MARKETING STRATEGIES OF ICICI PRUDENTIAL LIFE INSURANCE

INTRODUCTION

Life insurance is a form of insurance that pays monetary proceeds upon the
death of the insured covered in the policy. Essentially, a life insurance policy is a
contract between the named insured and the insurance company wherein the
insurance company agrees to pay an agreed upon sum of money to the insured's
named beneficiary so long as the insured's premiums are current.

With a large population and the untapped market area of this population
insurance happens to be a very big opportunity in India. Today it stands as a
business growing at the rate of 15-20% annually. Together with banking
services, it adds about 7 percent to the countries GDP. In spite of all this growth
statistics of the penetration of the insurance in the country is very poor. Nearly
80% of Indian populations are without life insurance cover and the health
insurance. This is an indicator that growth potential for the insurance sector is
immense in India.

It was due to this immense growth that the regulations were introduced in the
insurance sector and in continuation “Malhotra Committee” was constituted by
the government in 1993 to examine the various aspects of the industry. The key
element of the reform process was participation of overseas insurance companies
with 26% capital. Creating a more competitive financial system suitable for the
requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many changes. The
liberalization of the industry the insurance industry has never looked back and
today stand as one of the most competitive and exploring industry in India. The
entry of the private players and the increased use of the new distribution are in

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the limelight today. The use of new distribution techniques and the IT tools has
increased the scope of the industry in the longer run.

Insurance is the business of providing protection against financial aspects of risk,

such as those to property, life health and legal liability. It is one method of a
greater concept known as risk management –which is the need to mange
uncertainty on account of exposure to loss, injury, disadvantage or destruction.

Insurance is the method of spreading and transfer of risk. The fortunate many
who are exposed to some or similar risk shares loss of the unfortunate. Insurance
does not protect the assets but only compensates the economic or financial loss.

In insurance the insured makes payment called “premiums” to an insurer, and

in return is able to claim a payment from the insurer if the insured suffers a
defined type of loss. This relationship is usually drawn up in a formal legal
contract.

Insurance companies also earn investment profits, because they have the use of
the premium money from the time they receive it until the time they need it to
pay claims. This money is called the float. When the investments of float are
successful they may earn large profits, even if the insurance company pays out in
claims every penny received as premiums. In fact, most insurance companies pay
out more money than they receive in premiums. The excess amount that they pay
to policyholders is the cost of float. An insurance company will profit if they
invest the money at a greater return than their cost of float.

An insurance contract or policy will set out in detail the exact circumstances
under which a benefit payment will be made and the amount of the premiums.

Classification of insurance

The insurance industry in India can broadly classified in two parts. They are.

1) Life insurance.

2) Non-life (general) insurance.

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1) Life insurance:

Life insurance can be defined as “life insurance provides a sum of money if the
person who is insured dies while the policy is in effect”.

In 1818 British introduced to India, with the establishment of the oriental life
insurance company in Calcutta. The first Indian owned Life Insurance
Company; the Bombay mutual life assurance society was set up in 1870.the life
insurance act, 1912 was the first statuary measure to regulate the life insurance
business in India. In 1983, the earlier legislation was consolidated and amended
by the insurance act, 1938, with comprehensive provisions for detailed effective
control over insurance. The union government had opened the insurance sector
for private participation in 1999, also allowing the private companies to have
foreign equity up to 26%. Following the opening up of the insurance sector, 12
private sector companies have entered the life insurance business.

Benefits of life insurance

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

Thus insurance is found to be very useful in the lives of the person both in short
term and long term.

Fundamental principles of life insurance contract;

1) Principle of almost good faith:

“A positive duty to voluntary disclose, accurately and fully, all facts, material to
the risk being proposed whether requested or not”.

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2) Principle of insurable interest:

“Relationships with the subject matter (a person) which is recognized in law and
gives legal right to insure that person”.

2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be
established in India in 1850, whose shares were mainly held by the British. The
first general insurance company to be set up by an Indian was Indian mercantile
insurance co. Ltd., which was stabilized in 1907 . there emerged many a player
on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of

General Insurance Corporation (GIC) OF India undertook the post-
nationalization general insurance business.

CONCEPTUAL BACKGROUND

Satisfaction is defined as . . .

“A person’s feeling of pleasure or disappointment resulting from comparing a

product’s perceived performance (or outcome) in relation to his or her
expectations.”

Customer Satisfaction can be defined as supplying or gratifying all wants or

wishes, fulfilling conditions or desires, or the state of the mind anything that
makes a customer feel pleased or contented.

Consumer Behavior:

Consumer behavior is defined as the behavior that consumers display in

searching for, purchasing, using, evaluating and disposing of products and
services that they expect will satisfy their needs.

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The study of the processes involved when individuals or groups select, purchase,
use, or dispose of products, services ideas, or experiences to satisfy needs and
desires

Customer value: The ratio between the customers’s perceived benefits

(economic, functional and psychological) and the resources (momentary, time,
effort, psychological) used to obtain those benefits.

Customer satisfaction: Customer satisfaction is the individual’s perception of the

performance of the product or service in relation to his or her expectations.

Motivation: The processes that account for an individual’s intensity, direction,

and persistence of effort toward attaining a goal.

Personality : Personality can be described ad the psychological characteristics

that both determine and reflect how person responds to his or her environment.

Perception is defined as the process by which an individual selects, organizes,

and interprets stimuli into a meaningful and coherent picture of the world.

Consumer learning is the process by which individuals acquire the purchase and
consumption knowledge and experience they apply to future related behavior.

THE CONSUMER ADOPTION PROCESS

The consumer adoption process is the process by which customers learn about
new products, try them, and adopt or reject them. Today many marketers are
targeting heavy users and early adopters of new products recognizing that
specific media can reach both groups and tend to be opinion leaders. The
consumer adoption process is influenced by many factors beyond the marketer’s
control, including consumers and organizations willingness to try new products,
personal influences and the characteristics of the new products or innovations

STAGES OF ADOPTION PROCESS

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An innovation refers to any good, service, or idea. That is perceived by someone

as new. The idea may have long history, but it is an innovation to the person who
sees it as new. Innovation takes time to spread through the special system. The
consumer adoption process focuses on the mental process through which an
individual passes from first hearing about an innovation to final adoption.
Adopters of new products have moved through the following five stages.

AWARENESS: The consumer becomes aware of the innovation but lacks

information about it.

INTEREST: The consumer is stimulated to see the information about the

innovation.

