Professional Documents
Culture Documents
SUBMITTED TO: -
SUBMITTED BY:-
Amardeep kumar PGDM, AIMT AIMTDM1113115 Roll No:PGDM (MARKETING & HR) 2011-13
A report submitted to
PROJECT REPORT ON
SUBMITTED TO: -
SUBMITTED BY:-
Amardeep kumar PGDM, AIMT AIMTDM1113115 Roll No:PGDM (MARKETING & HR) 2011-2013
Signature of faculty
A report submitted to
DECLARATION
I, Amardeep kumar , student of Post Graduate Diploma in Mangement from AIMT College Greater Noida hereby declare that I have completed Dissertation on Recruitment and selection procedure in ICICI Prudential Delhi NCR region.
I further declare that the information presented in this project is true and original to the best of my knowledge.
Date:
TABLE OF CONTENTS
TABLE OF CONTENTS
Pg .No.
EXECUTIVE SUMMARY
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of
Insurance in India ... Why Private Insurance?. Intermediaries Challenges Before Insurance Industry Company Profile .... ICICI Prudential Introduction.
18 22 23 26 28 31
Management 37 Distribution 38
Recruiting life insurance advisors.. Market survey on life insurance companies Different plans offered by ICICI Prudential
40 45 57
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Limitations
..
61 63 65
EXECUTIVE SUMMARY
Identifying different profiles of the people and giving them a business Opportunity to join ICICI Prudential as an advisor/agent. (Detailed study on advisors/agent.)
A market survey was done on life insurance companies. Different questions regarding the companies training programs for agents/advisor, top 5 USPS training centers etc were asked. The areas covered up in this survey were east Delhi and Gzb. The report contains details of different life insurance companies, which are in healthy competition with ICICI Prudential life insurance.
The report also throws a light on the following: Working of the unit linked insurance plans. SWOT analysis of the product. Comparative study of the competition Training centers Commission structure Current agent force Different training programs for agents/advisors Modes and ways through which they recruit agents Top five USPs (unique selling proposition
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Overview of Insurance
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Life Insurance As An Investment:Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives offered by insurers. You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks, something that is missing in non-insurance products. In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings. In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy for 20 years and survive the term, the amount invested as premium in the policy will come back to you with added returns. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured. Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to your funds will be limited. One can withdraw 50 per cent of the initial deposit only after 4 years. The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-12 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this amount can become immediately available to the nominee of the policyholder on death. Thus insurance is a unique investment avenue that delivers sound returns in addition to protection.
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Most of the products offered by Indian life insurers are developed and structured around these "basic" policies and are usually an extension or a combination of these policies. So, what are these policies and how do they differ from each other? Term Insurance Policy A term insurance plan is a pure risk cover for a specified period of time. What this means is that the sum assured is payable only if the policyholder dies within the policy term. For instance, if a person buys a Rs 2 lakh policy for 15 years, his family is entitled to the money if he dies within that 15-year period. What if he survives the 15-year period? Well, then he is not entitled to any payment; the insurance company keeps the entire premium paid during the 15-year period. So, there is no element of savings or investment in such a policy. It is a 100 per cent risk cover. It simply means that a person pays a certain premium to protect his family against his sudden death. He forfeits the amount if he outlives the period of the policy. This explains why the Term Insurance Policy comes at the lowest cost. Term Insurance variants: Given the limitations mentioned above, the term life insurance policy has been enhanced to Convertible Term Assurance and Premium Back Term Assurance policies
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Convertible Term Assurance Policy A term assurance policy allows the insured to convert the policy into an endowment or a whole life policy two years before the end of the policy term. This plan is ideal for people who are not able to afford permanent insurance policies (like endowment and whole life) when they have just started their careers. Premium Back Term Insurance Plan This is a term insurance policy in which insurer will pay back the premium (excluding accident premium) if the insured survives the policy term. In case of death, the sum assured would be fully payable.
Anticipated Endowment Policy These policies are structured to provide sums required as anticipated expenses (marriage, education, etc) over a stipulated period of time. With inflation becoming a big issue, companies have realized that sometimes the money value of the policy is eroded. That is why with-profit policies are also being introduced to offset some of the losses incurred on account of inflation. A portion of the sum assured is payable at regular intervals. On survival the remainder of the sum assured is payable. In case of death, the full sum assured is payable to the insured. The premium is payable for a particular period of time.
