SUMMER TRAINING REPORT

On To study the Customer Satisfaction of ICICI Prudential Life Insurance Ltd. Submitted to: Punjab College of Technical Education, Ludhiana Affiliated To Punjab Technical University, Jalandhar In partial fulfillment of the requirements for the degree of Master of Business Administration Session (2006-2008) By Rohit Arora MBA II University Roll No. 627221998

DEPARTMENT OF BUSINESS ADMINISTRATION PUNJAB COLLEGE OF TECHNICAL EDUCATION, LUDHIANA

Table Of Contents
Acknowledgement.3 Preface...4 Introduction to Insurance Industry5-22 Introduction of The Company.....23-27 Products offered by ICICI Prudential.28-36 Distrbution...37 Organizational Structure and Management of the Company..38-40 SWOT Analysis.41-43 Financial Analysis.44-53 Title of the Research55 Need of the Research..56 Objective of the Study57 Research Methodology.58-60 Analysis and Interpretation...61-73 Findings.74 Strategic Recommendation and Conclusion.75-76 Annexures.77-80

Acknowledgement

I would like to express my sincere gratitude to Mr.Munish Sareen in marketing department at ICICI Prudential Life Insurance Company Limited, Mohali (Punjab) for his continuing support during the course of summer internship. I owe a deep sense of gratitude to Mr.Sanjeev K. Arora (Senior Agency Manager) who has been my mentor throughout the duration of this project. His knowledge and experience was a great motivating factor. Without his valuable support and guidance, the successful completion of the project would not have been possible. I would also like to thank Ms.Shivani Gupta and Ms.Manpreet Kaur in guiding me in all stages of the project and helping immensely to make this successful. Many thanks to all the people in Marketing Department for there help in various stages of the project.

I would also wish to thank all my respondents who have helped me immensely in completing the survey. Without their valuable inputs nothing would have been possible. I would also like to thank ICICI Prudential Life Insurance Company Limited for providing me with this opportunity and encouragement to explore and study the aspects of Insurance Industry.

PREFACE
In most of the Management Institutes in India, all the stress is laid on theoretical knowledge and the practical training is considered just a necessity for the mere completion of course but our Punjab College of Technical Education, Baddowal (Ludhiana) does not agree to this condition. In our course practical training is given equal importance and thus we undertook a dissertation after the 2nd semester and now summer training for 6 weeks. The course thus allowed us to apply the theoretical aspect on practical lines. When everybody is providing that much what is expected from him, the person delivering the unexpected to its customers succeeds in long run. In today market it is no longer enough to satisfy the customers, the manufacturer needs to delight them as well. The success of modern business lies in passion, timing and money. To conquer the modern business world one needs to be one step ahead of customers. My project Customer Satisfaction has been done in Marketing Branch of ICICI Prudential Life Insurance Company Limited. known to be the most professionally based company of Mohali. Now I take this opportunity to present my report and sincerely hope that it would be useful for readers.

Thanking You Rohit Arora MBA 2006-2008

INTRODUCTION Of INSURANCE INDUSTRY

What is Insurance? Insurance is a define as a co-operative device to spread the loss caused by a particular risk over a number of person who are exposed to it and who agree to ensure themselves against that risk. Risk is uncertainty of a financial loss. Insurance is a mechanism that ensures an individual to thrive on adverse consequences by compensating the individual, his/her loss financially. Every individual in the world and all activities connected with him/her, be it life, profession, business, travel or any other pursuits are subject to unforeseen and uncalled for hazards or dangers. The benefit that an individual enjoys in his life by owning a car or a house or a factory can be snatched by sudden accident which can render even the individual immobile, and his family vulnerable. At this critical juncture, only insurance helps him not only to survive but recover his loss and continue his life in a normal manner, which would otherwise be unthinkable. The concept of insurance is quite simple. People, who are in similar trade and are exposed to the same risks, congregate and some to an agreement that if any individual member suffers a loss, then the loss will be shared by others and minimized in order to enable the individual member recover from the loss and cover his ground. Similarly the different kinds of risks can be identified and separate groups can be formed to counter such risks and reduce the impact to a manageable proportion, in which the share could be collected from the members either after the loss or in advance, at the time of admission to the group. This is an exemplary sign of humanity and insurance therefore serves the mankind to a great extent; a point most of the individuals tend to overlook, since monetary aspect is involved. Now such is for tangible assets. The concept of insurance has been extended beyond the coverage of tangible assets. Exporters run the risk of importers in other country defaulting as well as losses due to sudden fluctuations in the currency exchange rates, economic policies turmoil. These risk are now insured. Doctors run the risk of being charged with negligence and can subsequently liable for damages. The

amount in questions can be fairly large, beyond the capacity of individuals to bear. These are insured. Thus insurance is extended to intangible assets. In some countries even the voice of a singer, legs of a footballer can be insured, even though the advantage of spread may not be available in these cases. Satisfaction of economic needs requires generation of income from some source. If the property, which is the source of such income, were lost fully or partially, permanently or temporarily, the income too would stop. The purpose of insurance is a safeguard against such misfortunes few, through the help of the fortune many, who were exposed to the same risk, but saved from the misfortune. Thus the essence of insurance is to share losses and substitute certainty by uncertainty.

The different types of human activities that come under the umbrella of insurance are as follows. 1. House/Office/factory or any moveable Assets destroyed in life. 2. Shipment or transportation of goods by ship, destroyed in catastrophe. 3. Jewellery/Cash/Household goods stolen or robbed. 4. Goods in transit by roads or railways Destroyed. 5. Theft or accident of vehicles 6. Financial cover in ailment/surgery etc. - Vehicle Insurance Health Insurance - Carrier Insurance - Burglar Insurance - Marine Insurance - Fire Insurance

All these are non-life insurance. In conclusion one can safely say that the purpose of insurance be it life or non-life is to transfer the financial loss to the insurance company who spreads in over to the policyholders.

Function of Insurance
The function of insurance can be studied into two parts: (1) Primary Function (2) Secondary Function Primary Function (1) Insurance provide certainty (2) Insurance provide protection (3) Risk-sharing Secondary Function (1) Prevention of loss (2) It provide capital (3) It improve efficiency (4) It helps economic progress

DEFINITION OF INSURANCE
The definition of insurance can be made from two points: (1) Functional Definition (2) Contractual Definition (1) Functional Definition Insurance is co-operative device to spread the loss caused by a particular risk over a person, who is exposed to it and who agrees to insure themselves against the risk. (2) Contractual Definition Insurance may be defined as a consisting One party (insurer) agrees to pay to the other party (the insured) or his beneficiary, a certain sum upon a given contingency (the risk) against which insurance is sought.

