A STUDY ON SALES, DISTRIBUTION AND MARKRTING OF ICICI PRUDENTIAL LIFE INSURANCE

BY:BY:- VIPRA RATHORE ROLL NO. 9117 PGDM BATCH 2009-2011 2009INSTITUTE OF MANAGEMENT EDUCATION, SAHIBABAD

INTERNAL GUIDE : PROF. G.D. SARDANA PROF. EXTERNAL GUIDE: MR. NITIN GUPTA ( MANAGER, ICICI PRU.)

OBJECTIVES OF THE STUDY:

The study is on the profile of the organizationTo Know the awareness of people towards life Insurance.

To identify the need of insurance To know about the selling/marketing of the insurance To analyze the distribution of the insurance To enhance the selling & marketing of Insurance in the company.

OBJECTIVES OF THE STUDY

To study the consumer preference for life insurance in general.

To better know how the consumer's profile affects the investment decision in insurance.

To understand the positioning of life insurance products.

HYPOTHESIS

ICICI Prudential Life Insurance Company ranks first among private sector insurance company in India. ICICI Prudential has one of the largest distribution networks among private sector insurance companies in India. ICICI Prudential understands the need of customers and offers them superior products and services. ICICI Prudential offers a great variety of insurance plan and policies to fulfill needs of its different custom

SAMPLE SIZE:The size of the sample accepted generally is 164 people. But size varies from the situation to situation and with the researchers satisfaction. The sample size is true representative of the universe. Because of the Limited time factor and for Convenience.

TARGET GROUP:CUSTOMER NON CUSTOMER

METHODS OF DATA COLLECTIONResearcher has two options in order to collect the data. He can gather secondary data, Primary data or both.

PRIMARY DATA Primary data are data that freshly gathered for a specific purpose or for a specific research project. The primary data is collected through the systematic market research survey. This survey conducted through questionnaire, which have predefined specific objective questions. The 162 respondents are contacted within the Etah city. Again the informal interview is also taken for more in-depth to topic to the same respondents. SECONDARY DATA Before going through the time and expenses of colleting primary data, one should check for secondary data that previously may have been collected for other purposes but that can be used in the immediate study. Secondary data may be internal to the firm, such as sales invoices and warranty cards, or may be external to the firm such as published data or commercial available data. The government census is a valuable source of secondary data.

SECONDARY DATA SOURCES

The secondary data are data that were collected for another purpose and already exist somewhere. The secondary I used in my research are from the following Books and sites: The data collected from the following websites,www.iciciprulife.com www.irdaindia.org

COMPANY PROFILEICICI prudential life insurance company is a joint venture between ICICI bank, a premier financial powerhouse, and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from insurance regulatory development authority (IRDA). ICICI prudential is also the only private life insurer in India to receive a national insurer financial strength rating of AAA (IND) from Fitch ratings. The AAA rating is the highest credit rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims

HISTORY OF PRUDENTIALEstablished in 1848, today prudential plc is a leading international financial services company with some 21 million customers, policyholders and unit holders and some 23,000 employees worldwide. In the UK prudential is a leading life and pensions provider with around seven million customers.

M&G was acquired by prudential in 1999 and is the group's UK and European fund manager, responsible for managing over 149 billion (as at 31 December 2005).

Launched by prudential in 1998, egg is an innovative financial services company, with over 3 million customers with a market share of 5% of UK credit card balances. In Asia, prudential is the leading European life insurer with life and fund management operations in 12 Countries serving some seven million customers. In the US, prudential owns Jackson national life, a leading life insurance company, and has more than 3 million policies and contracts in force.

VISION OF THE COMANY

To make ICICI prudential the dominant life and Pensions player built on trust by world-class people and service. This we hope to achieve by: Understanding the needs of customers and offering them superior products and service. Leveraging technology to service customers quickly, efficiently and conveniently. Providing an enabling environment to foster growth and learning for our employees.

VALUES OF THE COMPANY

Every member of the ICICI prudential team is committed to 5 core values: integrity, customer first, Boundary less, ownership, and passion. These values shine forth in all we do, and have become the keystones of our success.

DEFINITION OF SALES, DISTRIBUTION AND MARKETING

mean supplying goods to the Customer. Sales take place in the minds of the buyer after the products are made known to them through marketing. Hence, marketing and selling are interrelated.

Sales:

Marketing: means movements of goods through distributionchannel. Through marketing consumers are made to understand the quality and usefulness of the products. Marketing is a comprehensive activity, as quantum of sales depends largely upon marketing.

