Post on 09-Apr-2018
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SUMMER TRAINING REPORT
ON
RECRUITMENT OF ADVISORS IN ICICI
PRUDENTIAL LIFE INSURANCE
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT
OF BACHELOR OF BUSINESS ADMINISTRATION (BBA) (Gen.)
Guru Gobind Singh Indraprastha University
By
Divya Kannan
0681061708
Ansal Institute of Technology, Gurgaon
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ACKNOWLEDGEMENT
I take this opportunity to thank the Ansal Institute of Technology and GGSIPU, togive me this chance to prove my worth in the field of the research that I have been
able to conduct. It has been a pleasurable experience filled with knowledge and
awareness to take part in this thesis preparation. This thesis has not only helped me
academically but also enlightened me understanding the corporate world and their
position in the present business world.
My research would have been inchoate without the assistance of the respondents who
helped me without hesitation in sharing their experiences out to learn the process. The
agency people have been really helpful and have given me a detailed explanation of
the advertisement and as well as PR process along with very worthy encouragement. I
am highly indebted and obliged to all of them.
Finally, I owe my gratitude to Mrs. Sona Vikas, for always being a source of
inspiration and help.
DIVYA KANNAN
BBA (GEN)- III
0681061708
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TABLE OF CONTENTS
S.No Topic Page. No.I INTRODUCTION
About the Industry
Insurance Market In India
Winds of change
7
9
11
RESEARCH METHODOLOGY
Research objectives
Data sources
Primary data
Secondary data
Questionnaire design / formation
Sample design /sample element / unit
Time frame
Sampling frame
Limitations of research
18
19
19
19
20
2122
22
24
III COMPANY PROFILE
Talent Search
26
40
IV DATA ANALYSIS AND INTERPRETATION 50
V CONCLUSIONS AND FINDINGS 56
VI RECOMMENDATION 59
VII ANNEXURE 62
VIII BIBLIOGRAPHY 64
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CHAPTER1
INTRODUCTION
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ABOUT THE GLOBAL INSURANCE INDUSTRY
The insurance industry forms an integral part of the global financial market, with
insurance companies being significant institutional investors. In recent decades, the
insurance sector, like other financial services, has grown in economic importance. This
is through direct contributions to gross domestic product (GDP) via increased levels of
employment within the sector; and indirectly through higher levels of risk transfer and
financial intermediation.
Expanding further on this issue, it must be remembered that the insurance industrysprimary function is to supply individuals and businesses with coverage against specified
contingencies.
Insurance companies, therefore, engage in underwriting, managing, and financing risks.
According to Sigma (2001) the largest insurance sectors are to be found in the U.S. and
Japan, which together generates more than fifty percent of global premium income;
followed by the UK, Germany, France and Italy. Furthermore, during the last four
decades the global insurance sector has on average outpaced global economic growth.
Between 1984 and 2001, the global insurance industry grew at an overall rate of 483.6
percent (roughly comprising of 664.8 percent from the life insurance sector, and 334.3
percent from the non-life sector. Over the last few years, growth in the global non-life
insurance market has significantly slowed down and has only grown in line with general
economic growth (Sigma, 2001). This is in contrast to the life insurance sector, which
has continued to grow at a fast rate. Sigma (2002a) estimates this to be in the region of
5.4 percent worldwide since 2000. Measured in total premiums, OECD countries
accounted for 95.52 percent and 93.99 percent of the life insurance business, and 91.19
percent and 92.50 percent of non-life insurance premium volume in 1994 and 2001,
respectively.
Outside of the OECD, a more recent development since the early nineties has been the
ability of the emerging markets to strengthen their global market share in the life
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insurance segment, with growth rates often reaching double-digit figures. Furthermore,
insurance markets within the OECD countries have faced falling premium income,
reduced capital market yields and low interest rates, all of which has put insurers under
some pressure (Sigma, 2002a). Also, the growing importance of the insurance industry
in emerging markets is reflected in growing insurance density and insurance penetration
of the non-OECD insurance markets (Sigma, 1996, 2001). Nevertheless, and despite
these developments, emerging markets still have some way to go before matching the
relative sizes and importance that the insurance industry has in industrialized countries.
INSURANCE MARKET IN INDIA
The history of life insurance in India dates back to 1818 when it was conceived as a
means to provide for English Widows. Interestingly in those days a higher premium was
charged for Indian lives than the non-Indian lives, as Indian lives were considered more
risky for coverage.
The Bombay Mutual Life Insurance Society started its business in 1870. It was the first
company to charge same premium for both Indian and non-Indian lives. The Oriental
Assurance Company was established in 1880. The first general insurance company- Tital
Insurance Company Limited was established in 1850. Till the end of nineteenth century
insurance business was almost entirely in the hands of overseas companies.
Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's
and 30's sullied insurance business in India. By 1938 there were 176 insurance
companies. The first comprehensive legislation was introduced with the Insurance Act of
1938 that provided strict State Control over insurance business. The insurance business
grew at a faster pace after independence. Indian companies strengthened their hold on
this business but despite the growth that was witnessed, insurance remained an urban
phenomenon.
The Government of India in 1956, brought together over 240 private life insurers and
provident societies under one nationalized monopoly
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Corporation and LIC were born. Nationalization was justified on the grounds that it
would create much-needed funds for rapid industrialization. This was in conformity with
the Government's chosen path of State lead planning and development.
The (non-life) insurance business, however, continued to thrive with the private sector till
1972. Their operations were restricted to organized trade and industry in large cities. The
insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in the
Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two
centuries.
By any yardstick, India, with about 200 million middle class households, presents a huge
untapped potential for players in the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for global
insurance majors with the per capita income in India expected to grow at over 6% for the
next 10 years and with improvement in awareness levels, the demand for insurance is
expected to grow at an attractive rate in India. An independent consulting company, The
Monitor Group has estimated that the life insurance market will grow from Rs.218 billion
in 1998 to Rs.1003 billion by 2008 (a compounded annual growth of 16.5%)
ABOUT ICICI PRUDENTIAL
Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI and Prudential
plc of U.K. In November 2000, ICICI Prudential Life Insurance was granted Certification
of Registration for carrying out life insurance business by the Insurance Regulatory &
Development Authority of India. The Company issued its first policy on December 12,
2000.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and Prudential Plc, a leading international financial
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services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential's equity base stands at Rs. 9.25 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 Crores of new business premium for a total sum assured
of Rs 13,780 Crores and wrote nearly 615,000 policies. The company has a network of
about 56,000 advisors; as well as 7-banc assurance and 150 corporate agent tie-ups. For
the past four years, ICICI Prudential has retained its position as the No. 1 private life
insurer in the country, with a wide range of flexible products that meet the needs of the
Indian customer at every step in life.
ICICI Prudential Life Insurance's new business has grown 77% in '04-05 to cross Rs
1,000 Crores, with annualized new business premium of Rs 1,256 Crores. The company's
total received premium, which includes renewal premium, has crossed Rs 2,363 Crores
for '04-05.
In the year 2004-05, 80% of the premium has been generated from unit-linked plans, with
nearly 40% of the premium collections going into equity. Indian policyholders have been
increasingly opting for unit-linked plans, which offer higher exposure to equities, ever
since lower interest rates have forced insurers to cut bonuses on traditional policies.
In contrast, the private life insurance agent force has grown by leaps and bounds. The
need for higher geographical penetration has seen insurance companies recruiting
aggressively. At last count, they added up to a massive 1, 50,000. ICICI PruLife topped
the list among the private players, which had close to 50,000 agents, while Bajaj Allianz
had 30,000 agents. At least six of the 11 private life insurance players had an agent force
of 10,000 and plus.
This included Tata AIG, Max New York, HDFC Standard and Birla Sun Life. All these
insurance companies have allocated large amounts of fresh capital to build the agent
network across major cities in the past few years.
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Companys vision:
To make ICICI Prudential the dominant Life and Pensions player built on trust by world-
class people and service.
The company hopes to achieve by:
Understanding the needs of customers and offering them superior products and
service
Leveraging technology to service customers quickly, efficiently and conveniently
Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our
employees
And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5 core
values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the
values describes what the company stands for, the qualities of our people and the way we
work. .
I do believe that we are on the threshold of an exciting new opportunity, where we can
play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.
Promoters
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management
Company, which has today emerged as one of the leading mutual funds in India. The two
companies bring together two of the strongest financial service brands in Asia, known for
their professionalism, excellent quality of service and long term commitment to YOU.
Riding on the success of this relationship, the two companies joined hands once more in
2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading-
edge life insurance solutions.
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ICICI Bank has 74% stake in the company, and Prudential plc has 26%.
ICICI Bank (NYSE:IBN) is Indias second largest bank with an asset base of Rs.
106812 Crores. ICICI Bank provides a broad spectrum of financial services to individuals
and companies. This includes mortgages, car and personal loans, credit and debit cards,
corporate and agricultural finance. The Bank services a growing customer base of more
than 7 million customer accounts and 5 million bondholders accounts through a multi-
channel access network. This includes about 450 branches and extension counters, 1675
ATMs, call centres and Internet banking. ICICI Bank posted a net profit of Rs.1, 206
crores for the year ended March 31, 2003. ICICI Bank is the only Indian company to be
rated above the country rating by the international rating agency Moodys and the only
Indian company to be awarded an investment grade international credit rating. The Bank
enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies.
