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INDUSTRIAL TRAININGREPORT
An Organizational Study of
ICICI PRUDENTIAL
LIFE INSURANCE,
BANGALORE
&
A study on the re-introduction of an insurance product-
Diabetes care IN ICICI PRUDENTIAL
This Industrial Training Report is being submitted in partial fulfillment of the requirements
for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
of
BANGALORE UNIVERSITY.
by
JAYANT M.ALAGAWADI
Reg. No. 10VWCMA015
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Prof. PRATIBHA RAJ
Faculty
Alliance Business
AcademyacA
SANDEEP S.RAMANATHAN
SALES MANAGER
ICICI PRUDENTIAL
ALLIANCE BUSINESS ACADEMY
BANGALORE - 560 076
Batch: 2010-2012
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DECLARATION
I,Jayant M.A studying at Alliance Business Academy, hereby state that this industrial
training report titled was carried at ICICI PRUDENTIAL LIFE INSURANCE is submitted in
partial fulfillment of the requirement of the MBA Program of Bangalore University is an original.
Work carried out by me under the guidance and supervision of Prof. Pratibha Raj faculty guide
and that the project or any part thereof has not been previously submitted for a degree/diploma of
any University/Institution elsewhere.
Date: 28-08-2011
Place: Bangalore
( Jayant M.A)
Register No. 10VWCMA015
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ACKNOWLEDGEMENTS
The satisfaction that accompanies the successful completion of task would be incomplete without
the mention of the people who have made it possible and whose consent, guidance and
encouragement served as a guiding light for the completion of the study.
I would like to express my profound sense of gratitude to Prof. Sudhir Angur, President,
Alliance Business Academy and P. Prabhakaran, PrincipalAlliance Business Academy for
providing constant source of inspiration and the support to conduct this research.
With a deep sense of gratitude and indebtedness, I sincerely and whole heartedly thank Prof.
Pratibha Raj, my project guide for giving me valuable suggestions, advice and guidance
throughout the execution of this project.
I also thankProf. Smitha Shenoy, program co-ordinator for her constant support and well wishes
during the project.
I am grateful to Mr. Sandeep S.Ramanathan Sales Manager of ICICI Prudential for providing
me an opportunity to take up this project in the organization.
I also express my deep gratitude to my family, friends without whose cooperation, wishes and
help, this project would not have been possible.
Jayant M.A
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EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
Organization structure involves formal and recognized structure where in each and every
individual and group have a definite relationship with each other, have a specified area of exist
function to perform, authority to mobilize resources, obligation to act, responsibility for achieving
the objective and accountability for their performance.
It is arrangement of activities and assignment of personal to their activities in order to achieve the
organizational goal. Organization structure encompasses six major areas within organization.
They are
Specialization of work.
Departmentalization.
Chain of command.
Span of control.
Centralization and decentralization.
Formalization.
So that, we can say every components of organization structure has direct impact on organization.
NEED FOR THE STUDY
To make M.B.A. program more relevant with respect to the necessities of the corporate or the
industries.
To inculcate students practical knowledge of corporate world.
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To cover various aspects of general managerial such as organizational structure,
functions of respective department in the organization.
OBJECTIVE OF THE STUDY
1) To understand the organization structure / hierarchy of the company.
2) To identify various departments in the organization and the functioning of the same.
3) To understand the various responsibilities and duties carried out by each department.
4) The study is aimed at understanding how an organization practically works in the real
situation
METHODOLOGY ADOPTED FOR THE STUDY
1) Study of the organizational structure, departmentalization, delegation of authority and
responsibility, etc by close observation and reading company brochures, printed materials.
2) Handling of general administration problems and helping out executives in decision-making
process.
3) Observing the working of various departments like Finance department, Marketing
department, H.R. department, etc.
4) Discussion with the company Executives, and Employees.
5) Visiting and surfing Websites of the company and about Insurance sector.
6) Performing the various tasks and jobs assigned by Managers and Project guide. P
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CHAPTER-1
INDUSTRY OVERVIEW
1.INDUSTRY PROFILE
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1.1INTRODUCTION
Life is full of uncertainty and surprises and also involvement of risk with it. To instinct for
security against such risk is one of the basic motivating forces to determine the human attitude.
As a sequel to this quest for security, the concept of life insurance must have been born. The urge
to provide insurance or protection against the life of and property must have promoted people to
some sort of sacrifice willingly in order to achieve security through collective co-operation. In
this sense, the story of insurance is probably as old as the story of mankind.
The business of insurance related to the protection of the economic values of assets. Every asset
has a value for its owner and also for those who are benefited with the existence of that asset.
Insurance is concerned with the protection of economic value of assets.
Every asset has normally an expected lifetime. During this period, it is expected to perform and
provide income/comfort to the owner. The owner, being aware of this, plans the things in such a
way that by the time expected lifetime of the asset expires; he is ready with the value or income
from the asset is not lost. Well, this appears to be a fine arrangement provided the asset completes
its expected lifetime!
All assets carry the risk of being destroyed or damaged. But all assets may not necessarily get
destroyed or damaged. Only in a few instances, the probability turns out to be true and the asset
gets actually lost and destroyed by accident or some other unfortunate event before the completion
of its expected lifetime. The owner and those deriving benefits from the asset will suffer because
the arrangement to make available its substitute is not yet ready. Insurance is helpful in mitigating
such adverse consequences. To sum up, assets are insured, as they are likely to be lost or made
non-functional through an accidental occurrence.
Insurance does not protect the assets. This means that insurance cannot prevent loss to the assets
due to perils. Nor can insurance avoid the occurrence of perils. It only Compensates, may not be
fully, the economic or financial loss resulting to the asset from such damage or destruction.
1.2What is Life Insurance?
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ICICI PRUDENTIAL LIFE INSURANCELife insurance is a contract providing its payment of a sum of money to the person assured or,
failing him, to the person entitled to receive the same, on the happening of certain event.
A family is generally dependent for its food, clothing and shelter on the income brought in at
regular intervals by the breadwinner of the family. So long as he lives and the income is received
steadily the family is secured; but should death suddenly intervene the family may be left in a very
difficult situation and sometimes, in stark poverty. Uncertainty of death is inherent in human life.
It is this uncertainty that is risk, which gives rise to the necessity for some form of protection
against the financial loss arising from death. Insurance substitutes this uncertainty by certainty.
Usually the contract provides for the payment of an amount on the date of maturity or a specified
dates at periodic intervals or at unfortunate death, if it occurs earlier. Among other things, the
contract also provides for the payment of premium periodically to the corporation the assured.
Life insurance is universally acknowledged to be an institution, which eliminates risk,
substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate
event of death of the breadwinner
Insurance is a visible comfort at the time of an invisible danger of life of individual.
Life Insurance is a protection against risk and uncertainties of an individual.
Insurance is a method of coping with the risk.
Insurance is a collective, co-operative endeavor.
Insurance is helpful in mitigating the loss or the adverse consequences.
Insurance is a mechanism that provides compensation for the financial value of the asset in
case of loss or damage.
WHYISITSUPERIORTOOTHERFORMSOF SAVINGS?
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Savings through life insurance guarantee full protection against risk of death of the saver. In life
insurance, on death the full sum assured is payable (with bonuses wherever applicable) whereas in
other savings schemes, only the amount saved (with interest) is payable.
Aid to thrift :
Life insurance encourages thrift. Long term saving can be made in a relatively painless manner
because of the easy installment facility built into the scheme (method of paying premium either
monthly, quarterly, half yearly or yearly.