EVALUATION: The Consumer considers whether to try the innovation or not.

TRIAL: The consumer tries the innovation to improve his estimate of its value.

ADOPTION: The consumer decides to make full and regular use of the
innovation.

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OBJECTIVE OF THE STUDY

For every problem there is a research. As all the researches are based on some
and my study is also based upon some objective and these are as follows.

1. To get the knowledge about the product of ICICI Prudential life

insurance company ltd.
2. To study the effect of marketing strategy of ICICI Prudential life
insurance on the behavior of consumer.

3. To find out whether people were really aware of the concept of life
insurance.

4. To understand the expectation of consumer from ICICI Prudential life

insurance product s.

5. To come out with conclusion and suggestions based on the analysis and
the Interpretation of data.

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LITERATURE REVIEW

1. INDUSTRY PROFILE

1.1 Insurance in India

The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360 degree
turn witnessed over a period of almost two centuries.

1.2 A Brief history of the Insurance Sector

The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.

Some of the important milestones in the life insurance in India are;

1912: The Indian Life Assurance

For over 50 years, life insurance in India was defined and driven by only one
company- the Life Insurance Corporation of India (LIC). With the Insurance
Regulatory and Development Authority (IRDA) Bill 1999 paving the way for
entry of private companies into both life and general sectors there was bound to
be new-found excitement- and new success stories. Today, just three years since
their entry, their cumulative share has crossed 13% (source: IRDA), far
exceeding expectations. Clearly insurance is on a growth path.

The percentage of premium income to GDP which was just 2.3% in 2000-01 rose
to 3.3% in 2002-03; and life insurance has emerged as the dominant contributor
to this growth.

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The industry presented a huge opportunity. Life insurance penetration, for

instance, was at an abysmal 22% of the insurable population. However, private
players have had to rise to many challenges. They were faced with attitudinal
barriers towards the category and the perception that insurance was only a tax
saving tool. Insurance per se had lost it basic rationale: protection. It wasn’t
surprising then that its potential lay frozen and unexploited.

The challenge for private insurance players was to change the established
category driver and get customers to evaluate life insurance as an investment-
cum-protection tool.

PREMIUM UNDERWRITTEN BY LIFE INSURERS

The life insurance industry recorded a premium income of Rs.82854.80 crore

during the financial year 2005-06 as against Rs.66653.75 crore in the previous
financial year, recording a growth of 24.31 per cent. The contribution of first
year premium, single premium and renewal premium to the total premium was
Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and
Rs.56637.16 crore (68.36 percent), respectively. In the year2000-01, when the
industry was opened up to the private players, the life insurance premium was
Rs.34,898.48 crore which constituted of Rs. 6996.95 crore of first year premium,
Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium.
Post opening up, single premium had declined from Rs.9, 194.07 crore in the
year 2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the
guaranteed return policies. Though it went up marginally in 2003-04 to
Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant
shift with the single premium income rising to Rs. 10336.30 crore showing 74.11
per cent growth over 2003-04.

(Rs. lakh)

Insurer 2006-07 2008-09

First year premium including Single

premium

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LIC* 1734761.74 2065306.36

(6.34) (19.05)

Private Sector 244070.58 556457.34

(152.74) (127.99)

Total 1978832.32 2621763.70

(14.68) (32.49)

Renewal Premium

LIC 4618580.96 5447422.62

(19.47) (17.95)

Private Sector 67962.05 216293.48

(343.12) (218.26)

Total 4686543.01 5663716.10

(20.75) (20.85)

Total Premium

LIC 6353342.70 7512728.98

(15.63) (18.25)

Private Sector 312032.63 772750.82

(178.83) (147.65)

Total 6665375.33 8285479.80

1.3 Brief Review of Scenario – Insurance

Insurance in India started without any Regulation in Nineteenth century.

It was story of a typical colonial era. A few British companies dominated

the market mostly in large urban centers.

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Insurance was nationalized mainly on 3 counts First, Indian lives were not
insured. Second, even if they were insured, they were treated as substandard
lives and extra premium was charged. Third, there were gross irregularities in
the functioning of Life insurance was nationalized in the year 1956, and then
general insurance was nationalized in the year 1972. In 1999, the private
insurance companies were allowed back again into insurance sector with
maximum cap of 26 percent foreign holding.

1818 The British introduce to India, with the establishment of the Oriental Life
Insurance company in Calcutta.

1850 Non life insurance debuts, with Triton Insurance Company.

1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer

1907 Indian mercantile Insurance is the first Indian non-life insurer.

1912 The Indian life assurance companies’ act enacted to regulate the life
insurance business.

1938 The insurance act, which forms the basis for most current insurance laws,
replaces earlier act.

1956 Life insurance nationalized, government takes over 245 Indian and foreign
insurers and provident societies.

1956 Government sets up LIC

1972 Non life insurance nationalized, GIC set up.

1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up

to draw up a blue print for insurance sector reforms.

1994 Malhotra Committee recommends re-entry of private players, autonomy ot

PSU insurers.

1997 Insurance regulator IRDA (Insurance Regulatory and Development

Authority) set up.

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2000 IRDA starts giving licensed to private insurers

2001 ICICI Prudential Life Insurance came into the market to sell a policy.

2002 Banks were allowed to sell insurance plans, as TPAs enter the scene,
insurers start settling non-life claims in the cashless mode.

1.4 The Insurance Regulatory and Development Authority (IRDA):

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill
in Parliament in December 1999. The IRDA since its incorporation as a statutory
body in April 2000 has fastidiously stuck to its schedule of framing regulations
and registering the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to

the insurance sector and in particular the life insurance companies were the
launch of the IRDA’s online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured
that the insurance companies would have a trained workforce of insurance
agents in place to sell their products, which are expected to be introduced by
early next year.

Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life
insurance and 6 general insurance companies have been registered.

With the demographic changes and changing life styles, the demand for
insurance cover has also evolved taking into consideration the needs of
prospective policyholder for packaged products. There have been innovations in
the types of products developed by the insurers, which are relevant to the people
of different age groups, and suit their requirements. Continued innovations in
product development has resulted in a wide range of flexible products to meet

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the requirements for cover at different stages of life -today a variety of products
are available ranging from traditional to Unit linked providing protection
towards child, endowment, capital guarantee, pension and group solutions. A
number of new products have been introduced in the life segment with
guaranteed additions, which were subsequently withdrawn/toned down; single
premium mode has been popularized; unit linked products; and add-on/riders
including accidental death; dismemberment, critical illness, fixed term assurance
risk cover, group hospital and surgical treatment, hospital cash benefits, etc.
Comprehensive packaged products have been popularized with features of
endowment, money back, whole life, single premium, regular premium, rebate in
premium for higher sum assured, premium mode rebate, etc., together with
riders to the base products.

