the head of sales and the chief actuary. Most importantly, the individuals must have a
winning attitude, energy, willingness to learn and be able to bring fresh ideas and
ICICI Prudential Life Insurance has flagged off operations in Chennai, the
'Salaam zindagi', a social sector policy will cover larger groups amongst
The company targets to cross the one lakh policy mark by the end of the
next fiscal and has already sold 1,500 policies till date. It hopes to break
even in four to six years and for now has no plans to introduce any new
products. The policies currently on offer are ICICI Pru Single Premium
Bond, ICICI Pru Save'n Protect, ICICI Pru Forever Life, ICICI Pru
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ICICI Prulife has very quickly gone on to become India’s largest private
A large part of the success of the new entrants ran be attributed to the government-
the regulatory framework. The regulations governingthe life and non-life insurers are
environment for thriving private sector participation and a level playing field.
Bancassurance and corporate agents are the two emerging channels that give
might be interested in insurance. Moreover, people inherently trust their local bank
with which they have transacted for many years, so an insurance product through that
channel is also regarded with less suspicion. These channels have only just emerged,
but are already making their mark. With time and the appropriate regulations, the
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THREATS
India.
With multiple branches across the country a need was identified by the
head office to service their internal employees in the same way as they
would service an external customer. The user base was growing with
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The Problem:
• ICICI PruLife wanted to service its employees across different functions in the
• Data flow throughout the organization was via emails – thus all data was stored
• Data was hence not centrally available to gather information and convert the
• Employees often spent considerable time in finding out from whom to seek
• With multiple branches all across the country, the need existed to be able to
centrally provide a pool of experts as it was not possible to have experts for
• This in turn would mean that a user would have to know the expert, location of
the expert and his availability and correspond with him over email or long
distance phone calls. This was not feasible, as it was not possible to educate all
the users of the different experts and with possible transfer of experts the
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The Challenge:
• Ensuring the solution becomes the only conduit for employee service.
Consumer awareness, though increasing, is still low and the different types of policies
available and the specific benefits of each often confuse them. And it's the job of
Objective
Some insurers, such as ICICI PruLife, have fulfilled their mission to be a scale
needs of each customer. Others have taken a more focused approach, introducing
select products that they believe hold potential and fill market gaps.
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STRATEGIC ALTERNATIVES
players (including the market leader LIC) have aggressively recruited and
networks. If at all there was any major difference between players it was
only in time lag in launching of services. Every player would like the
customers to believe that its service standards are the best or that its
agents are the most informed and ethical, but is debatable whether there
be ‘everything to everybody’.
risky. Some players justify the above strategy on the basis that the Indian
price competition to the detriment of all players. One may achieve sales
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risky.
While there is room for a few scale players with a finger in every pie, it is
choose its own unique positioning based on its unique strengths, the
activities cover all upstream and downstream activities, from the selection
of the product mix, the way the products are priced, promoted, the type of
distribution mechanism used, the way customers are serviced and so on.
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MARKETING STRATEGY OF
industry. It highlights how an industry where “sell” and “push” were oft
used words and consumer was nothing more than a file no., has changed
roost. Here’s a look at how ICICI Pru changed the rules of the game and
Background:
When the insurance sector was liberalized in 2000, the private players had
to contend with a few issues. Ratio of premium to GDP was low: 1.3% of
22% of the insurable population. Besides the above the private players
product offerings.
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Differentiation Strategy
product alone.
above.
Creative Strategy:
Insurance as a means to lead a worry free life and not as a necessary evil.
To this effect the core brand insight highlighted was "As head of the
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‘We cover you at every step in life (Suraksha… Zindagi ke har kadam
of the life stage that you are in. At the core of the communications
TVC: Building image and creating a differential in the most creative and
connect with the ICICI Pru brand - Indian; satisfaction of knowing that
Press: Gave the consumer a rational and tangible reason to buy insurance
first and secondly from ICICI Prudential. The product specific advertising
investment option and the myth that insurance was good only for tax
saving.
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Other Communications:
Bancassurance channels.
Media Strategy:
the consumer. The role for each medium was envisaged. The TV medium
was used to enhance the emotional link with the brand. Strategic use of 15
sec. edits facilitated high frequency levels. In print, cost per response
rather than cost per thousand as responses were measured in form of call-
ins. Radio FM, Cinema, Internet were used to create a media multiplier
effect. For e.g- Building an emotional connect with the audiences is their
constant endeavour and one of the biggest challenges. Its these same
audiences who closely follow and aspire to be like the characters that they
most popular personas, will be buying a life insurance policy from none
other than ICICI Pru! So check out Jassi Jaisi Koi Nahi, to see how this
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Sum up:
In just over a year ICICI Pru has emerged as India’s no.: 1 Private Life
Insurance Company with almost 50% market share of the private players.
