Professional Documents
Culture Documents
Submitted in partial fulfillment of requirement of Bachelors of Business Administration (BBA) GURU JAMBHESHWAR UNIVERSITY, HISAR
TRAINING SUPERVISOR
SUBMITTED BY:
Session: 2009 2010 GURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY HISAR-125001
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EXECUTIVE SUMMARY
ICICI Prudential Life Insurance is one of the largest Insurance networks in the country, and 2nd Life Insurance Company in India. The ICICI Group has been in existence since 1955 when ICICI Ltd., was created. ICICI Prudential started in 2002 as subsidiary of ICICI Ltd., Today ICICI Life Insurance has a customer base of 4 million with total assets exceeding Rs.1, 00,000 Cr. making it the 2 nd largest life insurance company in the country, next only to LIC. The Insurance sector, after the opening up, provides greater opportunities. Several global players have emerged and the market has changed significantly. In the changed scenario, the expectation is that the low Insurance premium as a percentage of GDP prevailing in India will improve and will offer better opportunities to the insurance players. Life Insurance sector is one of the key areas where enormous business potential exists. In India currently the life insurance premium as a percentage of GDP is 1.3 per cent against 5.2 percent in the US, but in the liberalized scenario,the life insurance premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99 to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 200910 and personal line non-life from Rs 4 billion to Rs 51 billion. In the life Insurance segment the Life Insurance Corporation of India (LIC) is the major player. The LIC has 2050 branches. It is constituted in to seven Zones. Currently there are 5, 60,000 LIC agents in India. General Insurance is another segment, which has been growing at a faster pace.
ACKNOWLEDGEMENT
There is always a sense of gratitude which one express to other for the helpful so needy services they render during all phases of life. I would like to express my gratitude towards all those who have been helpful to me in getting this mighty task of training to a successful end. I would also like to be thankful to Mr. Rohit Gupta (Branch Manager, ICICI Prudential Life Insurance), who has given me the right way to prepare my project report. I would take this opportunity to thank all my family members for their helps & suggestions during the course of project work. I am also thankful to all my friends who gave me constant & continuous inspiration to complete this project.
DATE:
SAURABH BINDRA
TABLE OF CONTENTS
Chapter 1: Introduction
1.1 Overview of the Industry 1.2 Profile of the Organization 1.3 Problems of the Organization 1.4 Competition Information 1.5 S.W.O.T. Analysis of the Organization
01-23
02-06 07-20 20-20 20-21 22-23
24-26
25 25 25 25 26
Chapter 3: Conceptual Discussion Chapter 4: Data Analysis Chapter 5: Findings & Recommendations Annexure QUESTIONAIRE Bibliography
65-66
Chapter -1 INTRODUCTION
controlling the affairs, the office of Controller of Insurance was established. The act was extensively amended in 1950. In the year 1955, approximately 170 Insurance Offices and 80 Provident Fund Societies had been registered for transacting Life Assurance business in India. There were, however, no full guarantees to the policyholders. The concept of trusteeship was lacking. Many insurance companies went into liquidation. There were malpractices in insurance business. For achieving the following purposes it was felt necessary to nationalize the insurance business in India. To provide security to the policyholders (i)To utilize the funds for nation-building activities. (ii)To avoid cut throat competition (iii)To abolish mal-practices (iv)To spread the insurance message to the rural areas. The first step in this direction was taken by the Government of India by issuing the Life Insurance (the Emergency provisions) Ordinance, 1956 on 19th January, 1956. The then Finance Minister, Shri C. D. Deshmukh mentioned the purpose of nationalization as reaching the goal of socialistic pattern of society, rendering genuine service to the people in the rural area. The Life Insurance Corporation Act (Act XXXI of 1956) was passed by the Parliament in June 1956 which came in force on 1stJuly 1956. The Life Insurance Corporation of India came into existence on 1st September 1956.
future direction. In 1994, the committee submitted the report and gave the following recommendations:
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
Market Regulations
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
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
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) 4
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 Overall, the committee strongly felt 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.1 bn. This amount is not very high for foreign firms, as it translates to only about US$25 million. Further, to date it is unclear whether equity should be payable in one go or should be brought in as installments. Also, the foreign equity participation was to be restricted to only 40%. 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. The industry and analysts find that there is lack of clarity in the following areas: Though coverage of rural areas was to be made compulsory, it raises the question as to who would subsidies the rural policies as they would be difficult to service and hence costs will go up. There is some confusion with respect to investments. Where the funds should be invested? Currently 70% of the funds with LIC & GIC are invested in Government securities. Would new entrants be allowed to invest in GOI securities? The report also does not enumerate exit options available to the new entrants. In the event of failure, there should be an arrangement made whereby the other Companies pool in to bail the customers, who in all probability would be middle class individuals. 5
Foreign Partner:
Established in 1848, Prudential PLC. of U.K. has grown to be the largest life insurance and mutual fund company in U.K. Prudential PLC. has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries. Prudential is the largest life insurance company in the United Kingdom (Source: S&P's UK Life Financial Digest, 1998). 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. Their latest venture ICICI Prudential Life plans to take care of the insurance needs at various stages of life. ICICI Prudential Life Insurance was established in 2000 with a commitment to expand and reshape the life insurance industry in India. The company was amongst the first private sector insurance companies to begin operations after receiving approval from Insurance Regulatory Development Authority (IRDA), and in the time since, has taken several steps towards its realizing its goal. The company's wide range of products, distribution strengths and powerful brand has driven its growth across a cross-section of people and cities. As on March 31, 2003, the company had issued nearly 350,000 policies, with a total premium income of over INR 5 billion and a total sum assured in excess of INR 87 billion. Today, the company has established itself as the No. 1 private life insurer in the country.
