PROJECT REPORT
ON
“DYNAMICS OF INSURANCE AGENCY DEVELOPMENT”
At
(Submitted in Partial Fulfillment for the Award of Degree
Master of Business Administration)
(M.B.A)
Submitted by: -
Sandeep Sharma
Institute Of Management Studies
(Kurukshetra University, Kurukshetra)
Acknowledgements
I express my sincere gratitude to ICICI Prudential Life Insurance and its entire
staff for giving me this wonderful opportunity to work and get to know more about
the Insurance industry and Insurance Agency Development.
With deep sense of gratitude I express my indebtedness to my mentor and guide
Mr. Satnam Singh (UM), ICICI Prudential Life Insurance, Panipat. He has
been a great source of inspiration. I thank him for his keen interest and valuable
guidance. He was also kind to discuss the problems faced during the course of
this project.
I take this opportunity to thank Mr. Satnam Singh, (UM) who gave me this
opportunity to do my project at this Organization.
(Sandeep Sharma)
S.No Particulars
1. Acknowledgement
2. Executive Summary
3. Project Objective
4. Introduction
5. Introduction to Study Undertaken
6. Statement of objective
7. Research Methodology
8. Analysis And Interpretation
9. Conclusion & Finding
10. Recommendation
11. Limitation
12. Annexure
13. Bibliography
EXECUTIVE SUMMARY
ICICI Prudential Life Insurance co. ltd is the #1 private life insurers in the world.
The project was undertaken to study the dynamics of insurance agency
development and need of life insurance in human life. The study of ICICI
Prudential life group is undertaken to understand the services provided by ICICI
Prudential to their customers as well as the insurance advisors recruitment
process adopted by ICICI Prudential Life Insurance Company.
The project was studied to know how ICICI Prudential life is promoting
their insurance advisors in the field helping them to bring more and more
business by the means of handsome commission structure, renewal
commissions, rewards, trophies and certificate, honoring them in front of other
insurance advisors. ICICI Prudential also provides other future prospects to their
advisors. This all not only increases the efficiency of the winners but also of
those who have under performed. Through this process ICICI Prudential also win
customers by strong commitment to life insurance advisors.
INTRODUCTION TO INSURANCE INDUSTRY
Insurance is the outcome of man's search for security and for finding out ways
and means of ameliorating the evil consequence of sudden calamities.
Insurance is a co-operative venture whereby risks and many shares lose.
The modern setup of industrialization has rendered man and his property most
vunerable to different types of risks and uncertainties. Death, unemployment and
sickness are constantly staring the face of man and also his properties are
exposed to risks, which may arise, from fire, water, accident, wind-storm, earth
quakes and floods etc.
The total annual losses to humanity from untimely death and to businessman
from risks are too much to be calculated. Thus, arise the need of insurance in a
planned way whereby the above risks are minimized as explained above with the
growth of industrialization and rapid increase in the number of situations in which
the human life and property get exposed to risks. Thus, the effective solution of
reducing the burden of these risks has been devised by shifting these risks to
agencies or persons calling to share them are known as insurance.
Insurance is a 4 billion business in India and yet its spread in the country is
relatively thin. Insurance as a concept has not been able to make headway in
India. Presently LIC enjoys a monopoly in life insurance business while GIC
enjoys it in general insurance business. There have been very little option before
the consumer to decide the insurer. A successful or IRA BILL has cleared the
way of private operators in collaboration with their overseas partner. It is likely to
bring in a more professional and focused approach. Moreover the foreign players
would bring sophisticated techniques with then. It is very important that trained
professional who are able to communicate specific features of the policy should
sell the policy.
Definition General Definition
In the words of John Magee, "Insurance is a plan by which large number of
people associated themselves and transfer to the shareholders of all, risk that
attach to individuals."
Fundamental Definition:
In the words of D.S. Hansell, "Insurance may be defined as a social devices
providing financial compensation for the efforts of misfortune, the payment being
made from the accumulated contributions of all parties participating in the
scheme."
Characteristics of Insurance
Sharing of risks
Cooperative devices
Evaluation of risks
Payment on happening of a special event
The amount of payment depends on the nature of losses incurred
Opening Up Of Insurance Sector
Indian History: Time to turn the clock back-and open up insurance
For two years, around 30 foreign insurance have eagerly explored the
nationalized Indian Insurance market, preparing to leap in when private
participation is allowed. But it seems that they have an endless wait before the
sector is opened up. That's ironical: in 1947, many of these insurance were firmly
established here. BAT subsidiary eagle star, for example, opened offices in
Calcutta in 1894. By 1921, it was doing business with Brooke Bond and Birlas.
Prudential first Asia office was opened in India in 1923. Fifty years ago, India has
busting, if somewhat chaotic, entirely private insurance industry. The year after
independence, 209 life insurance companies were doing business worth Rs.
712.76 crores.
General insurance had its turn in 1972, when 107 insurers were amalgamated
into four companies headquartered in the four metros, with GIC as a holding
company. Nationalization has brought some benefits. Today 48% of LIC new
business is rural. Net premium in general insurance grew from Rs. 222 crores
in1973 to Rs. 5,956 crores in 1995-1996.
Marketplace in 21st Century
An in depth analysis of demographic factor that will effect the life health
insurance industry in the next century, has uncovered trends that show
increasing diversity that adds to challenges and opportunities. Coning &
Company, which did the study, said that success in the marketing of products
would come to those insurers that become creative in capturing a wider range of
customers by using multiple distribution channels. The diversity uncovered by the
coming study includes the aging population, increasing household income
inequality and social fragmentation.
Challenges/opportunities
The study, "21st century demographic for the life health industry, "delineates the
following and opportunities:
Population around the world is aging; number of people in his old age is growing
continuously. As the population ages products such as annuities, IRAS and
defined contribution retirement plans have enormous growth potential.
The changing composition of households from traditional family units to single
households also presents untapped market with real needs of life health and
retirement products. Growing income inequality means that insurance should find
ways to markets their services cost-effectively to all economic sector, particularly
middle class. Insurance must recognize that small business now make up a
growing portion of the world economy, presenting a huge opportunity for growth
in this market.
Governments Role
Governments are keen to reduce the dependency on the state via private
pension provision. They have a choice between using compulsion and
incentives. Most of the governments choose the latter method. Tax relief is
granted to the pensions plans and is extremely generous, reflecting the value
that the govt. and the society at a large place on the provision or retirement
benefit. Tax treatment of the benefit varies by countries. In India, the proceeds of
the gratuity and provident fund are tax free in the hands as tax free lump sum
and remainder as taxable income. Benefit due on withdrawal from schemes are
generally taxed unless they are transferred to another scheme.
Collaboration of Indian Companies with Foreign Companies
S.No Indian Companies Foreign partnership
1. Kotak Mahindra Chubb
2. Tata Group AIG
3. Sundram Finance Winterthur
4. Sanmar Group GIO of Australia
5. Spic Metlife
6. ILFS Cigna
7. Alpic Finance Allianz
8. 20th Century Canada Life
9. Vysya Bank ING
10. Cholmandalam Axa
11. SBI Alliance Capital
12. HDFC Standard Life
13. ICICI prudential plc
14. Hindustan Times Commercial union
15. IDBI Principal
16. Max India New Yark Life
PRODUCT PORTFOLIO
PHILISOPHY
To provide protection to individuals at various life stages:
Young individuals, Married Couples with Children's, Matured Couples.