CHANNEL MARKETING SUPPORT TO TIED AGENTSCertificatesThese are awarded to top performing advisors for their contribution to sales of pension plans, unit linked plans and sales to high net worth individuals. It is a source of instant gratification to the sales team for their performance.

BannersThe corporate banner was designed for the launch of the church gate branch. it can be used to provide corporate brand visibility for similar occasions.

Backdrop for exhibition stallThis backdrop was designed to provide corporate brand visibility for the exhibition stall at in ETAH. It can be used for forthcoming personal finance exhibitions that we participate in.

INSURANCE

Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party happening of a certain event. Insurance is a protection against a financial loss arising on the happening of an unexpected event. Insurance companies collect premium to provide for this protection. A loss is paid out of this premium collected from the insuring public. The Insurance company act as a trustee to the amount collected through premium. Insurance is generally classified in three main categories, Life insurance, Health insurance and General insurance

NEED OF THE INSURANCE

Encourages and forces compulsory savings unlike other saving instruments, wherein the saved money can be easily withdrawn. Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan.

Offers tax relief to policyholders.

Hedges risk against uncertainty.

For a policy taken under the MWP Act 1874, (Married Women's Property Act), a trust is created for wife and children as beneficiaries.

Based on the concept of sharing of losses, the society will benefit as catastrophic losses are spread globally.

BENEFITS OF INSURANCE:

Insurance is the instrument of security, saving and peace of mind. It provides several benefits by paying a small amount of premium to insurance company as: Safeguards oneself and one's family for future requirements. Peace of mind-in case of financial loss. Encourage saving. Tax rebate

Protection from the claim made by creditors.

Security against a personal loan, housing loan or other types of loan.

Provide a protection cover to industries, agriculture, women and child

PRODUCTS OF THE ICICI PRUDENTIAL:INSURANCE SOLUTION FOR INDIVIDUALS: ICICI Prudential Life Insurance offers a range of innovative, customer-centric product that meets the needs of customers at every stage. SAVINGS & WEALTH CREATION PLANS:

Save n Protect Cash back. Life Time Gold Life Stage RP Life Link Super Premier life Gold. Invest Shield Cash Back.

RETIREMENT SOLUTION:

Forever Life Life Time Super Pension Life Stage Pension Life Link Super Pension Immediate Annuity

HEALTH SOLUTION:

Health Assure Plus Cancer Hospital Care Crisis Cover Diabetes Care Active Medi Assure Health saver

PROTECTION SOLUTION:

Pure protect Life Guard Home Assure Life Stage Assure

CHILD PLANS:

Smart Kid New ULRP

GROUP INSURANCE SOLUTION:

ICICI Prudential also offers group insurance solution for companies seeking to enhance benefit to their employees. Group Gratuity Plan Group Superannuation Plan Group Immediate Annuities

FLEXIBLE RIDER OPTIONS:

ICICI Prudential Life Insurance offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. Accidental & Disability Benefit Critical Illness Benefit Wavier of premium Income Benefit Ride

PROCESS OF RESEARCH:For conducting research personal contacts for necessary actions for which a number of relevant questions in respect of the same can also not dispensed with in order to obtain a clear picture of the topic, following questions were formulated for obtaining concrete views of the individuals of different kinds. Personal contracts with 162 persons belonging to the age group of 18-65 out of which 45 were female 117 were male. In this 52 were government servants, 65 were businessmen, and 45 were professionals.

DATA ANALYSIS

How much amount of money do you invest annually? 10000-20000 20000-30000 30000-50000 more than 50000

S. N. 1 2 3 4 TOTAL

Amount Investing 10000-20000 20000-30000 30000-50000 Above 50000 TOTAL

Respondent 24 13 09 04 50

25

20

15 series 1 10 Series 2

5

0

10000-200000

20000-30000

30000-50000

above 50000

Q. 2-

DO YOU NEED A LIFE INSURANCE PROTECTION?

Ans:- Life insurance is very necessary because there is no certainty oflife any mishap can occur at any time. In this situation if the guardian of the family who supports the family dies untimely remaining members of the family may be compelled to face lot of problems. To compensate them life insurance policy may prove fruitful to that family in order to maintain stability in the family. Some people revealed that there is no need of life insurance protection because if we born it is god who will look after them. The survey of 162 people ensures that 82% people want the life insurance protection while 18% people did not want the life insurance protection.

Q 3- DO YOU KNOW ABOUT ICICI PRUDENTIAL LIFE INSURANCE?ANS - After the survey was conducted was conducted the result which used to come out is that in 162 people 92% people said that they know ICICI prudential 92% means 149 while 8% said that they dont know it 8% means 13 people. it means that people is very much aware about ICICI prudential

8%

YES NO

92%

Q 4- ARE YOU USING ANY PRODUCT OF ICICI PRUDENTIALAns - In the survey of 162 people 67% people said that they are using the product of ICICI prudential i.e. 108 while 33% said that they are not using any product of life insurance i.e. 54.