Established in 1848, Prudential plc is a leading international financial services company
in the UK, with around US$250 billion funds under management and more than 16
million customers worldwide. Prudential has brought to market an integrated range of
financial services products that now includes life assurance, pensions, mutual funds,
banking, investment management and general insurance. In Asia, Prudential is Auks
largest life insurance company with a vast network of 22 life and mutual fund operations
in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudential has
championed customer-centric products and services, supported by over 60,000 staff and
agents across the region.
Fact sheet
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the
first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).
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ICICI Prudentials equity base stands at Rs. 925 Crores with ICICI Bank and Prudential
plc holding 74% and 26% stake respectively. In the period April-December 2004, the
company garnered Rs 860 Crores of new business premium for a total sum assured of
over Rs 7,360 Crores and wrote nearly 345,000 policies. Today the company is the No.1
private life insurer in the country.
Distribution
ICICI Prudential has one of the largest distribution networks amongst private life insurers
in India, having commenced operations in 69 cities and towns in India. These are: Agra,
Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore, Bareilly, Bhatinda,
Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun,
Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior, Hyderabad, Hubli,
Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi,
Kolkata, Kolhapur, Kota, Kottayam, Lucknow, Ludhiana, Madurai, Mangalore, Meerut,
Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot,
Ranchi, Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur,
Vadodara, Vapi, Varanasi, Vashi, Vijayawada and Vishakapatnam.
The company has seven bank assurance tie-ups, having agreements with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some co-
operative banks, as well as over 160 corporate agents and brokers. It has also tied up with
organizations like Dhaan for distribution of Salaam Zindagi, a policy for the socially and
economically underprivileged sections of society.
Distribution Channels
Till date insurance agents still remain the main source through which the insurance
products are sold. The concept is very well established in the country like India. But still
the increasing use of other sources is imperative. It therefore makes sense that the well-
balanced alternative channel of distribution. At present the distribution channels that are
available in the market are:
Direct selling
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Corporate agents
Group Selling
Brokers and corporative Societies
Bank assurance
LIFE INSURANCE MARKET IN INDIA
Many may not be aware that the life insurance industry of India is as old as it is in any
other part of the world. The first Indian life insurance company was the Oriental Life
Insurance Company, which was started in India in 1818 at Kolkata. A number of players
(over 250 in life and about 100 in non-life) mainly with regional focus flourished all
across the country.
However, the Government of India, concerned by the unethical standards adopted by
some players against the consumers, nationalized the industry in two phases in 1956 (life)
and in 1972 (non-life). The insurance business of the country was then brought under two
public sector companies, Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC).
In line with the economic reforms that were ushered in India in early nineties, the
Government set up a Committee on Reforms (popularly called the Malhotra Committee)
in April 1993 to suggest reforms in the insurance sector. The Committee recommended
throwing open the sector to private players to usher in competition and bring more choice
to the consumer. The objective was to improve the penetration of insurance as a
percentage of GDP, which remains low in India even compared to some developingcountries in Asia.
Reforms were initiated with the passage of Insurance Regulatory and Development
Authority (IRDA) Bill in 1999.
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ICICI PRUDENTIAL PRIORITY CIRCLE
THE PRIORITY CIRCLE
Priority circle is an opportunity to diversify the business and widen the gamut of services
and solutions offered to the clients. One can now enhance the business with capital
investment and yet earn high returns. Step into the arena of private life insurance, one of
the most dynamic industries today with Priority Circle of ICICI prudential life insurance
company ltd, the leader in todays private life insurance industry.
The vast reach
91 branches spread over 61 locations
A committed team of tied and corporate agents, brokers, banks and call centre executives
An advisor force of more than 46000 agents.
Tie ups with Indias leading banks like ICICI bank, Bank of India, federal bank and south
Indian bank ICICI prudential customers enjoy the privilege of approaching the company
as per their convenience. Its vast reach across India places the company far ahead of its
pears.
The pleasant experience service
The company maintains its undisputed leadership by proactively achieving superior risk
adjusted returns on its funds. The prime focus is on ensuring long-term safety,
profitability, stability of the portfolio.
Quality service at ICICI Pru is not an isolated function but a practice. From people and
products to process at every stage of the policy, it is an experience for the customers so
everyones a customer service associate including you.
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THE ADVISORS FORTE
An advisor at ICICI Prudential is one of the main strengths of the company. Its a
partnership that results in unlimited growth opportunity with the company.
THE ROLE
To identify prospective customers, provide tailor-made solutions to cater to their
individual needs, conduct regular reviews to keep customers on track and last but not the
least, achieve targets.
THE BENEFIT
A premium product portfolio that caters to a wide range of financial needs, excellent
back-end support, attractive returns and benefits, round the clock customer service and
extensive training for that edge over the competition
THE ADVANTAGE
No start up capital, no supervisor, flexible working environment and an unlimited earning
potential.