To provide solutions in various categories….
Life Insurance
Health Protection
Whole-Life Plans
Child Solutions
Retirement Planning
INTRODUCTION TO ICICI PRUDENTIAL LIFE CO. LTD.
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). ICICI Bank has 74% stake in the company, and
Prudential plc has 26%.
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.
ICICI Prudential has recruited and trained over 60,000 insurance advisors to
interface with and advise customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.
The company has network with 12 bancassurance tie-ups, having agreements
with ICICI Bank, as well as some corporate agents. It has also tied up with
organisations like Dhan for distribution of Salaam Zindagi, a policy for the
socially and economically underprivileged sections of society.
Today the company is the No.1 private life insurer in the country.
COMPANY VISION
To be the dominant
Life and pension player
Built on trust by the world class people
And services
COMPANY VALUES
1. Integrity
Walk the talk: live the values
Stand up honestly and fearlessly for what I truly care about
Customer first
Own the customer: deliver the promise
Listen actively, stretch continually to add values to customers and
channel partners
2. Boundary less
Never say “it’s my job” go beyond the call of duty
Experiment –believe anything is possible
3. Ownership
Own mistake. Learn from failure
Confront hard facts, pursue goals relentlessly
4. Passion
Winning instincts-transmit boundless energy and enthusiasm to
drive results
Demonstrate speed for competitive advantage
Progress so far… No. 1 private life insurer in the country
Equity based stands at Rs. 925 crore
The company issued nearly 4,50,000 policies in a year, taking a
total policy to cover 7,80,000
Total sum assured since inception has risen to16,000 crore
The company’s total income received premium income in FY04
was Rs. 989 crore, up 135% from last year
ICICI Prudential has emerged as the leading private life insurer,
closing the year 31, 2004 with retail market share amongst
private life insurer of36%
Over 60,000 insurance advisors
Over 150 years of experience in life insurance business
Leading international financial services company in UK
Around US $276 Billions funds under management, and more
than 16,000,000 customers worldwide
Market share of 23% in the total pension market between all life
insurer and 725-market share among private insurer
Largest distribution network among private players
67 branches across 45 locations
PROFILE
COMPANY NAME: ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.
INDIAN PARTNER: ICICI BANK
FORIGN PARTNER: PRUDENTIAL PLC
EQUITY RATIO: 74:26
COMMENCEMENT OF OPERATION: 19TH DECEMBER 2000
FIELD OF OPERATION: LIFE
HOME ADDRESS: ICICI PRUDENTIAL LIFE INSURANCE COMPANY
ICICI PRULIFE TOWERS, 1089, Appasaheb Marathe Marg, Prabhadevi,
MUMBAI- 400025
CEO OF THE COMPANY: Ms. SHIKHA SHARMA
MANAGEMENT: Board of Directors
Mr. K.V. Kamath, Chairman
Mr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. Kevin Holmgren
Mr. M.P. Modi
Mr. R Narayanan
Ms. Shikha Sharma, Managing Director
Management Team
Ms. Shikha Sharma, Managing Director
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Shubhro J. Mitra, Chief - Human Resources
Mr. Puneet Nanda, Head - Investments
Ms. Anita Pai, Chief - Operations & Underwriting
Mr. V. Rajagopalan, Appointed Actuary
Mr. Shridhar Sethuram, Chief - Sales & Marketing
Mr. Anil Tikoo, Head - Information Technology
HISTORY OF THE COMPANY
ICICI Prudential Life Insurance Company Limited (ICICI Pru)
- leading private life insurance company of India.
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.
PRUDENCIAL PLC (UK) 26%
ICICI BANK (INDIA)
74%ICICI PRUDENCIAL LIFE INSURANCE
Year of review 2003-2004:
ICICI Prudential has consolidated its position as the leading private life insurer in
India. ICICI Prudential's annualized premium grew more than three fold over the
previous year.
Continuing with its 'Customer First' philosophy, ICICI Prudential has significantly
expanded its presence to 29 operational Branches (2001-2002: 16), with the
Advisor.
Force growing to over 18,000. Its has also strengthened its Alternate Distribution
channels, i.e. Banc assurance, Corporate Agents and Direct Marketing, making
purchase of insurance more accessible. Banc assurance and Direct Marketing
channels have contributed to over 18% of the Annualized Premium.
ICICI Prudential was amongst the first to identify the emerging opportunity in the
Pension segment and launched two linked pension products- Lifetime Pension
and Life Link Pension, which have been well received in the market
BANCASSURANCE PARTNERS: ICICI Bank, Federal Bank, Bank of India, South Indian Bank, Lord Krishna
Bank, Goa State Co-operative Bank, Indoor Paraspar Sahakari Bank,
Manipal State Co-operative Bank, Jalgaon People's Co-operative Bank,
Shamrao Vithal Co-operative Bank, Punjab & Maharashtra Co-operative
Bank.
ABOUT JOINT VENTURE PARTNERS:
ICICI BANK ICICI Bank (NYSE:IBN) is India's second-largest bank with total assets of about
Rs.125,229 crore and a network of over 450 branches and offices and about
1790 ATMs. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels
and through its specialised subsidiaries and affiliates in the areas of investment
banking, life and non-life insurance, venture capital and asset management.
ICICI Bank is the only Indian company to be rated above the country rating by
the international rating agency Moody's 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.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution and was its wholly owned subsidiary. ICICI's shareholding in ICICI
Bank was reduced to 46% through a public offering of shares in India in fiscal
1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000,
ICICI was formed in 1955 at the initiative of the World Bank, the Government of
India and representatives of Indian industry. The principal objective was to
create a development financial institution for providing medium-term and long
-term project financing to Indian businesses. In the 1990s, ICICI transformed its
business from a development financial institution offering only project finance to
a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or
financial institution from non-Japan Asia to be listed on the NYSE.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the
merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with
ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank
in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002,
and by the High Court of Judicature at Mumbai and the Reserve Bank of India in
April 2002. Consequent to the merger, the ICICI group's financing and banking
operations, both wholesale and retail, have been integrated in a single equity.
EQUITY SHAREHOLDINGS
ICICI Bank's equity shares are listed in India on stock exchanges at Kolkata and
Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of
India Limited and its American Depositary Receipts (ADRs) are listed on the
New York Stock Exchange (NYSE).
Prudential plc 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 championed
customer-centric products and services, supported by over 60,000 staff and
agents across the region
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.
M&G was acquired by Prudential in 1999 and is the Group's UK and European
fund manager, responsible for managing over £112 billion of funds (as at
31 March 2004).
Launched by Prudential in 1998, Egg is an innovative financial services
company, with over 2.5 million customers with a market share of nearly 5% of
UK credit card balances.