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FINDINGS GENERAL
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INSURANCE IN INDIA
The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. A brief history of the Insurance sector 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. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies 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. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:
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1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. Insurance Sector Reforms In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of 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: i) Structure Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate.
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ii) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state.
iii) Regulatory Body The Insurance Act should be changed An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from the Finance Ministry) should be made independent iv) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time). v) Customer Service LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerization of operations and updating of technology to be carried out in the insurance industry.
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The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.
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All the private companies have a lock in period of 10 yrs hence no disinvestments possible. Minimum net worth of 500 Cr required for acquiring license with a minimum paid up capital of 100 Cr in their insurance venture. Commitment to increase the paid up capital manifold in next five years. Re insurance for all its policies worth more than 5 lakhs. Reinsurance partners, best and the largest in the world general cologne and Swiss reinsurance. Audit of accounts by at least 2 independent approved auditors each year. Products and pricing are cleared by IRDA, which looks into the financial visibility of the product and the financial implication. IRDA is now proposing a Pvt. Policy Protection fund. Funds to be invested in only regulated and controlled areas with close to 80%being pumped into only gilts thereby assuring safety of funds.
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Intermediaries The IRDA is currently working on norms concerning brokers. In most developed markets, insurance brokers are regulated in the following areas: Registration. Experience, training and qualification, and other restrictions on entry into the profession. Solvency requirements. Professional indemnity or a minimum level of errors. There is also a central fund to protect clients against broker malpractice. In India, the practice of brokers acting as intermediaries does not exist except in the case of reinsurance. Estimates by Ernst & Young show that intermediaries when introduced as a part of the changes will have a market of between Rs 100 crore and Rs 150 crore to be exploited. Expertise and Technology With state monopoly the insurance industry is not subject to disruptive competitive moves or developments. The strategies of the state insurers are driven more by government policy and criteria, such as effectiveness and equity in implementing such policy, rather than by efficiency or impact on the bottomline per se. Naturally, the education and training in the insurance sector have been influenced by the strategic posture of these public sector insurance companies. The increasing importance of knowledge in the Indian insurance industry is likely to make employability a critical factor for retention of qualified managerial manpower in the future. To create such a milieu, insurance companies need to have a critical mass of management graduates and professionals (or equivalent) and a top management that encourages a knowledge-based culture. Reinsurance The current thrust is to increase retentions. This is being significantly achieved with reduction in ceded reinsurance premium overseas from US $ 250 million to US $ 150 million With reinsurers
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like Munich Re and Swiss Re to be licensed there a sea - change is anticipated in reinsurance practice. Besides other reinsurers like Zurich, Allianz and AIG are present. A view maybe formed for the possibility of transaction similar to the inter-bank call money market in respect of risks written by non-life insurers. Brokers can introduce changes in practice and which could include both coinsurance and reinsurance placements. There is likelihood of accelerated introduction of the new alternative risk techniques which converge risk covers and replace at once insurance and its reinsurance. The market is set to witness these unconventional changes at a pace permitted by change in local tax laws.
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The weaknesses of PSU players are poor service orientation, high operating overheads, limited underwriting flexibility and poor systems and data collection abilities. While ICRA rated all the PSU as AAA in terms of the claims paying ability with a short to medium term outlook, the two private insurance companies rated below this level by the agency did not accept the rating as it was not up to their expectation. The private companies have been rated on financial and operating strength of the promoter, strength of the joint venture agreement and attractiveness of the venture to both parents and quality and terms of reinsurance agreement. The lower ratings stemmed from the fragile nature of joint venture agreements, the uncertainty over the evolution of the market and the short track record of these companies.
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agents. Hence, intense competition will grow among the old and new insurers in the market to win the consumers. This will pose a great challenge to the insurers in the liberalized insurance market. Consumer Education Very soon the market will be flooded by a large number of products by a fairly large number of insurers operating in the Indian market. Even with limited range of products offered by LIC and GIC, the consumers are confused in the market. Their confusion will further increase in the face of a large number of products in the market. The existing level of awareness of the consumers for insurance products is very low, it is so because only 62% of the population of India is literate and less than 10% well educated. Even the educated consumers are ignorant about the various products of insurance. Hence it is necessary that all the insurers should undertake the extensive plan for education of consumers. The consumer organizations and the media also can play very important role in education of the consumers. This will result in expansion of the insurance market and will also enable the needy consumer to purchase appropriate products.