Liquidity:
Loans can be raised on the sole security of a policy, which has acquired loan value. Besides, a
life insurance policy is also generally accepted as security for even a commercial loan.
Tax Relief:
Tax benefits, as premiums paid reduce the liability of tax.
PURPOSE AND NEED FOR INSURANCE
The need for insurance comes from the need to safeguard the family. Today insurance has
become even more important due to the disintegration of prevalent joint family system, a system
in which a number of generations co-existed in harmony, and a system in which a sense of
financial security was always there as they were more earning members. Times have changed and
the nuclear family has emerged. Apart from other pitfalls of a nuclear family, a high sense of
insecurity is observed in it today besides, the family has shrunk. Needs are increasing with
time and fulfillment of these needs is a big question mark. How we will be able to satisfy all those
needs? Better lifestyle, good education, long desired house. But again-we just cannot
fritter away all our earnings; we need to save a part of it for future too a wise decision. This is
where insurance helps us.Factors such as fewer numbers of earning members, stress, pollution,
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ICICI PRUDENTIAL LIFE INSURANCEincreased competition, higher ambitions etc are some of the reasons why insurance has gained
importance and where insurance plays a successful role.
Assets are likely to be destroyed or made non-functional due to accidental occurrences called
perils. Assets can, therefore, be insured. A few examples of perils are: fire, floods, breakdowns,
lightning, and earthquake. Perils are the events. Risks are the consequential losses or damages.
Possibility of damage to asset caused by any peril is the risk that asset is exposed to. Risk means
uncertainty or unpredictability about future loss or damage, which may or may happen. This
refers to the losses, which may happen suddenly and unexpectedly. This is because of uncertainty
about the risk that insurance plays the role. Insurance becomes relevant only if there are
uncertainties of occurrence of event leading to loss/es. Insurance is done against the contingency
of the happening of such events. No uncertainty No insurance.
The human asset
Every Human being in his life time generates and earns something which is having economic
value. So that we can say that a human life is also an income-generating asset. Human life may be
lost due to unexpected early death or become non-functional following sickness or disabilities
caused by accidents. If this happens by the time one is on the verge of retirement when his income
is about to cease, he might have made alternative arrangements to meet his needs. But if this
happens at a younger age when he is not expected to have made adequate alternative arrangement,
those who are dependent on his income, will suffer. Insurance is necessary to help those
dependent on his income.
Human beings are exposed to another type of risk. That is the risk of living too long and long.
A person, who has made necessary arrangement to meet his financial needs after retirement, also
would need insurance. It is because the arrangement would have been made on the basis of certain
assumptions. One assumption can be that he will live for another 20 years. Another assumption
can be that his children will support hum financially. Still another can be that he will earn an
interest of 10% yearly on his investments. If any of these assumptions does not come
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ICICI PRUDENTIAL LIFE INSURANCEout to be true, the original arrangement, which he has made, will be inadequate and he will be
facing financial difficulties. This means that living too long is as much a problem as dying too
young. Insurance provides safeguard against these risks.
Because of the above reasons we can clearly say that Humans are assets as well as income
generation assets. People are exposed to risks the consequences of which are difficult to be borne
by an individual. No person should be in position to make the risk happen and take advantage.
This means that the occurrence has to be random, accidental and not a deliberate creation of the
insured person i.e. the losses must happen suddenly and expectedly. So there is an immense need
to be getting insured in every individual lives.
1.3 HISTORY OF LIFE INSURANCE
THE BEGINING:
The beginning of insurance business is traced to the city of London. It started with the marine
business. Marine traders, who used to gather at Lloyds coffee house in London, agreed to share
losses to goods during transportation by ship. Marine related losses included:-
Loss of ship by sinking due to bad weather in high seas.
Good in transit by ship robbed by sea pirates.
Loss of or damage to the goods in goods in transit by ship due to bad weather in high seas. The
first insurance policy was issued in England in 1583.
LIFE INSURANCE IN INDIA
Life Insurance in its modern form came to India from England as far back as in 1818.The first
insurance company on India soil, namely the Oriental Life Insurance Company was started in
Calcutta mainly by Europeans to help the widows of their community.It was through the efforts
of Babu Muttylal Seal and Prince Dwarkanath Tagore, Rampanu Lahiri, and Rustomji
Lahiri, and Rustomji Coeasji took an active part in the development of insurance business in this
country in the early years.
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THE FIRST INDIAN INSURANCE COMPANY
The Bombay life insurance company in the year 1870 heralds the birth of the first insurance
Assurance society that came into existence to cover Indian lives at normal rates.
In the wake of the Swadeshi Movement in India in the early 1900s, quite a good number of
Indian companies were formed in various parts of the country to transact insurance business. To
name a few
Hindustan Co-operative and National Insurance in Kolkata.
United India in Chennai.
Bombay Life, New India and Jupiter in Mumbai.
Lakshmi Insurance in New Delhi.
LAW AND REGULATIONS
1912: The Indian Life Assurance Companies Act enacted as the first Statute to
regulate the 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: The insurance act 1938, which came into effect from 1st july 1939, and was
amended in 1950 and later in 1999.
1956: The life insurance corporation act 1956 section 30 gave the L.I.C exclusive
privilege to transact life insurance business in India. This exclusive privilege ceased as a
result of the amendments made in 1999. And In 1956, life insurance business was
nationalized.
1.4 Malhotra Committee recommendations
In 1993, Malhotra Committee, headed by former Finance Secretary and R.B.I. Governor
R.N.Malhotra, was formed to evaluate the Indian insurance industry and recommended its future
direction. and key recommendations included:
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I. STRUCTURE:
Government stake in the insurance companies to be brought down to 50%.
Government should take over the holdings of Government insurance companies and its
subsidiaries. So that these subsidiaries can act as independent corporations.
All the insurance companies should be given greater freedom to operate.
II. COMPETITION:
Private companies with a minimum paid up capital of Rs.1 billon should be allowed to enter
the industry.
No company should be 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.
Only one State level Life insurance Company should be allowed to operate in each State.
III.REGULATORTY BODY:
The insurance Act should be changed.
An Insurance Regulatory Body should be set up.
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ICICI PRUDENTIAL LIFE INSURANCEThis Act, passed in December 1999, provided for the establishment of the IRDA to protect the
interest of holder of insurance policies. and LICs monopoly right to transact life insurance
business in India came to an end. At the close of financial year ending 31.3.2004, twelve new
companies were registered with the Insurance Regulatory and Development Authority (IRDA) to
transact life insurance business In India.
1.5 IRDA MISSION
To protect the interests of holders of insurance policies, to regulate, promote and ensure
orderly growth of the insurance industry and for matters connected therewith or incidental
thereto.
DUTIES, POWERS AND FUNCTIONS OF IRDA:
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA:
(1) Subject to the provisions of this Act and any other law for the time being in force, the
Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance
business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers
and functions of the Authority shall include.
(A) Issue to the applicant a certificate of registration, renews, modify, and withdraw, suspend or
cancel such registration.
(B) Protection of the interests of the policy holders
(C) Specifying requisite qualifications, code of conduct and practical training for intermediary or
insurance intermediaries and agents.
(D) Specifying the code of conduct for surveyors and loss assessors.
(E) Promoting efficiency in the conduct of insurance business.
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(F) Promoting and regulating professional organizations connected with the insurance and re-
insurance business.
(G) Levying fees and other charges for carrying out the purposes of this Act.
(H) Calling for information from, undertaking inspection of, conducting enquiries and
investigations including audit of the insurers, intermediaries, insurance intermediaries and other
organizations connected with the insurance business.