In Asia, Prudential is UK's largest life insurance company with a vast network of
23 life & fund management operations in 12 countries serving 4 million
customers- China, Hong Kong, India, Japan, Indonesia, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand & Vietnam.
In the US, Prudential owns Jackson National Life, a leading life ins. company &
has more than 1.5 million policies and contracts in force.
Commitment & Aim
According to them- our commitment to the shareholders who own Prudential is to
maximise the value over time of their investment. We do this by investing for the
long term to develop and bring out the best in our people and our businesses to
produce superior products and services, and hence superior financial returns.
Our aim is to deliver top quartile performance among our international peer
group in terms of total shareholder returns.
At Prudential our aim is lasting relationships with our customers and
policyholders, through products and services that offer value for money and
security. We also seek to enhance our Company's reputation, built over 150
years, for integrity and for acting responsibly within society.
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India, having commenced operations in 74 cities and towns in India.
These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Anand, Aurangabad,
Bangalore, Bareilly, Bharuch, Bhatinda, Bhopal, Bhubhaneshwar, Calicut,
Chandigarh, Chennai, Coimbatore, Dehradun, Durgapur, Faridabad, Goa,
Guntur, Guwhati, Gurgaon, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar,
Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur,
Kota, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore, Meerut,
Mehsana, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune,
Raipur, Rajkot, Ranchi, Rourkela, Saharanpur, Salem, Shimla, Siliguri, Surat,
Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vapi, Vashi,
Vijayawada and Vizag.
The company has seven banc 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 150 corporate agents and brokers. It
has also tied up with NGOs, MFIs and corporates for the distribution of rural
policies and organizations like Dhan for distribution of Salaam Zindagi, a policy
for the socially and economically underprivileged sections of society.
Further, it leverages its state-of-the-art IT infrastructure to provide superior
quality of service to customers.
PROMOTERS
ICICI Bank is India’s second-largest bank with total assets of about Rs.112, 024
crore and a network of about 450 branches and offices and about 1750 ATMs. It
offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, life and
non-life insurance, venture capital, asset management and information
technology. ICICI Bank posted a net profit of Rs.1,637 crore for the year ended
March 31, 2004.ICICI Bank’s equity shares are listed in India on stock exchanges
at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the
National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).
Established in London in 1848, Prudential plc, through its businesses in the UK
and Europe, the US and Asia, provides retail financial services products and
services to more than 16 million customers, policyholder and unit holders
worldwide. As of June 30, 2004, the company had over US$300 billion in funds
under management. 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 the leading European life insurance company with a vast network of
24 life and mutual fund operations in twelve countries - China, Hong Kong, India,
Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand
and Vietnam.
PRUDENTIAL PLC
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 UK's 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.
PLANS OFFERED BY ICICI PRUDENTIAL
Protection Plans
Saving Plans
Investment Plans
Children Plans
Health Plans
Rural Plans
Group Plans
Some famous products offered by ICICI Prulife
Save’n’protect
ICICI Prudential life insurance co. ltd., India’s no. 1 private
life insurance company, offers you save’n’protect-an ideal
plan for those who want to accumulate funds on regular
basis while enjoying insurance protection.
Life Guard
Level term assurance – under this plan, in case of death of
the life assured during the term, the Sum Assured will be
paid to the beneficiary. There are no maturity benefits.
Hence on survival till maturity, the policy will terminate.
You will need to pay the regular annual premium, for
the term choosen. You will be provided with life cover equal
to the Sum Assured.
INVESTSHIELD LIFE
You have already set out your financial goals for the future.
However, life’s uncertainties make cause you to change
them over a period of time. While the need to protect your
family and your capital in your priority, you also want to earn
enough on your investment, so as to meet your wealth
creation requirement.
At ICICI Prudential, we constantly strive to understand
your needs and provide solutions that help you plan your
future better. In keeping with that endeavour, we present
INVESTSHIELD LIFE, a regular premium unit linked plan
with capital guarantee.
INVESTSHIELD PENSION
When it comes to retirement, you think you will manage just
fine. Are you making enough investments and savings
towards that end? Ordinary savings can get frittered away
due to unforeseen expenses. Besides, even when you
retired, you would still like to continue doing the things you
have always enjoyed such as eating out, taking a holyday,
buying gifts for loved ones, pursuing your hobby, taking your
grand children on outings, etc. after all, you would like to
“retire from work, not life.”
SMART KID
To bring your dreams to life, you need an investment that is
designed to provide adequate money for key educational
milestones in your child’s life, No matter what happens.
That’s why, we now present SMART KID REGULAR
premium plan. This is a regular premium; traditional plan
with two options to receive guaranteed educational benefits,
no matter what the uncertainties in your life.
HEALTH ASSURE PLAN
A long-term critical illness plan-health assure covers you for
a long term. It guarantees to pay the benefits amount on
diagnosis of the specified critical illness. This is a
comprehensive critical illness plan, which can take care of
direct medical expenses as well as other indirect expenses,
arising during the treatment. On diagnosis of a specified
critical illness, you can claim the benefits under this plan
through a simple claim procedure.
CANCER CARE
CANCER CARE plan keeps you financially prepared, so that
you can focus on getting better without worrying about the
money. Through its extensive coverage of both early and
advanced cancer, the plan provides the necessary financial
resources so that you get the best possible medical
treatment as early as possible, and maximize your chances
of survival.
CHANNEL DEVELOPMENT
Recruitment of qualify & Persuasive insurance advisors
Further guidance
Team support
Smart Research work
Promotional opportunities
Recruitment of Life Insurance Advisors
ICICI Prudential is registered with the insurance regulatory & development
authority under the insurance act, 1938 (4 of 1938) (hereinafter referred to as
the“act”) as a life insurer, and accordingly is engaged in the business of life
insurance.
ICICI Prudential is desirous of appointing the insurance advisors as its
insurance advisor for soliciting and procuring life insurance business for and on
behalf of ICICI Prudential, and to provide various services to the customers and
policyholders.
The insurance advisors holds /shall obtain an insurance license (as defined in the
agreement hereinafter) to act as an insurance agent as provided by section 42 of
the insurance act, 1938 and is desirous of being appointed as an insurance
advisor of ICICI Prudential.
BE YOUR OWN BOSS EARN BEYOND YOUR
IMAGINATION
Who can be a Life Insurance Advisor
Businessman
House Wife
VRS Optee
General Insurance Agent
Teacher/Lecturer
Bond/Mutual fund/Postal Agent
Income Tax Officer/Advisor
Accountant/ Share Broker
JOIN ONE OF THE BIGGEST FORCES IN LIFE INSURANCE
WORK AS AN INSURANCE ADVISOR
Legal Advisor/Political Agent
Students etc.
Why to become an ICICI Prudential Life
Insurance Advisor?
Work from home or office
No prior selling skills required
Personals skills are enhanced by world class training
Foreign trips, Star Club Memberships, Consumer goods,
Gold coins, Reward items
What advisors get from ICICI Prudential Life?
