7/30/2019 Amar Project1
1/69
PROJECT REPORT
ON
Recruitment and selection procedure in
ICICI Prudential
SUBMITTED TO: - SUBMITTED BY:-
AmardeepkumarPGDM, AIMT Roll No:-AIMTDM1113115
PGDM (MARKETING & HR)
2011-13
A report submitted to
Accurate Institute of Management andTechnology
as a mandatory part ofPOST GRADUATE DOPLOMA IN MANAGEMENT
7/30/2019 Amar Project1
2/69
PROJECT REPORT
ON
Recruitment and selection procedure in
ICICI Prudential
SUBMITTED TO: - SUBMITTED BY:-
AmardeepkumarPGDM, AIMT Roll No:-AIMTDM1113115
PGDM (MARKETING & HR)2011-2013
Signature of faculty
A t b itt d t
7/30/2019 Amar Project1
3/69
as a mandatory part ofPOST GRADUATE DOPLOMA IN MANAGEMENT
7/30/2019 Amar Project1
4/69
DECLARATION
I, Amardeep kumar , student of Post Graduate Diploma in Mangement from AIMT CollegeGreater Noida hereby declare that I have completed Dissertation on
Recruitment and selection procedure in ICICI Prudential Delhi NCR region .
.
I further declare that the information presented in this project is true and original to the bestof my knowledge.
Date: Amardeep kumar
Roll no AIMTDM1113115
Place: Gr. Noida PGDM 2011 TO 2013
4
7/30/2019 Amar Project1
5/69
TABLE
OF
CONTENTS
5
7/30/2019 Amar Project1
6/69
TABLE OF CONTENTSPg .No.
EXECUTIVE SUMMARY . 7
OBJECTIVE OF THE STUDY. 8
Overview of Insurance
Need of life of
Insurance. 11
Roles of
Insurance.13
Types of life
insurance 15
FINDINGS GENERAL
Insurance in India ... 18
Why Private Insurance?. 22
Intermediaries 23
Challenges Before Insurance Industry 26
Company Profile .... 28
ICICI Prudential Introduction. 31
Management 37
Distribution 38
6
7/30/2019 Amar Project1
7/69
Recruiting life insurance advisors.. 40
Market survey on life insurance companies 45
Different plans offered by ICICI Prudential 57
Limitations ..
60
RECOMMENDATIONS & SUGGESTIONS 61
CONCLUSIONS 63
BIBLIOGRAPHY.. 65
7
7/30/2019 Amar Project1
8/69
EXECUTIVE SUMMARY
Identifying different profiles of the people and giving them a business Opportunity to join
ICICI Prudential as an advisor/agent. (Detailed study on advisors/agent.)
A market survey was done on life insurance companies. Different questions regarding the
companies training programs for agents/advisor, top 5 USPS training centers etc were asked.
The areas covered up in this survey were east Delhi and Gzb. The report contains details of
different life insurance companies, which are in healthy competition with ICICI Prudential
life insurance.
8
7/30/2019 Amar Project1
9/69
The report also throws a light on the following:
Working of the unit linked insurance plans.
SWOT analysis of the product.
Comparative study of the competition
Training centers
Commission structure
Current agent force
Different training programs for agents/advisors
Modes and ways through which they recruit agents
Top five USPs (unique selling proposition
9
7/30/2019 Amar Project1
10/69
OBJECTIVE OF
THE STUDY
10
7/30/2019 Amar Project1
11/69
OBJECTIVE OF THE STUDY
The project undertaken by me as a part of my PGDM is an effort made to study the recruitment
of advisors in ICICI PRUDENTIAL with special emphasis on unit linked products of the
company.
In this era of cut throat competition, any organization needs to select and retain the best talent.
People selected should have positive attitude, ability to inspire others and must be dynamic.
Research Methodology:
Primary data collected by personally visiting different people from different walks of life andgathering information about the leading insurance players for example LIC, Max New York Life
Insurance, Bajaj Alliance, Birla Sunlife, HDFC Stan life.
- Gathering information by visiting branch offices of different Companies.
- Recruiting agents- by making phone calls to people of different
Profile and giving them a business opportunity to join ICICI prudential as advisor/agent.
Data Collection:
Primary data collected through questionnaires.
My market 100
11
7/30/2019 Amar Project1
12/69
Overview of Insurance
12
7/30/2019 Amar Project1
13/69
Need for Life Insurance
Risks and uncertainties are part of life's great adventure -- accident, illness, theft, natural disaster
- they're all built into the workings of the Universe, waiting to happen.
Insurance then is man's answer to the vagaries of life. If you cannot beat man-made and natural
calamities, well, at least be prepared for them and their aftermath.
Insurance is a contract between two parties - the insurer (the insurance company) and the
insured (the person or entity seeking the cover) - wherein the insurer agrees to pay the insured
for financial losses arising out of any unforeseen events in return for a regular payment of
"premium".
These unforeseen events are defined as "risk" and that is why insurance is called a risk cover.
Hence, insurance is essentially the means to financially compensate for losses that life throws at
people - corporates and otherwise.
The principle of insurance works on the concept of a large number of people exposed to a similar
risk making a contribution to a common fund. Those who suffer losses due to the occurrence of
these events are compensated for them from this fund.
Who can buy a life insurance policy?