1.5 Historical Perspective

Prior to 1956 -242 companies operating

1956 -Nationalization- LIC monopoly player -Government control

2001 -Opened up sector

1.6 Contribution to Indian Economy

Life Insurance is the only sector which garners long term savings.

Spread of financial services in rural areas and amongst socially less privileged.

Long term funds for infrastructure.

Strong positive correlation between development of capital markets and

insurance/pension structure.

Employment generation.

1.7 Insurance Industry prior to de-regulation

Prior to deregulation in 2000, market was a public monopoly.

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Public Monopoly

- 2000 Offices

- Over 800,000 agents

Distribution through tied agents only

Sales approach primarily on a tax savings platform

Traditional style product offering : Endowment and money back plans

Inadequate and inflexible products

Pensions: Small part of product offer

Limited focus on customer needs

1.8 Improving Service Standards

Pre Deregulation – Limited Distribution

Channel Access Service Points Use of IT

Advisors Branch Network Limited use of IT

Post Deregulation – Service through Distribution

Multi Channel Access Multiple Service Points Use of IT

Advisors Call Centers Shorter time around time

Brokers & Corporate Email Claims

agents
Website Policy Issuance
Bancassurance

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Branch Network

2. COMPANY PROFILE

ICICI Prudential Life Insurance Company Limited (‘the Company’) a joint

venture

between ICICI Bank Limited and Prudential plc of UK was incorporated on

July

20, 2000 as a company under the Companies Act, 1956 (‘the Act’). The Company

is licensed by the Insurance Regulatory and Development Authority (‘IRDA’)

for carrying life insurance business in India.

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
(UK). The company brings together the local market expertise and financial
strength of ICICI Bank and Prudential’s International life insurance experience.
The company was granted a certificate of Registration by the IRDA on
November 24, 2000 and eighteen days later, issued its first policy on December
12. 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).

From its early days, ICICI Prudential seemed to have the wherewithal for a
large-scale business. By March 31, 2002, a little over a year since its launch, the
company had issued 100,000 policies translating into premium income of

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approximately Rs. 1,200 million on a sum assured of over Rs.23 billion. When
the company began its operations, the need was to build a brand that was
relatable to, symbolized trust and was easily recognized and understood. It
launched a corporate campaign ICICI Prudential also made using the theme of
‘Sindoor’ to epitomize protection, trust, togetherness and all that is Indian;
endearing itself to the masses. The success of the

campaign, ‘the calling card of the company’ saw the brand awareness scores
almost at par with its 40 year old competitor. The theme of protection was also
extended to subsequent product and category specific campaigns –from child
plans to retirement solutions –which highlight how the company will be with its
customers at every step of life.

From day one, the company has unflinchingly focused on being mass-market
player, developing products, creating a distribution network and deploying
resources that would further its goal. Apart from ramping up thoroughly
training its advisors, the company has twelve ‘Bancasurance’ partners –the
largest in the country. It swiftly revised and added to its initial range of
products, pioneering market-linked products and pension plans, to offer
customers the most flexible life insurance policies in the country. In February
2004, ICICI Prudential increased its capital base by Rs. 500 million, its ninth
capital hike, bringing the total paid –up equity capital to Rs. 6,750 million. With
the authorized capital of the company standing at Rs. 12 billion, ICICI
Prudential continues to have the highest capital base amongst all life insurers in
the country. The challenge ICICI Prudential now faces is to retain its top-notch
position and continue to deliver the finest life insurance and pension solutions to
its ever-growing customer base.

ICICI Prudential’s equity base stands at Rs. 1185 crore with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the year ended
March 31, 2006, the company garnered Rs.2, 412 crore of weighted new business
premium and wrote 837,963 policies. The sum assured in force stands at Rs.45,

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888 crore. The company has a network of over 72,000 advisors; as well as 9
bancasurance partners and over 200 corporate agent and broker tie-ups.

ICICI Prudential is also the only private life insurer in India to receive a
National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The
AAA rating is the highest credit rating, and is a clear assurance of ICICI
Prudential’s ability to meet its obligations to customers at the time of maturity or
claims.

For the past five years, ICICI Prudential has retained its position as the No.1
private insurer in the country, with a wide range of flexible products that meet
the needs of the Indian customer at every step in life.

Beginning operations in December 2000, ICICI Prudential’s success has been

meteoric, becoming the number one private life insurer within months of launch.
Today, it has one of the largest distribution networks amongst private life
insurers in India, with branches in 54 cities. The total number of policies issued
stands at more than 780,000 with a total sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total
received premium income of Rs. 9.9 billion; up 135% last years total premium
income of Rs.4.20 billion. New business premium income shows a 106% growth
at Rs. 7.5 billion, driven mainly by the company’s range of unique unit-linked
policies and pension plans. The company’s retail market share amongst private
companies stood at 36%, making it clear leader in the segment. To add to its
achievements, in the year 2003/04 it was adjudged Most Trusted Private Life
Insurer (Economic Times ‘Most Trusted Brand Survey’ by AC Nielsen ORG-
MARG). It was also conferred the ‘Outlook Money-Best Life Insurer’ award for
the second year running. The company is also proud to have won Silver at
EFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI
Prudential was also short-listed to the final round for its ‘Sindoor campaign in
EFFIES 2002.

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ICICI Prudential’s success is rooted in its philosophy to always offer the

customer a choice. This has been the driving force behind its multi-channel
distribution strategy, which includes advisors, banks, direct marketing and
corporate agents. In fact, ICICI Prudential was the first life insurer to invest in
multiple channels and offer the customer choice and access; thus reducing
dependency on any one channel, great strides in the retirement solutions and
pensions market.

The Company’s penetration of the retirement market was driven by the focused
approach towards creating awareness through sustained campaign; ‘Retire from
work, not life’. Within six months, the campaign rewarded ICICI Prudential
with an increased share of 23% of the total pensions market and 78% amongst
private players. ICICI Prudential has one of the largest distribution networks
amongst private life insurers in India, having commenced operations in 132 cities
and towns in India, stretching from Bhuj in the west to Guwahati in the east, and
Jammu in the north to Trivandrum in the south.