(I) Control and regulation of the rates, advantages, terms and conditions that may be offered by
insurers in respect of general insurance business not so controlled and regulated by the Tariff
Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938).
(J)Specifying the form and manner in which books of account shall be maintained and statement
of accounts shall be rendered by insurers and other insurance intermediaries.
(K) Regulating investment of funds by insurance companies.
(L) Regulating maintenance of margin of solvency.
(M) Adjudication of disputes between insurers and intermediaries or insurance intermediaries;
(N) Specifying the percentage of life insurance business and general insurance business to be
undertaken by the insurer in the rural or social sector. Etc
1.6 INDUSTRY
Insurance is an Rs.4000 Crore business in India, and together with banking services adds about
7% to Indias GDP. Yet more than 75% of Indias insurable population has no life insurance or
pension cover. Health insurance of any kind is negligible and other forms of non-life insurance are
much below international standards.
To tap the vast insurance potential and to mobilize long-term savings we need reforms which
include revitalization and restructuring of the public sector companies, and opening up the sector
to private players. Statutory bodies need to be made to regulate the market and promote a healthy
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ICICI PRUDENTIAL LIFE INSURANCEmarket structure. Insurance Regulatory Authority is such body, which checks on these tendencies.
IRA role comprises of following three functions.
a) Protection of consumers interest.
b) To ensure financial soundness and solvency of the insurance industry.
c) To ensure healthy growth of the insurance market.
An insurance policy protects the buyer at some cost against the financial loss arising from a
specified risk. Different situations and different people require a different mix of risk-cost
combinations. Insurance companies provide these by offering schemes of different kinds.
Unfortunately the concept of insurance is not popular in our country. India is the second largest
populated country in the world but its share is only 0.5% of the total insurance in the World.
Amongst the emerging economies, India is the one least insured country (only less than 25% of
the Insurable population is insured), but the potential for further growth is phenomenal.
The nationalized insurance industry has not offered consumers a variety of products. Opening of
the sector to private firms will foster competition, innovation, and variety of products. It would
also generate greater awareness on the need for buying insurance as a service and merely for tax
exemption, which is currently done. On the demand side, a strong correlation between demand
for insurance and per capita income level suggests that high economic growth can spur growth in
Demand for insurance. Also there exists a strong correlation between insurance density and
socials indicators such as literacy with social development, insurance demand will grow.
Also there exists a strong correlation between insurance density and socials indicators such as
literacy with social development, insurance demand will grow. After the enactment of IRDA Act
of 1999, by the close of financial year ending 31-3-2004, twelve new companies were registered
with the IRDA. At present there are 14 Life Insurance Companies in India, out of which 13 are
Private Insurance Companies and one is Public Sector owned. That is LIC. Most
of the private insurance companies in India are joint ventures. They have established insurance
companies by joint venturing with foreign companies.
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Insurance Industry in the year 2000-2001 had 16 new entrants, namely.
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no
Registration
Number
Date of
Reg.
Name of the Company
1 101 23-10-2000 HDFC Standard Life Insurance Company
Ltd.2 104 15-11-2000 Max New York Life Insurance Co.
Ltd.3 105 24-11-2000 ICICI Prudential Life Insurance
Company Ltd.4 107 10-01-2001 Om Kotak Mahindra Life Insurance
Co.Ltd.5 109 31-01-2001 Birla Sun Life Insurance Company Ltd.
6 110 12-02-2001 Tata AIG Life Insurance Company
Ltd.
7 111 30-03-2001 SBI Life Insurance companyLimited.
8 114 02-08-2001 ING Vysya Life Insurance Company Private
Limited9 116 03-08-2001 Allianz Bajaj Life Insurance
Company Limited.10 117 06-08-2001 Metlife India Insurance Company Pvt.
11 121 03-01-2002 AMP SANMAR Assurance Company Ltd.
12 122 14-05-2002 Aviva life Insurance Co. India Pvt.Ltd.
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FIRST YEAR PREMIUM UNDERWRITTEN BY INSURERS FOR APRIL, 2005
(PROVISIONAL). (Rs lakh)
SL
NO.
INSURER PREMIUMS
COLLECTED
POLICIES
ISSUED
MARKET
SHARE (policy)
1. L.I.C. 1,02,297.47 6.89,055 83.99
2. ICICI
PRUDENTIAL
7,168.37 37,483 4.87
3. TATA AIG 2,745.75 23,485 2.86
4. MAX NEW YORK 1,601.82 19,360 2.36
5. BAJAZ ALLIANZ 2,917.36 14,445 1.76
6. HDFC
STANDARD
3,036.56 12,481 1.52
7. BIRLA
SUN LIFE
1,815.42 7,412 0.90
8. AMP SANMAR 847.65 3,995 0.49
9. AVIVA 1,089.05 3,974 0.48
10. KOTAK
MAHINDRA
642.42 3,131 0.38
11. S.B.I. 1,315.74 2,215 0.31
12. MET LFE 347.11 2,029 0.25
13. ING VYSYA 198.08 718 0.09
14. SAHARA LIFE 7.06 317 0.04
TOTAL 1,26,029.86 8,20,432 1.00.00
Source: The I.R.D.A. Journal, June 2005, (Page no-10 and 11).
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CHART SHOWING THE NUMBER OF
POLICIES ISSUED BY PRIVAYE
INSURANCE COMPANIES FOR THE
YEAR APRIL 2005
ICICI PRUDENTIAL TATA AIG
MAX BAJAJ ALLIANZ
HDFC BIRLA SUNLIFE
AMP SANMAR AVIVA
KOTAK MAHINDRA S.B.I.
MET LIFE ING VYSYA
SAHARA
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1.7 PEST ANALYSIS1.7 PEST ANALYSIS
POLITICAL FACTORS AFFECTING LIFE INSURANCE INDUSTRY:-
Within India political ambitions and rise of communalism, fissiparous tendencies are on the rise
and may well continue for quite some time to time. Therefore, it expected that the insurance
companies might consider offering political risk coverage also. The only area where Indian
insurers consider giving cover is with regard to customs duty change under certain conditions.
Prohibition for Investment: -
The funds of policyholders are prohibited from being directly / indirectly investedoutside India as per section 27 C.
Manner and conditions of investment: -
Subject to the above provisions contained in Section 27 -/ 27- A / 27 B, the
IRDA may,
In the interest of the policyholders, specify the time, manner and otherconditions of investment by insurer.
Give specific directions applicable to all insurers for the time, manner and
other conditions subject to which the policyholders funds should be invested
in the infrastructure and social sectors.
Insurance business in rural / social sector: -
All insurers are required to undertake such percentage of their insurance business ,including
insurance for crops, in the rural social sector as specified by the IRDA. They should
discharge their obligations to providing life insurance policies to persons residing in the
rural sector, workers in the unorganized sector or to economically vulnerable classes of
society and other categories of persons as specified by the IRDA.
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Capital requirement: -
The paid up equity of an insurance company applying for registration to carryon life insurance
business should be Rs 100 Crores.
Renewal of registration: -
An insurer, who has been granted a certificate of registration, should have the registration
renewed annually with each year ending on March 31 after the commencement of the
IRDA Act. The application for renewal should be accompanied by a fee as determined
by IRDA regulations, not exceeding one forth of one percent of the total gross premium
income in India in the preceding year or Rs 5 Crores or whichever is less, but not less
than Rs 50000 for each class of business as per Section 3-A.
Insurance business in Rural Sector: -
After the commencement of the IRDA Act, 1999, every insurer would have to undertake such
percentage of life insurance business in the rural sector as may be specified by the IRDA in this
behalf. It is mandatory for the new companies to meet the obligations relating to the rural and
unorganized sector as per section 32-B.