ICICI Prudential Life Insurance Company is a joint venture between ICICI, a premier financial powerhouse and Prudential PLC, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudentials equity base stands at Rs. 4.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. As of March 31, 2003, the company had issued nearly 350,000 policies with a sum assured in excess of Rs 8,700 crore and total premium income of over Rs. 500 crore. Today the company is the #1 private life insurers in the country.
Company Vision
To make ICICI Prudential the dominant Life and Pensions player built on trust by worldclass people and service.
Employees
And above all, building transparency in all ICICI Prudential dealings. The success of the company will be founded in its unflinching commitment to 5 core values Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes 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 ICICI Prudential growth.
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr. K.V. Kamath, Chairman
Mr. Mark Tucker Mrs. Lalita D. Gupte Mr. Danny Bardin Mrs. Kalpana Morparia Mrs. Chanda Kochhar Mr. M.P. Modi Mr. R Narayanan Mr. S.P.Subhedar, (Alternate Director to Mr. Danny Bardin) Mr. Derek Stott, (Alternate Director to Mr. Mark Tucker) 9
Management Team
Ms. Shikha Sharma, Managing Director Ms. Anita Pai, Chief - Operations & Underwriting Mr. Bill Lisle, Chief Agency Office rMr. Sandeep Batra, Chief Financial Officer & Company Secretary Mr. Saugata Gupta, Chief - Marketing Mr. Shubhro J. Mitra, Chief - Human Resources Mr. V. Rajagopalan, Appointed Actuary Mr. Anil Tikoo, Head - Information Technology
Products
Insurance Solutions for Individuals: ICICI Prudential Life Insurance offers a
range of innovative, customer-centric products that meet the needs of customers at every life stage. Its 13 products can be enhanced with up to 4 riders, to create a customized solution for each policyholder .Savings Solutions: ICICI Pru Save n Protect is a traditional endowment savings plan that offers life protection along with adequate returns. ICICI Pru Cashbook is an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a child's higher education or purchase of an asset.
Protection Solutions: ICICI Pru Lifeguard is a protection plan, which offers life
cover at very low cost. It is available in 3 options - level term assurance, level term assurance with return of premium and single premium.
Child Solutions: ICICI Pru Smart Kid provides guaranteed educational benefits to a
child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. 10
Single Premium Solutions: ICICI Pru Assure Invest is a single premium savings
product with life cover for terms of 5, 7 or 10 years. ICICI Pru Reassure is a retirement product for senior citizens who are on the verge of retirement or have just retired. ICICI Prudential also launched ''Salaam Zindagi'', a social sector group insurance policy targeted at the economically underprivileged sections of the society.
ICICI Pru Group Gratuity Plan: ICICI Pru''s group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations .ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.
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ICICI Pru Group Term Plan: ICICI Pru''s flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
Flexible Rider Options: ICICI Pru Life offers flexible riders, which can be added to
the basic policy at a marginal cost, depending on the specific needs of the customer
1. Accident & disability benefit: If death occurs as the result of an accident during
the term of the policy, the beneficiary receives an additional amount equal to the sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.
2. Accident benefit: This rider option pays the sum assured under the rider on death
due to accident.
3. Critical Illness Benefit: protects the insured against financial loss in the event of
9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death. 4. Major Surgical Assistance Benefit: provides financial support in the event of medical emergencies, ensuring that benefits are payable to the life assured for medical expenses incurred for surgical procedures. Cover is offered against 43 different surgical procedures.
About The Partners ICICI Bank (NYSE:IBN) is Indias second largest bank with an asset base of Rs.
106812 crore. ICICI Bank provides a broad spectrum of financial services to 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 multichannel access network. This includes about 450 branches and extension counters, 1675 ATMs, call centers and Internet banking (www.icicibank.com). ICICI Bank posted a net
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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 Moodys and the only Indian company to be awarded an investment grade international credit rating. The Bank enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies. Established in 1848, prudential plc is a leading international financial services company in the UK, with some US$250 billion funds under management and more than 16 million customers worldwide. 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 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. agents across the region. Since 1923, Prudential has championed customer-centric products and services, supported by over 60,000 staff and
Insurance Plans
Savings Plans: Most endowment policies are a good way of saving for the future. A
policy can be designed to make your savings grow and have them available to you at the end of a fixed number of years. Or, a policy could provide you with an income every three or four years. Smart Kid - a superior way to guarantee your childs future no matter what the uncertainty Lifetime - a complete market-linked insurance plan that adapts itself to your changing protection and investment needs, throughout a lifetime. Sevens' Protect - a traditional endowment savings plan that offers both high returns and protection. Cashbook - an endowment savings plan that allows you to get back substantial survival benefits without having to wait till the maturity date.
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Depending on your particular needs, Savings Plans could allow you to do one or more of the following:
Plan For Tangibles: buy that fashionable car, that huge refrigerator, etc. Plan For A Cozy Nest: by facilitating the purchase of that home you have always dreamt of. Plan For Milestones: ensure a good education for your children, children's wedding, etc.
Save on Deferred Taxes: because the interest income and maturity benefits of the
Policy are tax exempt.
Lifestyle Planning: maintain your lifestyle - even if your income was to reduce in
the future.
Legacy Creation: buy property; invest in shares, bonds, etc. for your children or
grandchildren.
Protection Plans
We all hope to live a full life till a ripe old age... to ensure our children's sustenance and healthy growth. But what if a sudden disability or illness strikes? Besides the grief and the pain, such an event also completely disrupts life for all the people who are financially dependent on us. Our life insurance policies offer a comprehensive range of protection benefits
Lifeguard - A low cost-high protection plan that offers protection over a specified
period.
Riders - Additional benefits that one can add on to the policy. The rider can be opted
for at the time of taking the basic policy. Additional premium is charged for each rider.
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An insurance policy can be tailor made to provide protection to you and your loved ones. If something were to happen to you, it can help: Safeguard Your Better Half: ensure life's continuity for your loved one.