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ICICI PRUDENTIAL PRIORITY CIRCLE CONTROL
STRUCTURE
The control structure of ICICI Prudential Priority Circle goes like this:
As a whole till Zonal Head the levels are same in all sectors of ICICI but after that when
comes the Territory Manager, the unique levels of Priority Circle begins.
Under the Country Head come 2 regions:
1. Peninsula
2. Himalayas
Under those come their respective Sales Head, Zonal Head, Territory Manager, and
Manager Priority Clients.
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COUNTRYHEAD
HIMALAYAS ANDPENINSULA
SALES HEAD
ZONAL HEAD
TERRITORYMANAGER
MANAGER PRIORITYCLIENTS
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The MPCs are not allowed to sell insurance directly, but they have to go through the
advisors under them.
The advisors under the MPCs are the High Network Individuals, which bring business.
They are selected by the MPCs by completing certain formalities.
The person has to pay Rs. 1500/- for becoming an Advisor. That person is given 9 days
intensive training in which he is also given product details.
After the training is over the person has to give an examination named as IC 33 taken by
Insurance Regulatory and Development Authority.
Once the person clears his examination a code is generated in his name. The person now
becomes an Advisor and is ready to bring business.
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WINDS OF CHANGE
Reforms have marked the entry of many of the global insurance majors into the Indian
market in the form of joint ventures with Indian companies. Some of the key names are
AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life Canada and OldMutual.
The entry of new players has rejuvenated the erstwhile monopoly player LIC, which has
responded to the competition in an admirable fashion by launching new products and
improving service standards
The following are the key winds of change brought about by privatization.
Market Expansion: There has been an overall expansion in the market. This has
been possible due to improved awareness levels thanks to the large number of
advertising campaigns launched by all the players. The scope for expansion is still
unlimited as virtually all the players are concentrating on large cities and towns -
except by LIC to an extent there was no significant attempt to tap the rural
markets
New Product Offerings: There has been a plethora of new and innovative
products offered by the new players, mainly from the stable of their international
partners. Customers have tremendous choice from a large variety of products
from pure term (risk) insurance to unit-linked investment products. Customers are
offered unbundled products with a variety of benefits as riders from which they
can choose. More customers are buying products and services based on their true
needs and not just traditional money-back policies, which is not considered very
appropriate for long-term protection and savings. However, there are still some
key new products yet to be introduced - e.g. health products.
Customer Service: Not unexpectedly, this was one area that witnessed the most
significant change with the entry of new players. There is an attempt to bring in
international best practices in service and operational efficiency through use of
latest technologies. Advice and need based selling is emerging through much
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better trained sales force and advisors. There is improvement in response and
turnaround times in specific areas such as delivery of first policy receipt, policy
document, premium notice, final maturity payment, settlement of claims etc.
However, there is a long way to go and various customer surveys indicate that the
standards are still below customer expectation levels
Channels of Distribution: Till two years back, the only mode of distribution of life
insurance products was through Agents. While agents continue to be the predominant
distribution channel, today a number of innovative alternative channels are being offered
to consumers. Some of them are bank assurance, brokers, the internet and direct
marketing. Though it is too early to predict, the wide spread of bank branch network in
India could lead to bank assurance emerging as a significant distribution mechanism.
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CHAPTER2
RESEARCH METHODOLOGY
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OBJECTIVES OF THE STUDY
Main Objective:
Recruitment of Advisors for the company
Sub Objective:
1 . To understand the c l iente le prof i le
2. To expand the channel base of Priority Circle
3 . To provide an enabl ing environment to foster growth and learning
for advisors.
4. Study the current recruitment process
5. Analyze the existing problems
6. Recommend alternatives to resolve the problems
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DATA SOURCES
PRIMARY DATA SOURCES USED: -
Appointments with different people who seem to be prospective advisors
Interview Method (Cold calling): This method involves presentation of oral
verbal stimuli and reply in terms of oral - verbal responses. This method can be used
through personal interviews and, if possible, through telephone interviews.
SECONDARY DATA: -
Secondary data means data which is already available i.e. I refer to the data which has
already been collected and analyzed by someone else. Secondary data may be either
published data or unpublished data. In this project secondary data collected from
following sources. Usually published data are available:
Telephone directory, which contains telephone number of all residents of the area,
companies and shops.
Newspapers, books and magazines.
Reports and publications of various associations connected with business and
industry.
Websites and other publications of company.
Previous reports about ICICI PRUDENTIAL.
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QUESTIONNAIRE DESIGN
QUESTIONNAIRE DESIGN/FORMULATION
Questionnaire: - A questionnaire consists of a set of questions presented to respondent
for their answers. It can be Closed Ended or Open Ended
Open Ended: - Allows respondents to answer in their own words & are difficult to
Interpret and Tabulate.
Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.
TYPES OF QUESTION INCLUDED:
DICHOTOMOUS QUESTIONS
Which has only two answers Yes or No?
MULTIPLE CHOICE QUESTIONS
Where respondent is offered more than two choices
IMPORTANCE SCALE
A scale that rates the importance of some attribute.
LIKERT RATING SCALE
A scale that rates some attribute from highly satisfied to highly unsatisfied and very
inefficient to very efficient
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SAMPLE
SAMPLING UNIT: -
Who is to be surveyed? The marketing researcher must define the target population that
will be sampled.
The sample Unit taken by me; General public of different age group, different gender and
different profession
EXTENT:-
Where the survey should be carried out?
I have covered entire residential area of Delhi city for the survey
TIME FRAME:-
When the survey should be conducted?
I conducted my survey for 8 weeks from 1 st June 2010 to 31st July 2010.
Sampling Technique
How should the respondent be chosen?
In the Project sampling is done on basis ofProbability sampling. Among the probability
sampling design the sampling design chosen is stratified random sampling.
Because in this survey I had stratified the sample in different age group, different gender
and different profession
Sample Size/ Population Size: - How many people should be surveyed?
My sample size is 100
SAMPLING PLAN:
The sampling plan calls for three decisions:
SAMPLING UNIT: Sampling unit is who is to be
surveyed? The target population must be defined thats to be sampled it is necessary
so as o develop sampling frames so that everyone in the target population has an
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equal chance of being sampled. My sample unit was various Branches of different
banks and the account holders in Delhi.
SAMPLE SIZE: Sample size is how many people have to
be surveyed?
Generally, large samples give more results than the smaller samples. The sample refers to
the number of respondents from the universe. My sample size was total 30 Bank branches
of various banks in Delhi comprising all areas in Delhi i.e. south, north, central, west and
east Delhi.
CONTACT METHOD: once the sampling plan has
determined, the question was how the subject should be
contacted, i.e. by telephone, mail or personal interviews.
But the single way to contact the subject was personal
interviews.
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JOB DESCRIPTION: NATURE OF JOB AS A TRAINEE
At priority circle, the nature of the job included recruitment of the channel members who
were further assigned to solicit insurance. The database was prepared, which had the
names of selected people across Delhi. They were invited to the office for the first meet
with the manager- priority clients. The MPCs job is to explain the course of action
followed to join the business.
After the first meet if the prospect is satisfied he is given a document called market 100
to explore his contacts which would help him grow his business. The prospect fills the
document and brings it to the office. The MPC scrutinizes the document. The next step is
to meet the territory manager who would judge the prospect whether he is capable to do
the job or not. If the territory manager is satisfied, then the person fills other formalities
like form, age proof and other documents and is ready to receive the training.
The lead trainer of the branch conducts the training for about 9 days, following which an
exam is held. After clearing the exam the IRDA license is given, post, which the advisor
is ready to sell insurance and do financial consulting for his clients.
Characteristics of a good Insurance advisor
These were some of the qualities that I searched in a person who could be an asset to the
company and could give business .It is not necessary to have good academic background
but a good salesman should have the following qualities:
He should be speedy, needy and greedy.
He should be presentable.
He should have good communication skills.
He should be ready to serve with a good smiling face.
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At ICICI Priority circle, the aim is to achieve Production Growth through
RECRUITMENT. Part of this growth is accomplished by improving the productivity of
the existing Agency members. However, bringing sufficient numbers of high quality new
producers into the sales organization each year is a must. The main focus thus remains
recruitment of HNI (High Network Individuals) Clients.
RECRUITMENT PROCESS IN ICICI PRULIFE
Recruitment is the prospecting, identification and training of advisors so as to enable him
to do business, post licensing.
Broadly recruitment can be identified as a 5-step process:
1. The SEARCH for talent
2. To ENGAGE the prospective Advisor
3. The EVALUATION of potential Advisor
4. The CONFIRMATION of intent
5. The LICENSING of Advisors
STEP-1
TALENT SEARCH
In this stage we need to identify the advisors we need to recruit to become a successful
team. We need to clearly understand the profile we are looking out for. The search must
be continuous and systematic just like prospecting for sales. We must search among
several sources on a regular basis. The sources were divided into different segments for a
more systematic and focused approach. These were:
Thefirst segmentto be taken under study was that of students with some commerce
background.
The segment is further sub-grouped as follows:
1. Pass out B.Com students
2. Students pursuing C.A
3. Students of M.F.C
4. Pass out students of MBA.
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Our main selling point for this segment was that these students have some finance
knowledge. We gave them a career opportunity as they could be promoted as a unit
manager as soon as they meet the required target.
