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PROJECT REPORT ON ICICI PRUDENTIAL LIFE INSURANCE

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF BACHELORS IN BUSINESS ADMINISTRATION (Session: 2010 - 2013) UNDERTHEGUIDANCE OF: MR.NITIN WALIA ASSISTANT PROFESSOR (MAIMS) ENO: 04914701810 SUBMITTED BY: SADHIKA BBA (B&I) 3rd SEM

MAHARAJA AGRASEN INSTITUTE OF MANAGEMEN STUDIES Affiliated to Guru Gobind Singh Indraprastha University PSP Area, Plot No. 1, Sector 22, Rohini 110086 Students Declaration

This is to certify that I have completed this Project titled ICICI PRUDENTIAL L IFE INSURANCE under the guidance of MR. NITIN WALIA in partial fulfilment of the requirement for the award of degree of Bachelor of Business Administration (Ban king and insurance) at Maharaja Agrasen Institute of Management Studies, Affilia ted to Guru Gobind Singh Indraprastha University PSP Area, Plot No. 1, Sector 22 , Rohini Delhi-110086. This is an original piece of work and I have not submitte d it earlier elsewhere.

Date: Signature: Place: Delhi

Name: Sadhika E. No: 04914701810

CERTIFICATE FROM INSTITUTE GUIDE This is to certify that summer project titled ICICI PRUDENTIAL LIFE INSURANCE is an academic work done by SADHIKA submitted in the partial fulfilment of the req uirement for the award of the degree of Bachelor of Business Administration at M aharaja Agrasen Institute of Management Studies, Delhi, under my guidance and di rection. To the best of my knowledge and belief the data and information presented by him in the Project has not been submitted earlier.

Signature: Name of Faculty: MR.NITIN WALIA

ACKNOWLEDGEMENT I owe my sincere thanks and gratitude to Mr.NITIN WALIA ( Project guide) who inspired me by her able guidance and was a constant guiding light during th e course of project study. The support and knowledge provided by her has been a great value addition for me and will go a long way in building a promising caree r. First of all I would like to thank Mr. N.K. Kakkar (Hon. Director General, MAIMS ) who gave me this golden opportunity to learn something new about project writi ng. I would also like to thank Miss PRIYANKA GARG & Dr. USHA NAIR {course c oordinator, BBA (B&I) 3rd (1s)} who cooperated with me and gave me valuable sugg estions during the entire project. Last but not the least I would like to thank my friends and family membe rs who supported me and gave me valuable suggestions in this project.

SADHIKA BBA (B&I) 1s 3RD SEM Enrolment No.:- 049147 01810

EXECUTIVE SUMMARY ICICI Prudential Life Insurance is one of the largest Insurance networks in the country, and 2nd Life Insurance Company in India. The ICICI Group has been in ex istence since 1955 when ICICI Ltd., was created. ICICI Prudential started in 200 2 as subsidiary of ICICI Ltd., Today ICICI Life Insurance has a customer base of 4 million with total assets exceeding Rs.1, 00,000 Cr. making it the 2nd larges t life insurance company in the country, next only to LIC. The Insurance sector, after the opening up, provides greater opportunities. Seve ral global players have emerged and the market has changed significantly. In the changed scenario, the expectation is that the low Insurance premium as a percen tage of GDP prevailing in India will improve and will offer better opportunities to the insurance players. Life Insurance sector is one of the key areas where enormous business potential exists. In India currently the life insurance premium as a percentage of GDP is 1.3 percent against 5.2 per cent in the US, but in the liberalized scenario, the life insurance premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99 to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009 -10. Corporate non-life premium was projected to grow from Rs 84 billion in 1998 -99 to Rs 386 billion in 2009-10 and personal line non-life from Rs 4 billion to Rs 51 billion. In the life Insurance segment the Life Insurance Corporation of India (LIC) is t he major player. The LIC has 2050 branches. It is constituted in to seven Zones. Cu rrently there are 5, 60,000 LIC agents in India. General Insurance is another se gment, which has been growing at a faster pace.