Dear and Near Ones: ensure continuity of lifestyle for your dependents. Attain Greater Heights: ensure your children's education continues undisrupted Unforeseen circumstances: bear the cost of fighting an illness, disability, etc. Retirement Plans
Most of you picture yourselves enjoying the fruits of labor after retirement, going on your dream vacation, or helping your children's career take wing. But do you realize that financing all this will most likely depend partly on your personal savings? Because personal savings and investments represent a significant source of retirement income for many people, you can never save too much. Currently, you are at a stage where you are juggling many roles, as nurturing parents, dutiful caregivers to elders, supportive life partners, while trying to maintain a career. It is too easy to get carried away handling and solving the day-to-day problems to not look into your retirement needs. It may also seem too far away to be of concern. But a look at the issues below will make the need for some strategic planning at this stage amply clear. Today, thanks to a healthier lifestyle and advances in medicine, the average Indian lives longer. This makes the challenge of accumulating enough money for retirement even more difficult, since it may have to last longer. Also, with the falling interest rate scenario and the rising costs of medical expenses retirement means monetary uncertainty for most of us. More so, because there is also the ever-persistent evil of inflation, which erodes your purchasing power. The graph below illustrates how much Rupees will 10,000/amount to after some years:
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Therefore, the message is simple - no matter whether you are 30 or 50, you should start planning early to have a healthy retirement kitty. (See graph below for an illustration)
As can be seen the cost of delaying is high. Situation A is when you are saving Rs 10000 annually from the age of 25 to 34 years and Situation B is when you save the same
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annual amount from the age of 35 to 59 years. As can be seen in the example, even after investing your money for a 2.5 times longer duration, the maturity value in the second case is much lesser (the figures are based on a hypothetical interest rate of 10%). The longer your money is allowed to grow at a compounded rate, the more dramatic will the difference be eventually. Therefore, the message is simple - Put Time On Your Side and Start Early ICICI Prudential Life Insurance believe in the philosophy of providing meaningful and comprehensive insurance solutions to plan your retirement. Our insurance solutions are the most optimal tools to plan your retirement because they give you Safety, Liquidity, Tax benefits, Health cover and Life protection and thus ensure that you are comprehensively covered.
ICICI Prudential offers flexible products for planning your retirement: Forever Life - A deferred annuity plan that helps you save for retirement while
providing you life insurance protection.
Life Link Pension - A single premium plan which allows you to park a lump sum
amount for a secure future.
Life Time Pension - A plan which gives you the twin benefit of market-linked
annuity and life insurance cover.
Reassure - A plan that helps you invest your money prudently and safely and offers
you the benefit of a regular income while providing you life insurance protection.
Depending on your particular needs, our Retirement Solutions could allow you to do one or more of the following: Maintaining the Same Living Standard Post-retirement : Get your
retirement monies to earn you the benefit of a regular income while providing life insurance protection. So now you can really enjoy even your post-retirement days.
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a tax-deferred basis. You are also in control of when you want to begin receiving payments. An annuity gives you a fixed income for life.
Protect Your Better Half: If you are married, it is preferable that your retirement
plan includes your spouse. The "Joint Life Last Survivor" annuity option in ICICI Forever Life pays benefits as long as either one of you is living.
Investment Plans
Often you may have some ingestible funds lying idle - a bonus or maybe a windfall. You can either secure your family through insurance or invest it for growth. The need for insurance is crucial but you also want to see your money grow through market investments. But in volatile market conditions how do you secure both? Relax, because now you can hedge your investments with safer investment vehicles that provide you with a diversified portfolio. ICICI Prudential Life Insurance presents a package of Investment Solutions, which provide you high returns, while guaranteeing complete peace of mind. This follows from our understanding that life has many facets and they are manifested through its various needs. Therefore our philosophy is to provide you with comprehensive insurance solutions that cater to your dual needs of earning potentially high returns as well as stay insured for life. Thus we offer you a unique package of Investment Solutions that combine the best of insurance and investment.
ICICI Prudential offers flexible solutions for planning your investment. Lifeline - an investment plan that gives you the flexibility of choosing your investment
options while keeping you insured for life.
Assure Invest - a single premium endowment plan that gives you potentially high
returns coupled with insurance protection.
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In this new age of rapid developments and just-in-time methodologies, one big challenge that organizations face is to establish and maintain a competitive edge over others. Today's cutting-edge product or service becomes tomorrow's undifferentiated commodity. In an era of competitive parity, the only asset that makes a decisive difference between corporate success and failure is the quality of human capital.
Group Gratuity Plan: A plan that helps employers fund their statutory gratuity
obligation in a scientific manner
Group Term Assurance: A plan that helps provide affordable cover to members of
a group.
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Contact Information ICICI Prudential Life Insurance Company Limited Registered Office
1089, ICICI Prudential Towers, Appasaheb Marg, PrabhaDevi,Mumbai - 400 051.
Birla Sun Life Insurance: The Aditya Birla Group contributes its knowledge of the
Indian market while Sun Life Financial contributes global expertise in the areas of protection and wealth management.
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HDFC Standard Life Insurance: HDFC and Standard Life have a long and close
relationship built upon shared values and trust. Providing long term financial security to policy holders will be the constant endeavor.
ING Vysya Life Insurance: ING, the worlds second largest life insurance
company together with Vysya Bank, one of Indias leading private sector banks, forms ING Vysya Life Insurance.
Life Insurance Corporation (LIC): Life Insurance Corporation (LIC) has been one
of the pioneering organizations in India who introduced use of Information Technology in their business.
MetLife India: The Metropolitan Life Insurance Company is the number one insurer
in the U.S. It is helping build financial independence for its customers.
Oriental Insurance: The Oriental Insurance Company Ltd. (OICL) is one of the
leading General Insurance companies in India and is a subsidiary of the General Insurance Corporation (GIC) of India.
