Submitted by
(2017 - 2019)
CERTIFICATE
This is to certify that the project work titled “Customer Retention &
Relationship Management at ICICI Prudential Life Insurance” is being
submitted in partial fulfillment for the award of degree of Master of
Business Administration to Osmania University, Hyderabad, a record of
bonafide is carried out by Mr. Muzammil Mohammed Iqbal Shareef,
student of MBA (Marketing), bearing HT. No.: 1402-17-672-012.
The result in this report has not been submitted to any other University
or Institution for award of any degree or diploma.
This is to certify that the project work titled “Customer Retention &
Relationship Management at ICICI Prudential Life Insurance” is being
submitted in partial fulfillment for the award of degree of Master of
Business Administration to Osmania University, Hyderabad, a record of
bona fide is carried out by Mr. Muzammil Mohammed Iqbal Shareef,
student of MBA (Marketing), bearing HT. No.: 1402-17-672-012.
The result in this report has not been submitted to any other University
or Institution for award of any degree or diploma.
I hereby declare that the project report on “CUSTOMER RETENTION & RELATIONSHIP
MANAGEMENT” has been submitted under the guidance of Mrs. Hima Bindu, Associate
Professor, DEPARTMENT OF BUSINESS ADMINISTRATION, AMJAD ALI KHAN COLLEGE
OF BUSINESS ADMINISTRATION.
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ACKNOWLEDGEMENT
I would like to express my gratitude to those who have been a constant source of
encouragement and motivation throughout this project, without whose support this
could not have been possible.
I would also like to thank Mr. ABDUL AZIZ, Line Manager of ICICI PRUDENTIAL LIFE
INSURANCE, who generously granted me permission and helped me out in collecting
data in their organization.
I also acknowledge with the deep sense of reverence, gratitude towards my parents,
sister and members of my family, who have always supported me morally as well as
financially, in every phase of my life.
Above all, all Praise and Thanks is due to the Almighty Creator.
Any omission in this brief acknowledgement does not mean lack of gratitude.
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ABSTRACT
In India life insurance sector plays a major role in savings of a person. There are
many players in life insurance sector, and LIC is leading as it has roots in India from
more than 50 years. To purchase anything in this world the customer has his/her
own choice of preferences according to those preferences only, one can purchase
the require product. The project study of ICICI PRUDENTIAL LIFE INSURANCE linked
with CRM (CUSTOMER RELATIONSHIP MANAGEMENT).
The aim of study to examine and make the company enable to the track customer
sell the appropriate product understanding their needs and wants and to insure a
long term retention of customers through the application of CRM in a comprehensive
manner monitoring the performance of CRM to take corrective actions necessary to
assure the results match the plan projections.
Coming to ICICI PRUDENTIAL LIFE INSURANCE in India it’s making effort to attract
customers and tap the life insurance market. So this study is also intended to find
customers and the retention value through the application of CRM in ICICI
PRUDENTIAL LIFE INSURANCE.
Most of the companies have only 28% of market share in life insurance sector when
compare LIC. So CRM makes suggestions to ICICI PRUDENTIAL LIFE INSURANCE
sector how to make trust of customers and hoe to make the retention value.
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TABLE OF CONTENTS
INTRODUCTION 6
RESEARCH METHODOLOGY 9
COMPANY PROFILE 26
CHAPTER – 3
INDUSTRY PROFILE 30
BIBLIOGRAPHY 79
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CHAPTER 1
INTRODUCTION
6
INTRODUCTION OF CUSTOMER RELATIONSHIP MANAGEMENT
Several commercial CRM insurance packages are available which vary in their approach
to CRM. However, as mentioned above, CRM is not just a technology, but rather a
comprehensive customer-centric approach to an organization’s philosophy in dealing
with its customers. This includes policies and process, front-of-house customer service,
employee training, marketing systems and information management. Hence it is
important that any CRM implementation considerations stretch beyond technology,
towards the broader organizational requirements.
The objective of a CRM strategy most consider a company’s specific situation and
its customers’ needs and expectations. Information gained through CRM initiatives
can support the development of marketing strategy by developing the organization’s
knowledge in areas such as identifying customer segments, improving customer
retention, improving product offerings(by better understanding customer needs),and
by identifying the organization’s most profitable customers.
CRM strategies can vary in size, complexity and scope. Some companies
consider a CRM strategy to only focus on the management of a team of sales people.
However, other CRM strategy can cover customer interaction across the entire
organization .many commercial CRM insurance packages that are available provide
features that serve sales, marketing event management, and project management
and finance.
CRM defines the process of the company are fully occupied with acquiring
customers, selling the product to the customers, and maintaining a LONG TERM
RELATIONSHIP to a customer.
- To realize how crucial & significant it is for a firm to maintain sound relations with
customers
- To study the various strategies & techniques adopted by ICICI Prudential life
insurance to maintain & manage an effective customer relationship
8
RESEARCH METHODOLOGY
SECONDARY DATA: It is already collected and recorded data by some other person
for some purpose and is available for present study.
Example: internet, textbooks, organizations annual report etc.
SAMPLE SURVEY
At the period of research work, it is necessary to collect a certain data from the
people but it is not possible to survey each every person who can give information on
the issue.
SAMPLE CHARACTERISTICS:
Sample size: 100 clients.
Nature of sample: Highly representatives of the population.
The information collected and opinions are of customers as to what they feel. Thus
the accuracy and information collected depends upon the perception of each
respondent and circumstances involved.
The study has been conducted by including 100 customers. Though the sample is
highly representative of the population, it does not cover the entire market of
customers having insurance policies.
Analysis could not draw for the entire questionnaire; only specific questions have been
analyzed and interpreted.
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CHAPTER II
REVIEW OF LITERATURE
11
LITERATURE REVIEW
TYPES OF CRM
OPERATIONAL CRM
The primary goal of CRM systems is to integrate and automate sales, marketing, and
customer support. Therefore, these systems typically have a dashboard that gives an
overall view of the three functions on a single page for each customer that a company
may have. The dashboard may provide client information, past sales, previous marketing
efforts, and more, summarizing all of the relationships between the customer and the
firm. Operational CRM is made up of 3 main components: sales force automation,
marketing automation, and service automation.
Sales force automation works with all stages in the sales cycle, from initially
entering contact information to converting a prospective client into an actual client.
For example, in August, 2000, Oracle released a CRM software package,
OracleSalesOnline.com, which makes contacts, schedules and performance tracking
available online so that a customer's information is easily accessible for all
employees working at the office or remotely. Sales force automation implements
Sales promotion analysis, automates the tracking of a client's account history for
repeated sales or future sales and coordinates sales, marketing, call centers, and
retail outlets. It prevents duplicate efforts between a salesperson and a customer
and also automatically tracks all contacts and follow-ups between both parties.
Marketing Automation focuses on easing the overall marketing process to make
it more effective and efficient. For example, by scoring customer behavior,
Salesforce'sMarketing Cloud allows a business to adapt marketing campaigns to
how engaged customers are with a business. CRM tools with marketing
automation capabilities can automate repeated tasks, for example, sending out
automated marketing emails at certain times to customers, or posting marketing
information on social media. The goal with marketing automation is to turn a
sales lead into a full customer. CRM systems today also work on customer
engagement through social media.
Service automation is the part of the CRM system that focuses on direct
customer service technology. Through service automation, customers are
supported through multiple channels such as phone, email, knowledge bases,
ticketing portals, FAQs, and more. For example, Microsoft's Dynamics CRM
Software tracks call times, call resolution and more in order to improve the
efficiency of customer service within a business.