Any person above 18 years of age, who is eligible to enter into a valid contract can go for an
insurance policy. Subject to certain conditions, a policy can be taken on the life of a spouse or
children
13
7/30/2019 Amar Project1
14/69
MAJOR PLAYERS OF LIFE INSURANCE IN INDIA
1. Life Insurance Corporation of India
2. ICICI prudential Life Insurance
3. HDFC Standard Life Insurance
4. Max New York Life Insurance
5. Birla Sun Life Insurance
6. Om Kotak Mahindra Life Insurance
7. Reliance Life Insurance
8. Bajaj Allianz Life Insurance
14
7/30/2019 Amar Project1
15/69
ROLE OF LIFE INSURANCE
Life Insurance As An Investment:-
Insurance is an attractive option for investment. While most people recognize the risk hedging
and tax saving potential of insurance, many are not aware of its advantages as an investment
option as well. Insurance products yield more compared to regular investment options, and this is
besides the added incentives offered by insurers.
You cannot compare an insurance product with other investment schemes for the simple reasonthat it offers financial protection from risks, something that is missing in non-insurance products.
In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before
comparing with other schemes, you must accept that a part of the total amount invested in life
insurance goes towards providing for the risk cover, while the rest is used for savings.
In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the
term. In other words, if you take a life insurance policy for 20 years and survive the term, the
amount invested as premium in the policy will come back to you with added returns. In the
unfortunate event of death within the tenure of the policy, the family of the deceased will receive
the sum assured.
Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your
money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to your
funds will be limited. One can withdraw 50 per cent of the initial deposit only after 4 years.
The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-12
lakh (depending upon the plan, age and medical condition of the life insured, etc) and thisamount can become immediately available to the nominee of the policyholder on death. Thus
insurance is a unique investment avenue that delivers sound returns in addition to protection.
15
7/30/2019 Amar Project1
16/69
Is life insurance a saving instrument?
Life insurance is mainly considered as a saving instrument rather than an investment avenue as it
promotes compulsory savings besides reducing tax burden on the policyholder and protect the
family of the policyholder in the event of unforeseen happening. It is the only saving instrument,
which covers the life risk besides giving tax concession both at entry (premium paid) and at exit
points. The section 10 (D) of the income tax act totally exempts payment of tax on any amount
received as bonus against life insurance polices .
16
7/30/2019 Amar Project1
17/69
Types of Life Insurance Policies
There are four broad types of life insurance policies to choose from:
Term Insurance
Whole Life Policy
Most of the products offered by Indian life insurers are developed and structured around these
"basic" policies and are usually an extension or a combination of these policies. So, what are
these policies and how do they differ from each other?
Term Insurance Policy
A term insurance plan is a pure risk cover for a specified period of time. What this means is
that the sum assured is payable only if the policyholder dies within the policy term. For
instance, if a person buys a Rs 2 lakh policy for 15 years, his family is entitled to the money
if he dies within that 15-year period.
What if he survives the 15-year period? Well, then he is not entitled to any payment; the
insurance company keeps the entire premium paid during the 15-year period.
So, there is no element of savings or investment in such a policy. It is a 100 per cent risk
cover. It simply means that a person pays a certain premium to protect his family against his
sudden death. He forfeits the amount if he outlives the period of the policy. This explains
why the Term Insurance Policy comes at the lowest cost.
Term Insurance variants:
Given the limitations mentioned above, the term life insurance policy has been enhanced to
Convertible Term Assurance and Premium Back Term Assurance policies
17
7/30/2019 Amar Project1
18/69
Convertible Term Assurance Policy
A term assurance policy allows the insured to convert the policy into an endowment or a
whole life policy two years before the end of the policy term.
This plan is ideal for people who are not able to afford permanent insurance policies (like
endowment and whole life) when they have just started their careers.
Premium Back Term Insurance Plan
This is a term insurance policy in which insurer will pay back the premium (excluding
accident premium) if the insured survives the policy term.
In case of death, the sum assured would be fully payable.
Anticipated Endowment Policy
These policies are structured to provide sums required as anticipated expenses (marriage,
education, etc) over a stipulated period of time. With inflation becoming a big issue,
companies have realized that sometimes the money value of the policy is eroded. That is why
with-profit policies are also being introduced to offset some of the losses incurred on account
of inflation.
A portion of the sum assured is payable at regular intervals. On survival the remainder of the
sum assured is payable.
In case of death, the full sum assured is payable to the insured.
The premium is payable for a particular period of time.
18
7/30/2019 Amar Project1
19/69
FINDINGS GENERAL
19
7/30/2019 Amar Project1
20/69
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.
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 business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
20
7/30/2019 Amar Project1
21/69
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and
grouped into four companies viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.
Insurance Sector Reforms
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N.
Malhotra, was formed to evaluate the Indian insurance industry and recommend its future
direction.
The Malhotra committee was set up with the objective of complementing the reforms initiated inthe financial sector. The reforms were aimed at creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping in mind the structural
changes currently underway and recognizing that insurance is an important part of the overall
financial system where it was necessary to address the need for similar reforms
In 1994, the committee submitted the report and some of the key recommendations included:
i) Structure
Government stake in the insurance Companies to be brought down to 50%.
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
All the insurance companies should be given greater freedom to operate.