The required information of such students was collected from their respective
institutions. Those students whose response was positive were called in the premises of
ICICI Prudential for an informal interview where they were told about the job and the
opportunities involved.
Thesecond segmentwas that ofenterprising women.
The segment was further divided into sub groups, which were as follows.
1. Hobby classes operators.
2. Beauty Saloon owners.
3. Fashion boutiques.
4. Kitty party groups.
5. Agents of direct selling products like Tupperware, Avon.
Our main Point in approaching them was that these women already had a well-
established network in their respective fields and hence in a position to exploit them
further. If they are aware of the opportunities and are ready to take risk then they just
needed to tap the market that is already there for them.
To locate this segment of prospective financial consultant we used our personal contacts.
The women who were positive were then told about the companys project of locating
financial consultant.
The third segment ofproperty dealers, commission agents, retired members from
banking industry.
The method of research was telemarketing.
Under Telemarketing, a telephone call was made to the targeted person wherein the
intention was to make the person aware of the objectives under study. For this purpose
we tried to allure the target customers to become an agent.
However the call must be made keeping this in mind a few things such as:
1. The intended person must have time to listen to us.
2. We must not offend them in any way.
3. We should be considerate enough to respect the value of their time and must not
waste his time in unnecessary Jargons.
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4. Care must be taken while introducing main subject, so that we are able to arouse
interest.
5. The person should feel important rather than irate customer.
The last segmentwas ofCAs, Income Tax Consultants and Advocates.
The data source of this segment was through Yellow Pages. We adopted the method of
direct interview after taking appointments on phone.
Firstly we called up people and explained them about the work profile .If we found them
interested, an appointment was fixed with the MPC. The Manager clearly explains the
business opportunity and studies the prospective candidates profile. Candidates another
round of screening was done by Unit Manager with his respective ASM (channel
development) and they short listed the most capable candidates. Capability doesnt mean
that the person should have some specific qualifications. Capability meant that the chosen
candidates must have at least interpersonal skills and should be keen enough to learn
during training process. He must also realize the importance of marketing in the field. I
preferred people with finance background as it becomes easier for them to understand the
insurance industry.
The second round of selection was consisted of an informal interview with the candidate.
There were main three purpose of this:
1. To reinforce the purpose of study i.e. selecting the right kind of people.
2. To make the candidates aware of growing opportunities in this line of
work and make them aware about the developments in the insurance
industry.
3. To make the candidates understand about nominal investment on their
part, as they already infrastructure and resources and increasing returns.
4. The selected candidate has to fill an application form along with the fees
of Rs.1500 which includes Rs.450 as license fees which is issued by
IRDA and Government of India, rest includes the examination fees.
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STEP-2
ENGAGE
Engage is highlighting the positive sides of the business opportunity with ICICI
Prudential.
FIRST MEETING
The first meeting is the face-to-face interaction between the manager and the prospective
Advisor.
The manager should set up an appointment for at least 30-45 minutes. During the
meeting the manager should cover:
About the company
The opportunity of Life Insurance Business
The manger must get the advisor to fill the Advisor Profile during this meeting. It will
give the manager a greater in depth of prospective advisor as a person, not his financials
but him as an individual with his own dreams, goals and aspirations.
Before finishing, his manger should ensure that the individual has a complete
understanding of the advisors profession. The manger should collect information about
the prospective advisors family, current earnings stream and his inclination towards Life
Insurance as a business opportunity.
The manger should seek a second appointment with the prospect if possible, invite him to
the branch for the second meeting and schedule a meeting with the Territory Manager.
TOOLS
Recruitment Presenter
-A tool to sell Advisor as a business opportunity to the prospective candidates
Business Opportunity Presentation
At the branch level, the managers may get together an invite a group of prospective
advisors to the office. The Senior Manager on the business opportunity will then make a
formal presentation. It is a very effective tool and you will be able to convince a greater
number of advisors with this activity.
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Branch Visit
The branch visit should give him the feel of the Priority Circle Concept and create
interest in Insurance Advisor- as a career with ICICI Prudential.
STEP-3EVALUATION
Evaluation is assessing the prospective advisors potential, inclination and ability to do
business. Managers need to ensure that they have the right kind of profile interested to be
a part of their team.
PREFERRRED QUALITIES
Passion to succeed
Result oriented
Well networked
Communication Skills
Need for Money
Need for Recognition / Achievement
Committed and Hardworking
TOOLS
It is a psychometric Testing Tool used to understand the psychographics characteristics
of your prospective advisors to evaluate if they match with requirements for getting
selected as an ICICI Prudential advisor. It evaluates them on the following parameter:
Dominance
Influence
Stability
Compliance
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STEP-4
CONFIRMATION
Confirmation is the advisor making a final decision to join us as an advisor. The
procedure requires complete documentation by the prospective advisor.