No.1 private life insurance company
1st private life insurance company to have
more than 10 lac customers
Strong brand recognition
World class products and services
Career progression within the company
Unlimited earning potential
SOME GENERAL BENEFITS TO INSURANCE
ADVISORS
Handsome Commissions
Renewal Commissions
Identification
License to Sell insurance products
Zero Balance account in concerned bank
Growth Opportunities
Participations in contests
Company infrastructure facilities
Team support
Payments & Benefits-Commission Structure
Year 1 Year 2 Year 3
Number of policies sold 50 75 100
Average premium Rs. 16000 16000 16000
Total premium earned Rs. 800000 1200000 1600000
Average commission including
bonuses estimate @22.5%
180000 270000 360000
Earning from new business Rs. 180000 270000 360000
Commission on renewal premium
@6%
48000 72000
For year 2, 3 & 3% after that 48000
Earning from renewal business Rs. 48000 120000
Total earning Rs. 180000 318000 480000
* Depending on the product mix commission can go upto 35% in the 1st year, 7.5% in the 2nd
& 3rd year & 5% 4th year onwards.
Some of Our High Performers Get….
Year 1 Year 2 Year 3
Number of policies sold 100 150 200
Average premium Rs. 20000 20000 20000
Total premium earned Rs. 2000000 3000000 4000000
Average commission including
bonuses estimate @22.5%
450000 675000 900000
Earning from new business Rs. 450000 675000 900000
Commission on renewal premium
@6%
120000 180000
120000
Earning from renewal business Rs. 120000 300000
Total earning Rs. 450000 795000 1200000
* Depending on the product mix commission can go upto 35% in the 1st year, 7.5% in the 2nd
& 3rd year & 5% 4th year onwards.
ICICI PRU Star Club Benefits
No. of
people
Points
Platinum Star 25 1500
Diamond Star 25 1000
Gold Star 50 750
Silver Star 50 600
Bronze Star 75 500
Total participants 225
Plus free accidental insurance for all of Rs. 10 lakhs
With Spouse
Lapel pinsLetter headsVisiting cards for all
Career opportunities for ICICI Prulife’s Advisors
Agency champion
Through this program we take your business to the next level by giving you
the opportunity to increase your reach and earnings potentials. Presenting the
opportunities to become our agency champion.
Pinnacle Program
Pinnacle program is a meticulously designed program for career progression of
Advisor as UNIT MANAGER. A full time career resulting in increased monetary
benefits and better growth prospects.
Subsequently you have the opportunity where you get promoted to a
agency manager with an earning potential of Rs. 10 lacs p.a. with an eligibility for
ICICI Prustar membership, overses conventions. Management development
programs and others such additional benefits.
FAST TRACK PINNACLE PROGRAM
A Full Time Career As A Unit Manager
Growth within ICICI Prudential
Greater earning potential
Personal Development
Perfomance Criteria
Age 25-45 years
At least 6 months in system
30 issuances within 6 months
Tiger team
A team handpicked with an aim to stave off competition with earnestness,
excellence and exuberance. The tiger team is a select cadre of performers
belonging to the different levels, leading upto the management level in the
organizations. Assimilating to the strength of its members, tiger team explores
the scope for enhanced learning and development from within and without, giving
you the dual advantage of career progression and self development. Currently
the organization has enrolled more than 65 aggressive Tiger Trainers (on rolls)
and 307 part time mobile tigers.
MDRT Program-
Another big program named as MILLION DOLLAR ROUND TABLE is also there
under which high performers get an opportunity to go abroad on the behalf of the
company. They represent their organization among the international players.
Support and training
At ICICI Prudential Life Insurance Co. Ltd., training is an intrinsic element of our
support system for our new advisors. Below are details of a few of our training
initiatives:
Foundation program:
Independent of your work experience, the foundation program will
perfect your knowledge about the insurance industry; equip you
with excellent selling skills along with a comprehensive knowledge
about our products.
Instant recognition:
Your achievements in the first three months of business will be well
acknowledged with our SPRINT and RACE awards. These are
trophies accompanied by a certificate and point rewards given to
you for getting off to a flying start.
Business development clinic:
After one month of the field experience, this programme will give
practical insights on objection handling and generate ideas to get
new customers and big premium policies.
Advance training programs:
Once you are accustomed to the life insurance industry, the
company will continuously upgrade your capabilities and knowledge
through sophisticated training programs on financial products and
markets. These advanced selling skills seminars will assist you in
planning for high net worth customers and building your business
through relationship management.
GENERAL TERMS AND CONDITIONS APPLICABLE TO FINANCIAL
CONSULTANTS OF THE COMPANY:
1. DEFINITIONS:
Unless the context otherwise requires
i. “Act” means the Insurance Act, 1938 and includes any amendment thereto or
enactment thereunder;
ii. “Agent” or “Insurance Agent” means an agent licensed under Section 42 of
the Insurance Act 1938 (as amended) and appointed by the Company and
shall have the meaning set out in Regulations framed by the Insurance
Regulatory and Development Authority from time to time;
iii. “Authority” or the “IRDA” means the Insurance Regulatory and Development
Authority constituted under section 3 of the IRDA Act 1999;
iv. “Company” means ICICI PRULIFE Insurance Company Limited;
v. “Insurance Advisor” means and includes an Agent.
2. CODE OF CONDUCT:
Every person who is appointed as Insurance Advisor by the Company and who
holds a licence under Section 42 of the Act, shall adhere to the model code of
conduct as specified below:-
I. EVERY INSURANCE ADVISOR SHALL;
(a) Identify himself and ICICI PRULIFE Insurance Company Limited, of
whom he is an insurance agent to all the prospects;
(b) Disclose his licence to the prospect if so demanded;
(c) Disseminate the requisite information in respect of insurance products
offered for sale by his insurer and take into account the needs of the
prospect while recommending a specific insurance plan;
(d) Disclose the scales of commission in respect of the insurance product
offered for sale, if asked by the prospect;
(e) Indicate the premium to be charged by the insurer for the insurance
product offered for sale;
(f) Explain to the prospect the nature of information required in the proposal
form by the insurer, and also the importance of disclosure of material
information in the purchase of an insurance contract and shall never
persuade or encourage any prospect not to divulge or disclose any
information which is relevant to the insurer for the purpose of underwriter;
(g) Bring to the notice of the insurer any adverse habits or income
inconsistency of the prospect, in the form of a report (called “Insurance
Agent’s Confidential Report”) along with every proposal submitted to the
insurer, and any material fact that may adversely affect the underwriting
decision of the insurer as regards acceptance of the proposal, by making
all reasonable enquiries about the prospect;
(h) Obtain the requisite documents at the time of filing the proposal form with
the insurer; and other documents subsequently asked for by the insurer
for completion of the proposal;
(i) Inform promptly the prospect about the acceptance or rejection of the
proposal by the insurer;
(j) Advise every individual policyholder to effect nomination or assignment or
change of address or exercise of options, as the case may be, and offer
necessary assistance in this behalf, wherever necessary;
(k) The Insurance Advisor may receive cheques or Demand Drafts from
the policyholders towards payment of premium. However, in such a
situation, he will ensure that the cheques received are not back dated and
the cheque/ demand draft are deposited with the Company within the
grace period.