Has sold highest no. of policies both in volume and value. Major
MARKET SEGMENTS
The life insurance and pension business has two distinct customers
pension. Apart from the existing leader LIC, new companies such as
HDFC Standard Life, TATA AIG, ICICI Prudential and more will seek to
Among the retail products for individuals, pure risk protection products
have been introduced by some of the new life insurance companies in the
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insurance can be taken to provide low cost life insurance cover as part of
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hence the marketing mix would be different. However, there are certain
common characteristics that one can cull out from the possible strategies
requirements is what will differentiate the winners from the also-rans. The
been a huge innovation brought about by the new players, which has led
channels and different geographies to focus on. The channel options are -
tied agency force, corporate agents and brokers and this is an area where
like Max New York Life are focussing on the tied agency force only.
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and includes every that interaction that the customer has with the
company and it will be imperative for any serious player to excel in all of
these.
insurance and in pure annuities. Here too, service delivery and financial
term returns generated will be more relevant than just the price of the
value for customers. Norms have been laid down on all of these by IRDA
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Advertising and promotion: The level of demand is latent and will have
marketing and road shows will contribute to all this and different
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risk of failure and provide for greater financial and societal stability
GDP
NGOs and public institutions assist with fund raising and relief
The effect would be to reduce the strain on the tax payer and assist
savings from the insurance sector within the economy and make
opportunities
share the experience across the economy thus enabling better loss
• In its risk pricing and investment decisions the insurance industry sets the
institutions like ICICI, IDBI and UTI. Of late AIG is visible in the media
institutional investors in India. ING Savings Trust and Zurich are active
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ANALYSIS
Policy Holders
A sample size of 50 people has undertaken. The analysis of the questions has been
done with the help of pie charts. It helps is presenting a clear picture of the responses
of the people. The analysis has been done differently for each question. It is as
follows:
38%
Yes
No
62%
Analysis:
Only 62 % people own a life insurance policy and rest of the people
policies.
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LIC?
Yes No
ICICI Prudential
LIC
4%
Yes 46% Yes
No 54% No
96%
Analysis:
96% people are aware of LIC whereas only 54% of people are aware
insurance player in the market since 1954 and had been enjoying
monopoly for the last 40 years. Where as ICICI Prudential has come
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policy?
14
12
10
8
6
4
2
0
Risk coverage TaxSaving Saving/ All of the Above
Investment
Factors
Analysis:
13 out of 31 people want life insurance as a tax saving option rather than a risk
investment option and only 5 people want all the features in their policies. Only 3
people are considering risk factor as the major reason for taking a life insurance
ICICI PRUDENTIAL
Project on Life Insurance
4.Do you think that services have improved after allowing private players in
20%
Yes
No
80%
Analysis:
A large number of people are of the view that privatization is the appreciatable step of
sector in India.
ICICI PRUDENTIAL
Project on Life Insurance
An interview with the officials of both the companies was conducted and the answers
1. What do you think are the major problems of Insurance sector in India?
Illiteracy of people
2. Can you mention some measures, which are required to remove the difficulties
ICICI PRUDENTIAL
Project on Life Insurance
Excellent
policies with low premium which can be flexible and affordable premium as per
ICICI PRUDENTIAL
Project on Life Insurance
benefits what an insurance policy can investment and tax saving rather than
7. India has huge untapped market for insurance. What steps do you take to tap
this market?
More advertisements
According to LIC this major step is helping the insurance sector to increase
their market
size.
9. What type of products and services provided by your organization that is better
ICICI PRUDENTIAL
Project on Life Insurance
of claims, flexibility
ICICI PRUDENTIAL
Project on Life Insurance
A sample size of 50 people has undertaken. The analysis of the questions has
been done and following advantages of ICICI PRUDENTIAL products came into
• UNIT-LINKED PLANS
• PENSION PLANS
• CHILD PLANS
VS
ICICI PRUDENTIAL
Project on Life Insurance
LifeTime does not have any entry age restrictions based on the term chosen.
LifeTime gives you the option to choose your own term based on your
requirements. LifeTime also gives you the flexibility to choose your premium
paying term and still continue the policy as long as you wish to. LifeTime gives
you the flexibility to completely withdraw the units from the 3rd year onwards, in
case of any eventuality. In case of any unforseen eventuality, LifeTime gives you
the option to reduce the premium amount without any change in the policy
premium allocation benefit wherein the premium can be invested in each fund
protection will also increase. LifeTime gives you the added flexibility to increase /
decrease your protection cover to suit your lifestage requirements. To reward the
customers for the persistency in premium payment, LifeTime offers bonus units at
regular intervals based on the premium amount paid. LifeTime does not have any
restriction on the number of top-ups in a particular year. Also the minimum top-up
allowed in LifeTime is much lower and so are the charges. LifeTime offers partial
withdrawals from the 1st year itself in case one needs to withdraw funds due to
any eventuality. LifeTime does not levy a charge on the premium holiday facility.
This is purely available as an additional benefit. LifeTime levies the charges based
on the premium invested and not on the term chosen or the age of the individual.