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COMPANY PROFILE
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COMPANY PROFILE
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. 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 their customers. Riding on the success of this relationship; the two companies joined hands once more in 2000 to form ICICI PRUDENTIAL life insurance with a commitment to provide leading-edge life insurance solutions.
ICICI Bank:
ICICI Bank (NYSE:IBN) is India''s second largest bank and largest private sector bank with over 50 years of financial experience and with assets of Rs. 1812.27 billion as on 30th June, 2005. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is a leading player in the retail banking market and has over 13 million retail customer accounts. The Bank has a network of over 570 branches and extension counters, and 2,000 ATMs.
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PRUDENTIAL plc:
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldwide. As of NOV 30, 2012, the company had over US$300 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
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ICICI
Prudential Life Insurance Company Limited
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Entry
Joint venture entry platform Strong, respected partners Comprehensive portfolio Innovative and flexible Creation of a superbrand
Product Brand
Distributi Rapid expansion of agency on Multi-channel platform Operation Best in class s Customer centric People
Talent from diverse industries
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Brand strength
Reputation
Local knowledge
Operation s
Vision
To be the dominant life & Pensions player built on trust by world class people & service Values Customer First/Boundaryless/Ownership/Passion/Integrity
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India: Overview
Country
Population 1,055m Insurance penetration2.7%
Characteristics
Pre-2000 : Public monopoly Market deregulated in 2000 ICICI entered in 2000 through joint venture with Prudential
Top 5 players
Life Insurance Corp. of India (LIC) ICICI Prudential Birla Sun Life Bajaj Allianz HDFC Standard
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Aviva 4.5%
AMP Sanmar ING Vysya Metlife 0.7% 1.2% 6.7% ICICI - Pru 34.2%
Bajaj Allianz 11.3% Tata AIG 6.3% Birla Sunlife 12.9% HDFC Std.life 9.1%
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ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2006 after receiving approval from Insurance Regulatory Development Authority(IRDA).
ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2011, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7 bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.
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MANAGEMENT
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DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in over 116 cities and towns in India, stretching from Bhuj in the west to Guwahati in the east, and Amritsar in the north to Trivandrum in the south. The company has 8 bancassurance tie-ups, having agreements with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Ernakulam Bank, Lord Krishna Bank and some co-operative banks, as well as about 290 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the distribution of rural policies and organisations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society. ICICI Prudential has recruited and trained more than 65,000 insurance advisors to interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers.
OPERATIONS OF ICICI
The company is now operational in, Pune, Mumbai, New Delhi Chennai, Kolkatta, Bangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut, Mangalore and Ludhiana.
Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees
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The success of the company will be founded in its unflinching commitment to 5 core values -Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth.
Achievements so far!
Leading Private Life Insurance company. Maximum number of policies sold Largest premium income Biggest pension player Strong brand recognition. State-of-the-art support services.
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Advisor Role.
To provide ongoing financial advice for his/her clients: Identify future clients Making appointments Conduct financial review meetings with prospects/clients. Close sales Get referrals Provide service to clients. Follows internal sales and reporting system.
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Commission Structure.
Different products will have different commission structures. For example: Single Premium products will have a commission of 2%. Renewal Commission is paid at the following rates: 2nd yr:7.5% 3rd yr:7.5% 4th yr:5% 5th yr:5% onwards
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Payments & benefits-commission Structure for advisors/agents. Year 1 50 10000 500000 125000 50000 175000 Year 2 75 10000 750000 187500 75000 262500 37500 175000 37500 300000 Year 3 100 10000 1000000 250000 100000 350000 56250 37500 93750 443750
Number of Policies Sold Average Premium Rs. Total Premium Earned Rs. Commission @ 25% Bonus @ 40% of Commission Earnings from New Business Rs. Commission on Renewal Premium@7.5% For year 2, 3, and 5% after that Earnings from renewal business Rs. Total Earnings Rs.
People from these profiles usually have a good network of communication and do not face much problem in finding clients and selling different products.
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Thats why almost every insurance company try to recruit people as advisor/agent belonging to these profiles.
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Commission Structure.
Depends on the plan
Features:
The plan provides joint life last survivor survival benefits to take care of education expenses of children. Recurring monthly survival benefits on increasing scale are expected to meet fees and other expenses of education. Lump sum survival benefit can be utilized towards expenses for admission to professional course. Lump sum maturity amount is provided to meet the profession/ business setting up expenses. The plan is a single premium without profit assurance plan with provision for guaranteed and loyalty additions. The valuable insurance cover on the life of the parent-proposer in case of unfortunate event will enable the child to carry on the education without any financial interruption.