(l) The Insurance Advisor is not authorized and shall not be entitled
anytime to collect premium from the policyholders in cash and shall be
under obligation to disclose the prospect / policyholder that the payment
towards premium charges shall be accepted by the Company by way of
crossed cheques or demand drafts only. The Insurance Advisor further
shall inform and encourage the policyholder to write his/her policy number
on the back side of the instrument paying the premium charges.
(m) Render necessary assistance to the policyholders or claimants or
beneficiaries in complying with the requirements for settlement of claims
by the insurer;
(n) Every Insurance Advisor shall maintain strict confidentiality of the
information received from any prospect and / or the Company in the
course of business. Confidential information is elucidated as follows:
(i) The Insurance Advisor agrees that the Confidential Information is to
be considered confidential and proprietary to the Company and the
Insurance Advisor shall hold the same in confidence, shall not use
the Confidential Information other than for the purposes of its business
with the Company, and shall disclose it only to its officers, directors, or
employees with a specific need to know. The Insurance Advisor
shall not disclose, publish or otherwise reveal any of the Confidential
Information received from the Company and/or the prospect to any
other party whatsoever except with the specific prior written
authorization of the Company.
(ii) The Confidential Information furnished in tangible form shall not be
duplicated by the Insurance Advisor except in the course of
business. Upon the request of the Company, the Insurance Advisor
shall return all Confidential Information received in written or tangible
form, including copies, or reproductions or other media containing
such Confidential Information, within ten (10) days of such request. At
the Recipient's option, any documents or other media developed by
the Insurance Advisor containing Confidential Information may be
destroyed by the Insurance Advisor. The Insurance Advisor shall
provide a written certificate to the Insurance Advisor regarding
destruction within ten (10) days thereafter.
(iii) The Insurance Advisor shall have no obligation under this with
respect to Confidential Information which is or becomes publicly
available.
II. NO INSURANCE ADVISOR SHALL:
(a) Solicit or procure insurance business without holding a valid licence;
(b) Induce or pursuade any prospect to omit any material information in the
proposal form;
(c) Induce the prospect to submit wrong information in the proposal form or
documents submitted to the insurer for acceptance of the proposal;
(d) Behave in a discourteous manner with the prospect;
(e) Interfere with any proposal introduced by any other insurance agent;
(f) Offer different rates, advantages, terms and conditions other than those
offered by his insurer;
(g) Demand or receive a share of claim proceeds from the beneficiary under
an insurance contract or offer any share payable out of the commission
which may be received by the Insurance Advisor from the Company. ;
(h) Force, pursuade or induce a policyholder to terminate any existing policy
and to effect a new proposal from him;
(i) Have, in case of a corporate agent, a portfolio of insurance business under
which the premium is in excess of fifty percent of total premium procured,
in any year, from one person (who is not an individual) or one organization
or one group of organizations;
(j) Become or remain a director of any insurance company;
III. EVERY INSURANCE ADVISOR SHALL:
With a view to conserve the insurance business already procured through him,
make every attempt to ensure remittance of the premiums by the
policyholders within the stipulated time, by giving notice to the policyholder
orally and in writing;
3. ADVERTISEMENT AND PUBLICITY:
Every Insurance Advisor shall, during the conduct of his agency business,
adhere to the provisions of the Insurance Regulatory and Development
Authority (Insurance Advertisements and Disclosure) Regulations, 2000.
In accordance with the advertisement regulations issued by the IRDA, the
Insurance Advisor are required to obtain prior approval in writing, of the
Company for issue of any advertisement. However in the following cases
such prior written approval is not required:
a. Advertisements developed by the Company and provided to the
Insurance Advisors;
b. Generic advertisements limited to information like the name, logo,
address, and phone numbers etc of Insurance Advisors; and
c. Advertisements that consist only of simple and correct statements
describing the availability of lines of insurance, references of
experience, service and qualifications; but making no reference to
specific policies, benefits, costs or the Company.
4. OTHER INSURANCE AGENCIES:
In accordance with the Insurance Regulatory and Development Authority
(Licensing of Insurance Agents) Regulations, 2000, an insurance agent can
act on behalf of only one life insurer and one general insurer at one time.
Hence the Insurance Advisors are needed to ensure that the do not take up
life insurance agency of any other life Insurer. He may however act as a
general insurance agent for one general insurer, subject to his meeting the
applicable regulatory requirements.
5. MINIMUM BUSINESS AND COMMISSIONS:
As our consultant, the Insurance Advisor shall be entitled to receive
Commission on the premium generated by the Insurance Advisor and the
rates of Commission will be informed to the Insurance Advisor separately
from time to time. While ensuring that the existing business continues, the
Insurance Advisors are also required to bring in minimum new business for
the Company, which will entitle the Insurance Advisor to a Net Effective
Premium at such rates as may be determined by the Company from time to
time. The minimum business to be procured by the Insurance Advisor
during a business year will be determined by the Company on an annual
basis. The business year would be a period of 12 months ending on 30th
June every year and the first business year will be a period from the date of
appointment upto the forthcoming 30th of June. The business targets for the
first business year shall be pro-rated on the number of complete months from
the date of appointment upto the end of the business year.
Net Effective Premium:
The Company would measure a consultant’s performance annually based on
commission on account of new business procured adjusted to commission on
reduced premiums and premiums not collected due to:
i- lapses,
ii- Cancellation of riders,
iii- Cancellation of policies,
iv- Surrenders,
v- Reduction of sum assured (including conversion to paid-up)
with respect to policies/ business procured in the previous 2 business years.
This measurement is termed as ‘Net Effective Premium’ and the weightages
for reduction in premiums or lapses of policies are in proportion to the
reduction of premiums and are subject to change from time to time.
6. PAYMENT OF COMMISSION ON POLICIES ON OWN LIFE:
In terms of Rule 16-B of the Insurance Rules, 1939, an agent shall not be
entitled to commission on any policy taken out by him on his own life unless
he has secured policies on six different lives excluding his own and he has
also been an insurance agent continuously from the time of his soliciting or
procuring the first policy on each of such six lives or proposing on the policy
of his own life, whichever is earlier, till the time when the policies on those six
lives and the policy on his own life have all been issued.
7. PAYMENT OF COMMISSION IN CASE OF DEATH:
In the event of death of an Agent, the commission payable to him under the
provisions of clause (b) and (c) of Section 44(1) of the Act, shall continue to
be payable to his nominees, if any, or to his heirs for so long as the
commission would have been paid to the Agent if he were alive.
8. PAYMENT OF COMMISSION IN CASE OF TERMINATION:
Where the agency contract has been terminated for reasons other than fraud,
the commission on renewal premium shall be paid in accordance with the
provisions of clauses (a), (b) & (c) of the proviso to Section 44(1) of the Act.
9. CHARGES:
Every agent shall at the time of applying for Agency, pay a sum of Rs. 600/-
to the Company towards licensing and examination fees and franking
charges. The said rates are subject to revision in accordance with the
applicable rules and regulations.