Royal Sundaram Alliance Insurance: Royal Sundaram marks the coming together
of Sundaram Finance, one of Indias most respected and trusted finance companies, and Royal and Sun Alliance, one of the largest insurance groups in the world.
Tata AIG Insurance: Life insurance & general insurance for individuals &
corporates by Tata AIG. This site will guide you on how to capitalize on opportunities and protect against uncertainties
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The biggest strength of this organization is the: Money power, which makes them ignorant about the gestation period. Brand image, Business experience, and Innovative products The agents are very selectively chosen have excellent communication skills. Service quality, which is the crux of their mission. Large network branches which is helped to customer for the payment
Weaknesses
High targets for financial advisors and for the sales departments. Many competitors in the market offer same product by the title difference in the premium and offerings. Sustainable to risk associated with investments in money market. Try to catch middle-lower level people also.
Opportunity
Huge market is literally untapped, out of estimated 320 millions insurable markets only 20% of the population is insured. Health insurance and pension schemes, an estimated market potential of approximately $15 billion. ICICI Prudential should give the insurance coverage both to the parent and child so that their life could be covered in both cases. The customer doesnt mind paying some extra premium for that.
Threats
Players like Bajaj and Birla Sun life with low premium for the similar plans.
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Entry of many other private companies with equally strong experience and financial strength of foreign partners making the competition difficult and saturating the urban markets. Current Govt. policies do not encourage gross domestic savings. If the tax liability of the service class rises, the customer will have little money to invest. LIC has woken up from sleep and is following competitive strategies. Its huge surplus in Life Fund gives a capability to lodge Price war
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A study of the products and services of the ICICI Prudential Life Insurance will help me understand the difference between its products and that of competitors. Also I will get to know the consumer perception about the various life insurance products available in India
2.5 METHODOLOGY
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Secondary Sources:
IRDA act, 1999 Handbook of Insurance agents of different Life Insurance companies Internet websites of IRDA and various Life Insurance companies & various websites. The primary study will be targeted towards the marketers. The study will also include semi-structured interview with marketing managers of various Insurance companies who are successfully selling Life Insurance Policies to Indian Consumers The Secondary Sources will help in tracing the historical framework of Insurance companies of post independent India as well as the pre-privatization and postprivatization Insurance environment in India. This secondary study will help in serving the theoretical groundwork for the study.
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"Marketing is a social and managerial process by which individuals and groups obtain what they need want through creating, offering and exchanging products of value with others. This definition of marketing rests on the following core concepts: needs, wants, and demands; products (good, services and ideas); values, cost and satisfaction; exchanger and transactions; relationships and networks; markets; and marketers and prospects".
The concept of financial Services Markets is a combination of two different words, Finance and Marketing. In a true sense, it is application of marketing principles in the financial services or conceptualization of marketing in the decision-making process of financial organization. It is a right to say that financial marketing is related to the product, promotion, place, and pricing and people decisions of the financial organizations, which simplify the taste of restructuring of revamping their decisions in tune with the changing business environment. In addition, the financial marketing also includes in its the activities related to the behavioral profile of the customers and the marketing information system so that the marketing decision involve more dynamism in its to meet the financial and more the customers and market. The right from the making of services product, promotion, place, pricing and people decisions to the study of financial organizations and customers, market conditions and environment become an integral part of financial marketing. Further it also includes in its purview the auditing of marketing strategies so as to make the marketing decisions creative and innovative. In an age of electronic financial services the concept of financial marketing is required to be reviewed. The emerging trends in the word economy indicate recession, the mounting intensity of competition, and the increasing domination of information technologies.
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Thus we find financial marketing helping an optimal blending of the core and peripheral services. The elimination and inclusion processes it the service mix are done effectively and this simplified the task of formulating and innovating the product mix in tune with the changing expectations of customers.
DISTINCTION
BETWEEN
SERVICES
MARKETING
AND
Pre-Production Marketing
Create Awareness
Production
Post-Production Marketing
Demonstrate Benefits
Consumption
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Pre-Production Marketing
Create Awareness
Induce Trial Word Of Mouth Communication Post-Production Marketing Consumption& Consumption Demonstrate Benefits
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MEANING OF INSURANCE
Meaning of Insurance is the most important aspect a novice to insurance market should be conversant with. Insurance is a hedging instrument used as a precautionary measure against future contingent losses. This instrument is used for managing the possible risks of the future. Insurances are bought in order to hedge the possible risks of the future which might/might not take place. This is a mode of financially insuring that if such a incident happens then the loss does not affect the present well-being of the person. Thus, through insurance, a person buys the future happiness and smooth living. A simple example will make meaning of insurance easy to understand. A biker is always subjected to the risk of head injury. But it is not certain that the accident causing him the head injury would definitely occur. Still people riding bikes cover their heads with a helmet. This helmet in such cases act as insurance by protecting him/her from the contingent accident and the ultimate danger. Though loss of life or injuries cannot be measured in financial terms, still in this materialistic world it is quantifiable which tries to compensate the potential future loss financially. Meaning of Insurance can be defined as the process of reimbursing or protecting a person from contingent risk of losses through financial means. It may sound that the financial reimbursement by the insurance giving company come free of cost. But in real life, insurance is not a free commodity. The Insurance companies do charge a regular payment from the insurance customers (known as Insurance Premium) which are reimbursed, either in part or entirety, to the customers in cases of actual loss (for which the insurance has been bought). Meaning of Insurance can range from life to medical to general (residential, commercial property, natural incidents, burglary, etc).
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Life Insurance
It insures the life of the person buying the Life Insurance Certificate. Once a Life Insurance is sold by a company then the company remains legally entitled to make payment to the beneficiary after the death of the policy holder.
Medical Insurance
This is also known as med claim. Here, the policy holder is entitled to receive the amount spent for his health purposes from the insurance company.