21
7/30/2019 Amar Project1
22/69
ii) Competition
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter
the industry.
No Company should deal in both Life and General Insurance through a single entity.
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
Postal Life Insurance should be allowed to operate in the rural market.
Only one State Level Life Insurance Company should be allowed to operate in each state.
iii) Regulatory Body
The Insurance Act should be changed
An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent
iv) Investments
Mandatory Investments of LIC Life Fund in government securities to be reduced from
75% to 50%.
GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time).
v) Customer Service
LIC should pay interest on delays in payments beyond 30 days.
Insurance companies must be encouraged to set up unit linked pension plans.
Computerization of operations and updating of technology to be carried out in the
insurance industry.
22
7/30/2019 Amar Project1
23/69
The committee emphasized that in order to improve the customer services and increase the
coverage of the insurance industry should be opened up to competition. But at the same time, the
committee felt the need to exercise caution as any failure on the part of new players could ruinthe public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the minimum capital
requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to
insurance companies in order to improve their performance and enable them to act as
independent companies with economic motives. For this purpose, it had proposed setting up an
independent regulatory body.
Why private insurance?
23
7/30/2019 Amar Project1
24/69
All the private companies have a lock in period of 10 yrs hence no disinvestments
possible.
Minimum net worth of 500 Cr required for acquiring license with a minimum paid up
capital of 100 Cr in their insurance venture.
Commitment to increase the paid up capital manifold in next five years.
Re insurance for all its policies worth more than 5 lakhs. Reinsurance partners, best and
the largest in the world general cologne and Swiss reinsurance.
Audit of accounts by at least 2 independent approved auditors each year.
Products and pricing are cleared by IRDA, which looks into the financial visibility of the
product and the financial implication.
IRDA is now proposing a Pvt. Policy Protection fund.
Funds to be invested in only regulated and controlled areas with close to 80%being
pumped into only gilts thereby assuring safety of funds.
24
7/30/2019 Amar Project1
25/69
Intermediaries
The IRDA is currently working on norms concerning brokers. In most developed markets,
insurance brokers are regulated in the following areas:
Registration.
Experience, training and qualification, and other restrictions on entry into the
profession.
Solvency requirements.
Professional indemnity or a minimum level of errors. There is also a central
fund to protect clients against broker malpractice.
In India, the practice of brokers acting as intermediaries does not exist except in the case of
reinsurance. Estimates by Ernst & Young show that intermediaries when introduced as a part of
the changes will have a market of between Rs 100 crore and Rs 150 crore to be exploited.
Expertise and Technology
With state monopoly the insurance industry is not subject to disruptive competitive moves or
developments. The strategies of the state insurers are driven more by government policy andcriteria, such as effectiveness and equity in implementing such policy, rather than by efficiency
or impact on the bottomline per se. Naturally, the education and training in the insurance sector
have been influenced by the strategic posture of these public sector insurance companies.
The increasing importance of knowledge in the Indian insurance industry is likely to make
employability a critical factor for retention of qualified managerial manpower in the future. To
create such a milieu, insurance companies need to have a critical mass of management graduates
and professionals (or equivalent) and a top management that encourages a knowledge-basedculture.
Reinsurance
The current thrust is to increase retentions. This is being significantly achieved with reduction in
ceded reinsurance premium overseas from US $ 250 million to US $ 150 million With reinsurers
25
7/30/2019 Amar Project1
26/69
like Munich Re and Swiss Re to be licensed there a sea - change is anticipated in reinsurance
practice. Besides other reinsurers like Zurich, Allianz and
AIG are present. A view maybe formed for the possibility of transaction similar to the inter-bank
call money market in respect of risks written by non-life insurers.
Brokers can introduce changes in practice and which could include both coinsurance and
reinsurance placements.
There is likelihood of accelerated introduction of the new alternative risk techniques which
converge risk covers and replace at once insurance and its reinsurance. The market is set to
witness these unconventional changes at a pace permitted by change in local tax laws.
Health Awareness And Growth Of Life Insurance
For the liberalized general insurance industry, retail market is the area of growth. The prospect of
the health insurance market looks the brightest, particularly on account of low level of
penetrations in the area, points out an ICRA report.
According to the agency, in the health insurance market, growth will be a function of evolution
of health care business, and pricing will be the key to success (profitability), especially because
health insurance has been de-tariffed it has been brought outside the scope of tariff settingrecommendations of the Tariff Advisory Committee. But distribution in the remotest area and
service quality will be the key drivers of competitiveness. While the public sector players have a
better reach, private sector players will create a differential on the service platform. In the case of
corporate business, ICRA feels that it will be based on relationships. While most of the players
will have to pay more as a result of increase in the reinsurance rates post September 11 attacks,
reinsurance will be the key driver to the growth of the private non-life players, as most of them
have limited capitalization levels. Effectiveness of reinsurance arrangement will be an important
factor for the private players. In this regard, the rating agency feels that public sector players are
better placed as they have established relationships and reinsurance arrangements. Even in the
case of investment portfolio, the PSU players have healthy portfolios that give them additional
strength. The threats to general insurance companies profitability are the declining interest rate
regime and adverse asset liability position.