Nature of Insurance
The insurance has the following characteristics which are, generally, observed in case of life, marine, fire and general insurances. (1) Sharing of risk (2) Co-operative device (3) Value of risk (4) Payment at contingency (5) Amount of payment (6) Large number of insured person (7) Insurance is not a gambling (8) Insurance is not charity

Principle of Insurance
The insurance is based upon: (1) Principle of co-operation (2) Principle of probability (1) Principle of co-operation: Insurance is a co-operative device. If one person is providing for his own losses, it cannot be strictly an insurance because in insurance, the loss is shared by a group of persons who are willing to co-operate. They collected enough funds from the society and paid to the dependents of the deceased or the persons suffering property losses. It became the duty and responsibility of the insurer to obtain adequate funds from the member of the society to pay them at the happening of the insured risk. Thus the share of the loss took the form of premium. Today, all the insured give a premium to join the scheme of insurance.

Thus, the insured are co-operating to share the loss of an individual by payment of a premium in advance. (2) Principle of probability: The loss in the shape of premium can be distributed only on the basis of theory of probability. The chances of loss are estimated in advance to affix the amount of premium. Since the degree of loss depends upon various factor, the affecting factor analyzed before determining the amount of the loss. With the help of this principle, the uncertainty of loss is converted into certainty the probability tells what are the chances of losses and what will be the amount of losses. The intertia of large number is applied while calculating the probability. The larger the number of exposed person, the better and the more practical would be the findings of the probability. These principles keep in account that the past events will incur in the same inertia. The insurance, on the basis of past experience, present condition and future prospects, fixes the amount of the premium.

Importance of Insurance
The process of insurance has been evolved to safeguard the interests of people from uncertainty by providing certainty of payment at a given contingency. The importance of insurance discussed in three phases: (1) Importance of an individual (2) Importance of Business (3) Importance of the society (1) Importance of an individual : (a) Insurance provide safety and security (b) Insurance affords peace of mind (c) Insurance eliminates dependency (d) Life insurance encourages saving (e) Life insurance provides profitable investment (f) Life insurance fulfils the need of a person (2) Importance of Business: (a) Uncertainty of business losses is reduced (b) Business efficiency is increased with insurance (c) Key man indemnification (d) Enhancement of credit (e) Business continuation (f) Welfare of employees (3) Importance of the society: (a) Wealth of the society is protected (b) Economic growth of the country (c) Reduction in inflation

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History
In today's hectic world, there is uncertainly in every move that we make. Life is not as healthy as it should be. In the rat race, in order to live a better quality of life, to earn money and more money we all have somehow forgotten to live the present. Hence by this entire bargain, our future remarkably seems all the more confusing and uncertain. Life insurance activity in its modern from started in India in 1818 to provide insurance for the English widows. The first Indian life insurance company, The Bombay Mutual Life Assurance Society started its business in 1870. This was the first company, which charged same amount of premium on both Indian and Non- Indian lives. Earlier native Indian lives were considered more risky and hence were charged more premiums for coverage. Foreign insurance companies dominated insurance business in India and enjoyed monopoly right up to the end of the 19thcentury. Insurance regulation formally began in India through the passing of two Acts, The Life Insurance Companies Act of 1912 and The Provident Act of 1912. The first legislation was introduced with The Insurance Act of 1938 that provided strict state control over insurance business in the country. This provided an effective check on the large-scale frauds that sullied insurance during the 1930s. In the 1940s, there were more than 220 insurance companies in India. There was no control over the starting and closing of insurance companies. Customer's money was on stake. After independence, the business of insurance grew at a faster pace as the competition among the Indian companies intensified.

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Reforms
At this juncture, the Government of India decided to merge all the insurance companies. In the year 1956, the merger and nationalization of all existing life insurance companies were done which resulted in giving birth to The Life Insurance Corporation of India (LIC). Closed to foreign competition, The Indian Insurance Industry was run by the government for over 40 years through LIC and four general insurance companies that spanned the length and breadth of the country. LIC enjoyed a monopoly for more than four decades. In the early 90s, the Government of India appointed the Malhotra Committee, which was headed by Mr. R.K. Malhotra. He was the Governor of Reserve Bank of India (RBI) at that time. The purpose of appointing the committee was to find out whether the existing company was enough to reach the huge insurable population, to know about the service standards and to see whether there was a need to privatize the life insurance business. Their study exposed the fact that the existing company had penetrated only 22%, Le., as against 336 million insurable populations only 65 million were tapped. The Malhotra Committee gave a strong recommendation for privatizing the life insurance business and also recommended for the formation of a Regulatory Board to govern the insurance business. Government of India hence decided to privatize the life insurance business and the Insurance Regulatory and Development Authority (IRDA) was formed in July 2000 headed by Mr. N. Rangachari. The entry of private players into the industry brought about a new array of products with competitive pricing. They came up with better product features, benefits and services that changed the market from a seller's market to a buyer's market. Today, the Indian Life Insurance Industry has a dozen private players, each of which are making strides in raising awareness levels, introducing innovative products and increasing the penetration of life insurance in the vastly underinsured country. Several of these private insurers have introduced revamped products to meet the need of their target customers and in line with their business objectives. Undoubtedly, the biggest beneficiary of the competition among the life insurers has been the customer.

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Penetration of life insurance is beginning to cut across socio-economic classes and attract people who have never purchased before. With the heightened awareness and the consumer education comes a willingness to view life insurance as an integral part of the financial portfolio. No longer is the life insurance a poorly understood product that is pushed onto people. Nor is it a product that is only to be brought hurriedly at the time of filing taxes. It is now catching on as an important element of the overall financial basket; one that is purchased to fulfill specific rational and emotional needs. Not only there has been a change in the structure and nature of the products, but also in the way they are sold. From being a poor advisor driven business, the sector has been the emergence of a number of channels including Banc assurance, corporate agents, brokers and direct marketing. These channels, though new, are quickly gaining importance primarily because they present the customers with multiple ways of approaching life insurers. There has been a vast improvement in service and delivery too. As with privatization in any industry, the benefits are not restricted to the customer alone, but extend to the society at large by generating employment opportunities for thousands. Over the past two years, insurance companies - both life and non-life have collectively hired at least 6,000 employees to staff their operations across the country. Another 90,000 have been appointed as life insurance advisors who are engaged in counseling and recommending products to the insurance buyers. The potential for the growth and spread of life insurance is high as in many other Asian countries. This is due to stronger economic growth, rapid ageing of population, a weak social security and pension system leaves a majority of workers with no old age income security. A well-developed insurance sector promotes economic growth by encouraging risk-taking activities, and also has great potential in mobilizing long term contractual savings and the rest is crucially needed for infrastructure development. The global Insurance Market stands at 1521.2 billion US dollars and India stands 23 rd position with 9.93 billion US dollars. Out of the 1 billion populations in India, 35 million are insured. India's life insurance premium as percentage of percentage of GDP is 2.32%, The Indian

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insurance market is set to touch 25 billion US dollars by 2010 on the assumption of 7% growth in GDP.