ECONOMICAL FACTORS AFFECTING LIFE INSURANCE
INDUSTRY:-
Interest rate at bank and interest rate of P.F variation very much affect to life insurance industry,
because people always attract by higher return. Therefore, they do not prefer lower return
policy .Unemployment also affects insurance industry, because the unemployment people will not
have earning, so saving also affect to life insurance sector Life insurance industry will directly
affected by Earthquake, Monsoon, and Natural calamity. Because of these events turns into lots of
death, so the life insurance companies have to pay claim against policy. Infant mortality rate and
maternity mortality rate are also affecting to life insurance. Typical Indian want luxurious product
against low income, so that they prefer installment or annuity (EMI), so that they may not have
extra saving to invest in life insurance.
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Adequacy of capital:
Capital adequacy is a matter of attention in view of the nature of the life insurance business where
in the case a contingency arises, the insurers should be in a position to meet its long-
term contractual obligations and pay up the dues or claims. In that sense, life insurance
is a capital-intensive business and must be backed by an adequate capital base on the
part of the owners and the companies should not be running their business purely on
other peoples money. So minimum start up amounts and long running capital
adequacy norms are absolutely essential, in consideration of this, the Malhotra
committee suggested and subsequently the IRDA stipulated a minimum capital base of
Rs 1 bn for any entity wanting to enter the life insurance business.
Increased Economical Activity:
Although economic activity has slowed down since 1996, sooner or later there will be an
upswing. The increase in the growth rate in various sectors accompanied by thegrowth in trade in
the context of fulfilling of commitments to the WTO will signal a growth in the demand for
insurance covers of new types. For example, aviation insurance cover will be on an increasing
scale in view of the need for more frequentair travel for men and for transporting materials. This
would necessitate substantial property, liability and personal insurance.
Interest Rates:
During the last years the government has rationalized interest rate creates better business
opportunities for the life insurance sector because the substitute products are graded lower by the
customers. On the other hand the value of the holdings of the insurance companies will increase
Rationalized of the interest rates is still expected, and it is an opportunity for the company. Low
interested rates mean low investment return for reinsures causing negative impact on their overall
net profitability as pricing is to a certain extent sensitive to interest rate fluctuations. The negative
impact therefore, lead to higher pricing level for reinsures in order to sustain their profitability.
But, in reinsurance market, which is characterized by over capitalization a resulting intense
competition. The opportunity for such rate increases practically remain even non-existent. As a
result, reinsures are under tremendous pressure to cut their operational cost to safeguard
profitability. Furthermore, low interest rates discourage and even
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capitalization in reinsurance market to continue. A positive outcome is that low inflation rates, if
sustained for a considerable period, usually bring some relief to reinsures from the resulting lower
than forecast claims payment. Also, this can leads stability to reinsures administrative cost.
Inflation rate: -
Inflation can also be one of the causes to change the scenario of the insurance sector. High
inflation for instance, would tend to reduce the insurance business ,particularly life, because the
real value of the money paid back to the policyholder on maturity of the policy would go down
and would, therefore, lose its attraction for the investor. At the most, the insuring public may
prefer pure risk plans (terms insurance), which have a low premium outlay. The response to an
inflationary situation will depend on what benefit the insured is looking for. In a situation of high
inflation, clients would prefer policies where the Savings portion is periodically returned while
the risk portion is maintain for the Duration of the contract. Those who prefer risk protection are
likely to opt for long term policies, which may also be preferred because they are likely to be low
premium policies. A flexible system, under which the sum insured, is increased from time to time
so that the real value of the cover is maintained, and could give a boost to the market under
conditions of high inflation.
SOCIO-CULTURAL FACTORS AFFECTING LIFE
INSURANCE INDUSTRY:
The basic social factors that affect the life insurance sector are as under: -
Population
Life style
Educational level
Level of earning
Societal benefits
These are the major social factors, which affect the life insurance sector. We will
discuss all of them in brief>
Population:
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Growth in the population is a major factor pushing up the demand. It is also going to exert a
special influence on the life insurance market in other ways. Apart from exerting pressure on
demand for goods and services, and through that, ill effects of uncontrolled growth of population
also could spur the growth of demand. For example, overcrowding in public places ofentertainment, public support, or too many vehicles on the road can result in hazards like
stampedes and pollution, which require covers and still are not sold on a large scale today. Thus
the positive as well as the negative aspects of population growth are going to spur demand.
Life style:
The peculiar lifestyle of a country or an age also influences the insurance business. Change therein produces different demands for life insurance. For e.g.All over the world, family size is
shrinking and the fact that in decades to come, both presents are more frequently likely to work
outside the home will mean that there could be a greater possibility of property loss. Similarly, a
larger number of vehicles on the roads for people commuting to their jobs or business would mean
larger incidence of accidents. This will increase the demand for life insurance products. Of course,
there is also the other possibility that wherever it is possible, some people will try to spend a part
of their time working at home either because they would like to be with their families or because
they find it more convenient. Activities like life insurance and financial services are particularly
well suited for such arrangements.
Societal benefits:
In view of the fact that large sections of India have inadequate life insurance cover, an important
social responsibility of the government relates to spreading it far and wide. In addition, the
government attempts to extent life insurance with certain social obligations in view in both urban
and the rural areas through such means special schemes for the weaker sections, and by tilting of
the life insurance companies investments in favour of social developments. The social changes
emerging in the country provide opportunities for insurers to sell financial services products such
as family health care programmed, retirement plans disability insurance, long-term care for senior
citizens and different employee benefit plans.
TECNOLOGICAL FACTORS AFFECTING LIFE
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INSURANCE INDUSTRY:
Internet as an intermediary in the current Indian market customer is not aware about the intrinsic
value of insurance. He thinks of insurance only in the mount of March as a tax saving measure.
The security provide by an insurance cover is rarely thought about. In such a scenario Internet can
be an effective medium for educating the consumers about insurance. It serves as a single windowfor disseminating product, process and procedural information to the consumers. Product
development and target marketing through the Internet: with increase in the number of insurance
companies there will be a need for market segmentation and subsequently product designed for
each of them. In such a scenario Internet can be a effective channel for pushing product specific
information to a particular market segment. Consumer feedback about a particular product as well
as suggestions for different types or covers can also be generated through the Internet.
Maintaining the database:-
The most important facto that is affecting the insurance industry is the maintaining the database of
the customers. The insurance industry having a huge list of the customers. In order to maintain it
in manual format it is really the work of stupidity. With the change in time the computers has
taken the work of this things. Thus with the development of the technology it has becoming
possible to maintain such huge database very easily. A person can switch over to the computer
and get the details of the customer very easily. Thus maintaining the database has really become
easy due to the development in technology.
E-business insurance in India: -
The Internet has played a vital role in transforming the business of the 21st century. Computers are
now being used extensively for creating a storing data ,information with the help of
complex and sophisticated technological tools in every kind of business. This change
having been widely accepted, the advantages are numerous such as fast processing
improved. Efficiency, cost reduction among several other benefits. However, with
every positive change, there is an evil attached and technology is no exception. In
technical is an evil attached and technology is no exception. In technical terms,
increased sophistications of technology brings with it, an
increased factor of risk involved. The risk can be of various attributes, for example ,the risk of
data being lost due to a virus attack, the theft of important and confidential information
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ICICI PRUDENTIAL LIFE INSURANCEand so on, which ultimately results in losses for the business entity. With this change in
the business process, insurers have to devise new methods for assessing, underwriting
and servicing claims for the so-called e-business insurance.