General Insurance
This insurance type involves insuring the risks associated with the general life such as automobiles, business related, natural incidents, commercial and residential properties, etc A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centred around the key concept that customer satisfaction is the main goal.
Types of strategies
Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance - In this scheme, firms are classified on their market share or dominance of an industry. Typically there are three types of market dominance strategies: Leader Challenger Follower
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Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. Product differentiation Market segmentation Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on cutting edge of technology and business innovation. There are three types: Pioneers Close followers Late followers Growth strategies - In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers: Horizontal integration Vertical integration Diversification Intensification A more detailed scheme uses the categories: Prospector Analyzer Defender Reactor Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs
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can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. Marketing in Practice The Consumer-Centric Business There are a many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centred around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for Growth Opportunities" in their categories by identifying relevant insights (both" mindsets and behaviours) on their target Consumers, Shoppers and retail partners. These Growth Opportunites emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritise these Growth Opportunites and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 4Ps. Real-life marketing primarily revolves around the application of a great deal of commonsense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven. Thus, for example, many new products will emerge from irrational rational development process may be used (if at all) to screen out the worst non-runners processes and the The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall
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Strategy, coupled with the knowledge of the customer which has been absorbed almost a process of osmosis, will determine the quality of the marketing employed. This, almost Instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it From the refined, aesthetically pleasing, form favored by the theorists. CHOOSING THE RIGHT STRATEGY The right strategic choice is not a matter of positioning choice alone. It involves the very way a company organizes itself to do business. It is the configuration of the entire value chain of the company through a different set of activities to deliver unique value to consumers. The set of 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. Some life insurance companies focusing on rural markets have adopted innovative means of distribution. Instead of appointing agents as is done typically, they have used grosbeaks in different villages across the country to promote life insurance and act as their sales arm. This enabled them to tap into their special knowledge of their local. The best way for insurance marketing is to analyze the target audience for the insurance. This will help the insurance company to focus on a specific audience only and would increase sales of your insurance policy. There are many different insurance companies with an assortment of insurance policies. Only proper insurance marketing helps in propelling the insurance business and give it an edge over other insurance corporation. There are several insurance marketing strategies and the proper implementation of the insurance marketing strategies helps the insurance company to build up a proper name in the market. The insurance company with poor planning and insurance marketing policies cannot propel in the market. Some of the most important insurance marketing strategies include the following plans:
One of the most basic methods for insurance marketing is to promote the industry in general public through sales letters and banners. Some insurance company even issues weekly or monthly sales letter with different insurance policies and benefits 35
for the clients. Having such promotional strategy is very advantageous for the insurance marketing and helps in getting more clients for the business.
Web promotion is also a very good insurance marketing strategy. All the insurance policies can be listed on the internet and market to the online customers. In the advance world of today a webpage is consider to be the life-line of any insurance organization.
Building a proper referral system also helps in boosting insurance sales and in making more clients. There are several associations with whom the insurance company can built a referral system with. For example if the insurance company is providing health insurance then it could affiliate itself with hospitals. This form of insurance marketing is very beneficial for insurance company as it helps in building a good name for the insurance company and to add more clients.
Another insurance marketing technique that most insurance agencies deploy is to organize seminars and dinners for general public. They also maintain proper contacts with the customers and also send them promotional gifts as a mean to build a strong client base for the insurance policy.
SELLING LIFE INSURANCE: HOW IS IT DONE? Techniques for marketing and selling date back to man's earliest awareness of trade. This is because in order to gain anything in return, man had to turn in what assets of his were in demand. For this, he had to determine t ha value of his possessions and what he could offer others. In exchange for what he could offer, people turned in what they could afford to. A similar concept is also followed today when insurance companies sell insurance. They offer you all that they can in exchange for your investment in them. They will take on your risks if they can afford to do so and cover you in case of accidental death, injury, etc. In order to sell people things, you need to know your product well. Insurance agents or any successful tradesman of the past would need to market products to the best of his or her ability based on the sole knowledge of his or her product. Having proper knowledge of a product is an immense weapon in sales and marketing.
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Marketing and selling products also require one to do so effectively and in the most affordable manner. In selling insurance, it is known that most affordable methods have always been used. This is because of the fact that the funds for marketing insurance come from the investors' pockets. This is proof in itself that their investments are not being over-spent or misused. In the olden times, individuals who were interested in obtaining insurance cover for their families and businesses would basically have to get in touch with a suitable insurance company or insurance agent, who would offer the best insurance coverage. In the event of individuals undergoing a major loss of costly equipment, insurance agents would carefully carry out an analysis of the damaged equipment and settle the insurance claim with the insurance company. There are various types of insurance coverage being sold by insurance sales agents. Some of these include disability, life, health, and property, accidental, dental and medical insurance. Insurance agents involved in selling life insurance also offer a certain retired income to individuals. Insurance agents specialize in numerous insurance packages. They will discuss or rather have one on one consultation with their respective clients or customers about how much they are willing to pay and take time to review the cost of the damaged property or equipment. Prior to this insurance agent may then have to involve themselves in a lot of paper work. In most cases they will have to chalk out a detailed invoice, stating details of the prices of the damaged goods. Internet With the use of the Internet nowadays, there are various ways to advertise for insurance in a more economical way. The Internet with the span of time is growing into a major source of advertising for cheap insurance coverage. Major insurance companies and various other online insurance companies are providing attracting discounts to their online customers, provided they buy the insurance cover. There is a growing trend for people all over the United Kingdom purchasing motor insurance from online companies.