INDIAN INSURANCE SECTOR

Insurance is a colossal sector in India that is growing at a speedy rate of 15-20%. The insurance sector is approximately 450 billion yet 80 percent of the population in India is not insured. This gives you a peek into the huge growth opportunity that exists for this segment. The insurance business in India mainly consists of two main players, the Life Insurance Corporation (LIC) and General Insurance Corporation (GIC). Almost 100 divisional offices and 2000 branch offices are functional for LIC. As LIC caters to life insurance, health insurance, property and accident insurance it needs an increasing number of employees. Thus insurance companies in India are growing vertically and horizontally bringing growth and employment opportunities. The other player GIC undertakes motor, marine, personal accident and fire insurance. Moreover it has four subsidiaries a) b) c) d) Oriental Insurance United India Insurance New India Assurance National Insurance.

Insurance companies in India have a deep-rooted history. It all began in 1818 when Oriental Life Insurance Company in Calcutta was established. From then on insurance was scattered across the country. It was an unorganized sector. Then in 1950, the entire insurance segment was nationalized. After achieving freedom, the insurance sector gained momentum. In 1956 the government of India consolidated 240 private life insurers and provident societies and this was how LIC came to life. The justification to the nationalization of the life insurers was that the government would reap the necessary funds that were required for industrialization. The

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general insurance industry still remained in the hands of the private sector till 1972 and was then nationalized. LIC adds about 7 percent to the country's GDP. With IRDA's regulation not less than 15 percent of funds from the insurance companies are said to fill the coffers of infrastructure and social sectors, thus proving vital funds to the country's growth. Infrastructure of the country bears risks that are of a long-term character. They include political instability, geological hindrances, gestation period and illiteracy. The long tem funds provided by Life Insurance of India not only cover these risks but also help securing a brighter future for the country. Besides infrastructure the insurance companies in India are vital for one's saving purpose. In the beginning insurance was looked at as a 'tax-benefit' investment. Slowly, however the mindset of the common man is changing. Life insurance is now looked on as investment vehicle. With the introduction of private players in the sector there has been more transparency and flexibility in the sector. Private players have procured almost 9 percent of the insurance segment even though the coveted policies like endowment and money back still lay with the government. Better services, individual attention and pure transparency have given the private sector an upper hand. But with a huge unorganized market in India yet to tap the insurance companies in India have a voluminous market to explore.

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IRDA AND INSURANCE INDUSTRY

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA Act)

Composition of Authority under IRDA Act, 1999 As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA, which was constituted by an act of parliament) specifies the composition of Authority. The Authority is a ten member team consisting of (a) (b) (c) A Chairman; Five whole-time members; Four part-time members,

(The Government of India appoints all the above.) Duties, Powers and Functions of IRDA Section 14 of IRDA Act, 1999 lays down the duties, powers and function of IRDA: A. Subject to the provisions of this Act and any other law for the time being in Force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. B. (1), Without prejudice to the generality of the provisions contained in sub-section the powers and functions of the Authority shall include, Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; Protection of the interests of the policy holders in matters concerning assigning of policy,nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance.

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Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;

Specifying the code of conduct for surveyors and loss assessors; Promoting efficiency in the conduct of insurance business; Promoting and regulating professional organizations connected with the insurance and re-insurance business; Paying fees and other charges for carrying out the purposes of this Act; Calling for information from, undertaking inspection of, conducting inquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;

Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);

Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;

Regulating investment of funds by insurance companies; Regulating maintenance of margin of solvency; Adjudication of disputes between insurers and intermediaries or insurance intermediaries; Supervising the functioning of the Tariff Advisory Committee;

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Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f);

Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and exercising such other powers as may be prescribed

INSURANCE BUSINESS
Insurance business is divided into four classes: 1) 2) 3) 4) Life Insurance Fire Insurance Marine Insurance and Miscellaneous Insurance.

Life Insurers transact life insurance business; General Insurers transact the rest. No composites are permitted as per law.

LEGISLATION:
Insurance is a federal subject in India. The primary legislation that deals with insurance business in India are - Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999
Life Insurance Market The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold 18

insurance as a tax instrument, not as a product giving protection. Most customers were underinsured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players have tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution - That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unitlinked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatization was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average. Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich dividends. But a rejuvenated LIC is also trying to fight back to woo new customers.

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PLAYERS IN LIFE INSURANCE INDSUTRY IN INDIA

S.No. Private Company

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ICICI Prudential Life Company Ltd. Bajaj Allianz Life Insurance Company Ltd. HDFC Standard Life Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Ltd. Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited. ING Vysya Life Insurance Company Private Ltd. Max New York Life Insurance Co. Ltd. MetLife India Insurance Company Pvt. Ltd. Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Insurance Company Ltd. Shriram Life Insurance Company Ltd. Reliance Life Insurance Company Ltd. Bharti AXA Life Insurance Company Ltd.

Public Company
16 LIC

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Market Share of Life Insurance Companies First Year Premium of Life Insurers for the Quarter Ended June, 2007
Premium Sl No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Insurer ICICI Prudential Bajaj Allianz SBI Life HDFC Standard Max New York Tata AIG Aviva Reliance Life Birla Sunlife Kotak Mahindra ING Vysya Met Life Shriram Life Sahara Life Bharti Axa Life crore) April,07 271 124 90 70 69 48 39 33 28 26 22 19 4.5 1.7 0.72 June, 07 423.92 323.38 156.76 133.23 133.27 53.59 68.72 104.53 90.03 47.1 56.87 33.56 15.76 5.23 2.96 Upto June, 07 1056.45 731.85 426.39 355.93 289.74 154.1 160.35 204.1 174.63 114.62 117.29 87.31 41.01 11.93 5.24 (in

Private Total
LIC

845.92
2,134.00

1649.13
3530.97

3930.95
8580.84

Grand Total

2,979.92

5180.1

12511.8

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Market share of LIC and other Private Life Insurance Companies

Private 31%

LIC 69%

Market share of private Life Insurance Companies

Bajaj Allianz, 18.62% SBI Life, 10.85% HDFC Standard, 9.06% Max New York, 7.37% Tata AIG, 3.92% Bharti Axa Life, 0.13% Sahara Life, 0.30% Shriram Life, 1.04% Met Life, 2.22% Aviva, 4.08% ING Vysya, 2.98% Birla Sunlife, 4.44% Reliance Life, 5.19%

ICICI Prudential, 26.88%

Kotak Mahindra, 2.92%

COMPANY PROFILE
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ICICI GROUP

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Which is to be achieved 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 Mission- To make the company the dominant player in the life insurance industry with their commitment to excellence focuses on service, speed and innovation and leveraging their technological expertise. Value- 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

ICICI PRUDENTIAL LIFE INSURANCE COMPANY.

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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 Prudential's capital stands at Rs. 20.65 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. ICICI Prudential Life Insurance Company has consistently been Indias No.1 private life insurer from the time of its inception in December 2000. As on February 2007, the company has over 150 billion Assets under Management and a capital base of 20.65 billion, which is the highest capital base amongst all the private life insurers in the country. The company collected a total premium of Rs 5,254 crore in 2006-07. 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. In the last six years of operations the company has garnered more than 30% market share in the private life insurance sector, well establishing their dominance in the life insurance industry. With a wide range of flexible products that meet the needs of the Indian customer at every step in life.