Document Requirements:
1. ICICI Pru Application form
2. IRDA form v A
3. Age Proof to substantiate age stated on Application form.
4. Address Proof to substantiate the communication address provided on the
application form.
5. Education Proof to fulfill IRDA requirement that the candidate has passed at least
12thStandard or equivalent. In case of who are qualified to attend a shorter duration of
training the accepted list of qualifications / institutes is provided in Annexure.
6. Applicable Examination Form
7. 6 photographs
8. DD for Rs. 1000 favoring- ICICI Prudential Life Insurance Co. Ltd, payable at
Mumbai.
9. License Agreement duly signed by the advisor.
On receiving the completed applications, the manager does a quick scrutiny of the
documents.
Training batch estimation
The minimum batch size for a full time batch is 15 and for a part time batch is 20.
Depending on the number of completed applications received from Monday to
Thursday; the manger will determine the training batch size.
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No split cases will be considered while determining the batch size.
STEP-5
LICENSING / TRAINING PERIOD
Licensing is the final step in recruitment of the advisor. Training is conducted in the last
stage. The prospective should complete 100 hours of their training.
At ICICI Prudential, I understand the importance of training in a dynamic business
environment. The advisors go through both generic and specific, professional programs
that help them remain well informed and knowledgeable about the companys products in
the market. There is a further focus on soft skills such as communication, managing long-
term relationships and selling skills, which are very relevant in a service-driven industry
like life insurance.
State of the art infrastructure training facilities coupled with an excellent faculty,
guarantee an exceptional learning environment. For advisors who might be occupied with
their daily business/professional routines, ICICI Prudential also offers convenient
training options such as online and self-learning are also provided by the organization.
A 17-day training schedule covers the mandatory IRDA training requirements and ICICI
Prudential product-training module. Revision session ensure that the candidates
thoroughly understand the course contents and are well prepared for the licensing
examination. Theoretical training is interspersed with practical appointment settings withpotential customers, giving advisors a feel of how their business will work from the very
first day. All through, the Unit Manager and the management provide continuous support
to the advisors in achieving independence towards garnering business.
After the training they have to undergo online examination conducted by IRDA, after
qualifying the examination they get a certificate from RNIS (Ritu Nanda institute of
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insurance)
Types of training
The selected candidates were given a option to select the type of training depending upon
their comfort and convenience. There were two types of training available.
Online Training
In this type of training the person has to complete his IRDA training for 100 hours on theinternet. After that he is required to attend the six days product training manually. So the
person who is busy with his job this training is quite suitable for them.
Manual training
In this type training he has to complete both the product training and the IRDA training
manually. So he has to attend the continuous training for fifteen days. This training issuitable for the person who is ready to take out his fifteen days. During the manual
training, the company provides free lunch.
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STEP-6
THE EXAM
Upon completing the training the candidate is eligible to appear either for an online
(internet) exam or a manual (paper based) exam, based on the guidelines issued by IRDA
for that city.
The exam slots should be booked such that the exam is scheduled no later than 4 days
from the date of completion of the training.
After the prospective advisor has taken the exam his result are obtained and he has
cleared them, the company handovers a WELCOME KIT to the candidates comprising
of:
1. Welcome letter
2. Laminated identity card
3. Copy of the agency agreement
4. IRDA License
5. Bank Account introductory letter
6. 100 visiting cards (from the branch)
7. Commission Booklet
8. Reward and recognition booklet
9. ICICI Prupartner Email ID and Password
10. Pin mailer to access ICICI Prudential websites.
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CHAPTER 4
DATA ANALYSIS
&
INTERPRETATION
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DATA A NALYSIS AND INTERPRETATION
This survey was conducted to identify interest levels of the sample as the Advisor for
ICICI. The main purpose of the study was to locate the right kind of people possessing
the right mix of interpersonal and marketing skills. The research process helped in
locating such people.
After obtaining the positive response from the various selected segment another round of
screening was done. The research helped in locating the interested people. Now the
company had to select the most capable one. Capability does not mean people having
specific Qualifications, capability means that the chosen candidates must at least possess
interpersonal skills and should be keen enough to learn during the training process. He /
She must also realize the importance of marketing industry.
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THE RESEARCH RESULTS WERE AS FOLLOWS:
People interested in earning extra.
Fig. 4.01
INTERPRETATION:
The above data shows that the 70 % people want to earn more and the 30 % think
otherwise.
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Awareness about ICICI Prulife
Fig. 4.02
INTERPRETATION:
The above data shows that 60% people are aware about the ICICI Prulife.