The company has 9 bank partnerships for distribution, having agreements with
ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna
Bank, and some co-operative banks, as well as over 200 corporate agents and
brokers, it has also tied up with NGOs, MFIs and corporates for the distribution
of rural policies.

ICICI Prudential has recruited and trained more than 72,000 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.

ABOUT THE PROMOTERS

ICICI Bank (NYSE:IBN) is India’s second largest bank with an asset base of
Rs.2513.89 billion as on March 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 a customer base of more than 17 million customers
through a multi channel access network which includes over 620 branches and

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extension counters, 2200 ATMs, call centers and internet banking

(www.icicibank.com)

PRUDENTIAL plc, Established in London in 1848, through its business in the

UK and Europe, the US and Asia, provides retail financial services products and
services to more than 16 million customers, policy holder and unit holders world
wide. As of December 31, 2005, the company had over US$ 400 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 23 life and mutual fund operations in twelve countries –China, Hong Kong,
India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,
Thailand and Vietnam.

Achievements

Beginning operations in December 2000, ICICI Prudential’s success has been

meteoric, becoming the number one private life insurer within months of launch.
Today, it has one of the largest distribution networks amongst private life
insurers in India, with branches in 54 cities. The total number of policies issued
stands at more than 780,000 with a total sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total
received premium income of Rs. 9.9 billion; up 135% last years total premium
income of Rs.4.20 billion. New business premium income shows a 106% growth
at Rs. 7.5 billion, driven mainly by the company’s range of unique unit-linked
policies and pension plans. The company’s retail market share amongst private
companies stood at 36%, making it clear leader in the segment. To add to its
achievements, in the year 2003/04 it was adjudged Most Trusted Private Life
Insurer (Economic Times ‘Most Trusted Brand Survey’ by ACNeilsen ORG-
MARG). It was also conferred the ‘Outlook Money-Best Life Insurer’ award for
the second year running. The company is also proud to have won Silver at
EFFIES 2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI
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Prudential was also short-listed to the final round for its ‘Sindoor campaign in
EFFIES 2002.

In Keeping with its belief that a happy customer is the best endorsement, ICICI
Prudential has embraced the ‘SIX SIGMA’ approach to quality, an exercise that
begins and ends with the customer from capturing his voice to measuring and
responding to his experiences. This initiative is currently helping the company
improve processes, turnaround times and customer satisfaction levels. Another
Novel introduction is the ICICI Prudential Lifestyle Rewards Club, India’s first
rewards programme for Life Advisors; it allows ICICI Prudential Advisors to
redeem points for items ranging from kitchenware to gold, white goods, and even
international holidays.

Promotion

ICICI Prudential is a case study in how advertising and marketing can play a
vital role in re-shaping an industry. It has demonstrated how an industry where
the customer was nothing more than a policy number has changed to one where
‘customer preference’ rules the roost.

Brand-building in a complex category like life insurance is an uphill and multi-

faceted task. At the time of launching operations, the communications task was
to build credibility, so as to give the customer the confidence that it was ‘a
company that could be trusted to invest funds with’. The aim was to encourage
people to view insurance not as a compulsory tax saving instrument, but as a
means to lead a worry-free, secure life and in the process, create the
differentiator for brand ICICI Prudential.

The brand proposition for all the campaigns was reflected in the line: ‘Suraksha:
Zindagi ke har kadam par’. The campaign featured a significant competitive
advantage, the sound financial backing and credentials of ICICI Prudential, and
showcased products from different segments. The advertising idea was
encapsulated in the symbol of protection –the ‘Sindoor’. This campaign
contributed extensively to raising brand awareness and creating a distinctive
identity for the company.

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The Company recently tied up with the Forbes Six Sigma rated Dabbawalla
organization in Mumbai for a direct marketing exercise. In a Unique effort to
create awareness about a tax saving product, the company attached a creative of
a bitten apple to Mumbai’s ubiquitous lunchboxes. It worked wonderfully with
Mumbai’s office-goers and one that translated into substantial business for the
company.

Brand Values

Market Research reveals that the values people associate with ICICI Prudential
are, indeed, those that the company hopes to project: lifelong protection and
value for money. The core value is protecting your loved ones, throughout life’s
ups and downs. It is a powerful proposition; one, which ICICI Prudential, is
taking into the market place.

DISTRIBUTION SYSTEM

Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential, comprising

a large advisor force that targets various customer segments. The strength of tied
agency lies in an aggressive strategy of expanding and procuring quality
business. With focus on sales & people development, tied agency has emerged as
a robust, predictable and sustainable business model.

Bancassurance and Alliances

ICICI Prudential was a pioneer in offering life insurance solutions through

banks and alliances. Within a short span of two years, and with nearly a large
number of partners,

B & A has emerged as a vital component of the company’s sales and distribution
strategy, contributing to approximately one third of company’s total business.

The business philosophy at B&A is to leverage distribution synergies with our

partners

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MARKETING STRATEGIES OF ICICI PRUDENTIAL LIFE INSURANCE

and add value to its customers as well as the partners. Flexibility, adaptation and
experimenting with new ideas are the hallmarks of this channel.

CUSTOMER SERVICE AND OPERATIONS

 
The Operations department oils the work processes between the customer and
the company to ensure consistent and quality service to the customer. To
streamline the operations, the Operations department interfaces between the
clients and the agents, the branches and the underwriters, and manages work
processes.

The Vision at Customer Service is to deliver ‘World Class Service’ at every

opportunity. Units such as the 9 to 9 contact centre, Outbound Call Centre,
Customer Care and Query Resolution Unit are all committed to providing
effective solutions to over lakhs of customers across the country.

Information Technology

The Information Technology function at ICICI Prudential is committed to

enable business through the use of technology. It is segmented into 4 groups to
enable highest levels of delivery to the customers: Life Asia Solutions Group that
provides flexibility in designing better product offerings to end-users, the
Solutions Group- Web that provides real-time information to customers and is
responsible for customer relationship management, IT Architecture &
Corporate Solutions Group is in charge of developing and maintaining a
blueprint for the IT architecture for the enterprise as a whole. This team works
as an in house R&D Solution Group, exploring new technological initiatives and
also caters to information needs of corporate functions in the organization. IT
Infrastructure group is responsible for providing hardware, software, network
services to the whole organization. This group runs the 'Digital Nervous System'
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of the Enterprise at the highest levels of efficiency and provide robust, scalable
and highly available platform for deployment of business application.