ABOUT THE PROMOTERS

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ICICI Bank

(NYSE:IBN) is India's second

largest bank and largest private sector bank with assets of Rs. 2958.32 billion as on December 31, 2006. 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 through a multi-channel access network which includes over 695 branches and extension counters, 3051 ATMs, call centers and Internet banking. ICICI Bank currently has subsidiaries in the United Kingdom and Canada, branches in Singapore and Bahrain and representative offices in United States, China, United Arab Emirates, Bangladesh and Africa.

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 21 million customers, policyholder and unit holders worldwide. Today, Prudential has millions of customers worldwide and over 238 billion of funds under management. In Asia, Prudential is the leading European life insurance company with a vast network of life and fund management operations in thirteen countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam and United Arab Emirates.

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Objective- For a vision come true and mission fulfilled, the key factor The success of the
organization. The success of the organization is based on its strong focus on the values and clarity of purpose. These includes Understanding the needs of the customers and offering them superior products and services. Building long lasting relationship with our partners. Providing an enabling environment to foster growth and learning for our employees.

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Products Offered By ICICI Prudential Life Insurance Company Limited

ICICI Prudential Life Insurance Co. offers a range of innovative, customer-centric products that meet the needs of a customer at every life stage. Its 17 products can be enhanced with up to 6 riders (additional protectors), to create a customized solution for each policy holder. Company Is providing 3 types of insurance plans. These are:A) B) C) Traditional Plans Unit Link Insurance Plans Healthcare Plans.

A) 1)

TRADITIONAL PLANS
Life Guard Single Premium. LifeGaurd Single Premium is a term product that offers pure protection at the lowest possible cost. This plan relieves the policy holder from the commitment of paying regular premiums and ensures that the protection continues without any hindrance. Target Market People who do not prefer long term commitments.

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People going in for liabilities like housing loan or any other sort of liability. Young professionals who have an earning but are not too sure about their future. Students who are going to study abroad. People who are going on short term or middle term assignments abroad..

Tax Benefits This plan carries the Sec-80 C benefit on the premium paid and Sec-10(10) d benefit on death and maturity proceeds. The tax benefits are subject to tax laws are not an integral part of the plan. and

2)

SavenProtect
A regular premium plan with Twin advantage of SAVINGS and LIFE COVER. It also offers a unique facility of FREE extended life cover on maturity. It also provides policyholder with choice of having additional protection (riders).

3)

CashBak
Cash-back plans rest on the tripod of Savings, Liquidity and Protection. Compared to the at insurer regular

a pure term assurance plan that provides just cover with no benefits intervals over the duration of the plan, apart from guaranteed investment vehicle, the need is to premium payouts.

if

survives the term of the plan, the cash-back plan provides for cash payments

additions and bonuses. The

emphasis in cash back plans is on savings and not on protection per se.Looking at them as an focus more on the benefits to be gained as opposed to the

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Cash Bak is a with profits anticipated endowment plan. This plan provides an Insurance cover along with liquidity at regular intervals of time and also helps in saving money. Target Market Young people of the age group 20-30 years who have just started a career and family. Income group of minimum Rs.10, 000 per month. Middle-aged professionals, service holders and businessmen.

4)

LifeGaurd ROP
In this plan the premiums that are paid by the policyholder are returned at the end of the term i.e. on maturity to the policyholder. Thus this plan serves to life protection and in event of the policy holder surviving the term the accumulated premium is paid back on maturity. Moreover, this plan provides with the facility of FREE Extended Life Cover after maturity which adds to the protection which makes this plan so unique.

Target Market Large-scale businessmen who have a high level of liability. Professionals and salaried people having a high human life value. Middle income group who want to cover life risk without shelling out high premiums.

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5)

LifeGaurd WROP
This is the most cost effective Life Insurance Policy. It is as affordable as our daily lakh

newspaper or a cup of tea. For a healthy 30 year old male, a sum assured of and premium paid yearly, the premium on LifeGuard WROP would be a period of 20 years. A cover of Rs.10 lacs would cost him as the price of a cup of tea.

Rs.1

Rs. 0.93 per day for

low as Rs.8 a day which is

6)

Smart Kid Plans

As a responsible parent, one wants to ensure a hassle free, successful life for his/her child. However, life is full of uncertainties and even best laid plans can go wrong. Smart Kid Education Plans are designed to provide flexibility and to safeguard a childs future education and lifestyle, taking all possibilities into account. Smart Kid

Child Plans has a bouquet of three products which can help one secure childs

future.

Smart Kid is a with profits anticipated endowment plan that helps parents in creating an asset through which they can plan for their childrens future. This plan insures the life of the parent and makes the child the beneficiary, therefore ensuring that the future of the child is secure, because as a parent one cannot leave anything to chance.

7)

Forever life(Pension Plan)

A With Profits Deferred Annuity Plan with Life Cover. A solution to meet the retirement goal in a disciplined manner. Forever Life provides with life protection,

thus this plan provides both life insurance and retirement planning benefits.

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B) UNIT LINK INSURANCE PLANS (ULIP)

1) Life Time Super
LifeTime Super is a regular premium unit-linked insurance policy that offers flexible investment options along with benefit of life insurance cover. This policy gives investor a opportunity to earn potentially higher returns on their investments sacrificing the protection of the family. without

2)

Life Link Super

Life Link Super a unique, single premium unit-link investment-cum-insurance solution. It offers attractive premium allocation along with flexible investment options to give an investor the opportunity to enjoy potentially high returns on investments, without compromising on the protection of investors family.

3)

Life Time Plus

LifeTime Plus is a one-stop solution for investors who are looking for a plan that offers the benefits of the insurance cover along with flexible investment options.

4)

Lifetime Super Pension Plan

Life Time Super Pension is a regular unit-linked regular premium retirement planning solution that gives the flexibility to invest in unit-linked funds which have after

the potential to generate higher returns and hence provide regular income for retirement.

life

32

This plans gives an investor flexibility to choose retirement age,investment options and life cover options.

5)

Smart Kid New UL RP

This is a regular premium unit-linked child solution, which provides a number of flexible options to the investor to match the requirements of the childs education and

future. Target Market money Parents with new born children to children up to 15 years of age. A parent who wants to structure the payouts for the childs education as per the changing requirements in manner that the child receives the at specific educational milestones. A parent who wants to start a long-term regular savings for a child.

6)

Premier Life Gold

Premier Life Gold is a plan designed to suit the needs of High Net worth

investors,which offers them the power to create wealth along with insurance protection.

C) HEALTH PLANS
1) Cancer Care
Comprehensive cancer insurance plan that covers most forms of cancer. 33

Uniquely designed to pay benefits at both early and advanced stages of cancer. Benefits in the form of cash payouts at various stages for diagnosis, treatment surgery, to help meet the expenses. Cover up to Rs. 10 lacs for as low as Rs. 250 per month. and

2)

Health Assure
Health Assure provides the coverage against 6 critical illnesses. Those critical illnesses are:1) 2) 3) 4) 5) 6) Cancer Heart Attack Stroke Coronary Artery Bypass/Graft Surgery. Kidney Failure. Major Organ Transplant.