Impact on distribution channels: -
Distribution channels are the most important part of the insurance industry. The scenario is
continuously changing in this industry. In future the customers are expected to be more
technology oriented, better informed, more knowledgeable and more demanding. The insurers
will have to offer all types of channel to customer and it is the customer who will have the right to
choose the channel suiting him/ her. Dual income families with young children, singles with long
working days and flexi-timers all demand high level of sophistication and ease when it comes toservice. Hence the companies have to be very careful and cautious in catering to the needs of
these customers who provides a good amount of business to the insurers.
Thanks to the technological advancement and increased de regulation and sophistication, the
carriers and producers can now reach the customers in different ways as has been proved in the
US market and other developed nations the web is extensively used for the access of information
but when it comes to the purchase of policy, the offline mode is preferred. The private players inIndia seems to have identified this and have put substantial information on there websites
regarding policies, quotes and contact information among other routine stuff.
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CHAPTER-2COMPANY PROFILE
2.COMPANY PROFILE
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ICICI PRUDENTIAL LIFE INSURANCEICICI Prudential Life Insurance Company was established on 24th December 2000, with a basic
investment of 675 Crores. The company has 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 realizing its goal.
2.1INTRODUCTION
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse and prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management
Company, which has today emerged as one of the leading mutual funds in India. The two
companies bring together the strongest financial service brands in Asia, known for their
professionalism, excellent quality of service and long-term commitment to customers. Riding on
the success of this relationship, the two companies joined hands once more in 200, to form ICICI
Prudential Life Insurance, with a commitment to provide leading-edge life insurance solutions.
ICICI Prudentials capital base stands at Rs. 1335 crore with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. For the year ended March 31, 2006.The company
garnered Rs 2,412 crore of weighted new business premium and wrote 837,963 policies. The sum
assured in force stands at over Rs 56,000 crore.. The company has a network of about 56,000
advisors and 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.
2.2 PROMOTERS
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ICICI PRUDENTIAL LIFE INSURANCEThe Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the
initiative of the World Bank, The Central Government of India and representatives of Indian
Industry, with the objective of creating a developmental financial institution for providing
medium term project financing to Indian businesses and Industries.
Following the market oriented economic policy reforms in the 1991s, ICICI moved away from its
traditional role into a new era of liberalized regulation and intense competition. A series of
initiatives were championed to keep up with keen competition in Indias financial service sector,
and access to international capital markets was crucial to the success of the new mandate.
ICICI Bank is Indias second-largest bank with total assets of about Rs. 2,513.89 bn (US$ 56.3
bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March
31, 2006 and ICICI Bank has a network of about 614 branches and extension counters and over
2,200 ATMs It offers a wide range of banking products and financial services to corporate andretail customers through a variety of delivery channels and through its specialized
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Commercial Bank.
ICICI VENTURE
Venture Capital Leading
ICICI SECURITIES
Invest Bank
ICICI PRUDENTIAL
MUTUAL FUND
ICICI LIMITED
(Parent Company)
ICICI WEB TRADE
On-line Brokerage
ICICI PFS ICICI CAPITAL ICICI INFOTECH
ICICI PRUDENTIAL
LIFE INSURANCE COMPANY
A 74% AND 26% VENTUREBETWEEN ICICI AND
PRUDENTIAL PLC OF U.K.
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ICICI PRUDENTIAL LIFE INSURANCEsubsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture
capital, asset management and information technology.. ICICI Banks equity shares are listed in
India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai
and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).
2. 3 PRUDENTIAL
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 June 30, 2004, the company had over
US$300 billion in funds under management. Prudential has brought to market an integrated range
of financial services products that now includes life assurance, pensions, mutual funds, banking,
investment management and general insurance. In Asia, Prudential is the leading European life
insurance company with a vast network of 24 life and mutual fund operations in twelve countries -
China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,
Thailand and Vietnam.
SOME FACTS ABOUT PRUDENTIAL:
In 1912 the great TITANIC ship sunk into the Atlantic Ocean. Fortunately that ship and
travelers were Insured by Prudential. This disaster claims were settled by Prudential within
a week after the tragedy.
The 1983 Cricket World Cup was sponsored by Prudential. This was called as Prudential
Cup, and India won this world cup successfully under the Captainship of Mr. Kapildev
2.4 CUSTOMER SERVICE AND OPERATIONS
The Operations department oils the work processes between the customer and the company to
ensure consistent and quality service to the customer. To streamline the operations, the Operations
department interfaces between the clients and the agents, the branches and the underwriters, and
manages work processes.
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ICICI PRUDENTIAL LIFE INSURANCEThe Vision at Customer Service is to deliver World Class Service at every opportunity. Units
such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution
Unit are all committed to providing effective solutions to over lakhs of customers across the
country.
Information Technology
The Information Technology function at ICICI Prudential is committed to enable business through
the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the
customers: Life Asia Solutions Group that provides flexibility in designing better product
offerings to end-users, the Solutions Group- Web that provides real-time information to customers
and is responsible for customer relationship management, IT Architecture & Corporate SolutionsGroup is in charge of developing and maintaining a blueprint for the IT architecture for the
enterprise as a whole. This team works as an in house R&D Solution Group, exploring new
technological initiatives and also caters to information needs of corporate functions in the
organization. IT Infrastructure group is responsible for providing hardware, software, network
services to the whole organization. This group runs the 'Digital Nervous System' of the Enterprise
at the highest levels of efficiency and provide robust, scalable and highly available platform for
deployment of business application.
Marketing
The Marketing function at ICICI Pru covers an array of activities - brand and media management,
channel support, direct marketing and corporate communications. The Brand and
Communications team is in charge of advertising, consumer research, media planning & buying
and Public Relations; that helps develop and nurture ICICI Prudential's corporate identity while
effectively communicating its varied product offerings to the customer. Channel marketing
provides support to the sales force by streamlining the design and development of collaterals and
sales tools across distribution channels. The Direct marketing team was set up to generate high
quality leads for profitable business. The team achieves this through target database acquisition
and communicating customized product information through e-mailers, telemarketing and
innovative direct mailers.
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Finance
Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to
shareholder expectations. Finance basically comprises of four functions. . Corporate Planning and
MIS provide feedback on business strategies. This includes driving the budgeting process, providing strategic inputs for decision-making and management reporting and analysis. The
Accounts function includes preparation and maintenance of financial records, funds management,
and expense processing and treasury operations. Compliance ensures that every action is within
the regulatory framework. This includes reviewing compliance requirements and supporting the
ethical framework of ICICI Pru life. Internal audit provides assurance to the management over the
organizations' control framework and includes process risk management, information security
assessment and business continuity assessment.
Human Resource
The people strategy of ICICI Prudential is To build a committed team with a culture of
innovation, learning and growth. The Human Resource Function at ICICI Prudential drives the
people strategy of the business. With its initial focus on operational excellence to deliver benefits
and services to staff members, HR is now committed to building capability through state of the art
processes. A robust performance management system, compensation system and a segmented
training architecture enable it to deliver value to the organization.
Business Excellence
The Business Excellence function is committed to building a quality mindset across the
organization. ICICI Prudential is the first organization in the Insurance Industry that has adopted
the Six Sigma Methodology for process efficiency and measurement. The team is also driving the
Malcolm Baldrige framework across the organization, an intervention that examines management
of key inputs for Business Excellence.
2.5 NATURE OF BUSINESS CARRIED
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ICICI PRUDENTIAL LIFE INSURANCEICICI 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.
INSURANCE BUSINESS
Insurance business is divided into four classes:
1) Life Insurance.