10.PROHIBITION OF REBATE:
Every agent shall observe and adhere to the provisions of Section 41 of the
Insurance Act, 1938 reproduced hereunder and also bring the same to the
notice of the prospect:
“Section 41
(1) No person shall allow or offer to allow either directly or indirectly, as an
inducement to any person to take out or renew or continue, an insurance
in respect of any kind of risk relating to lives or property in India, any
rebate of the whole or part commission payable or any rebate of the
premium shown on the policy nor shall any person taking out or renewing
or continuing a policy accept any rebate except such rebate as may be
allowed in accordance with the published prospectuses or tables of the
Insurer.
(2) Any person making default in complying with the provisions of this Section
shall be punishable with fine, which may extend to five hundred Rupees.”
11.RURAL SECTOR OBLIGATIONS:
The Insurance Advisor may be aware that under the Insurance Regulatory
and Development Authority (Obligations of Insurers to Rural or Social
Sectors) Regulations, 2000, the Company is required to procure a minimum
business from both the Rural and Social sectors. In view of this, we may
request the Insurance Advisors from time to time to procure certain
minimum business from these sectors.
For the purposes of procuring insurance business from the Rural sector, the
rural sector shall have the meaning as given in the Insurance Regulatory and
Development Authority (Obligations of Insurers to Rural or Social Sectors)
Regulations 2000 as amended from time to time.
12.SOCIAL SECTOR OBLIGATIONS:
For the purposes of procuring insurance business from the social sector, the
social sector shall have the meaning as given in the Insurance Regulatory
and Development Authority (Obligations of Insurers to Rural or Social
Sectors) Regulations 2000 as amended from time to time.
13.NO AUTHORITY TO COLLECT MONEYS:
The Insurance Advisors not authorized to collect any money/premium in
cash from the prospects and/ or policyholders under any circumstances.
14.NO AUTHORITY TO ACCEPT RISKS:
The Insurance Advisors are not authorised to accept any risk for or on
behalf of the Company.
15.NO AUTHORITY TO ISSUE RECEIPTS:
The Insurance Advisors are not authorised to issue any type of receipt
whether on personal letterhead or on the Company’s behalf to any person, in
respect of monies collected by them.
16.GROUP INSURANCE BUSINESS:
Unless specifically permitted, the Insurance Advisors are not authorised to
procure Group Insurance business for the Company.
16(a.) The Insurance Advisor authorises the Head-Retail Sales to act as a group
Organiser/Manager to arrange the group insurance on the life of Financial
Consultant as and when eligible for the same. It is understood that the
eligibility for the Group Insurance shall be on the basis of criteria to be
decided by the Head-Retail Sales at his sole discretion from time to time.
17.DISQUALIFICATION OF AGENT:
A Insurance Advisor’s licence is liable to be cancelled if the Financial
Consultant suffers, at any time during the currency of the licence, from any of
the disqualification’s mentioned in sub-section (4) of Section 42 of the Act,
and the Company may recover from him the licence and the identity card
issued earlier along with all other documents, literatures, booklets, tables etc.
that belong to the Company. The disqualifications mentioned in Sub-section
(4) Of Section 42 of the Act are:
a. That the person is a minor.
b. That he is found to be of unsound mind by a Court of competent
jurisdiction;
c. That he is found guilty of criminal misappropriation or criminal breach of
trust or cheating or forgery or an abatement of or attempt to commit any
such offence by a court of competent jurisdiction;
Provided that where at least five years have elapsed since the completion
of the sentence imposed on any person in respect of any such offence,
the Authority shall ordinarily declare in respect of such person that his
conviction shall cease to operate as a disqualification under this clause.
d. That in the course of any judicial proceeding relating to any policy of
insurance or the winding up of an insurance company or in the course of
an investigation of the affairs of an insurer, it has been found that he has
been guilty of or has knowingly participated in or connived at any fraud,
dishonesty or misrepresentation against an insurer or an insured;
e. That he does not possess the requisite qualification and practical training
for a period not exceeding12 months, as may be specified by the
Regulations, made by the Authority in this behalf;
f. That he has not passed such examination as may be specified by the
Regulations made by the authority in this behalf;
Provided that a person who had been issued a licence under Section
41(1) or 64UM(1) of the Act shall not be required to possess the requisite
qualification, practical training and pass such examination as required by
clauses (e) and (f);
g. That he violates the code of conduct as may be specified by the
Regulations made by the Authority.
18.OBLIGATIONS UNDER THE IRDA (PROTECTION OF POLICYHOLDERS’
INTERESTS) REGULATIONS, 2002:
The following are the points to be noted and adhered to by the Financial
Consultants:
1. Regulation 3(2) - An insurer or its agent or other intermediary shall
provide all material information in respect of a proposed cover to the
prospect to enable the prospect to decide on the best cover that would be
in his or her interest.
2. Regulation 3(3) - Where the prospect depends upon the advice of the
insurer or his agent or an insurance intermediary, such a person must
advise the prospect dispassionately
3. Regulation 3(5) - In the process of sale, the insurer or its agent or any
intermediary shall act according to the code of conduct prescribed by:
i) The Authority
ii) The Councils that have been established under section 64C of the Act
and
iii) The recognized professional body or association of which the agent or
intermediary or insurance intermediary is a member.
4. Regulation 4(6) - Proposals shall be processed by the insurer with speed
and efficiency and all decisions thereof shall be communicated by it in
writing within a reasonable period not exceeding 15 days from receipt of
proposals by the insurer.
In order to assist the Company adheres to the time limit of 15 days
prescribed in this regulation, you are required to ensure that all
communications received by you in writing from the customer is delivered
to the Company within 24 hours of receipt.
5. Regulation 6(2) - While acting under regulation 6(1) in forwarding the
policy to the insured, the insurer shall inform by the letter forwarding the
policy that he has a period of 15 days from the date of receipt of the policy
document to review the terms and conditions of the policy and where the
insured disagrees to any of those terms or conditions, he has the option to
return the policy stating the reasons for his objection, when he shall be
entitled to a refund of the premium paid, subject only to a deduction of a
proportionate risk premium for the period on cover and the expenses
incurred by the insurer on medical examination of the proposer and stamp
duty charges.
This regulation provides an option to the Policyholder to return the policy
within 15 days of receiving it and getting a refund of the premium, less
certain specified deductions. Please note that in all such cases, the
Commission, NEP and all other benefits attached to such policy will be
recalled by us. This will be done either by way of adjustment from future
payments/benefits. Where such future payments are not available or are
inadequate, you may be required to pay over the same to us within such
time as we may specify then.
6. Regulation 11(4) - Any breaches of the obligations cast on an insurer or
insurance agent or insurance intermediary in terms of these regulations
may enable the Authority to initiate action against each or all of them,
jointly or severally, under the Act and/or the Insurance Regulatory and
Development Authority Act, 1999.
19.VALIDITY OF LICENCE & RENEWAL THEREOF:
The appointment as our Insurance Advisor is subject to your continuing to
hold a valid insurance licence at all times. If your insurance licence is
cancelled
or expires and is not renewed in time, the appointment as Insurance Advisor
shall ipso facto stand terminated on the cancellation or expiry of insurance
licence as the case may be. As required under the aforesaid Regulations,
before seeking renewal of the licence, the applicant would be required to
undergo practical training from an approved training institution.