TABLE OF CONTENTS TOPIC PAGE NO. EXECUTIVE SUMMARY 6 INTRODUCTION 7-12 1.1 Insurance sector in India 7 1.2 Life Insurance 7-8 1.3 Need of Life Insurance 9-11 1.4 Objectives of Study 11 1.5 Significance of Study 11 1.6 Research Methodology 12 ORGANIZATION & MANAGEMENT PROFILE 13-20 2.1 Organization profile 13-14 2.2 ICICI Prudential Edge 14-15 2.3 Vision & Values 15-16 2.4 Social Responsibilities of ICICI Prudential

CHAPTER-1

CHAPTER-2

16

2.5 Management Profile 17 Board of Directors 17 Management Team 17 2.6 Promoters 18 2.7 Prudential PLC 18 2.8 7-Ss in ICICI Prudential 18-20 2.9 Financial Performance 20 CHAPTER-3 FUNCTIONAL AREAS OF COMPANY 21-28 3.1 Products 21-25 3.2 Riders Policy of Insurance 25-26 3.3 Functions of the Company 26-28 CHAPTER-4 KEY COMPETITORS & FUTURE PLANS 29-31 4.1 Competition information of ICICI Prudential 29-30 4.2 Future plans of ICICI Prudential 31 CHAPTER-5 ACHIEVEMENTS & PROBLEMS 32-36 CHAPTER-6 SWOT ANALYSIS 40 CHAPTER-7 RECOMMENDATIONS & CONCLUSION 41-43 8.1 Findings 41 8.2 Recommendations to company 41-43 8.3 Conclusion 43 BIBLIOGRAPHY 44

CHAPTER-1 INTRODUCTION 1.1 Insurance in India: The insurance sector in India has come a full circle from being an open competit ive market to nationalization and back to a liberalized market again. Tracing th e developments in the Indian insurance sector reveals the 360 degree turn witnes sed over a period of almost two centuries. . 1.2 Life Insurance: Life insurance can be defined as life insurance provides a sum of money if the pe rson who is insured dies while the policy is in effect. Benefits of Life Insurance Life insurance encourages saving and forces thrift. It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured. It can be enchased and facilitates quick borrowing. It provides valuable tax relief. Thus insurance is found to be very useful in the lives of the person both in sho rt term and long term. Historical perspective about life insurance in India The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance in India are;

Year Milestones in the life insurance business in India 1912 The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 The Indian Insurance Companies Act enacted to enable the government to c ollect statistical information about both life and non life insurance businesses . 1938 Earlier legislation consolidated and amended to by the insurance act wit h the objective of protecting the interests of insuring public. 1956 245 Indian and foreign insurers and provident societies taken over by th e central government and nationalized. LIC formed by an Act of parliament ,viz. LIC Act,1956,with the capital contribution of 5 crore from the Government of In dia. 1.3 Need for Life Insurance:

Life insurance is a unique investment that helps you to meet your dual needs saving for life important goals, and protecting your assets. Some benefits of life insurance are as follows: Asset Protection From an investor s point of view, an investment can play two roles - asset appre ciation or asset protection. While most financial instruments have the underlyin g benefit of asset appreciation, life insurance is unique in that it gives the c ustomer the reassurance of asset protection, along with a strong element of asse t appreciation.The core benefit of life insurance is that the financial interest s of ones family remain protected from circumstances such as loss of income due t o critical illness or death of the policyholder. Simultaneously, insurance produ cts also have a strong inbuilt wealth creation proposition. The customer therefo re benefits on two counts and life insurance occupies a unique space in the land scape of investment options available to a customer. Retirement Life insurance makes sure that have regular income after retire and also helps t o maintain standard of living. It can ensure that your post-retirement years wil l be spend in peace and comfort. The message is simple- no matter whether you ar e 30 or 50; you should start planning early to have a healthy retirement kitty. Eg: Tax Benefits Life insurance is one of the best tax saving options today. Tax can be saved twi ce on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned. Goal based savings Each of us has some goals in life for which we need to save. Clearly, as your li

fe stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Life insurance is the only investment option that offers specific products tailormad e for different life stages. It thus ensures that the benefits offered to the cu stomer reflect the needs of the customer at that particular life stage, and henc e ensures that the financial goals of that life stage are met. The table below gives a general guide to the plans that are appropriate for diff erent life stages: Life Stage Primary Need Young & Single Life Insurance Product Asset creation Wealth creation plans