2) Fire insurance
3) Marine Insurance and
4) Miscellaneous Insurance.
Life Insurers carrys life insurance business;
ICICI prudential is the No. 1 private life insurer
2.6 VISSION, MISSION, QUALITY POLICIES
Our vision: To make ICICI Prudential the dominant Life and Pensions player built on trust by
world-class people and service.
The company is hoping to achieve this by:
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.
And above all, building transparency in all our dealings.
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The success of the company will be founded in its unflinching commitment to 5
core values:
1. OWNERSHIP
If it is to be, it is up to me
a. Take responsibilities and see tasks through to complision
b. Own mistakes, learn from failures.
c. Pursue goals relentlessly, never give up.
d. Be a team player, take ownership for team performance.
2. INTEGRITY
Be honest and fair in what you say and do
a. Practice what you preach.
b. Stand up honestly and fearlessly for what is right.
c. Act in a consistent and equitable manner.
d. Think and act for long-term impact
e. Do not compromise the future to pay the present.
3. CUSTOMER FIRST
Own the customer, deliver the promise
a. Keep the customer interest in the center in all decision
b. Promise what you can, deliver it to finish.
c. Proactively seek voice of the customer and act on it.
4. PENTION
Boundless energy and enthusiasm
a. Exhibit Winning Instinct.
b. Demonstrate speed and urgency for achieving results.
c. Challenge the status quo and do things differently.d. Nurture and motivate the team members to reach full potential.
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5 BOUNDARYLESS
Never say, It is not my Job
a. Offer help and support across functions to ensure the business success.
b. Seek and share the ideas freely.c. Recognized respect internal customers.
d. Understand and value the contributions from the colleagues.
Each of the values describes what the company stands for, the qualities of their people and the
way they work. They do believe that they are on the threshold of an exciting new opportunity,
where they can play a significant role in redefining and reshaping the sector. Given the quality of
their parentage and the commitment of their team, there are no limits to their growth.
2.7 PRODUCT PROFILE
This is the SLOGAN of the ICICI Prudential Insurance Company. Suraksha Zindagi ke har
kadam par, as interpreted in Hindi. ICICI Prudential was positioned as an enabler of protection
relevant to the needs of the life stage. Different people have different needs at various stages of
life. ICICI Prudential offers a bouquet of insurance solutions to choose from to suit customerslife stage and needs.
Insurance Solutions for Individuals
ICICI Prudential offers a range of innovative, customers centric products that meet the needs of
customers at every human life stages.
SAVINGS & WEALTH CREATION SOLUTIONS
CASH PLUS
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An insurance plan that gives added protection savings, multiple options, plus the power of
liquidity. It is a transparent, feature-packed savings plan that offers 3 levels of protection as well
as liquidity options.
SAVE N PROTECT
A traditional endowment savings plan that offers both high returns and protection.
LIFE TIME SUPER & LIFE TIME PLUS
Are unit-linked plans that offer customers the flexibility and control to customize the policy to
meet the changing needs at different life stages.
LIFE LINK SUPER
Lifeline Super is a unique plan that combines the security of a life insurance policy with the
opportunity of enjoying high returns on your investments, without the market risks compromising
on the protection of your family!
PREMIER LIFE GOLD
A market linked insurance plans that meet your Investment and Protection
needs. It is a limited premium paying plan specially structured for long-term wealth creation.
INVEST SHIELD LIFE
A regular premium unit-linked insurance plan with an assurance of Capital Guarantee* and the
facility of extended insurance cover.
INVEST SHIELD GOLD
A regular premium unit-linked insurance plan with an assurance of Capital Guarantee* along withflexible liquidity options.
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ICICI PRUDENTIAL LIFE INSURANCECASH BACK
An endowment savings plan that allows you to get back substantial survival benefits without
having to wait till the maturity date.
PROTECTION SOLUTIONS
LIFE GUARD
ICICI Prudential Life Insurance offers Life Guard - a set of pure protection plans. Choose from
amongst three different product structures to insure your life and provide total security to your
family, at a very affordable cost. It is available in three different option
Level Term Assurance with return of premium
On death the entire sum assured will be paid.
On maturity, all the premiums paid will be returned.
Level Term Assurance without return of premium
On death the entire sum assured will be paid.
No survival or maturity benefits.
Level Term Assurance - Single premium
On death the entire sum assured will be paid.
No survival or maturity benefits.
HOMEASSURE
It is a mortgage reducing term assurance plan designed specifically to help customers cover theirhome loans in a simple and cost-effective manner.
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ICICI PRUDENTIAL LIFE INSURANCECHILD PLANS
As a responsible parent, you will always strive to ensure a hassle-free, successful life for your
child. However, life is full of uncertainties and even the best-laid plans can go wrong. Heres how
you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. Smart Kid
is especially designed to provide flexibility and safeguard your childs future education and
lifestyle, taking all possibilities into account. Choose from amongst a basket of 4 plans:
1) Smart Kid regular premium
2) Smart Kid unit-linked regular premium
3) Smart Kid unit-linked regular premium II
4) Smart Kid unit-linked single premium II
All these plans offer you:
Financial Benefits: Regular payments at critical stages in your childs
Life, like Board examinations, Graduation and Post-graduation.
EDUCATION INSURANCE
Education insurance under the Smart kid brand 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 childs life. Smartcard plans are also
available in unit-linked form ? both single premium and regular premium.
RETIREMENT PLANS
Life Expectancy has been rising rapidly and today you can expect to live longer than your
earlier generations. For you, this increase will mean a longer retirement life, stretching into a
couple of decades. ICICI Prudential presents Retirement Solutions that combine the best of
insurance and investment. These solutions are developed to ensure your peace of mind for the
years to come
FOR EVER LIFE
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A regular premium pension plan that helps you save for your retirement while providing you with
life insurance protection.
LIFE TIME SUPER PENSION
It is a regular premium unit linked pension plan that helps one accumulate over the long term and
offers an annuity option (guaranteed income for life) at the time of retirement.
LIFE LINK SUPER PENSION
A single premium linked pension plan that gives you the freedom to choose the amount of
premium, and invest in market-linked funds, to generate potentially higher returns.
HEALTH SOLUTION
HEALTH ASSURE AND HEALTH ASSURE PLUS
Health Assure is a regular premium plan which provides long term cover against 6 critical
illnesses by providing policyholder with financial assistance, irrespective of the actual medical
expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover
CANCER CARE
It is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in
the treatment of various cancer conditions.
GROUP SOLUTIONS
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. Employee benefits have proven to be an
excellent tool to optimize the retention of talent and improve an organizations bottom-line. The
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ICICI PRUDENTIAL LIFE INSURANCEquality of an organizations employee benefits establishes and maintains a company's image as a
caring employer. Optimum care of employees is a long-term investment that results in a sustained
competitive advantage for an organization in the times to come.
ICICI Pru Group Solutions Advantage
1).An integrated basket of employee benefits solutions that offer incomparable flexible benefits.
2).Sound investment management that focuses on safety, stability and profitability of the
portfolio.
3). Personalized financial planning for your employee that takes care ofhis/her changing financial needs at every stage of life.
4).Quality service initiatives and transparency across all operations, promising superlative
operational efficiency.
GROUP TERM ASSURANCE:
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, and can be
extended to all employees between the ages of 18 and 65 years. The benefit under the policy is
paid on the event of the members death to the beneficiary nominated by the member. It is a one-
year renewable policy where one master policy covers all proposed employees comprising the
group, with a minimum group size of 25 persons. New members can join the group and
outgoing members can leave the group at any point during the policy term
GROUP GRATUITY PLAN:
ICICI Pru's group gratuity plan helps employers fund their gratuity obligation in a scientific
manner. Employers can avail of the tax benefits as applicable to approved gratuity funds. The plan
can also be customized to structure schemes that can provide benefits beyond the statutoryobligations. Highlights include.