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Advertising There are numerous amounts of companies offering cheap insurance packages, to help serve the needs of the individuals according to their needs and budgets. Through the frequent use of newsletters and brochures, companies can advertise for insurance policies effectively. Advertisements covering certain insurance policies such as auto, medical group and health insurance, can be advertised through the use of brochures, business cards, bulletin boards in public shopping or postcards which are issued out to customers. Insurance companies wishing to sell their insurance at rated discounts, can advertise for these insurance packages, through setting up flyers and advertisement boards, at public and social places. These include the libraries, hair salons, parking lots and grocery stores. Word Of Mouth Advertising for insurance through word of mouth is another least expensive way of advertising. All one needs is creativity and a few marketing strategies to target a specific customer audience. Insurance companies interested in advertising for insurance online, can benefit from the advantages of link exchanging. Linking to other WebPages and third party websites is a way, of improving an insurance company's online image. It helps in accelerating the number of customers logging onto their insurance website. Other non expensive ways to advertise for insurance on the web could include the use of electronic magazines or e-zones, in the insurance company's website. This will increase the number of customers towards logging onto the respective insurance website. E-Mail Insurance companies can also benefit from the use of e-mail marketing and the advantages it has to offer. It is a relatively more effective approach as compared to offline direct marketing.
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PRICING & DISTRIBUTION OF LIFE INSURANCE PRICING OF LIFE INSURANCE Pricing of insurance product is a complex task as premium rates to be charged depend upon variety of factors namely, expected losses, operating expenses, income from investments and profit margin of the insurance company. Pricing refers to the methods used to calculate rate of premium to be charged on insurance products. Premium is a price for which the insurer is willing to accept the risk. Actuaries employed by the insurer calculate and determine the premium rates to be charged for different policies and from people of different age. If the premium charged is very low, the company would not be able to collect sufficient amount to pay claims, bear expenses and earn some profit. On the other hand, excessively high premium charged will result in loss of prospective clients of the insurance company because company may lose the prospective insurer to its competitors in the market. Pricing also depends on the market forces of demand and supply of insurance products. The payment of premium by the propose is acceptance of the price charged by the insurer for providing the life insurance cover. PRICING OBJECTIVES The following are the objectives kept in mind while deciding upon the pricing of various insurance products: ADEQUACY OF RATES The premium rates fixed by the insurance company should be adequate in order to pay the benefits promised to the policyholders and meet all the operating expenses. In other words the rates charged must be sufficient to collect the premium incomes the insurance company required to pay various operating expenses, to pay the claims and at some profit margin. Insurers do conduct periodic reviews to assess whether the initial premium levels established are equitable and not too high i.e. adequate.
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FAIRNESS AND RATE EQUITY The insurance rates must be fair and equitable. The rates charged to the Policyholders with the same expected losses and other costs should be equal. This is known as rate equity. It means that the insurance company should Charge
premiums in accordance with the expected payment of benefits and expenses. The rates must be same for homogenous groups and must not be same for heterogeneous groups (say of different age groups).If the two individuals of different ages, say one 25 years and other 50 years intend to purchase same policy for the same time period with same terms, the insurer will be charging the higher rate of premium from the person who is 50 years old as there is comparatively higher death probability of the older client. In the case of the young person of 25 years the company cannot associate very high death probability. REASONABLENESS The rates of the premium charged to the policyholders should not be too high because it will lead to loss of insurance business to the competitors in the industry. Charging excessive premium is therefore unfair to the customers. SIMPLICITY The premium rates charged should be simple to understand and should not change very frequently. LIFE INSURANCE PRICING ELEMENTS Following are the elements of life Insurance Pricing: 1. 2. 3. Rate of death of large number of insured persons. Administration cost and other expenses of the insurer. Income from investment of premium.
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RATE OF DEATH OF LARGE NUMBER OF INSURED PERSONS: The mortality rates depend on the age, occupation, life style, and medical history of the insured. The premium rates charged are calculated on the basis of rate of deaths of very large number of persons insured, i.e., the past experience of large number of cases is taken into consideration before deciding on mortality rate. It is designed for the best realization of the objectives of marketing management. In marketing management the term place is used to refer to channels of distribution i.e. intermediaries which fetch products/services from the place of the manufacture to the place of ultimate consumers. The channel of distribution (place) is an important ingredient of marketing mix as however useful the product might be and how so ever suitable its price be, unless and until the products/services are mad available to consumers at centers of convenient buying the consumers will not be buying the same. Insurance being a service business requires marketing department to play a key role in delivery of service. The marketing department conducts research for identification of target customers, help in maintaining and promoting the distribution system and also plays an active role in development of new products. It is the most vibrant department in an insurance organization since it has to necessarily deal with all the other department of the organization. Insurance business is business of law of large numbers. The law requires the insurer to attract a sufficient number of exposures to allow credible ratio prediction. The major task of sales managers in charge of the sales section of insurance company is the supervision of the sales functions of the branches. This section is also responsible for spreading awareness among the general public about the benefits of life Insurance. Sales training section is entrusted with responsibility for training in product, in selling and sales planning in the personnel such as development officers and agents. The agents of insurance company mainly sell insurance policies. JOB DESCRIPTION What does an agent or broker do?