26
7/30/2019 Amar Project1
27/69
The weaknesses of PSU players are poor service orientation, high operating overheads, limited
underwriting flexibility and poor systems and data collection abilities. While ICRA rated all the
PSU as AAA in terms of the claims paying ability with a short to medium term outlook, thetwo private insurance companies rated below this level by the agency did not accept the rating as
it was not up to their expectation. The private companies have been rated on financial and
operating strength of the promoter, strength of the joint venture agreement and attractiveness of
the venture to both parents and quality and terms of reinsurance agreement. The lower ratings
stemmed from the fragile nature of joint venture agreements, the uncertainty over the evolution
of the market and the short track record of these companies.
27
7/30/2019 Amar Project1
28/69
Challenges Before The Industry
The new as well as the old insurers will have to face a number of challenges in the liberalized
market.
New Insurers-
The new insurers will have to invest a minimum capital of Rs. 100 crores. The normal gestation
period is of five years. The generation of profit normally starts in the sixth year. Hence the new
insurers will have to be ready for locking up their capital for at least 5 years before earning any
profits. Besides they will face problems of shortage of trained manpower for the insurance
industry. The setting up of various offices and distribution network is a time consuming process.
Further the new insurers will have to compete with the established insurance companies like LIC
and GIC which have a corporate image and market presence for several years.
Expectation of the consumers
Today LIC has more than 60 products and GIC has more than 180 products to offer in the
market. But most of them are outdated, as they are not suitable to the needs of the consumers.
Hence old as well as new insurers will have to offer innovative products to the consumers. The
consumers are particularly expecting good pension plans, health insurance, term insurance and
investment products like unit-linked insurance, from the life insurers. Similarly the consumers
expect innovative products from the general insurers for managing healthcare, property
insurance, accident insurance and other products related to the personal line of insurance.
The consumers also expect reduction in the premium of the insurance products as the mortality
rate in India has come down by three times in the last 50 years.
Distribution Channel: -
In the liberalized insurance market, there will be multiple distribution channels, which will
include agents, brokers, corporate intermediaries, bank branches, affinity groups and direct
marketing through telesales and Internet. Some channels will be cheaper than others. Hence there
will be competition among the channels. The new insurers will operate with the help of multiple
distribution channels but the existing insurers may be forced to operate only with the help of
28
7/30/2019 Amar Project1
29/69
agents. Hence, intense competition will grow among the old and new insurers in the market to
win the consumers. This will pose a great challenge to the insurers in the liberalized insurance
market.
Consumer Education
Very soon the market will be flooded by a large number of products by a fairly large number of
insurers operating in the Indian market. Even with limited range of products offered by LIC and
GIC, the consumers are confused in the market. Their confusion will further increase in the face
of a large number of products in the market. The existing level of awareness of the consumers for
insurance products is very low, it is so because only 62% of the population of India is literate
and less than 10% well educated. Even the educated consumers are ignorant about the various
products of insurance. Hence it is necessary that all the insurers should undertake the extensive
plan for education of consumers. The consumer organizations and the media also can play very
important role in education of the consumers. This will result in expansion of the insurance
market and will also enable the needy consumer to purchase appropriate products.
29
7/30/2019 Amar Project1
30/69
COMPANY PROFILE
30
7/30/2019 Amar Project1
31/69
COMPANY PROFILE
ICICI and PRUDENTIAL came together in 1993 to provide mutual fund products in India and
today are the largest private sector mutual fund company in India. The two companies bring
together two of the strongest financial service brands in Asia known for their professionalism,
excellent quality of service and long term commitment to their customers. Riding on the success
of this relationship; the two companies joined hands once more in 2000 to form ICICI
PRUDENTIAL life insurance with a commitment to provide leading-edge life insurance
solutions.
ICICI Bank:
ICICI Bank (NYSE:IBN) is India''s second largest bank and largest private sector bank with over
50 years of financial experience and with assets of Rs. 1812.27 billion as on 30th June, 2005.
ICICI Bank offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialised subsidiaries and
affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset
management. ICICI Bank is a leading player in the retail banking market and has over 13 million
retail customer accounts. The Bank has a network of over 570 branches and extension counters,
and 2,000 ATMs.
31
7/30/2019 Amar Project1
32/69
PRUDENTIAL plc:
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the
US and Asia, provides retail financial services products and services to more than 16 million
customers, policyholder and unit holders worldwide. As of NOV 30, 2012, the company had
over US$300 billion in funds under management. Prudential has brought to market an integrated
range of financial services products that now includes life assurance, pensions, mutual funds,
banking, investment management and general insurance. In Asia, Prudential is the leading
European life insurance company with a vast network of 24 life and mutual fund operations in
twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand and Vietnam.