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ANALYTICAL CRM
The role of analytical CRM systems is to analyze customer data collected through
multiple sources, and present it so that business managers can make more
informed decisions. Analytical CRM systems use techniques such as data mining,
correlation, and pattern recognition to analyze the customer data. These analytics
help improve customer service by finding small problems which can be solved,
[4]
perhaps, by marketing to different parts of a consumer audience differently . For
example, through the analysis of a customer base's buying behavior, a company
might see that this customer base has not been buying a lot of products recently.
After scanning through this data, the company might think to market to this subset
of consumers differently, in order to best communicate how this company's
products might benefit this group specifically.
COLLABORATIVE CRM
The third primary aim of CRM systems is to incorporate external stakeholders such
as suppliers, vendors, and distributors, and share customer information across
organizations. For example, feedback can be collected from technical support call,
which could help provide direction for marketing products and services to that
particular customer in the future.
Firstly, firms are able to customize their offerings for each customer. By
accumulating information across customer interactions and processing this
information to discover hidden patterns, CRM applications help firms customize
their offerings to suit the individual tastes
of their customers. This customization enhances the perceived quality of products
and services from a customer's viewpoint, and because perceived quality is a
determinant of customer satisfaction, it follows that CRM applications indirectly
affect customer satisfaction. CRM applications also enable firms to provide timely,
accurate processing of customer orders and requests and the ongoing management
of customer accounts. For example, Piccoli and Applegate discuss how Wyndham
uses IT tools to deliver a consistent service experience across its various properties
to a customer. Both an improved ability to customize and a reduced variability of the
consumption experience enhance perceived quality, which in turn positively affects
customer satisfaction. Furthermore, CRM applications also help firms manage
customer relationships more effectively across the stages of relationship initiation,
maintenance, and termination.
EXAMPLES
Amazon has also seen great success through its customer proposition. The firm
implemented personal greetings, collaborative filtering, and more for the customer.
They also used CRM training for the employees to see up to 80% of customers
repeat.
CRM PARADOX
15
Part of the paradox with CRM stems from the challenge of determining exactly what
CRM is and what it can do for a company. The CRM Paradox, also referred to as the
"Dark side of CRM," may entail favoritism and differential treatment of some
customers. This may cause perceptions of unfairness among other customers'
buyers. They may opt out of relationships, spread negative information, or engage in
misbehavior that may damage the firm and its reputation. Such perceived inequality
may cause dissatisfaction, mistrust and result in unfair practices. A customer shows
trust when he or she engages in a relationship with a firm under the idea that the firm
is acting fairly and adding value to his or her life somehow. However, customers may
not trust that firms will be fair in splitting the value of their products or services. For
example, Amazon’s test use of dynamic pricing (different prices for different
customers) ended with very poor public relations for the company. As seen in the
Amazon example, although firms use both human and technological factors to
assess a proper CRM process, experts suggest that focusing on the human factors,
like management, increases the potential of successful CRM, since managers can
make a coordinated effort on organizational changes within a company, which often
has an impact on customer satisfaction.
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mixed with a love-hate relationship with the brand. Some relationships are distant,
intimate or anything in between.
Based on this information, managers must understand the different reasons for
these types of relationships, and provide the customer with what they are looking for.
Companies can collect this information by using surveys, interviews, and more with
current customers. For example, Frito-Lay conducted many ethnographic interviews
with customers to try and understand the relationships they wanted with the
companies and the brands. For example, they found that most customers were
adults who used the product to feel more playful. They may have enjoyed the
company’s bright orange color, messiness and shape, for example.
Companies must also improve their relational intelligence of their CRM systems.
These days, companies store and receive huge amounts of data through emails,
online chat sessions, phone calls, and more. Many companies do not properly make
use of this great amount of data, however. All of these are signs of what types of
relationships the customer wants with the firm, and therefore companies may
consider investing more time and effort in building out their relational intelligence.
Companies can use mining technologies and use of web searches to understand
relational signals. Social media such as Facebook, Twitter, blogs, etc. is also a very
important factor in picking up and analyzing information. Understanding the
customer and capturing this data allows companies to convert customer’s signals
into information and knowledge that the firm can use to understand a potential
customer’s desired relations with a brand.
EMPLOYEE TRAINING
Many firms have also implemented training programs to teach employees how to
recognize and effectively create strong customer-brand relationships. For example,
Harley Davidson sent its employees on the road with customers, who were motorcycle
enthusiasts, to help solidify relationships. Other employees have also been trained in
Social psychology and the social sciences to help bolster strong customer relationships.
Customer service representatives must be educated to value customer relationships,
and trained to understand existing customer
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profiles. Even the finance and legal departments should understand how to manage
and build relationships with customers.
Firms that do not have well-designed and logical processes cannot be successful in
achieving their goals. Companies should define their business goals and evaluate their
CRM processes to improve and expand to fit their needs. Applying new technologies is
also helpful because using CRM systems requires changes in infrastructure of the
organization as well as deployment of new technologies such as business rules,
databases and Information technology.
EXAMPLES
CRM SYSTEMS
As well as tracking, recording and storing customer information, CRM systems in call
centers codify the interactions between company and customers by using analytics
and key performance indicators to give the users information on where to focus their
marketing and customer service. The intention is to maximize average revenue per
user, decreasechurn rate and decrease idle and unproductive contact with the
customers. CRM software can also be used to identify and reward loyal customers
over a period of time.
Growing in popularity is the idea of gamifying, or using game design elements and
game principles in a non-game environment such as customer service environments.
The gamification of customer service environments includes providing elements
found in games like rewards and bonus points to customer service representatives
as a method of feedback for a job well done. The repetitive act of answering support
calls all day can be draining, even for the most enthusiastic customer service
representative. When agents are bored with their work, they become less engaged
and less motivated to do their jobs well, making it likely for them to make mistakes.
Gamification tools can motivate agents by tapping into their desire for rewards,
recognition, achievements, and competition.
SOCIAL MEDIA
Social CRM involves the use of social media and technology to engage and learn
[35]
from consumers. Because the public, especially among young people, has
increasingly using social networking sites, companies use these sites to draw
attention to their products, services and brands, with the aim of building up
customer relationships to increase demand.
19
Some CRM systems integrate social media sites like Twitter, LinkedIn and Facebook
to track and communicate with customers. These customers also share their own
opinions and experiences with a company's products and services, giving these
firms more insight. Therefore, these firms can both share their own opinions and
also track the opinions of their customers.
LOCATION-BASED SERVICES
CRM systems can also include technologies that create geographic marketing
campaigns. The systems take in information based on a customer’s physical
location and sometimes integrates it with popular location-based GPS applications.
It can be used for networking or contact management as well to help increase sales
based on location.
According to a Sweeney Group definition, CRM is "all the tools, technologies and
procedures to manage, improve, or facilitate sales, support and related interactions
with customers, prospects, and business partners throughout the enterprise". The
quote assumes that CRM is involved in every Business-to-Business (B2B) transaction.
Despite the general notion that CRM systems were created for the customer-centric
businesses, they can also be applied to B2B environments to streamline and improve
customer management conditions. For the best level of CRM operation in a B2B
environment, the software must be personalized and delivered at individual levels.