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Most people have their first contact with an insurance company through an insurance agent. These workers help individuals, families, and businesses select insurance policies that provide the best protection for their lives, health, and property. Insurance sales who agents work exclusively for one insurance company are referred to as captive agents. Independent insurance agents or brokers represent several companies and place insurance policies of their clients with the company that offers the best rate and coverage. In either case, agent prepares reports, maintain records, seek out new clients, and in the event of a loss, help policyholders settle their insurance claims. Increasingly, some are also offering their client financial analysis or advice on ways the clients can minimize risk. Insurance sales agents commonly referred to as producers in the insurance industry offer one or more types of insurance, such as property and casualty, life, health, disability, long-term care. Property and casualty insurance agents sell polices that protect individual and businesses from financial loss resulting from automobile accidents, fire, theft, storm and also cover injured workers compensation. Life Insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies. Depending on the policyholders circumstances, a cash value policy can be designed. Different policies provide retirement income, funds for the education of children, or other benefits. Insurance agents also sell annuities that promise a retirement income. Health insurance agents sell health insurance policies that cover the costs of medical care and loss of income due to illness or injury. They also may sell dental insurance and short and long term disability insurance policies. The growth of the Internet in the insurance industry is gradually altering the relationship between agent and client. In the past, agents devoted much of their time to marketing of products to new clients, a practice that is now changing. Increasingly, clients are obtaining insurance quotes from a companys web site and then contacting the company directly to purchase policies. This interaction gives the client a more active role in selection of policy at the best price, while reducing the amount of time agents spend actively seeking to meet clients. TRAINING Agents go through both generic and specific, professional training programs that help them remain well-informed and knowledgeable about the companys products in the
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market. There is further focus on soft skills such as communication, managing long-term relationship selling skills, which are very relevant in a service-driven industry like life insurance. State-of-the-art infrastructure training facilities coupled with an excellent faculty, guarantee exceptional learning environment for agents who might be occupied with their business/professional routines. A 17-18 day training schedule covers the mandatory IRDA training requirements and product-training module. Revision session ensure that the candidate thoroughly understand the course contents and are well prepared for the licensing examination. Theoretical training benefits programmers and other State and Central Government regulations can affect insurance needs of clients and the way in which agents conduct business. Agents can enhance their selling skills and broaden their knowledge of insurance and other financial services taking courses at colleges and universities and by attending institutes, conferences, seminars sponsored by insurance organizations. IRDA also has mandatory education requirements focusing on insurance on insurance laws, consumer protection, and the technical details of various insurance policies. Insurance sales agents should be flexible, enthusiastic, confident, disciplined, hard working and willing to solve problems. They should communicate effectively and inspire customer confidence. Because they usually work without supervision, sales agents must be able to use their time well and have the initiative to locate new clients. WORKING CONDITIONS, TRAINING & REWARD SYSTEM Working Conditions Most insurance sales agents are based in offices, from which they contact clients and provide information on the policies they sell. However, much of their time may be spent outside their offices, traveling locally to meet with clients. Agents usually determine their own hours of work and often schedule evening and week end appointments for the convenience of clients. Employment Insurance sales agents held about 11, 00,000 jobs in 2005. Although most Insurance agents specialize in life or general insurance, a growing number of Multi-line agents sell all types of insurance.
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Training, Other Qualifications and Advancement For insurance sales agent jobs, most companies and independent agencies prefer to take college graduates-especially those who have majored in business or economics. Training may help agents grasp the technical aspects of insurance policies and fundamentals and procedures of selling insurance. Many colleges and universities offer courses in insurance and a few schools offer a bachelors degree in the field. College courses in finance, mathematics, accounting, economics, business law, marketing and business administration enable Insurance sales agents to understand how social and economics conditions relate to the insurance industry. Courses in psychology and public speaking can prove useful in improving sales techniques. In addition, because companies provide instantaneous information on a wide variety of financial products and greatly improve agents efficiency, familiarity with computer and popular software packages has become important. Insurance sales agents must obtain a license from IRDA. Separate licenses are required by agents to sell life and general insurance. Licenses are issued only to applicants who complete specified pre-licensing courses and who pass IRDA examinations covering insurance fundamentals and insurance laws. A number of organizations offer professional designation programs that certify ones expertise in specialties such as life, health and general insurance as well as financial consultancy. Although voluntary, such programs assure clients and employers that an agent has a thorough understanding of the relevant specialty. Agents are usually required to complete a special number of hours of continuing education to retain their designation. Employers also are placing greater emphasis on continuing professional education so that diversity of financial products sold by insurance agents increases. It is important for insurance agents to keep up to date on issues concerning clients. Career Career development is emphasized upon from the very day the agent joins the system. Though individual meetings with his or her Development Officer, the agent can discuss various issues related to business development and career enhancement, expectations from organizations in terms of chalking a career in the insurance industry are also discussed. Absorption into the management is another career enhancement option
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provided at icici prudential that helps agent build a full time career as a Sales Manager in the organization offering great potential for managing a team of agents and personal development.
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Rewards and Recognition Agents are constantly recognized and rewarded for their performance. Depending on the level of business the agent achieves in a year, he or she will become a member of various clubs such as the Corporate Club, the Chairmans club, etc. Of these clubs have specific performance criteria for qualification and members of these are entitled to attend seminars held at exotic international and domestic locations.
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1.
ANALYSIS: From the survey it was found that amongst 100 respondents a) 11% of the respondents are less than 25 years old. b) 40% of the respondents are between 25 and 35 years of age. c) 20% of the respondents are between 35 and 45 years of age. 2) Data given on respondents Qualification of the respondents . d) 29% of the are more than 45 years of age.
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NO.OF.RESPONDENT 52 29 8 11 100
ANALYSIS: From the survey it was found that amongst 100 respondents a) 52% of the respondents were graduate b) 29% of the respondents were post graduate c) 8% of the respondents were diploma d) provided 10% of thethrough respondents were other discipline 3) Data Occupation of the respondents
PARTICULARS
NO.OF.RESPONDENT
PERCENTAGE
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34 18 37 11 100
ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 34% of the respondents are businessmen. 18% of the respondents are professionals. 37% of the respondents are job holders. 11% of the respondents are background.
4)
50
20 4 100
20% 4% 100%
ANALYSIS: From the survey it was found that amongst 100 respondents a) 33% of the respondents have an average annual income up to 1 lakh b) 43% of the respondents have an average annual income from 1 lakh to 3 lakh c) 20% of the respondents have an average annual income from 3 lakh to 5 lakh d) 4% of the respondents have an average annual income above 5 lakh
NO.OF.RESPONDENT 50 32
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28 100
28% 100%
FAMILY SIZE
ANANLYSIS: From the survey it was found that amongst 100 respondents a) 50% of the respondents are below 5 members. b) 32% of the respondents are between 5 to 10 members. c) 28% of the respondents are above 10 members.