It may be noted that once an appointment stand terminated as aforesaid, a
renewal or re-issue of licence shall not automatically revive agency with the
Company and the applicant shall have to submit a fresh application. In such
an event re-appointment shall be at the discretion of the Company.
20.DIRECTORSHIPS:
As required under the Insurance Regulatory and Development Authority
(Licensing of Insurance Agents) Regulations, 2000 please note that the
Insurance Advisors of the Company are not entitled to become or remain a
director of any Insurance Company.
21.MISSELLING AND PENALTY:
The Insurance Advisor shall fully understand the requirements of the
prospect and then suggest a suitable product. The Insurance Advisor shall
not induce any prospect into accepting any product, which the prospect didn’t
initially need, only for the generation of business. In the event of the prospect
rejecting the policy for the reason that the product was not what he had
required, such sale shall be treated as a miss-sale and the Company
Reserves the rights to penalise the Insurance Advisor by way of fine and/or
Penal action, which shall not be less than the cost incurred by the Company
on account of such sale.
22.TERMINATION OF THE AGENCY:
The Company shall also be entitled at any time to terminate your agency,
without thereby being liable for any compensation or damages, if in its sole
opinion,
(a) The performance of the Insurance Advisor has not been satisfactory; or
(b) The Insurance Advisor has acted in breach of the code of conduct or
any of the terms and conditions of appointment; or
(c) Any information furnished by the Insurance Advisor in relation with the
appointment is false; or
(d) The Insurance Advisor has acted in a fraudulent manner and continuing
the person as Insurance Advisor shall be prejudicial to the interest of
the Company.
23.TERMINATION
Notwithstanding anything herein before contained either party may terminate
the agency by giving a notice of one month to the other party without
assigning any reason thereto.
Any notice to be served hereunder shall be sufficiently served on the
Company, if served by Registered Post at its said Registered Office or any
other address as may be intimated by the Company to the Consultant in
writing, and shall be sufficiently served on the Consultant if sent to him by
Registered Post at his given address.
Upon termination of agency the terminated Insurance Advisor shall
forthwith surrender the identity Card as well as all other manuals, tables, rate
books, literatures, product guides etc. of the Company that are in there
possession, to the Company. Subject to the provisions of Section 44 of the
Insurance Act 1938 and the rules of the Company in this regard as laid down
from time to time, the terminated Insurance Advisor shall be entitled to
receive commission and renewal commission on the business brought in by
the Insurance Advisor prior to termination of the agency.
In the event of the agency being terminated within a period of 24 months from
the date of appointment, the Company shall be entitled to claim the entire
costs incurred on the Insurance Advisor for training. The Company
reserves the right to determine the extent of costs incurred as aforesaid.
This appointment shall be subject to jurisdiction of Courts at Mumbai. As a
matter of token of acceptance of the terms and conditions as detailed above,
the proposed Insurance Advisor / Insurance Advisor is required to sign
the original copy of the Terms and Conditions as having accepted and return
the original copy to the terms and conditions to the Company.
I SAY READ, UNDERSTOOD, AGREED AND CONFIRMED.
Name:
Address:
Date:
In the presence of Witness:
Signature:
Bancassurance
Why we are talking about Bancassurance?
Is it our idea or we have learnt from somebody?
Are we going to change the definition of ba?
What is our objective in starting ba?
Do we want to learn from the mistakes committed by established?
Definition of Bancassurance:
Bancassurance: Ba is the selling of insurance products through
a bank’s distribution channels to bank’s customers. It is a French term
bank Assurance, Bank Insurance, Assure Banking are used
interchangeably Universal Banking and One Stop Shop are further
extension of Ba.
Bank’s distribution channels:
Branch network
Tele banking
Statement inserts
ATMs I
Three Cutting Edge for banks:
Brand Loyalty
Data Bank
Face to face Contact
Bank’s advantage over Insurance:
Better hit ratio
Lower costs per sales
Access to middle income group
Better processing technology
More information knowledge of potential buyers of insurance
Objective of Banks:
Fee income which is risk free
To reduce operating expenses
Product diversification
Benefits to Insurers:
Sky is the limit
Lesser Procurement Cost
Known customer and therefore risk assessment is easier
Increase in turnover
Increase in Market Penetration
Access to middle market segment
Benefits to customers:
Lower cost
Refined, high
Quality product
Double Assurance
Delivery at doorsteps
Convenience in payment
Easy & Automatic renewals
Options for Banks:
Subsidiary
Mergers
Acquisitions
Joint Venture
Working Relationships with one or many insurers
Division with in bank
Options for insurers:
Subsidiary
Joint Venture
Working relationships with one or more banks
Post assurance
Strengths:
Huge pool of skilled professionals
Just needs to be relocated-no extra manpower required at any level
A big arsenal of personal line products already lined up INo or little R &
D effort required at the outset
Weaknesses:
No incentives for the people to go for insurance
Tax Exemption for all ba products required
Lack of goodwill by banks as well as insurance companies
Tariffs-inflexible
Ratings not based on sound actuarial principles
Opportunities:
Bank’s enormous database
Homogeneous groups can be churned out of the database to develop
and market products
Product Positioning
Experiment has already been done elsewhere and we know in advance
about the highs & lows of ba
Threats:
Required changes in approach, thinking & work culture on the part of
everybody concerned
Resistance to change due to any relocation
Non-response from target customers
Lessons:
Develop ba only gradually
Europe & USA-banks were first allowed to distribute insurance products
and later were allowed to carry risks
Distributional one can yield substantial fee income, which is net and is
free of any encumbrances that an insurer has to deal with.
BANKS SUPPORTING THE CONCERNED
INSURANCE FIRMS
LIFE INSURANCE CORPORATION
CENTRAL BANK OF INDIA
CENTURIAN BANK
VIJAYA BANK
CORPORATION BANK
JANTA URBAN CO-OPERATIVE BANK
YEOTMAL MAHILA SAHKARI BANK
ICICI PRUDENTIAL LIFE INSURANCE
ICICI BANK
BANK OF INDIA
HDFC STANDARD LIFE INSURANCE
UNION BANK OF INDIA
ING VYSYA LIFE INSURANCE
URBAN CORPORATIVE BANK {MUMBAI}
ING VYSYA BANK
PLANNING: BHARAT OVERSEAS BANK
FOCUS: MAHARASTRA, GUJRAT, WESTORN PART OF INDIA
AVIVA LIFE INSURANCE
ABN AMRO BANK
AMERICAN EXPRESS
CANARA BANK
LAXMI VILAS BANK
BAJAJ ALLIANZ LIFE INSURANCE
STANDARD CHARTED BANK
SYNDICATE BANK
BIRLA SUNLIFE INSURANCE
CITI BABK, DEUTSCHE BANK
IDBI BANK
DCB
BANK OF RAJASTHAN
BANK OF MUSKAT
TATA AIG LIFE INSURANCE
STATE BANK OF INDIA
ALLAHBAD BANK
LORD KRISHNA BANK
FEDRAL BANK
OBJECTIVE OF THE RESEARCH
Primary objectives:-
1. Depth study of Insurance Agency Development
Secondary objective:-
1. To gain familiarity with the phenomena.
2. To see what the people feel about the products and services of ICICI
Prudential.