On maturity of the policy if no claim arises the holder is not paid back the premium amount.

Target Market Demographic profile Age group of 30-45 years. Recently married /having family or dependents. Income of Rs. 2 lacs - 10 lacs and above per annum.

34

Psychographic Profile People who plan well in advance for contingencies. Early adopters of innovative products. People who are cautious about their health and would not compromise on their health related expenses.

3)

Health Assure Plus

Health Assure provides the coverage against 6 critical illnesses. Those critical illnesses are:1) 2) 3) 4) 5) 6) Cancer Heart Attack Stroke Coronary Artery Bypass/Graft Surgery. Kidney Failure. Major Organ Transplant.

On maturity of the policy if no claim arises, all the premiums paid are given back to the policy holder.

Target Market Demographic profile Age group of 30-45 years. Recently married /having family or dependents.

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Income of Rs. 2 lacs - 10 lacs and above per annum.

Psychographic Profile People who plan well in advance for contingencies. Early adopters of innovative products. People who are cautious about their health and would not compromise on their health related expenses.

4)

Hospital Care
Hospital Care is a new hospitalization and surgical benefit policy. This plan offers a cashless hospitalization facility, clear coverage norms, fixed benefit payouts and recuperating allowance. The facility of cashless hospitalization in more than 3000 hospitals. Policyholder will

receive lump-sum benefit amount irrespective of the actual billing. Hospital Care covers: Daily Hospitalization Cash Benefits. Intensive Care Unit Benefits. Recuperating Benefits. Surgery Benefits.

Tax Benefits The premium paid up to Rs.15, 000 is eligible for tax benefit u/s 80D.

Distribution
36

ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. As on 31st March, 2007 the company has over 600 offices across the country in 189 cities and towns and over 2, 00,000 advisors. The company has over 20 banc assurance partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Cooperative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank and 9 Bank of India sponsored Regional Rural Banks (RRBs). It has also tied up with NGOs MFIs and corporates for the distribution of rural policies. ICICI Prudential is the pioneer in Multi Distribution Network. Even though other private life insurance companies tried and are still trying the same, they are not as successful as ICICI Prudential. The distribution channels of the company covers:

Tied Agency a traditional marketing channel for insurance products. Alternate Channels These are the other channels adopted by the company to reach
out its customer base. These alternate channels bring about 40% of the sales to the company. the main alternate channels are:Corporate Agents Banc assurance Broker Direct Marketing.

Organizational Structure
37

Country Head (Shikha Sharma) Zonal Manager Regional Manager Territory Manager Sales Manager Agency Manager/Unit Manager Advisors

All sales aspects from planning to implementation follow a hierarchy, which can be depicted in the form of the above diagram. At ICICI Life Insurance Company Ltd polices are sold by a network of around 234,000 Insurance Advisors. These Advisors work in individual capacity and are not in the rolls of the company. They are remunerated in the form of commissions, which varies up to 40% of first year premium. This wide network of ICICIs has to be managed efficiently and kept productive.

MANAGEMENT OF COMPANY

38

Board of Directors. The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad:Chairman: Managing Director:Executive Director: Executive Director: Management Team The ICICI Prudential Life Insurance Company Limited Management team comprises reputed people from the finance industry both from India and abroad. MD And CEO Executive Director Executive Director Customer Service And Technology Chief Actuary Chief Investment Officer Chief Sales & Distribution Ms. Shikha Sharma Mr. N.S. Kannan Mr. Bhargav Dasgupta Ms. Anita Pai Mr. Azim Mithani Mr.Puneet Nanda Mr. Binayak Dutta Mr. K.V. Kamath Ms. Shikha Sharma Mr. N.S. Kannan Mr. Bhargav Dasgupta

39

The ICICI Prudential Edge - What makes the co. No. 1

The ICICI Prudential edge comes from its commitment to its customers, in all that it does - be it product development, distribution, the sales process or servicing. Here's a peek into what makes it leader. 1. Its products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps it develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease. 2. Having the right products is the first step, but it's equally important to ensure that the customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products 3. Robust risk management and underwriting practices form the core of its business. With clear guidelines in place, it ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process. 4. Entrusted with helping its customers meet their long-term goals, it adopts an investment philosophy that aims to achieve risk adjusted returns over the long-term. 5. Last but definitely not the least, its 16,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. It believes this keeps them engaged and enthusiastic, so that they can deliver on the promise to cover you, at every step in life.

40

SWOT ANALYSIS

Strengths
1) Joint venture between ICICI Bank and Prudential UK, itself is a ICICI Prudential Life Insurance Company. Domestic Prudentials international image is strength of the company. strong point for

image of ICICI supported by

2) The company is holding No. 1 position among the private players in the insurance sector since its inception. 3) Huge basket of product range both Traditional and Unit Linked which are suitable to all age and income groups. 4) Large pool of technically skilled manpower with in-depth knowledge and understanding of the market. 5) Well established training infrastructure and skilled faculties to take care of technical expertise. 6) Strong capital and reserve base. 7) Strong and well spread distribution network of qualified intermediaries and sales person.

41

Weaknesses 1) Heavy management expenses and administrative costs.

2) ECS facility is must for monthly premium. 3) Employees prefer personal goals over organizational goals. 4) Though adequate talents are available and are well spread throughout the organization enough opportunities are not provided to utilize them in the right direction. 5) Low customer confidence on private players.

Opportunities and Threats

Opportunities and threats result from external environmental factors in which the organization is operating. These are almost identical as faced by the industry as whole.

Opportunities 1) Huge market is literally untapped.

2) Pension plans are great aspects which need to be covered because of increased number of

people working in private sector who want a financially secure life after retirement. 3) Health insurance schemes, as estimated market potential of approximately $15 billion. 4) Children education plans are every parents priority as cost of education is increasing at a high pace. 5) In a conservative society of India where people are more inclined towards risk free investments such as Bank FDs and savings rather than equity and high risk insurance offers the

42

best of both worlds- The security with higher returns. So there exists a high potential for insurance company like ICICI Prudential.

Threats 1) The company is competing with the State owned big giant like LIC of India.
2) The company is also facing some threat from existing private players in the industry. 3) Entry of many other private companies with equal experience of Indian market and strong financial base of foreign partners are making the competition difficult and saturating the urban markets.