Marketing
 
The Marketing function at ICICI Pru covers an array of activities - brand and
media management, channel support, direct marketing and corporate
communications. The Brand and Communications team is in charge of
advertising, consumer research, media planning & buying and Public Relations;
that helps develop and nurture ICICI Prudential's corporate identity while
effectively communicating its varied product offerings to the customer. Channel
marketing provides support to the sales force by streamlining the design and
development of collaterals and sales tools across distribution channels. The
Direct marketing team was set up to generate high quality leads for profitable
business. The team achieves this through target database acquisition and
communicating customized product information through e-mailers,
telemarketing and innovative direct mailers.

Finance
Finance function in ICICI Prudential is committed to create an infrastructure
that is aligned to shareholder expectations. Finance basically comprises of four
functions. . Corporate Planning and MIS provide feedback on business
strategies. This includes driving the budgeting process, providing strategic inputs
for decision-making and management reporting and analysis. The Accounts
function includes preparation and maintenance of financial records, funds
management, and expense processing and treasury operations. Compliance
ensures that every action is within the regulatory framework. This includes
reviewing compliance requirements and supporting the ethical framework of
ICICI Pru life. Internal audit provides assurance to the management over the

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organizations' control framework and includes process risk management,

information security assessment and business continuity assessment.

Human Resource

The people strategy of ICICI Prudential is “To build a committed team with a
culture of innovation, learning and growth. The Human Resource Function at
ICICI Prudential drives the people strategy of the business. With its initial focus
on operational excellence to deliver benefits and services to staff members, HR is
now committed to building capability through state of the art processes. A robust
performance management system, compensation system and a segmented
training architecture enable it to deliver value to the organization.

Business Excellence

The Business Excellence function is committed to building a quality mindset

across the organization. ICICI Prudential is the first organization in the
Insurance Industry that has adopted the Six Sigma Methodology for process
efficiency and measurement. The team is also driving the Malcolm Baldrige
framework across the organization, an intervention that examines management
of key inputs for Business Excellence.

Bancassurance

One of the most significant advances in the financial services sector over the past
couple of years has been the growth of Bancassurance – which, in simplest terms,
means the distribution of insurance products through a bank’s distribution
channels. In other words, Bancassurance is a service which can fulfill both
banking and insurance needs at the same time.

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Bancassurance as a concept first began in India with the opening up of the

insurance industry to private sector participation in December 1999 which saw
the entry of 20 new players - with 12 in the life insurance sector and 8 in the non-
life sector. Bancassurance has also seen significant rise in other Asian markets.
For example, Bancassurance accounted for 24% of new life insurance sales by
‘weighted’ premium income in Singapore in 2002. This is a significant increase
on the equivalent 2001 statistic of 15% and is as a result of growth in significant
bank-centric Bancassurance operations.

Although the concept of Bancassurance looks simple enough, it is far from that
in real life practice. Legislative differences, consumer behavior, impact of history
and culture, product complexity, employee work culture and many such other
factors have contributed to significant differences in results across countries. For
example, in France and Spain 60% to 80% of life insurance products are sold
through bank branches compared to 10% in UK and USA.

Bancassurance Models

Globally we have 4 kinds of Bancassurance business models:

Distribution alliance between the insurance company and the bank

JV between the two

Merger between bank and insurer

Bank builds or buys own insurance products

Most of the Bancassurance operations in India fall into the first model, which in
a way is quite a prudent decision. The Indian Bancassurance scene as of now
looks as promising as perilous, being a vast, unexplored and uncharted expanse.
As banks are quite risk averse, it is but natural for them to withhold from
making any long term commitment, which would be quite costly if the
Bancassurance business runs into trouble. In terms of the present regulatory
framework, one bank can tie-up with only one life and one non-life insurer, while
insurers have the choice to  tie-up with any number of banks. We also have

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examples of joint ventures between the bank and insurer such as SBI Life and
ICICI Prudential.

Stages in Policy Issuance

1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At this
stage, the application form is received by COPS, but it is pending for issuance
due to further clarifications required from the customer.

2) Login

A proposal which is complete i.e., duly filled with all necessary documents
attached to it & accepted by the Branch ops, is called a Login

3) Reject

An Application gets rejected at the Branch Ops level due to necessary details not
filled in the form or necessary documents not submitted is a Reject. It is then
sent back to the Advisor for completion.

4) Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status

When a customer refuses to take a policy post login but before Issuance is called
a Decline

6) Cancellation

When the cheque given by the customer bounces, it amounts to cancellation of

the policy.

7) Lapse

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A policy for which the Customer fails to pay subsequent premiums is a Lapsed
Policy.

8) Freelook

Post issuance of the policy, the policyholder has the option to turn down the
policy within 15 days from the date of issuance. This period of 15 days is called
Freelook Period.

9) Surrender: When a customer wants to discontinue with the policy.

The jo int s tre ng ths

A powerful joint venture partnership with each carrying a set of strengths

complementing each others

Brand strength Reputation

Insurance
Infrastructure expertise

Customer base PRUDENTIAL Product

ICICI
Market Innovators Distribution

Local knowledge Operations

2.4 PRODUCT/SERVICES PROFILE

ICICI Prudential’s ultimate promise is financial security. A strong brand

certainly boosts sale, but without customer-friendly, innovative products, even
the best brand would not last long.

ICICI Prudential’s product range has been developed on the understanding that
different people have their own sets of needs at various stages of their lives. It has
thus built a flexible portfolio of products that can be customized to cater to
varying needs of people at each stage, and thus ensure protection in every step of
life. The company’s philosophy has been to help customers understand their
financial needs and work closely with them to customize a product that would

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meet. Advisors can offer a complete range of products –Savings plans, Child
plans, Market-linked plans, Protection plans, and Retirement plans – and tailor
a flexible solution to meet customers’ changing needs at every stage of life. In
fact, ICICI Prudential was the first to un-bundle product benefits, pioneering the
concept of ‘riders’ and soon after introduce comprehensive market-linked and
retirement plans.

ICICI Prudential has launched a handful of products that are analyzed below:

ICICI Prudential's life insurance products may be loosely categorized under

three forms: pure life insurance products without an investment angle to them; a
product that is a mix of a cumulative investment scheme and an insurance
product; and, finally, standard products such as money-back and endowment
policies.

Single Premium Bond: The Single Premium Bond is the name of a policy that
combines the features of an investment in a cumulative deposit scheme with that
of an insurance product.