Methods of Data Collection
• Primary Data - Those data, which are collected for the first time and thus
happen to be original in character. It can also be obtained through observations,
direct communications or personal interviews.
• Secondary Data -Those data, which have already been collected by someone
else and which have already been passed through the statistical process. When
the researcher utilizes secondary data, then he looks for the various sources
from where he can obtain them. Materials can be collected from:-
• Trade Journals.
• Newspapers
• Business Magazines.
• Statistical documents.
When I want to understand what is happening today or try to decide what will
happen tomorrow, I look back. Therefore, secondary data plays an important role
in a complete research. The various data collection tools used in this research
process is:-
• Observation: - In this, the various suggestions of peoples and various
consumers are being heard. It can be either the merits or demerits, said by the
consumers relating to the product.
• Interview schedule: - Here, I had personal contacts with all the people in the
field as well in the office to know for more of the ICICI Prudential, its products
and its services.
Methodological Assumptions
• The methodology used is based on Primary & Secondary data. It is assumed
that both methods is more suitable for my type of report.
• It is assumed that the staff has a good degree of knowledge about the
information collected so far.
SWOT ANALYSIS
S – Strength
W – Weakness
O – Opportunity
T- Threat
ICICI Prudential is one of the most powerful, world class Life Insurance Co.
gaining appreciation for their strong ethics, excellent performance,
professionalism and team work which led them to progress in today’s
challenging environment. Though with its excellence performance and every
efforts has been made to present the most authentic and truly representative
findings, but some deviations and hurdles in progress. So, with its strength
and good quality, the company is having some weakness, and threats and
opportunities. SWOT analysis is explained below:
Strengths
ICICI Prudential is the largest private player in the insurance industry in
India.
Excellent services.
Customization of products as per customer’s needs.
Brand image.
Business Experience.
Strong Financial Base.
Innovative Products, Technology, Organization culture and climate.
The company has a large network of branches, which is helpful to
customer for the payment.
WEAKNESSES
Lot of competitors are in the market offer same product offered by
the difference in the premium and offering.
Target only higher income group whereas other companies are
trying to catch middle-class people.
Higher premium as compared to other companies.
Clients face problems to get insured due to large number of
formalities.
High targets for financial advisors and for the sales department.
OPPURTUNITIES
Huge market is literally untapped. Out of estimated 320 million
insurable markets only 20% of the population is insured.
In a conservative society of India where people are most inclined
towards risks free investment such as Bank FD’s and saving rather
than equity and high risk investment insurance offers the best of
both worlds – The security with high returns.
In the pension field where people want good life after their
retirement.
Indian people are more emotional towards their that’s why children
plans are selling like hot cakes.
Health insurance and pension schemes as estimated market
potential of approximately $15 dollars
THREATS
Weak perception of private players in the mind of Indian people
due to frequent financial scams.
Large number of insurance players.
Existing wrong business practices of companies like LIC first
premium is paid by their agents where –as IRDA suggests that
even forms to be filled by the clients themselves.
Players like Allianz Bajaj and Birla Sun Life with low premium for
the similar plans.
Entry of many other private companies with equally strong
experience and financial strength of foreign partners making the
competition difficult and saturating the urban markets.
LIC has woken up from sleep and is following competitive
strategies. Its huge surplus in life fund gives a capability to lodge
price war.
For the insurance sector Govt. set the authority that is IRDA which
is undertaken to track record of all the companies and change the
rules day by day more rigid, which is very difficult for the
companies.
CONCLUSION
It is clear from the above study that insurance business is mushrooming in the
country. Today there are number of insurance companies offering different
insurance plans with different added advantages. LIC is leading company in the
insurance business in India with a market share of 87% followed by ICICI
Prudential with a market share of 5.4%.
Today more and more private entrepreneurs are coming to
deal in life insurance products. It is not an easy task for a company to stay stable
and survive with rapidly growth in the tough competition. Hence a company
dealing in life insurance’s products needs qualify and persuasive insurance
advisors. Company must provide world-class training and promotional
opportunities to their advisors to better performance.
FINDINGS
Universal insurance sector has now come to play an important role in the growth
of insurance sector of every country as well as economic development of the
country. ICICI Prudential provides wide range of financial services and products
to the clients. On the basis of whole study, conclude the following findings: -
Though the period of commitment is very long, the investors do not much
believe in private players.
ICICI Prudential is having the largest market share i.e. 40% among all the
private players.
There is no life cover provided during the extension period of vesting age.
The various challenges faced by the insurance industry are:
a) Broadening the Benefits.
b) Channels of Distribution.
c) Expectation of the customers.
d) Consumer Education.
e) Catering the rural areas.
f) Large no. of private companies.
Not much emphasis is given to create awareness in the rural sector.
RECOMMENDATIONS
ICICI Prudential should provide the home services to its customers.
ICICI Prudential should reduce its minimum policy payment in the first
installment.
To educate the client/customer, the interaction with the client should be
improved by conducting seminar, client meetings and workshops.
To increase the market share, ICICI Prudential should increase its branch
network, especially in the rural areas.
ANNEXURE
How Insurance Advisor’s Recruitment Is Done?
SELECTION OF PROFILES
MAKE A CALL
MAKE APPOINTMENTS
DISCLOSE ALL THE FACTS TO THEM
CLOSE THE CALL
COMPLETION OF FORMALITIES
PROVIDE INFORMATIONS ABOUT EXAMINATION TEST
Sr. No. Names Address Contact
Teachers
1. _ _ _
2. _ _ _
Entrepreneurs
3. _ _ _
Officials
4. _ _ _
5. _ _ _
Freshers
6. _ _ _
Formalities of Insurance Advisor’s Recruitment
Form Fillings
Insurance Advisor Application Form
Insurance Advisor Agreement Form
Examination Test Form/Yellow Form
Documentary
Age Proof (Certificate of matriculation)
Address Proof (Voter-Id, Ration Card, Telephone Bill etc.)
Education Proof (Highly Qualify Edu. Proof like 10+2 or Graduation’s
Certificate)
7-Photographs
Demand Draft
Frequently asked Questions in Examination
Test
Insurance Basics
Premium Calculations
Age Calculations
BIBLIOGRAPHY
Study Material of ICICI PRUDENTIAL LIFE INSURANCE
Study Material of LIFE INSURANCE CORPORATION
Used Material from INTERNET
WEBSITES
www.icicibank.com
www.iciciprulife.com
www.birlasunlife.com
www.personalfn.com
www.irda.com
Limitations of the Study
This summer training will always remain one of the best experience of my life.
But no study is complete in itself, however good it may be and every study has
some limitations, some of the limitations which I have confronted are as follows:-
Time period for covering the project was short.
It was not easy to convince the professionals.
Companies were not ready to give address of their respective customers
to conduct a survey.
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