Young & Just married Asset creation & protection Wealth creation and mort gage protection plans Married with kids Children s education, Asset creation and protection Education insurance, mortgage protection & wealth creation plans Middle aged with grown up kids Planning for retirement & asset protection Retirement solutions & mortgage protection Across all life-stages Health plans Health Insurance

1.4 OBJECTIVES OF STUDY To access the organizational performance To study the functions of various departments in the company To know the products of ICICI Prudential life insurance

1.5 SIGNIFICANCE OF STUDY: A study of ICICI Prudential Life Insurance is very useful as the financial marke t become more sophisticated and complex, investor needs a financial intermediary who provides the required knowledge and professional expertise on successful Investing and life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. This study will help me in understanding the different functions & relative aspects with respect to its com petitors. Also I get to know the status of products & services rendered by ICICI Prudential Life Insurance 1.6 RESEARCH METHODOLOGY MEANING: Research in common parlance refers to a search for Knowledge. It is a scientific and systematic search on a topic. Type of Data :o Only Secondary has been used to conduct the project report. Data Source :Secondary data has been taken from various sources o Websites, o Books o Brochures

CHAPTER-2 ORGANIZATION & MANAGEMENT PROFILE 2.1 ORGANISATION PROFILE : ICICI PRUDENTIAL LIFE INSURANCE ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financ ial services group headquartered in the United Kingdom. ICICI Prudential was amo ngst the first private sector insurance companies to begin operations in Decembe r 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). From its early days, ICICI Prudential seemed to have the wherewithal for a large -scale business. By March 31, 2002, a little over a year since its launch, the c ompany had issued 100,000 policies translating into premium income of approximat ely Rs. 1,200 million on a sum assured of over Rs.23 billion. ICICI Prudential s equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7 bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the co untry, with a wide range of flexible products that meet the needs of the Indian custome r at every step in life. ICICI Prudential is the first insurer in India to receive a national insurer Fi nancial Strength rating of AAA (Ind) from Fitch rating. For three years in a row , ICICI Prudential has been voted as Indias most trusted private Life Insurer, by the Economic times-AC Nielsen ORG Marg survey of Most Trusted Brand. The joint strengths A powerful joint venture partnership with each carrying a set of strengths complementing each others Brand strength Infrastructure Customer base Market Innovators Local knowledge Reputation Insurance Expertise Product Distribution Operations ICICI PRUDENTIAL

2.2 ICICI PRUDENTIAL EDGE The ICICI Prudential edge comes from our commitment to our customer, in all that we do it product development, distribution, the sales process or servicing. The products have been developed after a clear omers need. It is this research that helps us develop the ideal way to truly guarantee the childs education are a hedge against inflation and yet promise a fixed or Health Insurance that arms you with the fund you might need to recover from dreaded disease. and through understanding of cust Education plans that offer , Retirement solutions that income after you retire,

Having the right product is the first step, but its equally important to ensure t hat ,the customer can access them easily & quickly. To this end, ICICI Prudential has an advisor base across the length & breadth of country, and also partners with leading banks, corporate agents & brokers to distribute the products. Robust risk management and undertaking practices from the core business. With cl ear guidelines in place, we ensure equitable costing of risks , and thereby ensu re a smooth and hassle-free claim process. Entrusted with helping our customer meet their long term goals ,they adopt an i nvestment philosophy that aims to achieve risk adjusted returns over the long te rm. Last but definitely not the least ,our 32000 plus strong team is given the oppor tunity to learn and grow , everyday in the multitude of ways.We believe this kee ps engaged and enthusiastic, so that they can deliver on our promise to cover yo u, at every step in life. 2.3 VISION AND VALUES Our Vision: To be dominant life ,health and pension player build on trust by world class peop le and service This we hope to achieve by: Understanding the needs of customers and offering them superior products and ser vice Leveraging technology to service customers quickly, efficiently and Conveniently Developing and implementing superior risk management and investment strategi es 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. The success of the company will be founded in its unflinching commitment to 5 co re values-Integrity, Customer First , Boundary less , Ownership and passion. Each of the values describes what the company stands for, the qualities of our p eople and the way we work. Our Values: Every member of ICICI Prudential team is committed to 5 core values: Integrity Customer First Boundary less