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Business company must have a function to connect all the contacts, processes and
deals among the customers segment and then prepare a paper. Automation of sales
process is an important requirement for Business-to-Business products. It should
effectively manage the deal and progress it through all the phases towards signing.
Finally, a crucial point is personalization. It helps the Business-to-Business company
to create and maintain strong and long-lasting relationship with the customer.
MARKET LEADERS
The CRM market grew by 12.5 percent in 2012. The following table lists the top
vendors in 2006–2008 and 2012-2014 (figures in millions of US dollars) published in
Gartnerstudies.
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The four main CRM system vendors include Salesforce, Microsoft, SAP, and Oracle,
with Salesforce representing an 18.4% market share, Microsoft representing a 6.2%
market share, SAP representing a 12.1% market share and Oracle representing a
9.1% market share in 2015. Other providers also are popular for small and mid
market businesses. For nine different categories of CRM, Enterprise CRM Suite,
Midmarket CRM Suite, Small-Business CRM Suite, Sales Force Automation, Incentive
Management, Marketing Solutions, Business Intelligence, Data Quality and
Consultancies, there are different market leaders. Between the different market
leaders, each one’s services cater to a different professional field, from healthcare to
Manufacturing.
For Enterprise CRM Suite, Microsoft ranks the highest in depth of functionality,
company direction, Customer satisfaction and 5-year cost for Software and
maintenance because of its integrated customer engagement products, especially
through Office 365 and PowerBI, two
Business Analytics Whereas Microsoft’s CRM mostly
platforms. platforms are used in
the Financial Services, Sector and Services it competitor
Public Professional fields, s s in
Enterprise CRM Suite, NetSuite, Oracle, Salesforce and SAP, cover additional
the fields
of Retail, Software, Wholesale/Distribution, Communications, High-
Tech, Healthcare and Government.
In terms of Small-Business CRM Suite, Midmarket CRM Suite and Sales Force
Automation, Microsoft also is viewed as the best in terms of depth of functionality,
company direction, Customer satisfaction and 5-year cost for software and
maintenance for its Dynamics CRM platform. This platform integrates various
components, engaging customers at multiple
points. Microsoft’s competitors in Small-Business and Midmarket CRM Suite,
Hubspot, Infusionsoft, Zoho, bpm'online
CRM, NetSuite, Oracle, Salesforce andSugarCRM, cover additional CRM needs for
fields
like Real Estate, Communications, Retail, Software, Wholesale/Distribution, High-
Tech, Healthcare, Government, Agency Partners, Marketing Agencies, Consultancies
and Education.
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INCENTIVE MANAGEMENT
MARKETING SOLUTIONS
Salesforce’s Marketing Cloud is known for its complex architecture which allows its
users to connect to multiple applications and data sources within and outside of
Salesforce through a single browser interface. in terms of depth of functionality,
company direction, customer satisfaction and 5-year cost for software and
maintenance, Salesforce is ranked higher than its competitors in the category of
Marketing Solutions. Although Marketing Cloud is mostly used in the Financial
Services, Manufacturing/Retail and High-Tech fields, other fields such as Media,
Environment, Communications and Pharmaceutical are serviced by companies like
Adobe, IBM, Oracle Marketing Cloud and Teradata.
BUSINESS INTELLIGENCE
In terms of the Business Intelligence category, Teradata ranks the highest, mostly due to
the strength of its depth-of-functionality. Through their Unified Data architecture of their
products, they have many options for customer segmentations, targeted campaign
delivery and content
customization
. Though their products are typically used in the Financial
Services, Pharmaceutical and Retail fields, other fields like Healthcare,
Communications, Products, Insurance, Wholesale, Government and
Consumer Professional
catere
Services are d by Teradata’s competitors in Business
Intelligence, IBM, Oracle, QlikTech and SAS Institute.
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DATA QUALITY
When considering the Data Quality category for CRM products, Informatica ranks
above the other companies for its depth of functionality, customer satisfaction and
overall company
direction. Though Informatica caters to the Healthcare,
Financial
Services and Manufacturing fields, its competitors, Experian, IBM, Pitney Bowes and
SAS Institute, also provide CRM products specializing in high data quality for fields
like Government, Retail, Telecommunications, Utilities and Insurance.
CONSULTANCIES
In terms of CRM for consultancies, Appirio was ahead of its competitors due to its
expansion in the area of mobile application development in 2015. Although Appirio
caters to the fields of Retail, Technology and Education, its competitors in the field,
Capgemini, Ernst & Young, Hitachi Consulting and IBM Global Business Services,
mainly cater to the Communications, Financial Services, Government, Manufacturing
and Healthcare fields.
TRENDS
In the Gartner CRM Summit 2010 challenges like "system tries to capture data from
social networking traffic like Twitter, handles Facebook page addresses or other
online social networking sites" were discussed and solutions were provided that
would help in bringing more clientele. Many CRM vendors offer subscription-based
web tools (cloud computing) and SaaS. Some CRM systems are equipped with
mobile capabilities, making information accessible to remote sales staff.
Salesforce.com was the first company to provide enterprise applications through a
web browser, and has maintained its leadership position. Salesforce continues to be
a market leader as the CRM with the most customers and is rated-highly among their
customers.
Traditional providers have recently moved into the cloud-based market via
acquisitions of
smaller providers: Oracle purchased RightNow in October 2011 and SAP acquired
SuccessFactors in December 2011.
The era of the "social customer"refers to the use of social media (Twitter, Facebook,
LinkedIn, Google Plus, Pinterest, Instagram, Yelp, customer reviews
in Amazon, etc.) by customers. CRM philosophy and strategy has shifted to
encompass social networks and user communities.
24
Sales forces also play an important role in CRM, as maximizing sales effectiveness
and increasing sales productivity is a driving force behind the adoption of CRM.
Empowering sales managers was listed as one of the top 5 CRM trends in 2013.
In 2001, Doug Laney from Gartner developed the concept and coined the term
'Extended Relationship Management' (XRM). Laney defines XRM as extending CRM
disciplines to secondary allies such as the government, press and industry consortia.
Dennison DeGregor (2011) describes a shift from 'push CRM' toward a 'customer
transparency' (CT) model, due to the increased proliferation of channels, devices, and
social media.
In 2019, to provide better customer experience, companies will hire better talent who
don’t just know how to operate CRM tools but also use them to their benefit. That will
boost the average CRM adoption beyond the current 47 percent.
By 2020, customer experience will supersede price and quality as the key brand
differentiator. 86 percent customers are already willing to pay up to 25 percent more
for better customer experience.
That is why companies that take customer experience to the next level will get
rewarded with increased customer lifetime value and transaction size.
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CHAPTER III
THE INDUSTRY
AND
COMPANY PROFILE
26
FINANCIAL SECTOR OVERVIEW –INDIA
The financial institutions are playing a vital role for providing financial
assistance, these should be fulfilling by the financial institutions. Generally the
financial services, contains banking services, mutual funds, chits, financial
institutions and insurance etc.
WHAT IS INSURANCE?
Insurance is a CONTRACT BETWEEN TWO PARTIES where by one party
called insurer undertakes in exchange for a fixed sum called premiums, to pay the
other party called insured a fixed amount of money in the happening of a certain
event.
For example in a life policy by paying a premium to the insurer, the family of
the insured person receives a fixed compensation on the death of the insured.
Similarly, in a car insurance, in the event of the car meeting with an accident, the
insured receives the compensation to the extent of damage.
It is a system by which the losses suffered by a few are spread over many
exposed to similar risks.