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Interested in joining as advisor or as consumers
Fig. 4.03
INTERPRETATION
The above data shows that 40 % want to join ICICI Prulife as an advisors and 60 %
people wants to join ICICI Prulife as a consumer.
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Awareness of functions of a Financial Advisor
Fig. 4.04
INTERPRETATION:
The above data shows that 60% of respondents were aware of financial advisors and their
working while 40% didnt.
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Willingness to join ICICI Prulife on full time or part-time basis
Fig 4.05
INTERPRETATION:
The above data shows that the 70% people want to join ICICI Prulifeas advisorson part
time basis while 30 % want to join on full time basis.
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How much would they like to earn in a month?
FIGURE: 4.06
INTERPRETATION:
The above data shows that the 10% respondents want to earn 5000, 20 % want to earn
10000,30% want to earn 15000 and 40 % want to earn 15000 and above.
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CHAPTER 5
CONCLUSION
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CONCLUSION
ICICI Prudential is the No.1 private insurance company, so people are more attracted
towards it. The only thing required by the company is to give a stable career and more
benefits. Due to LIC, people have a negative mindset towards the word Agent as well as
the insurance industry in general. But ICICI prudential through its pinnacle program and
other facilities is providing a very bright career to the youth. There is lack of information
about this career; therefore, the company needs to capitalize on this opportunity by
providing the right kind of information to people and present it in the right light.
The results of the study can be concluded as follows: People are not aware about the concept of financial advisors.
Company only offering commission for the advisor works.
People want to connect with ICICI Prulife as a consumer more than the advisor.
People want to earn more then what the company offering.
More people have trust on public sector as compare to private.
The exam fee for applying for the advisor is more than the other company.
People have no time to take the training for the advisor.
They have no free time to join as an advisor.
From the results it can be concluded that the selection model of ICICI Prudential Life
Insurance Company for the purpose of selecting the right profile of the distribution
channel is very comprehensive and fulfills the objective optimally.
Such selection process would help in:
Reducing Attrition
No or Minimum advertising
Training of consultants
The training module of the company involves:
The better understanding of the product provided by the company.
Regular interaction between Unit Managers and the consultants.
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Discussions on the changes occurring in the industry
Training the consultants on how to access the needs and requirements of the
customers.
Giving Incentives in the form of competition among consultants and
memberships.
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CHAPTER 6
RECOMMENDATIONS AND LIMITATIONS
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RECOMMENDATIONS
Agents are the lifeblood of the insurance industrys distribution channel. They are the
main forces that bring business to the company. Unless and until the agents are qualified
and have the caliber to understand the current market scenario, they cannot remain long
in the business. Hence, an optimally selected sales force is the need of the hour, for an
industry like insurance.
The following are the recommendations to the company:
1. There should be weekend batches of training for the people who cannot take their
full six days of the week from their busy schedule.2. Anything can click in this line of work and hence the company should evaluate
the candidates subjectively.
3. Advertisements should be given in the newspapers so that number of people
interested in such an opportunity increases.
4. Various MBA institutes should be targeted to get people with good marketing as
well as interpersonal skills.
5. There should be some fixed salary with some fixed targets.
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LIMITATIONS OF THE STUDY
1. Area covered was confined to some regions only.
2. People were reluctant to join this job as it doesnt provide any fixed salary.
3. People perceived this profession as a low status profession.
4. Availability of data to contact people was a problem.
5. Due to the presence of large number of LIC agents, people refused to become
advisors of any company as according to them there exists a huge competition.
6. Insurance business itself doesnt enjoy a good reputation in the society.
7. The candidates like CAs, Advocates and Tax consultants could not arrange a
meeting with ASM in spite of their interest.
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CHAPTER 7
BIBLIOGRAPHY
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BIBLIOGRAPHY
BOOKS
ICICI Prudential Training Modules
ICICI Prudential Brochures
INTERNET
www.iciciprulife.com
www.financialexpress.com
www.insuranceguide.com
www.economictimes.com
www.google.com
www.askjeeves.com
www.irda.gov.in
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ANNEXURE
QUESTIONNAIRE
Name:
Address:
Telephone No.:
Occupation:
Salaried Self Employed Unemployed
Business Others(specify) _____________
Office Address:
Q1. Net family income from all sources (monthly in `)
Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above
Q2. Do you want to earn more?
Yes No
Q3.Do you know anything about ICICI Prulife?
Yes No
Q4.Do you know about financial advisor?
Yes No
Q5. You want to connect with ICICI Prulife as an
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Advisor consumer neither
Q6. Do you want to join ICICI Prulife as an advisor.
full time part time
Q7. Are you aware with IRDA?
Yes No
Q8. How many hours in a month you want to work in ICICI Prulife?
2 hours 3 hours 4 hours 4 & above
Q9. How much you want to earn in a month?
5,000 10,000 15,000 15,000& above