32
7/30/2019 Amar Project1
33/69
ICICIPrudential Life Insurance
Company Limited
33
7/30/2019 Amar Project1
34/69
The revolution began in 2000Prior to deregulation in 2000, market was a public monopoly
with limited focus on customer needs
Public monopoly 2,000 offices Over 800,000 agents
Distribution through tied agents only
Push sales approach purely on a tax savings platform
Limited focus on customer needs
Traditional style product offering Endowment and money back plans Inflexible and inadequate products Pensions Small part of product offer
Our approach : A new age life insurance model
34
Distribution
Rapid expansion of agencyMulti-channel platform
Operations
Best in classCustomer centric
Brand Creation of a superbrand
ProductComprehensive portfolioInnovative and flexible
EntryJoint venture entry platformStrong, respected partners
People Talent from diverse industries
7/30/2019 Amar Project1
35/69
Our approach : Our joint strengths
VisionTo be the dominant life & Pensions player built on trust by world class people & service ValuesCustomer First/Boundaryless/Ownership/Passion/Integrity
35
Reputation
Insuranceexpertise
Product
Distribution
Operations
Brand strength
Infrastructure
Customerbase
Local knowledge
Market Innovators
7/30/2019 Amar Project1
36/69
India: Overview
36
Country
Population 1,055mInsurance penetration2.7%
Life insurance market
Characteristics
Pre-2000 : Public monopolyMarket deregulated in 2000
ICICI entered in 2000 through jointventure with Prudential
Top 5 players
Life Insurance Corp. of India (LIC)ICICI PrudentialBirla Sun LifeBajaj AllianzHDFC Standard
In-force premiums INR 530bFY05* new premiums INR 156bTotal premiums INR 686b
7/30/2019 Amar Project1
37/69
Retail Market Share : Private Player
37
Retail Market Share 2011-12
ICICI - Pru34.2%
HDFC Std.life
9.1%Birla Sunlife
12.9%
Tata AIG6.3%
Bajaj Allianz11.3%
Max Newyork5.5%
Kotak Life4.9%
Aviva
4.5%
ING Vysya6.7%
SBI Life2.7%
AMP Sanmar0.7%
Metlife
1.2%
7/30/2019 Amar Project1
38/69
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 2006 after receiving approval from
Insurance Regulatory Development Authority(IRDA).
ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. In the financial year ended March 31, 2011, the
company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780
crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors;
as well as 7 bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life insurer in the country, with a wide
range of flexible products that meet the needs of the Indian customer at every step in life.
38
7/30/2019 Amar Project1
39/69
MANAGEMENT
39
7/30/2019 Amar Project1
40/69
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life insurers in
India, having commenced operations in over 116 cities and towns in India, stretching from Bhuj
in the west to Guwahati in the east, and Amritsar in the north to Trivandrum in the south.
The company has 8 bancassurance tie-ups, having agreements with ICICI Bank, Bank of India,
Federal Bank, South Indian Bank, Ernakulam Bank, Lord Krishna Bank and some co-operative
banks, as well as about 290 corporate agents and brokers. It has also tied up with NGOs, MFIs
and corporates for the distribution of rural policies and organisations like Dhan for distribution of
Salaam Zindagi, a policy for the socially and economically underprivileged sections of society.ICICI Prudential has recruited and trained more than 65,000 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.
OPERATIONS OF ICICI
The company is now operational in, Pune, Mumbai, New Delhi Chennai, Kolkatta, Bangalore,
Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut, Mangalore and
Ludhiana.
ICICI Prudential Life Insurance Co. Ltd.
VISION
To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class
people and service.
This we hope to achieve by:
Understanding the needs ofcustomers and offering them superior products and service
Leveraging technology to service customers quickly, efficiently and conveniently
Developing and implementing superiorrisk management and investment strategies to
offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for ouremployees
40
7/30/2019 Amar Project1
41/69
And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5 core values --
Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe
what the company stands for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can play a
significant role in redefining and reshaping the sector. Given the quality of our parentage and the
commitment of our team, there are no limits to our growth.
Achievements so far!
- Leading Private Life Insurance company.
- Maximum number of policies sold
- Largest premium income
- Biggest pension player
- Strong brand recognition.
- State-of-the-art support services.
41
7/30/2019 Amar Project1
42/69
RECRUITING LIFE INSURANCE ADVISORS/AGENTS.
What is an insurance agent?
An agent is the representative of an insurance company who sells different policies or product to
its clients.
Another term used for insurance agents is advisors; this term was introduced by ICICI Prudential
life insurance company Ltd.
Today in life insurance companies advisors are known to
be the backbone of the whole system. Advisors/agents do not work on monthly payroll basis;
they receive a certain commission on the policies they sell to the clients.The eligibility required to become an advisor/agent is that he/she should be 12 th pass to operate in
urban area and 10th pass for rural areas. Before a person becomes an advisor/agent he/she has to
undergo 100hrs training according to IRDA norms which is compulsory.
70-75% of profits gained in life insurance business is through advisors/agents.
42
7/30/2019 Amar Project1
43/69
Advisor Role.
To provide ongoing financial advice for his/her clients:
- Identify future clients
- Making appointments
- Conduct financial review meetings with prospects/clients.
- Close sales
- Get referrals
- Provide service to clients.
- Follows internal sales and reporting system.
Working Environment of an advisor/agent.
- To be a part of world-class sales team.
- Work from your own office or residence.
- Work full time or part time(an advisor can work part time by undergoing only 50hrs of
training and 100hrs training is for full time advisors.)
- Earn Commission, Bonus & Incentives.
- No upper limits on earnings.
- Flexible career.
Opportunities for an Advisor/agent.
- No startup capital required.
- Flexible working environment.
- Be your own boss.
- Unlimited earning potential.
- To be a part of a world-class team.
43
7/30/2019 Amar Project1
44/69
Commission Structure.
Different products will have different commission structures.
For example: Single Premium products will have a commission of 2%.