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GROUP SUPERANNUATION PLAN
ICICI Prus Superannuation Scheme (for both Defined Benefit and Defined Contribution funds)
offers substantial benefits to both employers and employees. The employer and employee can
avail of tax benefits applicable to an approved superannuation trust. The scheme will provide for aretirement fund for each participating employee. An employee would be able to choose from
various annuity options or opt for partial commutation of corpus at retirement.
Highlights include:
FLEXIBLE RIDER OPTIONS
Critical Illness Benefit Rider
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., namely: Major organ transplants,
Complete renal failure, Stroke, Paralysis, Heart attack, Valve replacement surgery, Major surgery
of the aorta, CAGS (Bypass) and Cancer.
Accident & Disability Benefit Rider
Benefits payable on death due to an accident.
If the policyholder dies due to an accident, 100% of the rider sum assured is paid in
addition to the basic sum assured.
In case the policyholder dies in a land surface, mass public transport system wherein the
policyholder was traveling as a fare-paying passenger, then 200% of the rider sum assured
is paid.
Benefits payable in case of permanent disability due to an accident.
If the policyholder survives an accident but becomes permanently disabled then the
premium for the basic plan is completely waived off to the extent of the rider sum assured.
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Plus, 10% of the rider sum assured is paid for the next 10 years, which helps in providing
that extra money and takes care of sudden financial set back that occurs after a tragic
disability.
Income Benefit Rider
In case of death of the life assured during the term of the policy, 10% of the rider sum assured is
paid annually to the beneficiary, on each policy anniversary till maturity of the rider.
Waiver of Premium Rider (WOP)
In case of total and permanent disability due to an accident, the future premiums continue to be
paid by the company till the time of maturity.
THE VARIOUS PLANS THAT ARE AVAILABLE TO BUY ONLINE ARE
Life expectancy has been rising rapidly and today, you can now expect to live much longer than
your earlier generations. For you, this will mean planning for a longer retirement life, probably
without a regular income. So, it is more critical than ever to plan adequately and wisely for those
incremental retirement years, keeping in mind that your expenses will spiral upward, your cost of
living will increase and inflation will be ever present. Therefore, you need a plan that ensures
safety, risk cover, income security and regular returns for your post-retirement years.ICICI
Prudential Life Insurance presents Life Time Pension II, a retirement plan that combines the bestof investment and insurance and ensures that you get the power to maintain your lifestyle needs,
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ICICI PRUDENTIAL LIFE INSURANCEfor as long as you live. You can now buy the Life Time Pension II plan with no life cover online
through www.icicibank.com, without undergoing any Medical examinations.
- Term plan
Happiness and security for our family is what all of us want. However, the uncertainties of life
often worry us. The thought of unfortunate events befalling us may cause anxiety about our ability
to provide for our loved ones. This is especially the case if we are no longer there to provide for
them. A Term plan (i.e. pure Protection plan) like Life Guard ensures that your loved ones are
adequately provided for and that their lives are not affected, even if you are not around.
ICICI Prudential presents Life Link Super a unique, single premium market-linked investment-
cum-insurance solution that enables you to extract the maximum from your investment. Life Link
Super offers attractive premium allocation along with flexible investment options to give you the
opportunity to enjoy potentially high returns on your investments, without compromising on the
protection of your family
ICICI Prudential presents Health Assure Plus, a plan that covers you against 6 critical illnesses, as
well as provides you with life cover. On diagnosis of any of the 6 critical illnesses covered, the
plan provides for the best possible medical treatment and also compensates for loss of income and
additional expenses like traveling, lodging etc In addition, it also offers a life insurance cover,
which protects your family in the unfortunate event of death
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plan
ICICI Prudential presents HealthAssure, a plan that covers you against 6 critical illnesses. On
diagnosis of any of the 6 critical illnesses covered, the plan provides for the best possible medical
treatment and also compensates for loss of income and additional expenses like traveling, lodging
etc
2.8 AREA OF OPERATION:-
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life insurers in Indiawith a network of over 83,000 advisors, and having commenced operations in 207 cities and
towns in India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north
to Trivandrum in the south. Some are Ahmedabad, Bangalore, Baroda, Bhopal, Bhubaneshwar,
Chandigarh, Chennai, Coimbatore, Cochin, Guntur, Hyderabad, Indore, Jaipur, Jallandar, Jodhpur,
Kanpur, Kochi, Kottayam, Lucknow, Ludhiana, Madhurai, Mangalore, Meerut, Mumbai, Nagpur,
Nasik, Noida, New Delhi, Pune, Vadodhara, Vapi etc.
BANKASSURANCE
The company has 9 bank assurance partners, having tie-ups with ICICI Bank, Bank of India,
Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-operative banks; as well as
over 200 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the
distribution of rural policies.
BANGALORE BRANCHES
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ICICI PRUDENTIAL LIFE INSURANCEIn ICICI Prudential Insurance Company, for the purpose of convenience the entire nations
operations are divided into 2 Major regions. They are called as
I) Himalayan Region. (North India)
II) Peninsula Region. (South India)
The South Indian region is called as Peninsula region. Under this region there are 3 Zones. They
are Karnataka and Goa zone, Tamil nadu and Kerala Zone, and Maharastra Zone. Under
Karnataka and Goa Zone there are various District level Sub Zones. These District level Sub
Zones have various local area branches. Like that, the Bangalore district Zone has 4 local area
branches. They are..
1) Residency Road Branch.
2) Koramangala Branch.
3) Jayanagar Branch.
4) Malleshwaram Branch.
THE HEAD OFFICE
The company has its Registered Office and Head office at Mumbai.
ICICI Prudential Life Insurance Company Ltd.
ICICI Pru Life Towers, 1089 Appasaheb Marathe Marg,
Prabhadevi, Mumbai 400025
Fax us at: (022) 2437 6727.
OWNERSHIP PATTERN
ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively.
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ICICI PRUDENTIAL LIFE INSURANCE
SHARE HOLDING PATTERN OF ICICI
PRIDENTIAL INSURANCE COMPANY LTD
26%
74%
ICICI BANK PRUDENTIAL PLC
COMPETITORS
ICICI Prudential faces tough competition from L.I.C, which is one of the oldest insurance
company and also from other Private insurers like Bajaj Aliance, HDFC Standard , Tata A.I.G.,
etc L.I.C It is a oldest insurance company the market leader with 74% - 87% market shares and it
enjoys all the benefits of government as it comes under public sector And in private ICICI
Prudential is the market leader but now faces competition with Bajaj Aliance & HDFC Standard
other are TATA A.I.G, Birla Sunlife,SBI Life, Max new york life, Aviva, and Kotak Mahindra.
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THE AWARDS RECEIVED BY THE COMPANY
a) Out Look Money Award of the BEST LIFE INSURERof 2003-04.
b) 2004 INSTITUTE OF MARKETING AND MANAGEMENT AWARD FOREXCELLENCE.
c) THE MOST TRUSTED PRIVATE LIFE INSURER. - Economic Times, A.C. Nielson
survey 2003.
d) THE SUPER BRAND AWARD.
FUTURE GROWTH AND PROSPECTUS
Future for icici prudential is very bright and how it is doing today will make it the No.1 player in
insurance . It will go beyond L.I.C in future
INSURANCE OPPORTUNITIES
The Company has great opportunities in the growing Insurance Market of India. They are
Only 23% of Insurable Population is insured.