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Death Benefits:On death of the parent - proposer during the policy term, a sum equivalent to the basic sum assured is payable. Risk on the life of the named child is not covered. Policy Parameters: Entry Age Sum Assured Term Min 20 (0 for child) 25000 Not Applicable Max 70 (12 for child) 1000000 Not Applicable
Different training programs for agents. - Skills upgradation: How to give presentations and company introduction. - Knowing your customers: Matching customer request with products. Modes & ways through which the company recruit agents. - Through development officers. - Through corporate agencies(Bankers and Brokers). - Carrier agent branch (i) rural carrier agent (ii) urban carrier agent. Current agent force 10000 agents in GZB.
AVIVA.
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-Aviva plc was launched in 1st July 2002 as a new name for CGNU plc. A world leader in financial services, the group has 300-year pedigree. - Aviva brings together 50 trading names and enables the group to harness the benefits of its size and international capabilities as the seventh largest insurer in the world. - Its main activities are long-term savings, fund management and general insurance. - The group has 56,000 employees serving 30 million customers worldwide. Training activities for agents/advisors. - As per IRDA,100hrs training is compulsory - Both online & classroom training are available. - In the 100 hrs training the advisor/agent is given knowledge about insurance & company. - Both part time & full time option available. Training centers. - NIS: South extension & Patel nagar. - In-house training center at C.P branch. (ICICIPrudential Advantage:- More training centers available at different locations.) Commission Structure. Different policies are available - For single time investment Minimum- 2% Maximum-35% - For insurance policies Minimum -5% Maximum - 35%
Different training programs for agents. - Knowing your customers: matching client request with product. 50
- Product Training: giving knowledge about the different products of the company. - Selling skills: How to make the client more satisfied. Modes & ways through which the company recruit agents. - Newspaper adds. - Reference. - Personal contacts. - Walk-ins* *Through interviews and written exams. Current agent force 1500-2000 in Gzb Top 5 USPs (Unique Selling Proposition) - Unique way of selling(financial health check)taking information from the customer, based on that report advise is given for future investments or savings. - Showing the future to the customer so that it can decide the type of investment. - Seventh largest insurer in the world. - Provides need based products of different kinds like non-medical products which are investment oriented. - Number one asset management company which brings together 50 trading names.
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It is the Largest Mutual Life company in Europe and has total assets of Rs. 5,50,000 crore.
Training activities for agents/advisors. - As per IRDA guidelines,100hrs training is compulsory. - Both online & classroom training are available. - Training is compulsory with both part time & full time options. - A clear exam is conducted by IRDA, the minimum qualification required is12th pass for urban areas 10th pass for rural areas.
(ICICIPrudential Advantage:- More training centers available at different locations.) Commission Structure. Depends on the product, like on savings 20-40% Ist year premium. - on investment 2% - on pension 7.5% Different training programs for agents. - IRDA training:100 hrs training which is compulsory. - Product training: Making the agents well aware of the company's products. - Communication training: How to communicate more - Presentation skills Modes & ways through which the company recruit agents. effectively with your customers. - Behavioral training: How to understand you customers more properly.
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- Direct contacts. - Newspaper adds. - Consultants. - Member of the company can introduce a new member. Top 5 USPs (Unique Selling Proposition) - Ist private sector life insurance company to be granted a license. - Declared bonus every year from the day of incorporation(only company.) - Provides fast service to the customers in terms of claim. - Best insurer according to Outlook. - Well supported by foreign partner Standard Life,U.K the decade' in which was recently voted ' company of U.K by the Independent Brokers called IFAs.
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- With over 3 million policy holders, New York Life is a leading provider of insurance in a host of countries worldwide. Training activities for agents/advisors. - As per IRDA,100hrs training is compulsory. - Only classroom training is available. - Only fulltime training is given. (ICICIPrudential advantage:- Part time option available.) Training centers. Max newyork life has in-house training centers all over Delhi. Himalaya house -C.P Seactor-18, Noida. Commission Structure. Minimum - 2% Maximum - 35%. Varies from product to product- 25%,7.5%,10%&15%. Different training programs for agents. - Module training: giving details about the product. - Ethical selling: different techniques of selling. - Motivational tools: How to make the client more satisfied or to sell better. Current agent force 2000-3000 in Delhi. Top 5 USPs (Unique Selling Proposition) - Training, which is compulsory for every agent/advisor so that they work according to the company's working style. - Emphasizes on whole life products. - Flexibility of the product to adapt to customers changing needs in future. - Believes in healthy competition with other life insurance companies. - Agent is the power.