43

FINANCIAL ANALYSIS OF THE COMPANY

Financial statements of the company

BALANCE SHEET AS AT MARCH 31, 2007

(Rs. '000)

Particulars
SOURCES OF FUNDS SHAREHOLDERS FUNDS : Share capital Employees stock option outstanding Reserve and surplus Fair Value Change Account - Net SUB-TOTAL BORROWINGS POLICYHOLDERS FUNDS : Fair Value Change Account - Net Revaluation reserve - Investment Property Policy liabilities Provision for linked liabilities SUB-TOTAL Funds for Future Appropriations Linked Non linked TOTAL APPLICATION OF FUNDS Investments Shareholders Policyholders Asset held to cover linked liabilities Loans Fixed assets Deferred tax asset Current assets Cash and Bank balances Advances and Other assets SUB-TOTAL (A) Current liabilities Provisions SUB-TOTAL (B) Net Current Assets (C) = (A-B) MISCELLANEOUS EXPENDITURE Debit Balance in P&L A/c (Shareholders'

Schedule
5 6

31-Mar-07
13,123,015 19,399 7,593,813 291,038 21,027,265 1,014,996 316,319 17,656,173 130,762,734 149,750,222 1,760,437 388,085 172,926,009

31-Mar-06
11,850,000 52,363 180,306 12,082,669 1,246,696 11,224,766 69,996,288 82,467,750 792,166 342,265 95,684,850

31-Mar-05
9,250,000 99 9,250,099 207,389 7,935,302 26,540,603 34,683,294 317,487 44,250,880

8 8A 8B 9 10

1,567,176 23,421,083 132,523,171 40,393 2,194,439 690,004

4,484,730 12,514,550 70,788,454 14,247 610,535 262,384

3,209,483 8,045,425 26,540,603 25,225 630,124 107,885

11 12 13 14

15

4,823,827 2,359,279 7,183,106 10,061,083 649,260 10,710,343 -3,527,237 16,016,980

2,458,976 1,121,070 3,580,046 5,934,917 163,087 6,098,004 -2,517,958 9,527,908

1,995,868 714,360 2,710,228 3,790,890 84,156 3,875,046 -1,164,818 6,856,953

44

account) TOTAL

172,926,009

95,684,850

44,250,880

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2007
Shareholders Account (Non-Technical Account) (Rs. '000)

Particulars
Amounts transferred from Policyholders' account Income from investments (a) Interest, Dividend & Rent - Gross (b) Profit on sale/redemption of investments (c) Loss on sale/redemption of investments Other income TOTAL (A) Expenses other than those directly related to the insurance business Bad debts written-off Amounts transferred to Policyholders' account Provisions (other than taxation) (a) For diminition in value of investments (net) (b) Provision for doubtful debts TOTAL (B) (Loss) before Tax Provision for Taxation Deferred tax (Refer note 3.14 of Schedule 16) Profit / (Loss) after Tax APPROPRIATIONS (a) Balance at the beginning of the year (b) Funds for future appropriation - Linked (c) Interim dividends paid during the year - (d) Proposed final dividend - (e) Dividend distribution tax - (f) Transfer to reserves / other accounts - Profit/(Loss) carried to Balance Sheet SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS Earnings per equity share Basic earnings per equity share (Rs.) Diluted earnings per equity share (Rs.) Nominal value per equity share (Rs.)

Schedule

31-Mar-07
346,062

31-Mar-06
75,862

31-Mar-05
-

267,100 100,668 -35,928 677,902 3A 14,622 7,579,972 7,594,594 -6,916,692 427,620 -6,489,072 -9,527,908 -16,016,980 16 -5.28 -5.25 10

165,786 36,917 -1,578 2,252 279,239 5,872 2,306,656 2,312,528 -2,033,289 154,500 -1,878,789 -6,856,953 -792,166 -9,527,908

96,303 32,756 -15,646 53 113,446 4,087 2,333,474 2,337,561 -2,224,095 107,885 -2,116,210 -4,740,743 -6,856,953

-1.82 -1.81 10

-2.76 -2.76 10

Ratio Analysis
45

1. Current Ratio Formulae: Year Current Ratio 2. Debt Equity Ratio Formulae: Year Debt Equity Ratio Total long term debt (out sider fund)/Shareholders fund 2007 1.11 2006 0.97 2005 0.14 Current assets/Current liabilities 2007 0.67 2006 0.58 2005 0.69

3. Fixed Asset Ratio Formulae: Year Fixed Asset Ratio C.O.G.S/Net fixed assets 2007 18.23 2006 40.22 2005 27.60

4. Solvency Ratio Formulae: Year Solvency Ratio 5. Reserves to Capital Ratio Formulae: Year Reserves to Capital Ratio 6. Proprietary Ratio Reserves/Capital 2007 0.58 2006 NA 2005 NA Total liabilities/Total assets 2007 0.83 2006 0.75 2005 0.72

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Formulae: Year

Proprietors fund ( share holder fund)/Total assets 2007 0.11 2006 0.11 2005 0.26

Proprietary Ratio

7. Return on Capital Employed Formulae: Year Return on Capital Employed N.P. before interest tax and dividend/Capital Employed 2007 -4.87% 2006 -2.71% 2005 -7.44%

8. Return on Equity Shareholders Fund Formulae: Year Return on Equity shareholders Fund N.P. after int., tax and dividend/Equity shareholders fund 2007 -31.32% 2006 -15.85% 2005 -22.87%

9. Net Profit to Fixed Asset Ratio Formulae: Year Net Profit to Fixed Asset Ratio N.P. before interest and tax/Net fixed assets 2007 -315.19% 2006 -330% 2005 -352.95%

10. EPS Formulae: Year EPS Net income after Int. tax and Pref. div./No. of equity shares 2007 -5.28 2006 -1.82 2005 -2.76

47

ICICI Prudential is incurring losses because it is in high growth phase customer acquisition costs and costs of creating reserves to meet future contingencies are also high.

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Trend Analysis of ICICI Prudential

1. Assets Held by ICICI Prudential

Year FY 03 FY 04 FY 05 FY 06 FY 07

Assets ( in bn ) 6.67 16.63 38.31 88.21 158.18

Trend -13.34 24.12 61.58 99.04 136.5

Trend of assets held by ICICI Prudential

200 158.18 assets in bn Rs 150 99.04 100 50 0 -50 61.58 88.21 136.5 Assets ( in bn ) Trend

24.12 38.31 6.67 16.63 -13.34 FY 03 FY 04 FY 05 FY 06 year

FY 07

Trend shows that the assets of the company are increasing on constantly at CAGR of around 450 which shows the high growth phase of the company.

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2. No of Policies sold by ICICI Prudential

No of policies Year FY 03 FY 04 FY 05 FY 06 FY 07 (in MN) 0.5 0.9 1.4 2.5 4 Trend -0.14 1 1.86 2.72 3.58

Trend of policies sold by ICICI Prudential

5 4 3 2 1 0 -1 1 0.5 0.9 -0.14 FY 03 FY 04 1.86 2.72 1.4 4 3.58 2.5 No of policies (in MN) Trend

FY 05 Year

FY 06

FY 07

Trend shows that no of policies sold by the company are increasing rapidly on an increasing rate which is an indication of high growth of the company.