Ownership Passion. These values shine forth in all we do , and have become the keystones of our suc cess. 2.4 SOCIAL RESPONSIBILITIES OF ICICI PRUDENTIAL Spread Life Insurance much widely to Rural areas with extra benefits. Support the socially and economically backward classes. Maximize mobilization of people savings Ensure prompt Investment of funds. Conduct business with utmost economy. Act as trustee of insured public. 2.5 MANAGEMENT PROFILE Board of Directors: The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr. K.V. Kamath, Chairman Mr. Bary stowe , Director Mrs. Kalpana Morparia Mr Mark Tucker Mr Dany Bartin Mrs Lalita D. Gupte Mrs. Chanda Kochhar ,Director Mr. M.P. Modi Mr. R Narayanan Ms. Shikha Sharma, Managing Director Mr. N.S. Kannan, Executive Director Mr. Bhargav Das Gupta, Executive Director Mr Derek Stott,(Alternate Director to Mr Mark Tucker) Mr S.P.Subhedar,(Alternate Director to Mr. Danny Bardin) Ms. Mr. Mr. Mr. Ms. Mr. Dr. Management Team : Shikha Sharma, Managing Director & CEO N.S. Kannan, Executive Director V. Rajagopalan, Chief - Actuary Sandeep Batra, Chief Financial Officer & Company Secretary Anita Pai, Chief - Customer Service and Operations Puneet Nanda, Chief Executive Vice President &Chief Investment Officer Avijit chatterjee , Appointed Actuary

2.6 PROMOTORS ICICI Bank Limited (NYSE:BSE) is Indias largest private sector bank and the secon d largest bank in the country, with consolidated the total assets of $121 billio n as of September 30,2008. The Bank has a network of over 570 branches and extension counters, and 2,000 ATMs. 2.7 PRUDENTIAL PLC: Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldw ide. As of June 30, 2004, the company had over US$300 billion in fund under management. Prudential has brought to market an integrated range of financ ial 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. 2.8 The 7-Ss in ICICI Prudential The 7-S Model is an outcome of an extensive research by the famous management co nsultancy firm , McKinsey & co.( USA). This framework helps to establish a dire ct & meaningful relationship between the efficiency and very set up of organizat ion. Shared Values : This variable is the center core of the model and is interconnec ted with all the other variables. This implies that it is the linchpin of manage rial excellence. Shared values refers to set of values and aspirations that go b eyond the conventional formal statement of corporate objectives.This represents fundamental values around which the business is build. ICICI Prudential is an or ganization that values and safeguards basic principles and core ethics that rang es from equal prospects, Responsibility to society, Appreciating values, opennes s, Integrity and total team work. Strategy : A Strategy is a long term plan chosen deliberately & consciously afte r a thorough analysis of internal and external environment of organization. It s eeks to improve the companys competitive position. It is designed to provide gui dance and direction to the operations of organization. ICICI Prudential, inspite of being incepted in a competitive environment at Mumb ai, has achieved best monthly sales volume throughout the periods. Structure: The structure is the skeleton of whole organizational edifice. It is build by dividing the total task into smaller groups and creating coordination among the groups. It prescribes the formal relationships among various positions and activities. ICICI Prudential has designed its organization to comprise of departments such a s Finance and Administration, Sales service & IT. System: System refers to all the rules, regulations, procedures; both formal and informal that compliments the organization structure.system express the logic a nd experience of past. The training and development systems, performance evaluation systems and other s ystems in the organization meet the best in the industry. Styles: The styles of an organization become evident from the pattern of actions taken by top management over the period of time and the reporting relationship. It is reflected in the traditions, norms, rituals and actions of organization. ICICI Prudential follows an entrepreneurial, innovative and centralized style of management. Staff: Staffing refers to selecting people for specific organizational positions and developing in them, the competence of effective performance. ICICI Prudenti al does concentrate in managing the people in the organization. The compensation packages and career development prospects are meeting the best in industry. Skill: The dominant skills and distinctive competence of organization is the maj or factor driving to success. Learning new skills and sharpening the existing sk ills is equally important. ICICI Prudential does have a distinctive and somewhat unique marketing skill. Th e Expertise and allied knowledge is applied towards the future plans of diversif ication of the organization. 2.9 FINANCIAL PERFORMANCE OF ICICI PRUDENTIAL LIFE ICICI Prudential Life Insurance Company Limited (ICICI Life) incurred a loss of Rs. 7.80 billion in fiscal 2009 as compared to Rs. 13.95 billion in fiscal 2008. The decline in the loss of ICICI Life was on account of higher renewal premiums and lower new business premiums, resulting in lower upfront expenses and commis sion expenses, together with rationalization of various operating expenses. Currently ICICI Prudential have over Rs. 50,000 crore (as on Sept 30, 2009) in assets under management and are one of the top fund managers in the country.They are capitalized at Rs. 4,780 crore (as on Apr 30,2009) making us one of India s highest capitalized companies across sectors.