Policy-holders are required to pay a one-time premium based on a target sum

assured. At maturity, the policy-holder gets the sum assured and guaranteed
additions that work out to a compound return of 4.5 per cent the sum assured.

The insurance part of the package comes in the form of death benefits that are
paid in the case of the demise of the policy-holder. The size of the death benefit is
linked to the number of years left for the policy to expire. On maturity date, the
maturity value is also paid in addition to the death benefits that would have been
paid earlier.

Life Guard policies: The company offers two pure life insurance products that
have an umbrella name, Life Guard. One of them involves a one-time premium
for which there are no maturity benefits. The other requires regular premium
payments that are returned at the end of the policy. Life Guard offers absolutely

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no investment-related return and is suitable for individuals looking for an

unadulterated insurance package.

INSURANCE SOLUTIONS FOR INDIVIDUALS

ICICI Prudential Life Insurance offers a range of innovative, customer-centric

products that meet the needs of customers at every life stage. Its products can be
enhanced with up to 5 riders, to create a customized solution for each
policyholder.

SAVINGS SOLUTIONS

Secure Plus is a transparent and feature-packed savings plan that offers 3 levels
of protection.

Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of

protection as well as liquidity options.

Save ‘n’ Protect is a traditional endowment savings plan that offers life
protection along with adequate returns

CashBak is an anticipated endowment policy ideal for meeting milestone

expenses like a child’s marriage, expenses for a child’s higher education or
purchase of an asset.

LifeTime and LifeTime II offer customers the flexibility and control to customize
the policy to meet the changing needs at different life stages. Each offer 4 fund
options –Preserver, Protector, Balancer and Maximiser.

LifeLink Super is a single premium Unit Linked Insurance Plan which combines
life insurance cover with the opportunity to stay invested in the stock market.

Premier Life is a limited premium paying plan that offers customers life
insurance cover till age of 75.

InvestShield Life is a Unit Linked plan that provides capital guarantee on the
invested premiums and declared bonus interest.

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InvestShield Cash is a Unit Linked plan that provides capital guarantee on the
invested premiums and declares bonus interest along with flexible liquidity
options.

InvestShield Gold is a Unit Linked plan that provides capital guarantee on the
invested premiums and declares bonus interest along with limited premium
payment terms.

PROTECTION SOLUTIONS

LifeGuard is a protection plan, which offers life cover at very low cost. It is
available in 3 options –level term assurance with return of premium and single
premium.

HomeAssure is a mortgage reducing term assurance plan designed specifically to

help customers cover their home loans in a simple and cost-effective manner.

Child Plans

SmartKid education plans provide guaranteed educational benefits to a child

along with life insurance cover for the parent who purchases the policy. The
policy is designed to provide money at important milestones in the child’s life.
SmartKid plans are also available in unit-linked form – both single premium and
regular premium.

Retirement Solutions

ForeverLife is a retirement product targeted at individuals in their thirties.

SecurePlus Pension is a flexible pension plan that allows one to select between 3
levels of cover.

Market-linked retirement products

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LifeTime Pension II is a regular premium market-linked pension plan.

LifeLink Pension II is single premium market linked pension plan.

InvestShield Pension is a regular premium pension plan with a capital guarantee

on the investible premium and declared bonuses

Golden Years: is a limited premium paying retirement solution that offers tax
benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and
payout stages.

HEALTH SOLUTIONS

Health Assure and Health Assure Plus: Health Assure is a regular premium plan
which provides long term cover against 6 critical illnesses by providing policy
holder with financial assistance, irrespective of the actual medical expenses.
Health Assure Plus offers the added advantage of an equivalent life insurance
cover

Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis
as well as at different stages in the treatment of various cancer conditions.

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking
to enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner. The
plan can also be customized to structure schemes that can provide benefits
beyond the statutory obligations.

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
contribution superannuation scheme to provide a retirement kitty for each

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MARKETING STRATEGIES OF ICICI PRUDENTIAL LIFE INSURANCE

member of the group. Employees have the option of choosing from various
annuity options or opting for a partial commutation of the annuity at the time of
retirement.

ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform or
based on designation/rank or a multiple of salary. The benefit under the policy is
paid to the beneficiary nominated by the member on his/her death.

Flexible Rider Options

ICICI Pru Life offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.

Accident and disability benefit: If death occurs as the result of an accident

during the term of the policy, the beneficiary receives an additional amount
equal to the rider sum assured under the policy. If the death occurs while
traveling in an authorized mass transport vehicle, the beneficiary will be entitled
to twice the sum assured as additional benefit.

Accident Benefit: This rider option pays the sum assured under the rider on
death due to accident.

Critical Illness Benefit: Protects the insured against financial loss in the event of
9 specified critical illnesses. Benefits are payable to the insured for medical
expenses prior to death

Income Benefit: This rider pays the 10% of the sum assured to the nominee
every year, till maturity, in the event of the death of the life assured. It is
available in SmartKid, SecurePlus, and CashPlus.

Waiver of Premium: In case of total and permanent disability due to an accident,

the premiums are waived till maturity. This rider is available with SecurePlus
and CashPlus.

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RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information on
a specific topic.

The word research has been derived from French word Researcher means to
search.

FRANCIES RUMMER defined “Research: It is a careful inquiry or examination

to discover new information or relationship and to expand or verify existing
knowledge.

Research is the solution of the problem, whether created or already generated.

When research is done, some new out come, so that the problem (created or
generated) to be solved.

RESEARCH DESIGN:

Research Design is the conceptual structure within which research is conducted.

It constitutes the blueprint for collection, measurement and analysis of data. The
design used for carrying out this research is Descriptive.

SOURCES OF DATA COLLECTION

 Primary data : Primary data is collected from personal visits of the field.
It is gained through observation and interviewing the target market
concerned.

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DATA SOURCE: The sources of collection of Primary data are:

 Questionnaire
 Interview method: Interview was conducted both personally and through
telephone.

 Secondary data: Secondary data is collected through information which is

already published in some other sources.

DATA SOURCE: The sources of collection of secondary data are:

 Books
 Websites

 Magazine

 Brochure

SAMPLING PLAN:

It is very difficult to collect information from every member of a population .As

time and costs are the major limitation that the researcher faces.

SAMPLE AREA: East delhi

SAMPLE SIZE : 100

SAMPLE UNIT : 1

SAMPLING TECHNIQUE : Random Sampling Method.

