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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

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