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Tata AIG
-The Tata AIG joint venture is a tie up between the established Tata Group and American International Group Inc. -The Tata Group is one of the largest and most respected industrial houses in the country. -AIG is a leading US based insurance and financial services company with a presence in over 130 countries and jurisdictions around the world
- Then there is six days product training in which an agent is made familiar with different products of the company. Only full-time training is given. (ICICIPrudential advantage:- Part time option available.) Training centers. Through NIS, Tata AIG has NIS training centers in Delhi for IRDA training. Berjaya house(New friends Colony.) Pitampura G.K-1 Noida Sector-4.
(ICICIPrudential Advantage:- More training centers available at different locations.) Commission Structure. 40% on 1st year premium. 7-5% on next 6 years. Different training programs for agents. Who are we and what we do?
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What does your customer actually need? How do you create & protect wealth for your client? How can you meet 5 prospects daily?
Modes & ways through which the company recruit agents. Advertisement (Newspaper adds) own team to use contacts.) Current agent force 6000 agents all over India. Top 5 USPs (Unique Selling Proposition) AIG stands second in insurance, in the world. Tata gives a compounding bonus to policy holders. Highest commission structure of 40%. Tata itself is a known brand. A good carrier graph. *Advisors become consultants in a short span of time.
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- School net India ltd. Different training programs for agents. - Product training: 3 days training in which agents are made familiar with the products of the company. - Refresher training - Direct sales training: indirect channel : in this an agent - calls the client - fixes an appointment. - then meets the client.
Modes & ways through which the company recruit agents. Interviews & written exam. Newspaper adds.
Current agent force 750 agents in Delhi. Top 5 USPs (Unique Selling Proposition) Trusted name, as a part of Aditya Birla group. Indias second largest business house Multinational company which is growing rapidly. Having second position in private life insurance. Offers different plans with ethical and good claim settlement.
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1 . SmartKid regular premium 2 .SmartKid unit-linked regular premium 3 .SmartKid unit-linked single premium
Guaranteed Financial Benefits: Regular payments at critical stages in your child's life,
like Board examinations, Graduation and Post-graduation.
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All future premiums are waived: Ensuring that your family is not financially burdened in your absence. Policy benefits continue: The educational benefits of the policy continue, ensuring that your child can realize his or her dreams without any hassles. Development Allowance: Smart Kid guarantees regular income to secure your child's educational career and also ensures his or her all-round development, for a nominal additional amount. The Income Benefit Rider takes care of this through an annual payment of 10% of the sum assured, to your child, till the maturity of the policy, in the unfortunate event of the death of the parent.
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operational efficiency.
Group Term Assurance : Helps provide affordable cover to members of a group. Group Gratuity Plan : Helps employers fund their statutory gratuity obligation in a flexible and hassle-free manner. Group Superannuation Plan : A flexible scheme (defined benefit and defined contribution) to provide a retirement kitty for each member of the group.
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Promotions. A customer usually gets convinced through following ways: By first knowing what your customer needs. Then telling him what he/she can benefit out of it. Giving him/her time to think.
Insurance is all a game of showing the future to your customers and giving them a solution to their future problems, because no body wants to get insured but everyone needs it.
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CONCLUSION
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CONCLUSION
ICICI Prudential life insurance company is the number one private life insurance company in India with a market share of 42.2%. Birla sunlife stands second in private life insurance companies with a market share of 18.5%. Looking in private sector ICICI Prudential has been the dominant player because the amount of gap between the market share is huge. But if we analyze in all sectors of life insurance then LIC has been the most dominant player since 1956. The impact of LIC has been so much in both rural and urban areas that people use the term LIC instead of life insurance. ICICI prudential faces a big challenge infront of them to stay in the race with Life insurance corporation(LIC) because with the entrance of other companies like Max newyork , Tata-AIG & Aviva the competition has become more tough. But insurance is also growing day by day, India has a population of 1.2 billion and only 33.3% population is insured. This means insurance is an upcoming industry but ICICI prudential has to work a lot on their strategies to overcome LIC.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
PASSTRAK Life Insurance License Exam Manual by Dearborn Financial Service The Life Insurance Game by Ronald Kessler All about life insurance agents by Vaswar Das Gupta Laws of Insurance by Kay Strang WEBSITES www.iciciprulife.com
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