Low Insurance penetration. Premium at 2.2% of total G.D.P.
Rapidly growing economy (G.D.P. grew at rate of 8.2% in 2003-04).
Private sector gaining momentum. Fiscal 2005 private sector market share was 23.2%
(Fiscal 2004-12.4%).
Pensions Opportunities.
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Insurance Landscape: 13 Private sector companies and 1 public sector Company.
2.9 MCKINSEY 7-S FRAMEWORK MODEL FOR COMPANY
ANALYSIS
The 7-s framework of Mckinsey is based Management (VBM) model that describes how one can
holistically and effectively organize a company. Together seven factors determine the way in
which a corporation operates. The model indicates the major aspects in the company and the way
in which they are co-ordinated.The Seven S Framework first appeared in "The Art Of Japanese
Management" by Richard Pascale and Anthony Athos in 1981. They had been looking at how
Japanese industry had been so successful, at around the same time that Tom Peters and Robert
Waterman were exploring what made a company excellent. The Seven S model was born at ameeting of the four authors in 1978. It went on to appear in "In Search of Excellence" by Peters
and Waterman, and was taken up as a basic tool by the global management consultancy
McKinsey: it's sometimes known as the McKinsey 7S model.
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APPLICATION MCKINSEY 7-S MODEL
SHARED VALUE
The interconnecting centre of McKinseys model is: Shared Values, What does the organization
stands for and what it believes in. Central belief and attitudes. The shared values with regard to
ICICI Prudential Life Insurance.
VISION AND MISSION
To make ICICI Prudential the dominant life and pension player built on trust by world class
people and services
To company believes this to be achieved by:
1 .Understanding the needs of customer and offering them superior products and services
2. Leveraging technology to service customer quickly, efficiently and conveniently.
3. Developing and implementing superior risk management and investment strategies to stable
returns to our policyholders.
4. Providing and enabling environment to foster growth and learning for our employees.
5. And above all, building transparency in all our 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 describe
what the company believes that they are on the threshold of an exciting new opportunity, where
they play they can play a significant role in redefining and reshaping the sector. Given the quality
of their percentage and the commitment of their team, there are no limits to companys growth.
STRATEGY
Plans for the allocation of firms scarce resources, over time to reach identified goals. The strategy
of the ICICI Prulifeis:
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Appointments of Challenging Unit Manager
Appointment of Challenging Unit Manager is the most successful strategy in the ICICI Prudential.
Earlier unit manager was to lead the team which consisting of both performing and non-
performing advisors. But these inactive advisors became bottleneck for the performance of theunit manager. The unit manager was confuse about leading about the team because variation
between perception, attitude and motivational levels among performing and non-performing
advisors.
The job of challenging unit manager is to make active of inactive advisors. His team consisting of
only non-performing advisors. This leads to full focus of unit managers attention to those
advisors. This strategy will save huge amount of expenditure concerned to appointment of new
advisors as well as training to those advisors.
More focus on high net worth individual
The company is targeting high net worth individuals like executives of IT industries. Companys
major work force is concentrated on this segment, which is very beneficial for the collection of
large amount of premium. The smart work will leads to easy achievement of the target fixed by
the organization.
Excellent flexibility in the products and services
The company having such products and service which will target each and every segment of
potential customer. Flexibility concerned to Sum assurance, Premium amount, and mode of
payment, Nominee, Surrender of policy, withdrawal of fund and switch of fund. Other than ICICI
Prudential no one insurance company having this kind of flexibility.
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Minimum Administration Charges
Except LIC, ICICI Prudential has minimum administrative charges in the insurance industry.
These minimum charges are very helpful in convincing the customer. It leads to more trust in the
long period of time and it will reduce risk on the part of the advisors and company.
STRUCTURE
The way the organizations unit relate to each other; centralized, functional division (top down);
decentralized (the trend in larger organizations); matrix, network,, holding, etc.
Management
BOARDOF 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, ChairmanMr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. HT Phong
Mr. M.P. Modi
Mr. R Narayanan
Mr. Keki Dadiseth
Ms. Shikha Sharma, Managing Director
Mr. N.S. Kannan, Executive Director
MANAGEMENT TEAM
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ICICI PRUDENTIAL LIFE INSURANCEMs. Shikha Sharma, Managing Director & CEO
Mr. N.S. Kannan, Executive Director
Mr. V. Rajagopalan, Chief - Actuary
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Ms. Anita Pai, Chief - Customer Service and Technology
Mr. Puneet Nanda, Chief - Investments
ORGANISATIONAL STRUCTURE
SWOT ANAL
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CEO & MANAGING DIRECTOR
SALES &
DISTRIBUTI-
ON
FINANCEDIRECTO
HUMAN
RESOURCE
DIRECTOR
MIS &
PLANING
DIRECTOR
OPERATIONS
DIRECTOR
HR HERD
T & D
HEAD
PURCHASE
MANAGER
FACILITY
MANAGER
EXPENESES
MANAGER
BRANCH
MANAGER
NATIONAL
MANAGER
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ZONAL MANAGER
BRANCH MANAGER
SALES MANAGER
ASISTENT SALES
MANGER
UNIT MANAGER
FINANCIALADVISORS
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ZONAL MANAGER
BRANCH MANAGER
H.R. MANAGER
ASSISTENT H.R.MANAGER
H.R. DEPARTMENTSTAFF
COMPANYPERSONNELS
CHIEF FINANCIALOFFICER
FINANCE MANAGERASSISTANTFINANCE MANAGER
CHARTEREDACCOUNTANTS
Sr. ACCOUNTANTSACTUARIES
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SYSTEM:
The procedure, processes and routines that characterize how important work is to be done
financial systems; hiring, promotion and performance appraisal system; information system.
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ICICI PRUDENTIAL LIFE INSURANCEICICI Prudential has a Life Asia Solutions Group Team managing Life Asia, companys core
policy system. Life Asia is a proven, reliable system operating on robust software, and on a
hardware platform providing ease of use. It provides the flexibility in designing better product
offerings to end-users. This solution group also, manages the Group solutions software package.
A critical aspect of companys every day work lives is IT infrastructure, and that is managed by
another sub group in the Life Asia solution group.
All the forward thinking businesses are headed for web, as web presence integrated with back end
systems allows for a strong self-service paradigm to be built for customers and partners. Company
has a Solution Group Web System which is constantly trying to provide real-time information to
companys CRM initiative using the Goldmine package, catering to the Sales Force for lead
management, and to customer service, for handling queries/complaints/requests.
Companys group also has an architect who is in charge of developing and maintaining a blueprint
for the enterprise as a whole. This team works as an in house R&D Solution Group caters to the
information needs of the corporate functions like HR and Finance. This team also
works towards running initiatives to drive up usage and derive returns on companys IT
investments.The information Technology section on the Intranet, will keep customers updated
with the latest IT Initiatives ay ICICI Prudential. The UAT corner in this section will help the user
functions in keeping a track of the status of their Enhancement Requests. This section also
provides information about various IT processes and IT Security Policies & Procedures of ICICI
Prudential.
SKILL:
Distinctive capabilities of the organization as a whole.
SELLING SKILLS
Selling skills in includes many aspects:-
1. Provide ongoing financial advice for his/her customer . For this advisors need complete
knowledge about the product and services
2. Identify the future customer life insurance is a business of contact and advisors need to network
constantly to ensure that the business expands.
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ICICI PRUDENTIAL LIFE INSURANCE3. Constantly make appointment just making contact will not be enough to develop a good life
insurance business. It is vital that these contacts are met .And thus s
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