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WHY TO BUY LIFE INSURANCE:
To replace your income and minimize the debt load for your heirs.
Life insurance helps protect the financial security of your family in the
event of your on timely death. This is especially important when you are the primary
wage earner. The owner of the policy pays the insurer premiums in exchange for a
promise to pay the beneficiaries a death benefit upon the death of the insured.
The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of
the IRDA’S online service for issue and renewal of licenses to agents.
Since being set up an independent statutory body the IRDA has put in a frame
work of globally compatible regulations. In the private sector 12 life insurance and 6
general insurance companies have been registered.
By passing of the IRDA bill, the insurance sector has been opened up for
private companies to carry on insurance business. Insurance contracts are based on
good faith i.e. the
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details furnished by the proposer are accepted in good faith and this will form the
basis of the contract.
PERMANENT POLICY:
Permanent insurance coverage such as whole life, universal life and variable
life have the potential to provide coverage to a specified maturity date.
TERM INSURANCE:
Coverage that lasts for a specific time period and has two components.
1. Premium and
2. Death benefit
Life insurance needs should be revaluated when major events occur in life such
as marriage, the birth of children or a business startup.
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HISTORY OF INSURANCE SECTOR:
The business of life insurance in India in its existing from started in India in the
year 1818 with the establishment of the oriental life insurance company in Calcutta.
Some of the important mile stones in the life insurance business in India are:
1912: The Indian insurance companies Act enacted as the first statute to
regulate the life insurance.
1928: The Indian insurance companies Act enacted to enable the govt. to
collect statistical information about both life and non-life insurance
business.
1938: Earlier legislation consolidated and amended to by the insurance act
with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over
by the central govt. and nationalized.
The insurance industry is totally dependent on the ability to convert raw data
in to intelligence –intelligence about customers, marketers, competitors, and
business environment. Over the years data processing technology has progressed
phenomenally and tools like data ware hosing, OLAP and data mining, which
constitute the corner stone of effective business intelligence environment, have
been widely accepted across industries. However, insurance companies have been
relatively slow in adapting these tools, primarily because of lack of competition due
to protective regulations. But now, they can no longer afford to be complacent as the
internet, deregulation, consolidation, and convergence of insurance with other
financial services are fast changing the basic structure of the industry.
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The insurance industry is quite diverse in terms of portfolio of products
provided by diff. companies. The products can be broadly classified in to two
product lines. Property and casually (P&C) and life insurance .life insurance product
line can be further sub-divided into
LIFE INSURANCE
HEALTH INSURANCE
LIC OF INDIA
MAXLIFE INSURANCE
The parliament of India passed the Life insurance Corporation Act on the
th
19 September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable persons in
the country, providing them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956.since life insurance contracts are long term contracts
and during the currency of the policy it requires a variety of services need was felt in the
later years to expand the operations and place a branch office at each district
headquarter. Re-organization of LIC took place and large numbers of new branches were
opened. As a result of re-organization servicing functions were transferred to the
branches, and branches were made accounting units. It worked wonders with the
performance of the corporation. It may see that from about 200.00 crores of New
business in 1957 the corporation crossed 1000.00 crores mark
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of new business. But with re-organization happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional
offices, 7 zonal offices and the corporate office. LIC’s wide Area Network covers 100
divisional offices and connects all the branches through a metro network .LIC has
tied up with some banks and service providers to offer on-line premium collection
facility in selected cities. LIC’s ECSand ATM premium payment facility is an addition
to customer convenience. Apart from on-line kiosks and IVRS, info centers have
been commisoned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, kolkata,
New delhi, Pune and many other cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite
offices are smaller, leaner and closer to the customer. The digitalized records of the
satellite offices will facilitate anywhere servicing and many other conventions in the
future.
LIC continues to be the dominant life insurer even in the liberalized scenario of
India insurance and is moving fast a new growth trajectory surpassing its own past
records. LIC has issued over one crore policies during the current year. It has
th
crossed the mile stone of issuing 1,01,32,955 new policies by 1 5 Oct, 2005, posting
a healthy growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestone and has set unprecedented
performance records in various aspects of life insurance business. The same
motives which inspired our forefathers to bring insurance into existence in this
country inspire us at LIC to take this message of protection to light the lamps of
security in as many homes as possible and to help the people in providing security to
their families.
Max New York life insurance company Ltd. Is a joint venture between New York Life,
a fortune 100 company and Max India limited, one of india’s leading multi-business
corporations. The company has positioned itself on the quality plat form. In line with
its vision to be the most admired life insurance company in India, it has developed a
strong corporate governance model based on the core values of excellence, honesty,
knowledge, caring, integrity and team work. The strategy is to establish itself as a
trusted life insurance specialist through a quality approach to business.
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In line with its values of financial responsibility, Max New York Life insurance has
adopted prudent financial practices to ensure safety of policy holders funds. The
company’s paid up capital is Rs.657 crore, which is more than the norm laid down by
IRDA.
Max New York life has identified individual agents as its primary channel of
distribution. The company places a lot of emphasis on its selection process, which
comprises four stages-screening, psychometric test, career seminar and final
interview. The agent advisors are trained in-house to ensure optimal control on
quality of training.
Max New York Life invests significantly in its training program and each agent is
trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA
before beginning to sell in the market place. Training is a continuous process for
agents at Max new York life insurance development of skills and knowledge through
a structured program spread over 500 hours in two years.
This focus on continuous quality training has resulted in the company having
amongst the highest agent pass rate in IRDA examinations and the agents have the
highest productivity among private life insurers.
Having set a best in class agency distribution model in place, the company is
spearheading a major thrust into additional distribution channels to further grow its
business. The company is using a five-pronged strategy to pursue alternative
channels of distribution. These include the franchisee model, rural business, direct
sales force involving group insurance and telemarketing opportunities bank
assurance and corporate alliances.
Max New York Life insurance offers a suite of flexible products. It now has 26
life insurance products and 8 riders that can be customized to over 400
combinations enabling customers to choose the policy that fits their need.
HDFC Standard Life insurance Company Ltd. Is one of india’s leading private
life insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Ltd.) india’s leading providers of financial services in the united
kingdom. Both the promoters are well known for their ethical dealings and financial
strength and are thus committed to being a
33
long-term player in the life insurance industry – all important factors to consider
when choosing your insurer.
HDFC is india’s leading housing finance institution and has helped build more
than 23,00,000 houses since its incorporation in 1977. In the financial year 2003-04
its assets under management crossed Rs.36,000 cr. As on March 31, 2004
outstanding deposits stood at Rs. 7,480 crores. The depositor base now stands at
th
around 1 million depositors. Rated ‘AAA’ by CRSIL and ICRA for the 1 0 consecutive
year.
The Standard Life group has been looking after the financial needs of
customers for over 180 years. It currently has a customer base of around 7 million
people who rely on the company for their insurance, pension, investment, banking
and health-care needs. Its investment manager currently administers 125 billion
assets. It is a leading pension provider in UK, and is rated by standard & poor’s as
‘strong’ with a rating of A+ and as ‘good’ with a rating of A1 by moody’s Standard Life
was awarded the Best pension provider’ in 2004, 2005 and 2006 at the money
marketing Awards, and it was voted a 5 star life and pensions providers at the
Financial Advisor service Awards for the last 10 years running. The ‘5’star accolade
has also been awarded to standard Life investments for the last 10 years, and to
standard Life bank since its inception in 1998 standard Life bank was awarded the
‘best flexible mortgage lender ‘at the mortgage magazine Awards In 2006.