- Renewal Commission is paid at the following rates:
2nd yr:7.5% 3rd yr:7.5% 4th yr:5% 5th yr:5% onwards
44
7/30/2019 Amar Project1
45/69
Payments & benefits-commission Structure for advisors/agents.
Year 1 Year 2 Year 3
Number of Policies Sold 50 75 100
Average Premium Rs. 10000 10000 10000
Total Premium Earned Rs. 500000 750000 1000000
Commission @ 25% 125000 187500 250000
Bonus @ 40% of Commission 50000 75000 100000
Earnings from New Business Rs. 175000 262500 350000
Commission on Renewal [email protected]% 37500 56250For year 2, 3, and 5% after that 37500
Earnings from renewal business Rs. 37500 93750
Total Earnings Rs. 175000 300000 443750
Most preferred profiles to recruit as Advisors/agents.
- CAS
- Doctors
- Lawyers
- Retired Defence officers
- Government employees
- Bankers and brokers.
- Agents of other life insurance companies.
- Executives working in call centers.
- House wives.
People from these profiles usually have a good network of communication and do not face much
problem in finding clients and selling different products.
45
7/30/2019 Amar Project1
46/69
Thats why almost every insurance company try to recruit people as advisor/agent belonging to
these profiles.
How does an advisor/agent work?
- Firstly an advisor/agent has to make a list of 100 people that he/she knows
- Then the Advisor/agent makes a call to these clients and tries to fix an appointment.
- When an appointment is fixed the advisor/agent meets the customer & tries to sell the product
- After that the advisor/agent asks for the reference of maximum number of people from the
client.
- The reference is asked in context to make future calls and the whole procedure is repeatedagain.
46
7/30/2019 Amar Project1
47/69
Market survey on major life insurance companies.
A market survey was done on life insurance companies. Different questions regarding the
companies training programs for agents/advisor, top 5 usp's, training centers etc were asked.
The areas covered up in this survey were Ghaziabad and central EastDelhi. The report
contains details of different life insurance companies which are in healthy competition with
ICICI Prudential life insurance.
The list of companies covered up in this survey:
1. LIFE INSURANCE CORPORATION(LIC)2. AVIVA
3. HDFC-Standard life
4. MAX NEW YORK LIFE INSURANCE
5. BIRLA SUNLIFE
6. TATA-AIG
Life Insurance Corporation of India (LIC)
-The Life Insurance Corporation (LIC) was established about 44 years ago with a view to
provide an insurance cover against various risks in life. A monolith then, the corporation,
enjoyed a monopoly status and became synonymous with life insurance.
-Its main asset is its staff strength of 1.24 lakh employees and 2,048 branches and over six lakh
agency force.
-At the industry level, along with the Government and the GIC, it has helped establish the
National Insurance Academy. It presently transacts individual life insurance businesses, group
insurance businesses, social security schemes and pensions, grants housing loans through its
subsidiary; and markets savings and investment products through its mutual fund. It pays off
about Rs 6,000 crore annually to 5.6 million policyholders.
47
7/30/2019 Amar Project1
48/69
Training activities for agents/advisors.
As per IRDA,100hrs training is compulsory for 17 days.
Only classroom training are available.
Only full-time training is given.
(ICICIPrudential advantage:- Part time option available.)
Commission Structure.
Depends on the plan
Features:
The plan provides joint life last survivor survival benefits to take care of education expenses of
children. Recurring monthly survival benefits on increasing scale are expected to meet fees and
other expenses of education. Lump sum survival benefit can be utilized towards expenses for
admission to professional course. Lump sum maturity amount is provided to meet the profession/
business setting up expenses.
The plan is a single premium without profit assurance plan with provision for guaranteed and
loyalty additions. The valuable insurance cover on the life of the parent-proposer in case of
unfortunate event will enable the child to carry on the education without any financial
interruption.
Age of the named child Survival benefit p.a. payable monthly ina year
Upto 9 years Rs.3000 ( 12 %)10 to 17 years Rs.6000 ( 24 %)18 to 23 Years Rs.12000 ( 48 %)
The survival benefit as a percentage of sum assured is shown in brackets
48
7/30/2019 Amar Project1
49/69
Death Benefits:On death of the parent - proposer during the policy term, a sum equivalent to the
basic sum assured is payable. Risk on the life of the named child is not covered.
Policy Parameters:
Min Max
Entry Age 20 (0 for child) 70 (12 for child)Sum Assured 25000 1000000Term Not Applicable Not Applicable
Mode of Payment Max Maturity Age Policy loan available
Single Premium 70 years No
Different training programs for agents.
- Skills upgradation: How to give presentations and company introduction.
- Knowing your customers: Matching customer request with products.
Modes & ways through which the company recruit agents.
- Through development officers.
- Through corporate agencies(Bankers and Brokers).
- Carrier agent branch (i) rural carrier agent
(ii) urban carrier agent.
Current agent force
10000 agents in GZB.
Top 5 USPs (Unique Selling Proposition)
- TRUST(since 1956),ORG marks survey has rated LIC most trusted branch in life
insurance
- Having a vast network of 2050 branches and nearly 10 lakh agents.
- Best claim performance in the world by Depth and Maturity claim.- A government undertaken company ensuring safe and corruption free insurance.
- Variety of plans available to match the customer' s needs.
AVIVA.