CHAPTER-3 FUNCTIONAL AREAS OF COMPANY 3.1 PRODUCTS Insurance Solutions for Individuals:ICICI Prudential Life Insurance offers a range of innovative, customer-centric p roducts that meet the needs of customers at every life stage. Its products can b e enhanced with up to 4 riders, to create a customized solution for each policyh older. Savings & Wealth Creation Solutions:o Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options. o Save n Protect is a traditional endowment savings plan that offers lif e protection along with adequate returns. o Cash Back is an anticipated endowment policy ideal for meeting milestone expenses like a child s marriage, expenses for a child s higher education or pu rchase of an asset. It is available for terms of 15 and 20 years. o Life Time Super & Life Time Plus is unit-linked plans that offer custome rs the flexibility and control to customize the policy to meet the changing need s at different life stages. Each offer 6 fund options - Preserver, Protector, Ba lancer , Maximiser, Flexi growth & Flexi balanced. o Life Link Super is a single premium unit linked insurance Plan which com bines life insurance cover with the opportunity to stay invested in the stock ma rket. o Premier Life Gold is a limited premium paying plan specially structured for long-term wealth creation. o Invest Shield Life New is a unit linked plan that provides premium guara ntee on the invested premiums and ensures that the customer receives only the be nefits of fund appreciation without any of the risks of depreciation. o Invest Shield Cash back is a unit linked plan that provides premium guar antee on the invested premiums along with flexible liquidity options. Protection Solutions:Life Guard is a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium & single premium. o Home Assure is a mortgage reducing term assurance plan designed specific ally to help customers cover their home loans in a simple and cost-effective man ner. o Child Plans:o Education insurance under the Smart Kid brand provides guaranteed educat ional benefits to a child along with life insurance cover for the parent who pur chases the policy. The policy is designed to provide money at important mileston es in the child s life. Smart Kid plans are also available in unit-linked form both single premium

and regular premium.

Retirement Solutions:o Forever Life is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually. o Life Time Super Pension is a regular premium unit linked pension plan th at helps one accumulate over the long term and offers an annuity option (guarant eed income for life) at the time of retirement. o Life Link Super Pension is a single premium unit linked pension plan. o Immediate Annuity is a single premium annuity product that guarantees in come for life at the time of retirement. It offers the benefit of 5 payout optio ns. Health Solutions:Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing p olicyholder with financial assistance, irrespective of the actual medical expens es. Health Assure Plus offers the added advantage of an equivalent life insuranc e cover. o Cancer Care: is a regular premium plan that pays cash benefit on the dia gnosis as well as at different stages in the treatment of various cancer conditi ons. o Diabetes Care: Diabetes Care is the first ever critical illness product specially for individuals with Type 2 diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses, and also offers a coordinated ca re approach to managing the condition. Diabetes Care Plus also offers life cover . o Group Insurance Solutions:ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. o Group Gratuity Plan: ICICI Prudential group gratuity plan helps employer s fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the sta tutory obligations. o Group Superannuation Plan: ICICI Prudential offers both defined contribu tion (DC) and defined benefit (DB) superannuation schemes to optimize returns fo r the members of the trust and rationalize the cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. o Group Immediate Annuities: In addition to the annuities offered to exist ing superannuation customers, we offer immediate annuities to superannuation fun ds not managed by us. o Group Term Plan: ICICI Prudential flexible group term solution helps pro vide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary . The benefit under the policy is paid to the beneficiary nominated by the membe r on his/her death.

3.2 RIDER POLICY OF INSURANCE: ICICI Prudential Life offers flexible riders, which can be added to the basic po licy at a marginal cost, depending on the specific needs of the customer.