34
COMPANY PROFILE
ICICI Prudential Life Insurance Company Limited provides life insurance, pensions,
and health insurance to individuals and groups in India. The company offers
participating, non-participating, and unit linked products. It provides insurance
products for individuals, such as savings and wealth creation, protection, child,
retirement, and health insurance plans. The company also offers group insurance
solutions for companies, including group gratuity plan, group leave encashment plan,
and group term plan. In addition, it provides accidental death riders. Further, the
company acts as a pension fund manager. ICICI Prudential Life Insurance Company
distributes its products through individual agents, corporate agents, banks, brokers,
Website, and sales force. The company was founded in 2000 and is based in
Mumbai, India. ICICI Prudential Life Insurance Company Limited is a subsidiary of
ICICI Bank Limited.
ICICI Prudential Life Insurance Company is a joint venture between the ICICI Bank,
one of India's largest and most successful private financial services company and
Prudential Plc., a leading international financial services group headquartered in the
United Kingdom. ICICI Bank holds 74% and Prudential Plc. having 26% of the stake of
the joint venture as per the government rules.
Mr. N. S. Kannan is the Managing Director & Chief Executive Officer of ICICI
Prudential Life Insurance Company Ltd.
The company is the first private life insurer in India to have received a National
Insurer Financial Strength rating of AAA from Fitch ratings. Another feather was
added in the cap when it has been voted as India's Most Trusted Private Life Insurer
for three consecutive years in a row.
ICICI Prudential Life Insurance has won the first prize for its project on digitalization
at the Qimpro Awards 2014. ICICI Prudential Life Insurance has been conferred the
‘Insurance Company of the Year Award 2011’ and ‘Company of the Year Award 2011
– Life Insurance’ at The Indian Insurance Awards 2011 instituted by the reputed
insurance journal of India ‘Insurance Review’.
On March 31, 2011, the company’s assets reached over Rs. 805.97 billion. ICICI
Prudential earned a total premium of Rs. 124.29 billion for the financial year 2014. In
FY2015, it became the first private life insurer to attain assets under management of
Rs. 1 trillion. ICICI Prudential Life is also the first insurance company in India to be
listed on NSE and BSE.
The Assets Under Management (AUM) as on 31st March 2018 were ₹1,395.3 billion.
35
DETAILED OVERVIEW
PRODUCT PORTFOLIO
ICICI LIFE INSURANCE: TERM PLANS
The term plans help in protecting your family’s future and ensure that they lead their
lives comfortably without any financial worries, even in your absence.
KEY PERSONNEL:
BOARD MEMBERS
Mr. K. V. Kamath, Chairma
Mr. Sridar Iyengar
Mr. Homi R. Khusrokhan
Mr. Lakshmi N. Mittal
Mr. Narendra Murkumbi
Dr. Anup K. Pujari.
Mr. Anupam Puri
Mr. M.S. Ramachandran
Mr. M.K. Sharma
Mr. V. Sridar
Prof. Marti G. Subrahmanyam
37
Mr. V. Prem Watsa
Ms. Chanda D. Kochhar,
Managing Director & CEO
Mr. Sandeep Bakhshi,
Deputy Managing Director
Mr. N. S. Kannan,
Executive Director & CFO
Mr. K. Ramkumar,
Executive Director
Mr. Sonjoy Chatterjee,
Executive Director
PRODUCTS
EQUITY FUNDS:
ICICI PRUDENTIAL POWER Fund
ICICI PRUDENTIAL DYNAMIC P/E Fund
ICICI PRUDENTIAL emerging S.T.A.R.Fund
ICICI PRUDENTIAL TAX PLAN
ICICI PRUDENTIAL GROWTH Fund
ICICI PRUDENTIAL Multiplier FUND
ICICI PRUDENTIAL Sector Funds Umbrella
39
MSFU - Emerging Businesses Fund
MSFU - IT Fund
MSFU - Pharma Fund
MSFU - Contra Fund
MSFU - FMCG Fund
ICICI Arbitrage Opportunities Fund
DEBT SCHEMES
BALANCED SCHEMES
INVESTMENT OBJECTIVE
Asset allocation is the key to investing success. It helps you reduce the
volatility of returns. A Balanced Fund takes care of this asset allocation by investing
in equity for capital appreciation and debt for stable returns. It focuses on reducing
volatility of returns by increasing / decreasing equity exposure based on the market
outlook and using a core debt portfolio to do the rebalancing
ASSET ALLOCATION
Debt Equity
41
PERFORMANCE OF FUND
See performance for the fund in the graph below:
INVESTOR PROFILE;
This fund is ideal for:
Investors seeking exposure to equity and debt markets in a single product,
and are willing to accept the average returns from both markets as a trade-off for the
benefit of lower risk from diversification
KEY FEATURES
Key Features ICICI Prudential Balanced Fund
42
(a) 1% of applicable NAV if the amount sought to be
redeemed or switched out is invested upto 1 year
from the
date of allotment.(b) Nil if the amount sought to
be
redeemed or switched out is invested for more than
1 year
from the date of allotment. SIP/STP Option :(a) 1%
of
Exit Load
applicable NAV if the amount sought to be
redeemed or
switched out,is invested a period of upto 2 year from
the
date of allotment.(b) Nil if the amount sought to
be
redeemed or switched out is invested for a period of
more
than 2 years from the date of allotment.
Generally Within 3 business day for Specified
Redemptio
RBI
n Cheques
locations and additional 3 Business Days for Non-
RBI
Issued
locations
Minimum
Redemption
Rs. 500/-
Amt.
Monthly: Minimum Rs. 1000 + 5 post-dated cheques
Systematic
for
Investment
a miminum of Rs. 1000 each. Quarterly:
Minimum
Plan
Rs.5000 + 4 post-dated cheques of Rs. 5000 each.
Systematic
Minimum of Rs.500/- and Multiples thereof
Withdrawal Plan
Recurring Expenses
Investment Mangmt.
1.25%
Exp.
Other Recurring
1.25%
Expenses
Total 2.50%
(DEBT FUND)
INVESTMENT OBJECTIVE
Your need to keep some money in fixed return instruments stems from a
need to earn regular income, or from an aversion to risk. ICICI Prudential Income
Plan is for those investors who seek to deploy part of their funds in fixed income
products as a conscious investment option. The fund enables you to earn a total
return–made up of both interest income and changes in the value of capital, a facility
that comes only with debt funds that do not restrict themselves to generating merely
interest income. As market interest rates change, the value of your portfolio also
changes, creating a total return portfolio in debt securities.
43
Asset Allocation
% of Portfolio of
Instrument Risk Profile
Plan A & B
Corporate debentures &
Bonds/PSU/FI/Govt. Guaranteed
Bonds / Upto 90% High
Other including Securitised Debt
Securitized Not more than
Debt Low
10% of in debt
Government Securities Upto 90% High
Cash & Call Money Upto 25% Medium
Money Market Instruments Upto 25% Mediom
Units of other mutual funds Upto 5% Low
SCHEME HIGHLIGHTS
1. Open ended Debt Scheme 2. Following Plans are available to the investors :(A) Growth
Plan
(B) Dividend Plan (C) Bonus Plan (D) Floating Rate Plan Options available under
Floating Rate Plan Short Term (Growth, Dividend & Weekly Dividend)Long Term
(Regular (Dividend & Growth) Long Term (Institutional (Dividend & Growth)
2. The Plans will invest their entire corpus in high quality debt (Corporate debentures,
PSU/FI/Govt guaranteed bonds), Govt securities and money market instruments
(commercial paper, certificates of deposit, T-bills, bills rediscounting, repos, short-
term bank deposits, etc). There shall be no investment in equity.