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3. Premium collected by ICICI Prudential

Year FY 02 FY 03 FY 04 FY 05 FY 06

Premium (in crore) 116 418 989 2364 4261

Trend -216.4 706.6 1629.6 2552.6 3475.6

Trend of Premuim collected by ICICI Prudential

5000 4000 3000 2000 1000 0 -1000 116 706.6 1629.6 989 418 FY 04 year FY 05 FY 06 2552.6 2364 4261 3475.6 Premuim(in crore) Trend

-216.4 FY 02 FY 03

Trend shows that premium collected by the company is also increasing on rapid rate which again shows the high growth of the company.

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4. Profits earned by ICICI Prudential

Year FY 05 FY 06 FY 07

Profits (in crore) -211 -187 -648

Trend -317.45 -603.69 -889.93

Trend of profits earned by ICICI Prudential

0 -200 -400 -600 -800 -889.93 -1,000 year FY 05 -211 -317.45 -603.69 -648 FY 06 -187 Profits(in crore Rs) Trend FY 07

The profits of the companies has been negative over the years which not a good indicator for the company but this also a known fact that companies in a high growth phase may incur losses in short run due to high cost of creating reserve and customer acquisition costs.

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5. Earning per share of ICICI Prudential

Year FY 05 Fy 06 FY 07

EPS -2.76 -1.82 -5.28

Trend -2.03 -3.29 -4.55

Trend of EPS
0 -1 -2 -3 -4 -5 -6 year FY 05 -2.03 -2.76 Fy 06 -1.82 EPS -3.29 -4.55 -5.28 Trend FY 07

EPS trend is going downward because the profits are negative.

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RESEARCH PROJECT

54

TITTLE
To study the Customer Satisfaction of ICICI Prudential Life Insurance Company Limited

Need for research

Every market has to be competitive in his operations to survive and also able to make more profits. To achieve their objectives they must be careful about their customers. They must know the satisfaction of the customer. Customer is the king of the market. Todays market is directed by the customer, so it is necessary for each and every type of business to know about the varying nature of their customers, by which they can provide best services to them. By this they will be able to retain the customer for a long period. All these result in increased sales, higher market share and more profits. If a company knows about the needs and behavior of its customer, then it can develop its strategies according to their needs. It is also said that the cost of attracting a new customer is 5 times more than retaining an existing customer. So a company should try to satisfy its customers. ICICI Prudential has opened its branch in Mohali city just two year back, so it is necessary for the co. to know the consumer satisfaction towards the company. This has provided with an opportunity to do a research in this direction, which will help ICICI Prudential to expand its business.

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Objectives of the Study

The objectives of my study are:-

To determine the satisfaction level of customers regarding ICICI Prudential Life Insurance Company Ltd. To check the brand awareness of various life insurance companies. To have an in depth knowledge about the products offered by ICICI Prudential Life Insurance Company Ltd.

Research Methodology
Research Design A research design is a framework or blueprint for conducting the marketing research project .It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems. A descriptive research study is done, which is concerned with describing the characteristics of a particular individual or group of individuals. Sampling:Population:To study the satisfaction of all the customers who are having life insurance policies of ICICI Prudential Life Insurance Company in Mohali, Chandigarh and Panchkulla. .

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Sample Size:Sample size for the study of customer satisfaction is 60 customers who have taken life insurance plans by our team of ICICI Prudential Life Insurance Company. Sampling Unit Sampling unit refers to eligible individual respondent. In my study the sampling unit is single individual person who is having ICICI Prudential Life Insurance policy from our team. Sampling Technique:Convenient sampling technique is used to determine the customer satisfaction of ICICI Life Insurance Products. Pru

Data Collection:Sources of Data : A both primary and secondary source of data has been used to collect information. Primary data was collected from ICICI Prudential Life Insurance Company Limited, Mohali (Punjab). The data explained about different products being offered by the company. Secondary Data was collected by making extensive use of the internet. Data was also collected from various books, journals and publications.

Technique of data collection:Data was collected through discussions with employees of the company. And by personally interviewing the customers of the company and through questionnaires (Questionnaires are attached as annexure and interpretation is given).

57

Data analysis and Interpretations:In order to extract meaningful information from the data, analysis of the data was done. Analysis was done by using certain statistical tools like bar-graphs, pie-charts, percentages etc. and from these analysis interpretations were drawn.

LIMITATIONS OF THE STUDY

1. The area is too vast so it was not possible to visit each and every customer. 2. Some of the customers were busy in their work so they have not given proper time to answer the questions. 3. This research is only a mean but not an end. 4. Respondents lack of time to give information and their casual attitude was a big hindrance in the study.

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ANALYSIS AND INTERPRETATION

Awareness of Life Insurance Companies

Table No. 1 COMPANY ICICI BAJAJ Allianze HDFC Aviva Reliance Others Total AWARENESS 60 58 55 25 20 40 258

Interpretation: From the above graph we can say that 23% of the respondents are aware about the ICICI PRU life. ICICI PRU is the leading company in the insurance sector by capturing the highest percentage of share in terms of awareness in the customer regarding the insurance companies.

Source of Information
59

Table No. 2 Options T/V Newspaper Magazine Friends Others Responses 59 30 18 44 48 Percentage (%) 30 15 18 22 24

Interpretation: Mostly the person gets the information from the T.V advertisement and followed by news paper from the print media and from the mass communication channel. But if we see the graph carefully we can see that friends play a important role in this insurance sector.

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Awareness for Product of ICICI

Table No. 3 Options Yes No Total Responses 60 0 60 Percentage 100% 0% 100%

Interpretation:

In this graph 100% respondent know about the product offered by ICICI prudential life insurance company.

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Type of Insurance Policy

Table No-4 Options Life Health Children Pension Total Responses 14 8 27 11 100 Percentage 23% 14% 45% 18% 100%

Interpretation The above graph depicts that 23% people have Life insurance policy, 14% have health insurance, 43% have taken Children Insurance Plans and 18% have opted for Pension Plans of the company. This shows that Health and Pension Plans need to be marketed properly.

Reason for Selecting ICICI Prudential

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Table No-5 Options Attractive Plans Recommended by some person. Recommended by advisor Because of Market Ranking Total Responses 58 44 40 35 177

Interpretation: The above bar- graph shows that 58 customers have taken insurance plans because of attractiveplans and quality service and 40 have taken on recommendation of Advisor.

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Duration of ICICI Prudential as Insurance provider

Table No. 6 Options Less than 2 Years 2 to 5 Years More than 5 Years Total Responses 40 20 0 60

Interpretation: The above Bar- graph depicts that no people have insurance policies of ICICI Prudential for more than 5 years, 20 people have policies from 2- 5 years (this shows that people have started trusting ICICI Pru as a brand) and 40 are customers of ICICI Pru for less than 2 years.