1) Accident & disability benefit: If death occurs as the result of an accid ent during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If the death occurs while tr aveling in an authorized mass transport vehicle, the beneficiary will be entitle d to twice the sum assured as additional benefit. 2) Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insure d for medical expenses prior to death. 3) Income Benefit: This rider pays the 10% of the sum assured to the nomine e every year, till maturity, in the event of the death of the life assured. It i s available on SmartKid and Cash Plus. 4) Waiver of Premium: In case of total and permanent disability due to an accident, the future premiums continue to be paid by the company till the time o f maturity. This rider is available with Life Time Super, Life Time Super Pensio n and Cash Plus. 3.3 FUNCTIONS OF THE COMPANY 1) Sales Distribution:Tied Agency Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large advisor force that targets various customer segments. The str ength of tied agency lies in an aggressive strategy of expanding and procuring q uality business. With focus on sales & people development, tied agency has emerg ed as a robust, predictable and sustainable business model. Bancassurance and Alliances ICICI Prudential was a pioneer in offering life insurance solutions t hrough banks and alliances. Within a short span of two years, and with nearly a large number of partners, B & A has emerged as a vital component of the company s sales and distribution strategy, contributing to approximately one third of co mpany s total business. Group The Group Business of ICICI Prudential has been in existence for over 2 years. Today, we are the Number 1 player among private life insurance companie s in Group Business excluding Mortgage Reducing Term Assurance (MRTA) with a mar ket share of 26 % (FY 2004-2005). 2)

Customer Service & Operations:-

IT The Information Technology function at ICICI Prudential is committed to enable b usiness through the use of technology. IT Infrastructure group is responsible for providing hardware, software, network services to the whole orga nization. Marketing The Marketing function at ICICI Prudential covers an array of activities - brand and media management, channel support, direct marketing and corporate communica tions. The Brand and Communications team is in charge of advertising, consumer r esearch, media planning & buying and Public Relations; that helps develop and nu rture 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 sa les tools across distribution channels. The Direct marketing team was set up to generate high quality leads for profitable business. The team achieves this thro ugh target database acquisition and communicating customized product information through e-mailers, telemarketing an d innovative direct mailers. Finance

Finance function in ICICI Prudential is committed to create an infrastructure th at is aligned to shareholder expectations. Finance basically comprises of four f unctions. .Corporate Planning and MIS provide feedback on business strategies. T his includes driving the budgeting process, providing strategic inputs for decis ion-making and management reporting and analysis. The Accounts function includes preparation and maintenance of financial records, funds management, and expense processing and treasury operations.. This includes reviewing compliance require ments and supporting the ethical framework of ICICI Prudential life. Internal a udit provides assurance to the management over the organizations control framew ork and includes process risk management, information security assessment and bu siness continuity assessment. HR The people strategy of ICICI Prudential is "To build a committed team with a cul ture of innovation, learning and growth. The Human Resource Function at ICICI Pr udential drives the people strategy of the business. With its initial focus on o perational excellence to deliver benefits and services to staff members, HR is n ow committed to building capability through state of the art processes. Business Excellence The Business Excellence function is committed to building a quality mindset across the organization. ICICI Prudential is the first organization in the Insur ance Industry that has adopted the Six Sigma Methodology for process efficiency and measurement.

CHAPTER-4 KEY COMPETITORS & FUTURE PLANS OF ICICI PRUDENTIAL 4.1 COMPETITORS OF ICICI PRUDENTIAL

Bajaj Allianz General Insurance: Bajaj Allianz General Insurance company limited is a joint venture between Bajaj Auto Limited & Allianz AG of Germany. Both enj oy a reputation of expertise, stability & strength. Birla Sun Life Insurance: The Aditya Birla Group contributes its knowledge of th e Indian market while Sun Life Financial contributes global expertise in the are as of protection and wealth management. HDFC Standard Life Insurance: HDFC & Standard Life have a long and close relatio nship build upon shared values & trust. Providing long term financial security t o policy holders will be a constant endeavor. ING Vysya Life Insurance: ING, the worlds second largest life insurance company t ogether with Vysya Bank, one of the Indias leading private sector bank, forms ING Vysya Life Insurance. Life Insurance Corporation (LIC) : Life Insurance Corporation (LIC) has been one of the pioneering organization in India who introduced use of information techn