3. The Growth Plan / Option will give returns through capital gains only. No dividends
shall be declared under this Plan. The Dividend Plan will endeavour to declare regular
dividends every half year, depending on the NAV at that point of time. The Dividend
Option in Floating Rate Short Term Plan will endeavour to declare dividends on a
monthly basis while the dividend option under the Floating Rate Plan Long Term
(Regular and Institutional) Plan will declare dividends on a quarterly basis.
44
4 Switchover between the Plans at NAV. :Also, switchover facility at the NAV related
prices to other openend schemes of ICICI Mutual Fund is available. This facility of
switchover to other schemes is not available to NRIs and FIIs
INVESTMENT OBJECTIVE
To provide investors long term capital appreciation along with the liquidity of
an open-ended scheme by investing in a mix of debt and equity. The scheme will
invest in a diversified portfolio of equities of high growth companies and balance the
risk through investing the rest in a relatively safe portfolio of debt.
ASSET ALLOCATION
% of Portfolio of
Instrument Risk Profile
Plan A & B
t
At least Medium o
Equities 50%
High
Debt Instruments like debentures,
Up to 40%
bonds,khokhas, etc.
45
APPLICATIONS OF OBJECTIVES
CRM links back-office and front-office functions with all of a company’s touch
points (for example call centers, the corporate website) with the customer. CRM can
refer either business strategy or tools. It defines the front-end tool designed to facilitate
the capture, consolidation, analysis, and enterprise wide dissemination of data from
existing and potential customers. this process occurs through out the marketing, sales
and services stages of the business.
In ICICI PRUDENTIAL LIFE INSURANCE, CRM covers all customer touch points, like
face-to-face. Internet(the corporate website), or phone(call centers). It supports
employee, and customer facing roles and allws all individuals wheather employee,
business partners or customers, to collaborate .
The company focuses their attention on how to achieve and then sustain
superior organizational performance. The ICICI PRUDENTIAL LIFE INSURANCE LIFE
INSURANCE wants to know the excellent companion for what the customers wants
you to know. Because it helps those in sales and who supervise them, it can be done
through the heart of new approach to selling is an intense focus on the prosperity of
your customer is through value creation selling (VCS).
The ICICI PRUDENTIAL LIFE INSURANCE LIFE INSURANCE notes that VCS is
sweepingly different from how most companies sell today in these five ways.
FIRST:
ICICI PRUDENTIAL LIFE INSURANCE as a seller and your organization devote large
amount of time and energy - much more than you do today - to learning about your
customers' businesses in great detail.
47
SECOND:
ICICI PRUDENTIAL LIFE INSURANCE use capabilities and tools that you've never
used before to understand how your customers do business and how you can help
them improve that business...
THIRD:
ICICI PRUDENTIAL LIFE INSURANCE going to make it your business to know not
only your customers but also your customers' customers..
FOURTH
ICICI PRUDENTIAL LIFE INSURANCE have to recognize that the execution of this
new approach will require much longer cycle times to produce an order and generate
revenue.
FINALLY:
Top management in your company will have to reengineer its recognition and reward
system to make sure that the organization as a
whole is fostering the behaviors that will make the new sales approach effective."
back...Above all, value creation selling will spur your ICICI PRUDENTIAL LIFE
INSURANCE to come up with new ideas and innovations that will continually
differentiate it in the
With the click of a mouse, a customer who has invested time and effort researching
your products and services online, and who may have purchased policy plans store
in the past, will disappear forever because of a single, bad online experience.
Often the issue that caused the customer to abandon his or her transaction could
have been resolved easily with help from a live agent. As such, ICICI PRUDENTIAL
LIFE INSURANCE realize can no longer think of their individual channels as self-
sustained entities, but as integral parts of an entire brand operation.
Interactive help options like "click to call" and "click to chat" deliver cross-channel
personalization capabilities that allow companies to target and engage customers
proactively based on their perceived needs. These technologies can have a profound
effect on online sales, provided that the companies implementing them follow
certain guidelines. These guidelines include:
49
Can you imagine retail stores where nine out of 10 customers left without buying
and no one ever asked them what they were looking for? Well that's the state of
affairs in the online customer service world. Engaging customers proactively is the
equivalent of a sales representative walking up to a customer in a retail store and
kindly saying, "May I help you with something?"
"In the future, retailers will need to develop a more balanced view of interactions
across channels, optimizing for a combination of cost and satisfaction. Valuable
customers, for instance, may require different service options than other customers,"
according to a December 2006 study by Forrester Research.
In those instances where customer contact is desired or required, click to call and
click to chat not only offer quality service and increase contact center efficiency, but
also help metamorphose the contact center into a sales center by targeting
individual customers based on their perceived needs and potential value. This can be
done by evaluating individual customers according to profile or segment information.
For example, companies that segment their customer base into gold, silver and
bronze categories can set a rule that presents click to call to gold (high-value)
customers throughout their session, but only to silver and bronze customers once
their shopping carts reach a certain threshold.
50
Gold customers get the piece of mind of always having the phone option should they
have a questions, while lower-value customers are channeled to less costly service
options like FAQs, e-mail or chat (unless they meet the shopping cart
Market targeting starts by combining your proprietary customer data with our
segmentation systems and the most comprehensive databases available. The result
is sound, actionable, intelligent information targeted for your specific industry.
ICICI PRUDENTIAL LIFE INSURANCE' targeted marketing solutions provide the tools
you need to effectively reach and retain your best customers, while improving
customer loyalty and customer profitability. When conducting business-to-consumer
marketing, you'll discover your customers' lifestyles, habits, preferences and needs,
including:
Specific product
usage Channel
preferences
Technology adoption
Media usage
Lifestyle and other consumer
behaviors Life cycle data
52
Lifestyle segmentation is a key component of the customer analysis phase
and helps to identify life stages, income ranges, education levels and media
preferences. Learn which products fit your customers' lifestyles for more
precise planning of cross-sell and up-sell promotions.
2. Strategy
Once your key customer segments have been identified, develop targeting
strategies that address customer needs and take full advantage of your new
opportunities today and into the future. This strategic phase focuses on the three
core areas essential for true customer acquisition and retention success:
customers, markets and delivery channels.
By combining your proprietary customer data with our segmentation systems and
the most comprehensive databases available, you get customer acquisition and
customer retention solutions targeted for your specific industry. The following
customer acquisition and customer retention solutions and platforms are available:
53
Data – reveal product usage through primary research and
survey data Segmentation – uncover specific lifestyle
information
Software – map customers and perform in-depth
analyses Internet – download additional data for
analysis
Consulting – gain customized solutions through our analytical services
division, Integras
MARKET SEGMENTATION
ICICI PRUDENTIAL LIFE INSURANCE' market targeting segmentation research tools
excel at uncovering hidden patterns of consumer behavior for you to capitalize on.
ICICI PRUDENTIAL LIFE INSURANCE help you improve the targeting of your specific
market segment and audience by understanding the demographic characteristics,
lifestyle behaviors and purchase preferences that drive their buying decisions. ICICI
PRUDENTIAL LIFE INSURANCE has led the industry in analytical marketing
segmentation research solutions that generate proven business-to-consumer
marketing results for our clients.