49
7/30/2019 Amar Project1
50/69
-Aviva plc was launched in 1st July 2002 as a new name
for CGNU plc. A world leader in financial services, the
group has 300-year pedigree.- Aviva brings together 50 trading names and enables the group to harness the benefits of its size
and international capabilities as the seventh largest insurer in the world.
- Its main activities are long-term savings, fund management and general insurance.
- The group has 56,000 employees serving 30 million
customers worldwide.
Training activities for agents/advisors.
- As per IRDA,100hrs training is compulsory
- Both online & classroom training are available.
- In the 100 hrs training the advisor/agent is given
knowledge about insurance & company.
- Both part time & full time option available.
Training centers.
- NIS: South extension & Patel nagar.
- In-house training center at C.P branch.
(ICICIPrudential Advantage:- More training centers available at different locations.)
Commission Structure.
Different policies are available
- For single time investment
Minimum- 2%
Maximum-35%
- For insurance policies
Minimum -5%
Maximum - 35%
Different training programs for agents.
- Knowing your customers: matching client request with product.
50
7/30/2019 Amar Project1
51/69
- Product Training: giving knowledge about the different products of the company.
- Selling skills: How to make the client more satisfied.
Modes & ways through which the company recruit agents.- Newspaper adds.
- Reference.
- Personal contacts.
- Walk-ins*
*Through interviews and written exams.
Current agent force
1500-2000 in Gzb
Top 5 USPs (Unique Selling Proposition)
- Unique way of selling(financial health check)taking
information from the customer, based on that report
advise is given for future investments or savings.
- Showing the future to the customer so that it can decide
the type of investment.
- Seventh largest insurer in the world.
- Provides need based products of different kinds like
non-medical products which are investment oriented.
- Number one asset management company which brings
together 50 trading names.
HDFC - Standard Life
- HDFC Standard Life Insurance Company is a joint venture between India's largest housing
finance provider, HDFC and Europe's largest mutual life assurance company
- The Standard Life Assurance Company (U. K).
- Standard Life, UK, founded in 1825, has been at the forefront of the UK insurance industry
for 175 years by combining sound financial judgement with integrity and reliability.
51
7/30/2019 Amar Project1
52/69
- It is the Largest Mutual Life company in Europe and has total assets of Rs. 5,50,000
crore.
Training activities for agents/advisors.
- As per IRDA guidelines,100hrs training is compulsory.
- Both online & classroom training are available.
- Training is compulsory with both part time & full time
options.
- A clear exam is conducted by IRDA, the minimum
qualification required is-
12th pass for urban areas
10th pass for rural areas.
Training centers.
- NIS: Patel nagar, south extension(Delhi).
- - School net.
(ICICIPrudential Advantage:- More training centers available at different locations.)
Commission Structure.
Depends on the product, like on savings
20-40% Ist year premium.
- on investment 2%
- on pension 7.5%
Different training programs for agents.
- IRDA training:100 hrs training which is compulsory.
- Product training: Making the agents well aware of the company's products.
- Communication training: How to communicate more effectively with your customers.
- Behavioral training: How to understand you customers more properly.
- Presentation skills
Modes & ways through which the company recruit agents.
52
7/30/2019 Amar Project1
53/69
- Direct contacts.
- Newspaper adds.
- Consultants.- Member of the company can introduce a new member.
Top 5 USPs (Unique Selling Proposition)
- Ist private sector life insurance company to be granted a license.
- Declared bonus every year from the day of incorporation(only company.)
- Provides fast service to the customers in terms of claim.
- Best insurer according to Outlook.
- Well supported by foreign partner Standard Life,U.K which was recently voted ' company of
the decade' in U.K by the Independent Brokers called IFAs.
Max Newyork Life.
Max India:
- Max India Limited is a multi-business corporation that has business interests in telecom
services, bulk pharmaceuticals, electronic components and specialty products. it is also the
service-oriented businesses of healthcare, life insurance and information technology.
New York Life:
- New York Life has grown to be a Fortune 100 company and an expert in life insurance. It was
the first insurance company to offer cash dividends to policy owners.
- In 1894, New York Life pioneered the then unheard-of concept of insuring women at the same
rate as men. Thereafter, it continued to introduce a series of firsts - a disability benefit clause in
1920, unemployment insurance in 1992, and complete customer care on the Web in 1998.- Today New York Life has over US billion in assets under management and over 30,000 agents
and employees worldwide.
- The October 2000 Fortune Survey named New York Life amongst the top three most admired
life and health insurance companies worldwide.
53
7/30/2019 Amar Project1
54/69
- With over 3 million policy holders, New York Life is a leading provider of insurance in a host
of countries worldwide.
Training activities for agents/advisors.- As per IRDA,100hrs training is compulsory.
- Only classroom training is available.
- Only fulltime training is given.
(ICICIPrudential advantage:- Part time option available.)
Training centers.
Max newyork life has in-house training centers all over Delhi.
Himalaya house -C.P
Seactor-18, Noida.
Commission Structure.
Minimum - 2%
Maximum - 35%.
Varies from product to product- 25%,7.5%,10%&15%.
Different training programs for agents.
- Module training: giving details about the product.
- Ethical selling: different techniques of selling.
- Motivational tools: How to make the client more satisfied or to sell better.
Current agent force
2000-3000 in Delhi.