ology in their business. Met Life India: The Metropolitan Life Insurance Company is the number one insure r in the U.S. It is helping build financial independence for its customers. Max New York: Max New York Life Insurance Company is a joint venture between New York Life International Inc. & Max India Limited Om Kotak Mahindra Life Insurance : Om Kotak Mahindra Life Insurance , a company under Kotak Mahindra Group is a 74:26 life insurance venture between Kotak Mahin dra Finance Limited with Old mutual,U.K. Tata AIG Life Insurance: Tata AIG is a joint venture that is backed by the Tata Group-Indias most respected conglomerate, with revenues more than U.S $8.4 billio n, American International Group,inc.(AIG)-the leading US based international insu rance & financial service organization. The LIC is the top most company to cover market and the ICICI Prudential is the Second one to cover the Life insurance mark. 4.2 FUTURE PLANS OF ICICI PRUDENTIAL o ICICI Prudential Life Insurance is planning to expand their business in rural areas. o ICICI Prudential announced the launch of two new products aimed at offer ing greater security to investors & retirees alike. One Product is a unique prem ium guarantee market-linked plan which ensures that an investor will only get th e benefits of the upsides of the market, without incurring any loss if the marke ts go down; and the other is an immediate annuity product that offers a guarante ed income for life, For People above 45 years of age.

CHAPTER-5 ORGANIZATION ACHIEVEMANTS & PROBLEMS 5.1 004 Total sum assured of over Rs. 8000 crores A premium income in excess of Rs. 980 crores In terms of distribution strength, the company has about 30,000 advisors & some 12 Banc assurance tie-ups. 5.2 B) Awards:India s Most Customer Responsive Insurance Company Avaya Global Connect - Economic Times Customer Responsiveness Awards Most Trusted Private Life Insurer Prudence Customer Centricity Award 2004 & 2005 Prudential Corporation Asia Institute of Marketing & Management IMM Award for Excellence A) Achievements:The Company issued in excess of 4,30,000 policies in the year ended March 31st 2

Best Life Insurer 2003 Outlook Money Awards 2003 & 2004 Organization with Innovative HR Practices Asia-Pacific H R Congress Awards for H R Excellence Silver Effie for Effectiveness of the Retire from Work not life advertising campai gn Effies 2003 Innovation Award for launching Diabetes Care Prudence Award 2006. People Award f or excellence in training and people development - Prudence Award 2006 ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008 in thr ee key categories for its marketing initiatives ICICI Prudential Life was awarded the Life Insurance Company of the Year at the1 2th Asia Insurance Industry Awards 2008. C) Recognitions ICICI Prudential life was recognized as the most trusted brand amongst private l ife insurers in the Economic Times-Most Trusted Brand survey 2008. IMM Award for Excellence. Institute of marketing & management. Organization with innovative HR Practices. Indira Group of Institutes Organization with innovative HR Practices. Asia-Pacific HR Congress Awards for H R Excellence. 5.4 PROBLEMS OF THE ORGANISATIONS Multiple players are there in life insurance, So ICICI Prudential faces very tou gh competition from other leaders in the industry. There are 36% people using IC ICI Prudential. ICICI Prudential needs to work hard in order to stay in competit ive insurance market. Further, the ICICI Prudential should appoint professional agent who should be able to provide Customer with a comparison of multiple schem es and also explain them in simple terms ,so that customer able to make an infor med decision. 5.3

CHAPTER-6 SWOT 7.1 STRENGTHS:

Flexible management system. The agents are carefully chosen with good communication skills. Large network branches which help customers to transact with company. Service quality which is the crux of their mission. Brand image, business experience & good products-cum-services. 7.2 WEAKNESSES: Many competitors in the market offer same product by the title difference in the same premium & offerings. High targets for financial advisors & for sales department. Sustainable to risk associated with investments in money market. Most of their expenditure is on advertising. Employees are not highly qualified. 7.3 OPPORTUNITIES: Better incentives for good performance. Scope for career growth as well as employees. Very good motivation techniques for better employee commitments. 7.4 THREATS: Players like Bajaj and Birla Sun Life with low premium for similar plans. Employees dedication can become vulnerable because of risk factor. Since qualification is not a major criterion, knowledge about insurance is restr icted. Current government policies do not encourage gross domestic savings. If tax lia bility of service class rises, the customer has little money to invest.