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Expectations from an Insurance Policy

Table No. 7
Options Higher growth of money invested Convenience in branch availability. Less formalities and paperwork Transparent Transactions No Hidden charges Efficient Customer Care dept. Easy Claim Settlement Total Responses 48 4 4 35 20 4 30 115

Interpretation:

65

The above graph depicts that 33% of people expect higher growth of invested and easy claim settlement. 14% says no hidden charges should be there. Other expectation covers up less paperwork, customer care department and easy branch availability

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Proper solution to Insurance policy relating queries

Table No. 8

Options Yes No Total

Responses 54 6 60

Percentage (%) 90 10 100

Interpretation:

The graph depicts that 90% customers are satisfied with the customer care department of the company. Only 6 respondents were not department. satisfied with the query handling of the

67

Satisfaction regarding Administration charges

Table No. 9 Satisfaction Level Responses Fully Satisfie d 14 27 13 6 Satisfied Neutral Dissatisfied Fully Dissatisfied 0 Total Score 60

Interpretation:

The graph shows that 14 respondents are fully satisfied and 27 are satisfied whereas 6 are not satisfied.

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Satisfaction Regarding Services of the Company

Table No. 10

Options Excellent Very good Good Fair Total

Responses 13 26 18 3 60

Percentage (%) 22 43 30 5 100

Interpretation: The above graph depicts that 30% of the respondents feel that the services provided by the company are good, 43% respondents feel that services are very good and 22% rates the services as excellent.

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Preference of Existing Customer for Future Investment

Table No. 11 Options Definitely Yes Yes Definitely No No Cant Say Total Responses 17 28 3 5 7 60 Percentage (%) 28 47 3 8 12 100

Interpretation: The survey reveals that as many as 45 respondents are willing to avail services of the company in future, 12% are undecided and only 11% people are there who are not willing to avail the services.

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Strongest Point of ICICI Prudential

Table No. 12

Options Efficient staff Attractive Plans Excellent customer service Easy Branch Availability Total

Responses 30 58 15 12 115

Interpretation: The bar- graph shows that the customer feels that the strongest point of ICICI Prudential is the attractive plans, followed by efficient staff, excellent customer care and easy branch availability.

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Findings
Most of the respondents are satisfied with the insurance plans and services provided by ICICI Prudential Life Insurance Company. The company is providing the customers a huge product range which is customized according to the customers requirements. The clientele has increased in past 3 years, this shows that people have started which trusting ICICI Prudential as a Brand. ICICI Prudential provides Insurance plans which cover up all the features customers want in their Insurance plans. From Graph No. 4 it is inferred that still the market for Health and Pension plans is not tapped fully so, efforts should be promote these plans. In their recommendations a few number of respondents asked for lesser administration charges and no hidden charges should be there. 75% of respondents are willing to invest in the company in future. Satisfaction regarding the services provided by company is rated as very good by the respondents. This shows that the company is working in accordance to its Vision. ICICI Prudential is popular among the masses due to attractive plans, followed by efficient staff, excellent customer care and easy branch availability. made to

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Strategic Recommendations and Conclusions.

Effective organizational change is influenced by the complex relationship between Super ordinate goals, Structure , System, Style , Skills, Staff and Strategy. The variables are interconnected with each other. So it is difficult to make significant improvement in one variable without making improvement in others. The critical variables are different across organizations and even in a single organization at different points of time. The analysis of strengths and weaknesses is a pre requisite for successful formulation of corporate strategies. What is the use of an excellent strength if it does not provide for further growth of an organization? What is the use of human resources if there no opportunities to enable them to contribute their mite for achieving organizational goals? A match between the strengths and the environmental opportunities bestow competitive advantage. The concept of synergy recognizes that in the organizational context, the combined effect of certain parts is the greater than the sum of their individual effects. While positive synergy is the resultant of potential strengths negative synergy is an off spring of potential weakness. Synergistic benefits for competitive advantages are achieved, if strategic orientation is in tune with the changing scenario. On the other dimension, consumers have become more knowledgeable in understanding the products and services available from the industry. So they will make more informed choices regarding their insurance protection. Though the penetration level stands 3%nly the major chunk of it comprises of sophisticated customers. The strategies should be : 1) To meet the expectation of such customers by providing innovative range of products.

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2) By introducing insurance to the untapped segment. Company should always take a strategic decision keeping in view its SWOT analysis and industry analysis. ICICI Prudential Life will have to work hard in the following areas:1. Change the perception about the life insurance product in the mind of the people. 2. To influence the customer to view it as a protection instrument and not a saving instrument alone. 3. Position itself as a provider of a social security and family protection. 4. Strengthen its distribution force especially Banc Assurance as a channel of distribution. The strategic alliance with banks will convert bank customers into insurance policy holders.

5. Strategy for reduction in management expenses and operation costs. 6. R&D department of the company should design the products in such a manner generate more revenue with lowest cost. 7. The company should focus the rural market. 8. Hoardings and posters should be in local language. 9. Out of station cheques should also be accepted. that will

At the end, ICICI Prudential Life Insurance Company should take steps to overcome the threats from the external environment, turn their weaknesses into strengths and take benefit of the opportunities to remain the Leader among the private players in the industry.

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ANNEXURES REFERENCES
1) Literature available at ICICI Prudential Life Insurance Company ltd. (Mohali Branch). 2) www.iciciprulife.com 3) www.irdaonline.com 4) www.osmania.ac.ins 5) www.economictimes.com 6) www.financialexpress.com 7) Websites of the major private insurance companies. 8) Various financial newspapers and magazines. 9) Outlook Money (31st May,2007). 10) Insurance principle and practice (M.N.MISHRA) 11) http://www.iciciprulife.com/public/About-us/Vision-Values.htm 12)

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QUESTIONNAIRE on CUSTOMER SATISFACTION 1) Which brand of life insurance companies you are aware off?
ICICI Prudential Aviva Bajaj Allianze HDFC Reliance Other

2) From where you got information regarding the various insurance companies?
TV Friends News Paper Other Magazine

3) Are you aware about the various product offered by the ICICI Prudential?
Yes No (If yes then mention_______________________________________________)

4) What kind of insurance policy do you have?

Life Health Children Other

5) Why did you select ICICI Prudential Life Insurance Company as your

insurance provider?
Attractive Plans Recommended by some one. You are an employee of ICICI Prudential Life. Because of Market ranking.

6) From how long is ICICI Prudential Life Insurance Company is your insurance provider?
0 year 2 years 2- 5 yrs

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Above 5 yrs.

7) What do you expect in your insurance policy?

Higher growth of money invested Convenience in branch availability Less formalities and paperwork Transparent transactions Easy claim statement Efficient Customer Care Department No hidden Charges.

8) Are your queries related to your insurance plan being solved properly?
Yes No

9) Are you satisfied with the administrative fees charged by ICICI Prudential Life Insurance Company?
Fully Satisfied Dissatisfied Satisfied Neutral Fully Dissatisfied

10) What do you think about the standard of services provided by ICICI Prudential Life Insurance Company?
Fair Very Good Good Excellent

11) Are you willing to invest in ICICI Prudential Life Insurance Company in future?
Definitely Yes Definitely No Yes No Cant say.

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12) What according to you is the strongest point of ICICI Prudential Life Insurance Company?
Efficient staff Attractive Plans Excellent customer service Easy Branch availability

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