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80 100
80%
Life Insurance is
Risk Coverage Security 100 80 60 40 20 0 NO.OF.RESPONDENT Tax Savings All the above Good return TOTAL
ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) e) 10% of the respondents say risk coverage. 3% of the respondents say tax savings. 4% of the respondents say good returns. 3% of the respondents say financial security. 80% of the respondents say all of the above.
7)
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ANALYSIS: From the survey it was found that amongst 100 respondents a) 83% of the respondents say that they are aware of ICICI Prudential life insurance co. b) 17% of the say that they are unaware of ICICI Prudential life insurance co
NO.OF.RESPONDENT 2 98 100
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INSURANCE AWARENESS
100 90 80 70 60 50 40 30 20 10 0
NO.OF.RESPONDENT PERCENTAGE
Yes
No
TOTAL
ANALYSIS: From the survey it was found that amongst 100 respondents a) 98% of the respondents say that they are aware of insurance. b) Only 2% are unaware of insurance.
9) % of respondents who are under different plans of ICICI Prudential life insurance co.
PARTICULARS Invest gain plan Unit gain plan Child gain plan Whole life plan Pension plan NO.OF.RESPONDENT PERCENTAGE 41 36 8 15 No 41% 36% 8% 15% No
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TOTAL
100
100%
36%
Invest gain plan Unit gain plan Child gain plan Whole life plan Pension plan
ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) 10) e) 41% of the respondents are under invest gain plan 36% of the respondents are under unit gain plan 8% of the respondents are child gain plan 15% of the respondents are whole life plan No of body under pension plan % respondents benefits of choosing the particular products NO.OF.RESPONDENT 60 20 12 8 100 PERCENTAGE 60% 20% 12% 8% 100%
PARTICULARS Risk coverage Additional benefit Maturity date Sum Assured TOTAL
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ANALYSIS: a) 36% of the respondents say that a benefit of choosing the particular Product is for Safety of life. b) 20% of the respondents say that a benefit of choosing the particular products is for additional benefit to family c) 12% of the respondents say that a benefit of choosing the particular products is for maturity date d) 8% of the respondents say that a benefit of choosing the particular products is for sum assured
11)
PARTICUALRS Liquidity Lapsation Unable to decide premium High risk coverage Fixed Term TOTAL
14 12 100
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ANALYSIS: From the survey it was found that amongst 100 respondents a) 35% of the respondents say that disadvantages in insurance plan are liquidity. b) 20% of the respondents say that disadvantages in insurance plan are lapsation. c) 19% of the respondents say that disadvantages in insurance plan is unable decide premium. d) 14% of the respondents say that disadvantages in insurance plan are high risk coverage at high premium.
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INVESTMENT AVENUES
9% 40% R.D Equity Balanced fund Mutual Fund 10% 25% Debt Fund Cash Fund
5% 11%
ANALYSIS: From the survey it was found amongst 100 respondents a) b) c) d) e) f) 40% of respondents say that they want to invest in R.D 25% of respondents say that they want to invest in equity 10% of respondents say that they want to invest in balanced fund 11% of respondents say that they want to invest in mutual fund 5% of respondents say that they want to invest in debt market 9% of respondents say that they want to invest in cash
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FINDINGS
The project study reports have the following findings: 1. 2. Almost 80% of respondents have an insurance policy. People have more number of life insurance policies as compared to non life insurance. 3. Majority of the respondent preferred/have L.I.C. policy since it was the only option due to complete government control in insurance sector. 4. Majority of the respondents believe that covering future uncertainty is the most important benefit of an insurance policy.
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5.
Majority of the respondent believed that larger risk coverage of their policy was the main feature of their policy that attracted those buys that policy though low premium was the next important feature.
6.
Due to the increasing concern of people towards their health/life the life insurance business has good prospects.
7.
Due to increased in consumerism new product is launched everyday. Thus nonlife/general insurance business is also going to have boom period.
8.
ICICI Prudential is the largest private player in the insurance industry in India. It has sold over one lakh fifty thousand policies till date. Besides LIC, ICICI Prudential is facing stiff competition from other private insurance players.
9.
Out of total population of 1 billion of country, only 22% have insurance cover. So we can say that there is still large potential for both the public and private companies. Private companies have to give varied customized product to compete with the LIC which is holding about 97% of the total market
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RECOMMENDATIONS
The insurance companies should now try to identify the gap between current level of customer service and customer expectations. Some of the strategies being recommended are as follows:
Innovativeness: Identifying means of a delightful customer experience. Riders: These are additional offerings along with the main product. Flexibility: The companies should make their products flexible for the convenience of
their customer.
Hassle Free Service: All bureaucracy in customer interactions should be eliminated. Proper Policy Documentation: Wrong interpretations/ non-awareness of policy
document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies.
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ANNEXURES
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4. Which Companys Insurance Policy you prefer the most? (rank them) a) LIC b) ICICI Prudential c) SBI Life Insurance d) ING Vysya Life e) Om Kotak Mahindra f) TATA AIG Lif
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5. For how many years do you have insurance policy? (Please tick) a)<5YRS B) 5-10 YRS c)10-15 YRS
6. What do you think are the benefits of insurance cover? (rank them) a) Cover Future Uncertainty b) Tax Deductions c) Future Investment
7. Which feature of your policy attracted you to buy it? (Rank Them) a) Low Premium b) Larger Risk Coverage c) Money Back Guarantee d) Reputation of Company e) Easy Access to Agents
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d) 30k-40k
e) Any Other (please specify)____________________________ 9. Do you really think insurance policy cover in todays scenario is not essential?
_______________________________________________________________________ _
THANK YOU
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BIBLIOGRAPHY
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WEBSITE
www.google.com www.icicipru.com www.bimaonline.com www.moneycontrol.com www.licindia.com
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