54
provide a powerful targeting tool to accurately segment consumers by lifestyle,
media and product preferences. National and local market profiles are available.
™
Convergence Audit Survey – The Convergence Audit provides market
intelligence regarding communication, energy and technology use through
actual consumer attitudinal and behavioral information.
™
Insurance Audit Survey – The Insurance Audit provides detailed information
about consumer behavior of insurance and investment products.
®
Market Audit Survey – Market Audit is the largest syndicated database of
consumer financial behavior – compiled annually from interviews with over
100,000 households, Market Audit covers household use of dozens of
financial products, accounts and account balances, where accounts are held
and more.
Until now, multiple resources were required to complete robust marketing analysis.
This versatile tool provides answers to all your needs:
™
BUSINESS POINT
B2B MARKETING, ONLINE IN REAL TIME
ICICI PRUDENTIAL LIFE INSURANCE Business point a robust, web-based portal,
gives you the ability to discover, plan, evaluate and execute your business-to-
business efforts. Use Business Point to gain a better understanding of your B2B
customers and get the complete 56
picture of the "B2B" landscape in your market. In short, after using ICICI
PRUDENTIAL LIFE INSURANCE Business Point, you will achieve more successful
business-to-business market targeting campaigns!
ICICI PRUDENTIAL LIFE INSURANCE is a cost-effective targeting tool that will
answer your toughest marketing questions. The comprehensive information about
each business helps you define and target your direct mail, telemarketing, and direct
sales efforts. The site offers the flexibility to refine your analysis by using filters to
receive exactly the information you're looking for.
®
PRIZM NE
THE NEW EVOLUTION IN SEGMENTATION
For the fourth time in as many decades, ICICI PRUDENTIAL LIFE INSURANCE has
recrafted its targeted marketing segmentation technology to correspond with the largest
data collection effort ever undertaken by any entity – the 2000 U.S. Census. The PRIZM
NE system captures the essence of the previous PRIZM system, as well as the best-in-
class methodology of MicroVision. What's different – and most powerful – about the
current development process for PRIZM NE is that it links household and neighborhood-
level segment assignments.
Updating segmentation systems to evolve with the times is nothing new for ICICI
PRUDENTIAL LIFE INSURANCE The Census transition from 1980 to 1990 found us
updating both PRIZM and Vision, one of ICICI PRUDENTIAL LIFE INSURANCE former
segmentation systems. These updates resulted in the creation of the 62-cluster version
of PRIZM and the 95-atom MicroVision system at the ZIP+4 level. This updating process
has kept ICICI PRUDENTIAL LIFE INSURANCE at the forefront of segmentation
development.
58
CHAPTER IV
59
1. Please tick the factor that drives you for the purchase of the insurance.
CATEGORY RESPONDENTS
Safety 35
Benefits 23
Comfort 22
Brand 20
RESPONDENTS
40
35
35
30
25 23 22
20
20 RESPONDENTS
15
10
0
Safety Benefits Comfort Brand
INTERPRETATION:
Out of 100 people who participated in survey it is found 35 are giving more
importance to safety, and 23 are giving for benefits, and 22 are giving for comfort,
and 20 are giving for the brand. The majority of the customers are giving more
importance to safety.
60
2. Do you plan to have a life insurance policy in near future?
CATEGORY RESPONDENTS
Within 6 months 38
Within 1 year 21
After 1 year 28
Above 1 year 13
RESPONDENTS
40 38
35
30 28
25
21
20 RESPONDENTS
15 13
10
0
With in 6 months With in 1 year After 1 year Above 1 year
INTERPRETATION:
Out of 100 people who participated in survey it is found 38 customers are willing to
take the policy within 6 months, 21 are willing within 1 year, and 28 are willing to take
after 1 one year and 13 are willing to take above 1 year. So the majority of the
customers are within 6 months.
61
3. Which of life insurance policy do you prefer for your family?
CATEGORY RESPONDENTS
Traditional Plans 19
Money back Plans 34
Unit linked Plans 27
Market investment Plans 20
RESPONDENTS
40
35 34
30
27
25
20
19 20 RESPONDENT S
15
10
0
Traditional Plans Money back Unit linked Plans Market
Plans investment Plans
INTERPRETATION:
Out of 100 people who participated in survey it is found 19 are showing interest for
traditional plans, and 34 are interest for money back policy and 27 are interest for
unit linked plans, 20 are interest for market investment plans. So majority of
customers will go for the money back policy.
62
4. Which mode of payment do you find more suited to your convenience.
CATEGORY RESPONDENTS
Quarterly 29
Half yearly 28
Yearly 24
Any other 19
RESPONDENTS
35
29
30 28
24
25
20 19
RESPONDENTS
15
10
0
Quarterly Half yearly Yearly Any other
INTERPRETATION:
Out of 100 people who participated in survey it is found 29 are willing to pay the
amount in quarterly and 28 are willing to their amount in half yearly and 24 are willing
to pay their amount in yearly, and 19 are willing to pay their amount in other modes.
So majority of the customer are willing to pay amount in quarterly.
63
5. Are you satisfied with the services and benefits of the insurance company in
which you have policy?
CATEGORY RESPONDENTS
Yes 74
No 26
INTERPRETATION:
Out of 100 respondents who have the ING policy 74 are satisfied with the company
service.
Out of 100 respondents who having the policy in ING 26 are not satisfied with their
services.
64
6. Do you suggest the insurance company in which you have policy to your friends?
CATEGORY RESPONDENTS
Yes 71
No 29
INTERPRETATION:
Out of 100 respondents who have the ING policy 74 are willing to suggest their
friends.
Out of 100 respondents who have the policy in ING 29 are not willing to suggest their
friends.
65
6. Media in your view is the best seated for the insurance industry.
Percentag
Opinion No. of. Respondents e
TV 20 20
Print 40 40
Internet 10 10
Cellular 30 30
None 0 0
Total 100 100
INTERPRETATION:
Out of 100 people who participated in survey it is found 33 are known about the ICICI
PRUDENTIAL LIFE INSURANCE POLICIES by newspapers.26 are known by T.V. and
20 are known by hoardings and 10 are known by events.
66
7. Receive timely updates on your registered mobile numbers.
Percentag
Opinion No. of. Respondents e
Strongly Agree 40 40
Agree 32 32
Averag
e 15 15
Disagree 8 8
Strongly disagree 5 5
Total 100 100
INTERPRETATION:
The majority i.e. the 40 and 32 of the respondents strongly agree and agree that they
receive timely updates on their registered mobile number and 15 respondents are
neutral towards it and the rest disagree with it. The awareness campaign is working
well to a great extent.
67
8. Customer care provides you with sufficient and required information
regarding your insurance.
INTERPRETATION:
46 of the respondents are neutral towards this question whereas 22 strongly agree
towards it and 12 admits yes they do and the remaining 3 and 14 are of the opinion
no and never respectively. Therefore the customer care should be trained properly to
enhance its quality and performance.
68
9. Change your insurance provider in near future.
yes 2 2
Strongly yes 48 48
sometimes 50 50
no 0 0
never 0 0
Total 100 100
50
40
30
20
10
0
yes Strongly yes sometimes no never
INTERPRETATION:
Half of the respondents i.e. 50 are neutral towards changing their insurance provider
whereas 2 and 48 agree and strongly agree to continue with it. The company should
try to gain the confidence of the customers.