33%

67%

CUSTOMER NON-CUSTOMER

Q 5- IF YES, THEN WHAT IS THE PURPOSE OF IT?Ans - This question is directly related to the above one, 67% people are using the product of ICICI prudential the purpose is given below according to the percentage and number of the people.

S. no. 1. 2. 3. 4. 5.

Purpose Tax saving purpose Investment purpose Business purpose High investment return purpose Life insurance purpose

%age of people No. of people 7 18 8 35 32 7 19 9 38 35

35 30 25 20 15 10 5 0 %a g e o f p e o p le

T a x S a v in g P u rp o s e

S h o rt T e rm In v e s t m e n t P u rp o s e B u s in e s s P u rp o s e

H ig h In v e s t m e n t R e tu rn P u rp o s e L i f e In s u r a n c e P u rp o s e

Q 6- DO YOU THINK THAT ICICI PRUDENTIAL HAS BEEN

SUCCESSFUL IN CAPTURING THE MARKET IN VERY SHORT PERIOD?Ans: After conducting the survey what is revealed that 84% i.e. 136 people said that yes ICICI prudential has been successful in capturing the market in very short period while 16% i.e. 26 people said no. In this way ICICI prudential has been successful in capturing the market in very short period. \s People who said no are mini minded they faith in government sector because there is no chance of losing their money. So thats why they dont want to adopt ICICI prudential policies.

26%

YES NO

74%

Q 7- WHAT ARE THE CRITICAL SUCCESS FACTORS OF ICICIPRUDENTIAL, ACCORDING TO YOU FOR ACHIEVING ITS GOAL IN VERY SHORT PERIOD ?Ans- Answer of this question is according to the percentage of people.

S.No.1. 2. 3. 4. 5.

success factorsCustomer satisfaction Product benefitHigh investment return

%age of people No. of people 29 21 19 25 6 43 32 28 37 9

Brand name of ICICI Long channel of distribution

Brand Nam e of ICICI 25%

%age of people Long Channe l of Dis tributi Cus tom e on r 6% Satis facti on 29%

High Inve s tm e nt Re turn 19%

Product Be ne fit 21%

Q-8 WHICH LIFE INSURANCE COMPANY YOU BELIEVEMOST? Ans - In this question the options for the people are government or privatecompany. The answer is given in table given below:-

S.No.

Sector

% of people

No. of people

1.

Government

31

50

2.

private

69

112

33% Govt Sec Pvt Sec 67%

Q-9 WHICH PLAN YOU WANT MOST?Ans - After conducting the survey I had found that people want to invest the money with life insurance plan in order to get high return after getting the final result what I come to know people want to invest their money in life time policy because in this policy the rate of interest is very good

S.No. 1. 2. 3. 4.

Types of plan ULIP retirement plan child plan health plan

% of people 53 19 16 12

No. of people 71 25 21 16

60 50 40 30 20 10 0

53

% P of eople

19

16

12

U IP L

R etirem ent C P hild lan H ealthP lan

SUGGESTIONS:

People still doubt the private companies whether they provide return or not and their money will safe or not.

Company should improve the quality If the adviser so that they can provide full information to the customers. People still investing in the bank FD and post. To capture that market company should come with the products, which are more safe and having good return capacity. Company should also give more focus on professionals and the businessman who can be the more profitable for the company.

CONCLUSION:After survey its known:

That people want to invest in the ULIPs than other policy. The reason is that it gives reasonable return with lore safety than other plan of Private insurance players. People should be given more knowledge about the benefit of the insurance. As the trust on private player is less the company should work on the getting the full trust of all the insurance. From this internship I understood about the life insurance. The internship work has given me a deep insight of management of life insurance of different companies.

It seems that to sell a life insurance policy is a hard nut to crack but if you are clear to your objective and the way, which get you to your destination no one, can stop you.

In the end I want to say about ICICI prudential Life Insurance Company is that? Services of ICICI prudential are very transparent. It is available throughout the country. Customer satisfaction is the major intention from ICICI prudential.

ICICI PRUDENTIAL IS MADE FOR ALL CLASS OF SOCIETY

LIMITATIONS OF THE STUDY:As this study is based on sample survey, therefore there might be chances of some little variation from census survey.

Some of data are highly sensitive, therefore some of respondents might give wrong information about their personal detail viz. Income.

This survey is conducted within Etah city; therefore it might not be generalized for other cities