ICICI PRUDENTIAL
Project on Life Insurance
PENSION PLANS
VS
LifeTime Pension II allows you to accmulate till you reach the ripe old age of
75 years giving you the option to maximise your retirement kitty even if you have
begun late. In addition to giving the option of choosing a Sum Assured, LifeTime
Pension also offers a Zero Life Cover option, thereby serving as a pure
accumulation vehicle for your retirement. Lifetime Pension II gives you the
savings potential. On the contrary, it also allows you to decrease your contribution
combination of funds as per your risk profile and investment priorities. It also
ICICI PRUDENTIAL
Project on Life Insurance
allows you to switch between funds at any time. This helps the client to maximise
his returns as per his risk appetite. Jeevan Nidhi does not give such choices.
Lifetime Pension II maximises the value for the client in case he wishes to use
some other vehicle for accumulation of his retirement kitty. In Lifetime Pension II
the client has the option to make an added payment in the same retirement kitty if
he has a windfall gain. To suit your ever-changing lifestage requirements and risk
year. The customer knows at every point in time how much he is actually
does not know the same in case of other companies policies and has to wait for the
ICICI PRUDENTIAL
Project on Life Insurance
CHILD PLANS
VS
SmartKid gives you the flexibility to choose any one of the structures based on
your needs, whether you require the money at periodic milestones or in the last
few years of the policy. All the future premiums are not waived in case of Jeevan
Anurag. In this case even in the case of the parent's death, the premiums will have
to avail of an Income Benefit Rider - which will take care of your child's upbringing and all
- round development.
ICICI PRUDENTIAL
Project on Life Insurance
SUMMARY
After analyzing the whole survey I come to know that market prospects of insurance is
insurance sector in India. Most of the people are aware of the brand LIC as compare to
ICICI Prudential, the reason being that LIC is enjoying monopoly for the last 40 years
and ICICI Prudential is the new player in the market and trying to give a stiff
competition to LIC. People expect some flexibility from LIC and lower premium from
ICICI Prudential. In India policies are sold for tax saving purposes rather than risk
coverage instrument.
As per experts views insurance sector is facing a number of problems like lack of
brand image, awareness of insurance needs, timid marketing, and illiteracy etc. Some
measures were suggested by the experts like improved marketing strategies, huge
distribution network, penetrating the rural sector etc. All the players for a better
ICICI PRUDENTIAL
Project on Life Insurance
CONCLUSION
For the last few years I have seen the development in the insurance sector
market. Before privatization LIC had 100 % market share but after
but still it has more scope to grow at the fastest pace it ever grows. Private
players are giving a stiff competition to LIC. Though LIC offers a wide
Prudential , but still they are performing better with features like online
Prudential has become the # 1private player in the market due to its
However, still now there is a huge untapped market for insurance in India. In a survey
it was found that still there is 250million strong middle class population of India,
which is still untapped. On the other hand rural areas and small towns offer a huge
potential to the Insurance companies. This potential was largely untapped due to
India. In India health insurance is also not so popular. The reason behind is that people
ICICI PRUDENTIAL
Project on Life Insurance
are not aware of their insurance needs. In India insurance is sold only as a tax saving
Reasons like brand image, lack of awareness for insurance needs, lack of educated &
talented sales force with insurance companies, Lack of penetration due to inadequate
ICICI PRUDENTIAL to overcome these hassles and try to become a leader in the
after getting the placement from IIPM in ICICI PRUDENTIAL and working there
ICICI PRUDENTIAL
Project on Life Insurance
RECOMMENDATIONS
most of this Insurance lie in the middle class. ICICI Prudential will
they just started by endorsing Jassi Jaisi Koi Nahin and Launching
ICICI PRUDENTIAL
Project on Life Insurance
ANNEXURE
Questionnaire 1
(ICICI Prudential)
1 What do you think are the major problems of Insurance sector in India?
2 Can you mention some measures, which are required to remove the difficulties
Yes _ No _
Yes _ No _
7 India has huge untapped market for insurance. What steps do you take to tap
this market?
8 What type of products and services provided by your organization that is better
than LIC?
ICICI PRUDENTIAL
Project on Life Insurance
Questionnaire 2
(LIC)
1 What do you think are the major problems of Insurance sector in India?
2 Can you mention some measures, which are required to remove the
Yes _ No _
Excellent _
Yes _ No _
Yes _ No _
8 India has huge untapped market for insurance. What steps do you take
ICICI PRUDENTIAL
Project on Life Insurance
Questionnaire 3
(Policy Holders)
` Yes _ No _
2 Are you aware of various policies offered by ICICI Prudential and LIC?
Yes _ No _
Yes _ No _
If yes, specify
6 Do you think that services have improved after allowing private players in
insurance sector?
Yes _ No _
ICICI PRUDENTIAL
Project on Life Insurance
Questionnaire 4
` Yes _ No _
2 Are you aware of various policies offered by ICICI Prudential and LIC?
Yes _ No _
Yes _ No _
If yes, specify
5. Which plan you are right now under and why did you bought that?
6. Please comment on the advantages you think ICICI Prudential products have
others?
Yes _ No _
ICICI PRUDENTIAL
Project on Life Insurance
BIBLIOGRAPHY
(Response books)
• ICICI Prudential
Report/Acts
Newspapers / Magazines
• Insurance Post
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