69
10. Provider approaches you and intimidate about the offers and plans which are of
great benefit.
Percentag
Opinion No. of. Respondents e
Strongly yes 60 60
yes 30 3
sometimes 10 10
No 0 0
never 0 0
Total 100 100
60
50
40
30
20
10
0
Strongly yes yes sometimes No never
INTERPRETATION:
A very large number i.e. 60 out of 100 are of the opinion strongly yes to the above
question and 30 responded as yes and remaining 10 are neutral towards it. It can be
assumed that the providers have a good marketing strategy that a very large number
of respondents are satisfied with it.
70
11. Like to try different types of insurance provided by the provider.
Percentag
Opinion No. of. Respondents e
Strongly yes 29 29
yes 34 34
sometimes 10 10
no 27 27
never 0 0
Total 100 100
35
30
25
20
15
10
0
Strongly yes yes sometimes no never
INTERPRETATION:
29 and 34 responded as strongly yes and yes respectively towards trying different
types of insurance provided by the provider and 10 are neutral towards it. Remaining
27 responded as a no. thus the respondents are mixed towards this question.
71
12. On the scale of 5 below how will you rate your insurance policy?
Percentag
Opinion No. of. Respondents e
Highly satisfied 55 55
satisfie
d 25 25
neutral 10 10
dissatisfied 8 8
Highly dissatisfied 2 2
Total 100 100
50
40
30
20
10
0
Highly satisfied satisfied neutral dissatisfied Highly dissatisfied
INTERPRETATION:
55 are highly satisfied with the service provided to them, 25 are satisfied, 10 are neutral
towards it and the remaining 8 and 2 falls in dissatisfied and highly dissatisfied
categories. Therefore it can be assumed that the insurance policy is one of a kind which
is worth purchasing.
72
13. On the scale of 5 below how will you rate your insurance provider?
50
40
30
20
10
0
Highly satisfied satisfied neutral dissatisfied Highly dissatisfied
No. of Respondents
INTERPRETATION:
Majority that is 51 are neutral towards the provider, 34 are satisfied and 7 are highly
satisfied and there are 8 respondents who are dissatisfied. The insurance company
should take appropriate steps to increase the number of its satisfied customers.
73
14. Interested in purchasing another policy besides this.
Percentag
Opinion No. of. Respondents e
yes 40 40
Strongly yes 30 30
sometimes 20 20
no 5 5
never 5 5
Total 100 100
40
35
30
25
20
15
10
0
yes Strongly yes sometimes no never
INTERPRETATION:
To this question a large number of respondents i.e. 40 replied that they are
interested and 30 of them are strongly interested whereas 20 are neutral towards
this and the remaining 10 are the nature of no and never.
74
CHAPTER V
FINDINGS AND
RECOMMENDATIONS
75
FINDINGS
From the project study and interpretations of the findings are as follows:
Our country India has a population 120 crore and that are only 8 crore people
have life insurance policy. Out of 100 samples 65% people have insurance policy
in LIC and remaining 35% people have insurance policy In other insurance
companies.
Most people have trust in LIC than any other insurance company and still LIC
holds huge market share in life insurance sector in India.
The reason behind this is LIC is a public sector company and has its roots from
50 years in India.
82% people are taking insurance policy only if it is within their budget and have
flexible payment options and remaining are taking policy if it is not within budget,
but due to benefits, they are taking policy and due to the reputation of the
company.
Among various factors, 55% of people are looking for benefits policy and
remaining 20% people are looking for brand name of insurance company.
76
RECOMMENDATIONS
There is a huge potential market for life insurance companies in India as output
of 120 crore population. Only 8 crore are insured. The insurance companies
should educate people about insurance its importance, different policies and
benefits of policies.
The people opt for policy by taking into consideration price of premium of policy
and benefits of policy and least importance is given to brand name. the life
insurance companies should look over flexible payment options from the point of
untapped potential market in India.
The price of premium of a policy must be within the budget of common man and
life insurance companies should provide flexible payment options. By doing so,
the private insurance companies can surely capture the untapped market along
with creating brand name.
77
CONCLUSIONS
From this study it can be concluded that the customer relationship management
in Company is satisfactory. The company is using various CRM practices like
customization of the product, maintaining interaction with the customers
regularly and providing good quality product etc.
In order to attract customers, a company must be able to identify the needs which a
customer is seeking to have satisfied and must be able to communicate to these
customers the ways in which the company can help them satisfy these needs.
Advertising and product development are quite expensive and so it is beneficial,
financially, for a company to know before-hand which products will likely to be
successful and which advertising strategies will be most effective. Some companies
may rely on intuition and some may rely on trial-and-error. CRM systems allow for the
objective study of the interaction between company and customer. These systems
allow for the collection of important data, the storage of this data, and the means of
analyzing the data in a way which will be useful to the company. Companies should
realize, however, that IT systems are not magical and that they may introduce
problems of their own. A company should be prepared for problems during the
testing and implementation phase using any new software. Specifically, the company
should not rely too much on the new software until it has been properly tested. Data
loss can pose a serious threat to the functioning of any company and thus old
systems should not be taken off-line until the new ones are functioning properly. It is
also very important for a company to correctly analyze its situation before hand so
that it can choose the best software package for its needs. The implementation of
software is expensive and time-consuming. Switching systems is not like switching
clothes. The costs involved include time and money and both of these are things
which a company does not want to waste.
79
BIBLIOGRAPHY
References
1. https://www.iciciprulife.com/
2. https://www.ingvysyalife.com
3. https://www.mouthshut.com
4. https://www.research.com
5. https://www.solidit.com
6. https://www.crm.com
7. https://www.claritas.com
8. https://en.wikipedia.org/wiki/ICICI_Prudential_Life_Insurance
9. https://www.iciciprulife.com/about-us/company-overview.html
80
QUESTIONNAIRE
81
QUESTIONNAIRE
1. Name :
2. Age :
3. Department :
4. Designation :
5. Experience :
6. Qualification :
(1) Please tick the factor that drives you for the purchase of the
insurance. Safety
Comfort
Benefit
Brand
Uncertaint
y
(3) Which of the life insurance policy do you prefer for your family?
Traditional Plans
Money Back Plans
Unit linked plans
Market Invest
Plans None of the
above
(6) Do you suggest the insurance the ICICI PRUDENTIAL LIFE INSURANCE to
your friends?
Strongly Agree
Agree Neutral
Disagree
Strongly
Disagree
(7) Which of the following media in your view is the best seated for the
insurance industry?
Television
Print
Media
Internet
Cellular
None
(10) Would you like to change your insurance provider in near future?
Strongly yes
Yes
Sometimes
No
Never
(11) Does the provider approach you and intimidate about the offers and plans
which are of great benefit?
Strongly yes
Yes
Sometimes
No
Never
(12) Will you like to try different types of insurance provided by the provider?
Strongly yes
Yes
Sometimes
No
Never
(13) On the scale of 5 below how will you rate your insurance policy?
Highly satisfied
Satisfied
Neutral
Dissatisfied
84
Highly dissatisfied
(14) On the scale of 5 below how will you rate your insurance provider?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
(15) On the scale of 5 below how will you rate grievance handling?
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
(17)Any expectations that are not fulfilled by the ICICI PRUDENTIAL LIFE
INSURANCE company and suggestions:
85