ANALYSIS AND INTERPRETATION:

Data collection through questionnaire and personnel interview resulted in

availability of the desired information but these were useless until there were

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analyzed. Various steps required for this purpose were editing, coding and
tabulating. Tabulating refers to bringing together similar data and compiling
them in an accurate and meaningful manner. The data collected by
questionnaire was analyzed, interpreted with the help of table, bar chart and pie
chart.

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RESULT AND ANALYSIS

1. Age of the respondents

Less than 25 11 11%

25 - 35 40 40%

35 - 45 20 20%

Above 45 29 29%

TOTAL 100 100

Age of the Respondents

NO.OF.RESPONDENT PERCENTAGE

100

80

60

40

20

0
Less 25 - 35 35 - 45 Above TOTAL
than 25 45

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 11% of the respondents are less than 25 years old.

b) 40% of the respondents are between 25 and 35 years of age.
c) 20% of the respondents are between 35 and 45 years of age.
d) 29% of the respondents are more than 45 years of age.

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2. Qualification of the respondents.

PARTICULAR NO.OF.RESPONDENT PERCENTAGE

Graduate 52 52%

Post Graduate 29 29%

Diploma 8 8%

Other discipline 11 11%

TOTAL 100 100%

Qualification of the Respondents

Graduate Post Graduate Diploma
Other discipline TOTAL

100
80
60
40
20
0
PERCENTAGE
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 52% of the respondents were graduate

b) 29% of the respondents were post graduate
c) 8% of the respondents were diploma
d) 10% of the respondents were other discipline

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3. Occupation of the respondents

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Business man 34 34%

Professionals 18 18%

Job holders 37 37%

Others 11 11%

TOTAL 100 100%

Occupation of the Respondents

Business man Professionals Job holders

Others TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

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MARKETING STRATEGIES OF ICICI PRUDENTIAL LIFE INSURANCE

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 34% of the respondents are businessmen.

b) 18% of the respondents are professionals.
c) 37% of the respondents are job holders.
d) 11% of the respondents are background.

4. Average annual income of respondents.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Up to 1 lakh 33 33%

1 lakh - 3 lakh 43 43%

3 lakh - 5 lakh 20 20%

5 lakh & above 4 4%

TOTAL 100 100%

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MARKETING STRATEGIES OF ICICI PRUDENTIAL LIFE INSURANCE

Average annual income of

respondents.

100

80
Up to 1 lakh
1 lakh - 3 lakh 60
3 lakh - 5 lakh
40
5 lakh & above
TOTAL 20

0
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 33% of the respondents have an average annual income up to 1

lakh
b) 43% of the respondents have an average annual income from 1
lakh to 3 lakh
c) 20% of the respondents have an average annual income from 3
lakh to 5 lakh
d) 4% of the respondents have an average annual income above 5
lakh

5. Family size of respondents

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Below 5 members 50 50%

5 - 10 members 32 32%

Above 10 members 28 28%

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TOTAL 100 100%

FAMILY SIZE

28%

50%

below 5 members
5- 10 member
above 10 member

32%

ANANLYSIS:

From the survey it was found that amongst 100 respondents

a) 50% of the respondents are below 5 members.

b) 32% of the respondents are between 5 to 10 members.
c) 28% of the respondents are above 10 members.

6. Reason for buying an insurance policy?

PARTICULARS PERCENTAGE
NO.OF.RESPONDENT

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Risk Coverage 10 10%

Tax Savings 3 3%

Good return 4 4%

Security 3 3%

All the above 80 80%

TOTAL 100

Life Insurance is

Risk Coverage Tax Savings Good return

Security All the above TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 10% of the respondents say risk coverage.

b) 3% of the respondents say tax savings.
c) 4% of the respondents say good returns.
d) 3% of the respondents say financial security.
e) 80% of the respondents say all of the above.

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7. Awareness regarding insurance.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 98 98%

No 02 2%

TOTAL 100 100%

100

80

60
Yes
No
40
TOTAL
20

0
NO.OF.RESPONDENT

ANALYSIS:
From the survey it was found that amongst 100 respondents

a) 98% of the respondents say that they are aware of insurance.

b) Only 2% are unaware of insurance.

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8.Awareness of ICICI Prudential life insurance

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 55 55%

No 45 45%

TOTAL 100 100%

Awareness of ICICI Pru

Yes No TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 55% of the respondents say that they are aware of ICICI

Prudential life insurance co.
b) 45% of the say that they are unaware of ICICI Prudential life
insurance co

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9. Percentage of respondents who are under different plans of ICICI Prudential

life insurance co.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Invest gain plan 41 41%

Unit gain plan 36 36%

Child gain plan 8 8%

Whole life plan 15 15%

Pension plan No No

TOTAL 100 100%

INSURANCE PLANS OF ICICI PRUDENTIAL

15%

8% 41%
Invest gain plan
Unit gain plan
Child gain plan
Whole life plan
36% Pension plan

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 41% of the respondents are under invest gain plan

b) 36% of the respondents are under unit gain plan
VSKUBc) 8% of the respondents are child gain plan Page 46
d) 15% of the respondents are whole life plan
e) No body under pension plan
MARKETING STRATEGIES OF ICICI PRUDENTIAL LIFE INSURANCE

10. % of respondents benefits of choosing the particular products

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Risk coverage 60 60%

Additional benefit 20 20%

Maturity date 12 12%

Sum Assured 8 8%

TOTAL 100 100%

Benefits of Particular Products

100
90
80
70 Risk coverage
60 Additional benefit
50
Maturity date
40
Sum Assured
30
20 TOTAL
10
0 ANALYSIS:
1
a) 36% 2
of the respondents say that a benefit of choosing the particular
Product is for Safety of life.
b) 20% of the respondents say that a benefit of choosing the particular
products is for additional benefit to family
c) 12% of the respondents say that a benefit of choosing the particular
products is for maturity date
VSKUB d) 8% of the respondents say that a benefit of choosing the particular Page 47
products is for sum assured
MARKETING STRATEGIES OF ICICI PRUDENTIAL LIFE INSURANCE