CHAPTER-7 RECOMMENDATIONS & CONCLUSION 8.1 FINDINGS: The Project study reports the following findings: 1) ICICI Prudential is the largest private player in the insurance industry in India. It has sold over 1.5 lakh policies till due date. 2) The organization functions on the decisions taken by unit level manager

& the zonal head. 3) Employees are given less importance than that of target set. Perks & inc entives are not appreciable. 4) The Life insurance business has good prospects due to increasing concern of people towards health/life insurance. 5) Flexibility at work is encouraged. 6) ICICI Prudential Life Insurance company limited advertisements like chin tamani & Jeetey Raho have created great impacts on their future investments. 8.2 RECOMMENDATIONS TO COMPANY: Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI inv ested, in terms of work force, in terms of market share, in terms of no. of cust omers. All these positive stands of the company place at the number one position . On second aspect whatever amount of money ICICI Prudential save, can be used t o increase the no. of policies, which will helpful to increase the market share of the company. Since the customers think about the companies in the industry, when they invest money in the life insurance industry , So its necessary to incre ase the market share of the company. There are some recommendations: Open some more branches in semi urban and rural area. ICICI Prudential has almost its branches in urban area or metros. So in order to increase the no. of customer, ICICI Prudential should increase the approach towards potential customers. For that it has to increase the branches in the sem i urban cities like C, D grade cities. And the rural marketing is the best option for ICICI Prudential to increase its base in the market. Bring some unit linked life insurance plans in the market. Being a market leader doesnt ensure the leadership in the future. Since after increment in FDI from 26% to 49% all player will have the opportunity to capture the market share. So in order to maintain its position ICICI Prudential should -Introduce some new market linked insurance plan, which will give a competitive advantage to the ICICI Prudential against its competitors Trained the financial advisors more efficiently In the changed scenario, more efficient training will be needed, so ICICI Prudential should provide good and efficient training to their financial advisor s. Because they are the one who interact directly with the customers. So good training will give them the right way to deal with the potential customers. Improve customer services.: In order to take the advantage of being industry leader in private sector, ICICI Prudential has to improve its customer services. There should be a hassle free service. All Bureaucracy in customers interaction should be eliminated. Many cus tomers forget to pay their premium at time so it causes a big loss to the compan y. ICICI Prudential has already collaborated with the ICICI bank for its Bancass urance facility and then can include another feature in it. ICICI bank can offer a bank account with life insurance policy in which an ATM card will be provided . This card will have all the information regarding the policy as like future pr emium payment dates, payment made, money value of the policy at that date, and a ll other information what the customer want. This will help the customer to pay premium on time and save their losses. This will be mutually helpful for both sister companies, ICICI bank will get new account and ICICI prudential will be a ble to more efficient services to their customers.

CONCLUSION: Change is very important & one who goes with the changing environment always s ucceed, that is what I have learnt from the study. ICICI Prudential is the large st private player in the insurance industry in India. It has sold over 1.5 lakh policies till date. According to the study the company is doing well; but in ord er to sustain the competition in the market some more efforts should be taken. T he personnel should work in coordination for the success & smooth functioning of organization. Out of total population of 1 billion of country, only 22% have insurance cover. So we can say there is still large potential for both public & private companies . ICICI Prudential have to give varied products to compete with LIC which is holdi ng 97% of total market. The companys recognition can further be improved by exploiting new segments of ma rket. They can diversify the product range by venturing in to attractive target segments & innovative financial plans for different age groups.

BIBLIOGRAPHY Websites

http://www.iciciprulife.com/public/default.htm www.iciciprulife.com www.Prudential.com http://en.wikipedia.org/wiki/ICICI_Prudential Newspapers Economic Times Books:(a) C.R Kothari, Research Methodology Methods and Techniques, Introduction p g no.1-29, second edition, S.Chand & company. (b) K. G Karmakar, RURAL CREDIT AND SELF HELP GROUP, Sage Publication 1999. (c) Priya Basu, IMPROVING ACESS TO FINANCE FOR INDIAN RURAL POOR, World Bank Publication, 2006 (d) R. Muriraj, FARM FARMERS FOR DEVELOPMENT, Oxford & IBH Publication Compa ny 1987.

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