11. % of disadvantages in insurance plan

PARTICUALRS NO.OF.RESPONDENT PERCENTAGE

Liquidity 35 35%

Lapsation 20 20%

Unable to decide 19 19%

premium

High risk coverage 14 14%

Fixed Term 12 12%

TOTAL 100 100%

Disadvantages in Insurance Plans

100
80
60
40
20
0
NO.OF.RESPONDENT

Liquidity Lapsation
Unable to decide premium High risk coverage
Fixed Term TOTAL

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ANALYSIS:
From the survey it was found that amongst 100 respondents

a) 35% of the respondents say that disadvantages in insurance

plan are liquidity.
b) 20% of the respondents say that disadvantages in insurance
plan are lapsation.
c) 19% of the respondents say that disadvantages in insurance
plan is unable decide premium.
d) 14% of the respondents say that disadvantages in insurance
plan are high risk coverage at high premium.
e) 12% of the respondents say that disadvantages in insurance
plan is fixed term

12. from where you get the information of ICICI prudential life insurance

%
PARTICULARS NO.OF
RESPONDENTS
10
NEWSPAPER 15
20
MAGAZINES 20

25
TELEVISON 25
ANALYSIS:
45
From the survey it was found that amongst 100 respondents
COLLEGUES,FRIEND 40
f) 10% of the respondents say that they use newspaper
100 magazines
g) 20% of the respondents say that follow
TOTAL 100
h) 25% of the respondents say that follow televison.
i) 45% of the respondents say that follow friends,collegues.

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13.effection channel of distribution in icici pru life

NO.OF RESPONDENT %
PARTICULAR

ADVISOR 70 70

INTERNET 10 10

BANK 30 30

TOTAL 100 100

100

80
ADVISOR
60
INTERNET
40 BANK
TOTAL
20

ANALYSIS

A.70% follow the distribution channel through advisor.

B.10% follow the distribution channel through internet

c.30% follow the distribution channel through bank.

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FINDINGS

On an analysis and evaluation of the data collected from the respondents the
following findings were found.

Before establishment of private concerns the share of LIC was 45% hence there
is a wide scope for private concerns to enter in to market.

Total 100 respondents have been approached out of which 75 are the potential
respondents who have shown interest for investment and finance plan

 Above 20% of respondents are shown interest for investment and

financial plan.
 About 12.67% of respondents have already been covered by other
insurance companies.

 About 70% follow the distribution channel through advisor

 About 45% follow the word of mouth(friends,collegues) company will

focus on it.

 About 10% of respondents interested for investment plan after knowing

ICICI PRUDENTIAL LIFE INSURANCE products.

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RECOMMENDATIONS TO COMPANY

Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI
invested, in terms of work force, in terms of market share, in terms of no. of
customers. All these positive stands of the company place at the number one
position. On second aspect whatever amount of money ICICI Prudential save,
can be used to increase the no. of policies, which will helpful to increase the
market share of the company. Since the customers think about the companies in
the industry, when they invest money in the life insurance industry. So it’s
necessary to increase the market share of the company. There are some
recommendations.

Open some more branches in semi urban and rural area.

 ICICI Prudential has almost its branches in urban area or metros. So in

order to increase the no. of customer, ICICI Prudential should increase
the approach towards potential customers. For that it has to increase the
branches in the semi urban cities like C, D grade cities. And the rural
marketing is the best option for ICICI Prudential to increase its base in
the market

 Improve customer services.In order to take the advantage of being

industry leader in private sector, ICICI Prudential has to improve its
customer services. According to my experience in the company, a good
number of customers forget to pay their premium at time so it causes a
big loss to the company. ICICI Prudential has already collaborated with
the ICICI bank for its Bancassurance facility and then can include

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another feature in it. ICICI bank can offer a bank account with the life
insurance policy in which an ATM card will be provided. This card will
have all the information regarding the policy as like future premium
payment dates, payment made, money value of the policy at that date,
value of the unit linked plan and all other information what the customer
want. This will help the customer to pay premium on time and save their
losses. This will be mutually helpful for both sister companies, ICICI
bank will get new account and ICICI prudential will be able to more
efficient services to their customers.

 Bring some unit linked life insurance plans in the market.Being a market
leader doesn’t ensure the leadership in the future. Since after increment
in FDI from 26% to 49% all player will have the opportunity to capture
the market share. So in order to maintain its position ICICI Prudential
should introduce some new market linked insurance plan, which will give
a competitive advantage to the ICICI Prudential against its competitors.

 Train the financial advisors more efficiently. In the changed scenario,

more efficient training will be needed, so ICICI Prudential should provide
good and efficient training to their financial advisors. Because they are
the one who interact directly with the customers. So good training will
give them the right way to deal with the potential customers.

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QUESTIONNAIRE
Dear Sir/Madam,

I am a student of RIM,FARIDABAD conducting a marketing survey on

“MARKETING STRATEGY of ICICI Prudential LIFE INSURANCE, In
Delhi”. I request you to fill this questionnaire & I assure that this data will be
used only for study purpose & it will be kept confidential.

1. Name _________________________________

2. Address

3. Age

Less than 25 35-45

25 – 35 45 and above

4. Qualification

Graduate Diploma

Postgraduate Other discipline

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5. Occupation

Business

Job holder

Professional .

Other

6. What is your average annual income?

Up to 1 lakh

1 lakh to 3 lakhs

3 lakhs to 5 lakhs

5 lakhs and more

7. Your family size

Below 5 members

5 – 10 members

Above 10 members

8. According to you life insurance is,

A tax saving plan

A saving scheme with good return

A financial security for the family

Risk coverage

All the above

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9. Have you taken any life insurance product of ICICI Prudential Life
insurance?

YES NO

10. If Yes, which are in these?

Unit gain plan

Invest gain plan

Whole life plan

Children plan

Pension plan

Others __________________

11. Are you aware of the benefits in your policy?

Yes No

If yes what are they?

Sum assured

Additional benefits

Maturity date

Risk coverage

12. According to you what are the disadvantages in an insurance plan?

Lapsation

Liquidity

Fixed term

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Unable to decide your premium

Unable to decide the sum assured

High risk coverage at high premiums

Other disadvantages

13. In which of the following would you like to invest?

Equity fund

Debt fund

Balanced fund

Cash fund

Mutual fund

Recurring deposits

14. Any suggestion for ICICI Prudential Life Insurance

______________________________________________________

*Thank you for sharing your valuable time*

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BIBLIOGRAPHY

Marketing Management by Philip Kotler, Pearson Education 2nd ed.

Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th ed.

Strategic Management by Tata Mc grew hills 5th edition

IRDA Journal

ICICI Prudential Company magazines

Newspaper and Business magazines

WEBSITES

www.iciciprulife.com

www.google.co.in/indian insurance industry

www.irdaindia.org

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