Top 5 USPs (Unique Selling Proposition)
- Training, which is compulsory for every agent/advisor so that they work according to the
company's working style.
- Emphasizes on whole life products.
- Flexibility of the product to adapt to customers changing needs in future.
- Believes in healthy competition with other life insurance companies.
- Agent is the power.
54
7/30/2019 Amar Project1
55/69
Tata AIG
-The Tata AIG joint venture is a tie up between the established Tata Group and American
International Group Inc.
-The Tata Group is one of the largest and most respected industrial houses in the country.
-AIG is a leading US based insurance and financial services company with a presence in over
130 countries and jurisdictions around the world
Training activities for agents/advisors. As per IRDA,100hrs training is compulsory for 17 days.
Both online & classroom training are available.
- Then there is six days product training in which an agent is made familiar with different
products of the company.
Only full-time training is given.
(ICICIPrudential advantage:- Part time option available.)
Training centers.
Through NIS, Tata AIG has NIS training centers in Delhi for IRDA training.
Berjaya house(New friends Colony.)
Pitampura
G.K-1
Noida Sector-4.
(ICICIPrudential Advantage:- More training centers available at different locations.)
Commission Structure.
40% on 1st year premium.
7-5% on next 6 years.
Different training programs for agents.
Who are we and what we do?
55
7/30/2019 Amar Project1
56/69
What does your customer actually need?
How do you create & protect wealth for your client?
How can you meet 5 prospects daily?
Modes & ways through which the company recruit agents.
Advertisement (Newspaper adds)
- Contacts. (When advisor becomes consultant he/she has its
own team to use contacts.)
Current agent force
6000 agents all over India.
Top 5 USPs (Unique Selling Proposition)
AIG stands second in insurance, in the world.
Tata gives a compounding bonus to policy holders.
Highest commission structure of 40%.
Tata itself is a known brand.
A good carrier graph.
*Advisors become consultants in a short span of time.
56
7/30/2019 Amar Project1
57/69
Birla Sun Life Insurance Company Limited
- Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life
Financial of Canada to enter the Indian insurance sector.
- The Aditya Birla Group, a multinational conglomerate has over 75 business units in India and
overseas with operations in Canada, USA, UK, Thailand, Indonesia, Philippines, Malaysia and
Egypt to name a few.
Foreign Partner:
- Sun Life Assurance, Sun Life Financials primary insurance business, has excellent ratings with
the world's top rating agencies.
- With assets under management as on September 30, 2000 totaling more than CDN billion, it
ranks amongst the largest international financial services organizations in the world.
Training activities for agents/advisors.
- As per IRDA,100hrs training is compulsory.
-Both online & classroom training are available:
classroom training is 100hrs(13 days)or 50 hrs(7 days)- C.A, Dr, Advocate & MBA.
- Online training is for
100hrs- general
50hrs- CA/Dr/Advocate/MBA.
25hrs(3 days)- Renewal.
- Both part time & full time training option is available.
Training centers.
- Ritu Nanda institute of training(G.K)
- Amity Business school.
- NIS(8 Balagi estate, Kalkaji)
57
7/30/2019 Amar Project1
58/69
- School net India ltd.
Different training programs for agents.
- Product training: 3 days training in which agents are made familiar with the products of thecompany.
- Refresher training
- Direct sales training:
indirect channel : in this an agent - calls the client
- fixes an appointment.
- then meets the client.
Modes & ways through which the company recruit agents.
- Interviews & written exam.
- Newspaper adds.
Current agent force
750 agents in Delhi.
Top 5 USPs (Unique Selling Proposition)
- Trusted name, as a part of Aditya Birla group.
- Indias second largest business house
- Multinational company which is growing rapidly.
- Having second position in private life insurance.
- Offers different plans with ethical and good claim settlement.
58
7/30/2019 Amar Project1
59/69
DIFFERENT PLANS OFFERED BY ICICI PRUDENTIAL
As a responsible parent, you will always strive to ensure a hassle-free, successful life for your
child. However, life is full of uncertainties and even the best-laid plans can go wrong. Here's
how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties.
SmartKid is designed to provide flexibility and safeguard your child's future education and
lifestyle, taking all possibilities into account.
1
.
SmartKid regular premium
2
.
SmartKid unit-linked regular premium
3.
SmartKid unit-linked single premium
All these plans offer you:
Guaranteed Financial Benefits: Regular payments at critical stages in your child's life,
like Board examinations, Graduation and Post-graduation.
Total peace of mind
Sum Assured is paid immediately: Ensures that your loved ones stay financially secure, even in
your absence.
59
7/30/2019 Amar Project1
60/69
All future premiums are waived: Ensuring that your family is not financially burdened in your
absence.
Policy benefits continue:The educational benefits of the policy continue, ensuring that your
child can realize his or her dreams without any hassles.
Development Allowance: Smart Kid guarantees regular income to secure your child's
educational career and also ensures his or her all-round development, for a nominal additional
amount. The Income Benefit Rider takes care of this through an annual payment of 10% of the
sum assured, to your child, till the maturity of the policy, in the unfortunate event of the death of
the parent.
ICICI Pru Group Solutions AdvantageAn integrated basket of employee benefit solutions that offer incomparable flexible benefits.Sound investment management that focuses on safety, stability and profitability of the portfolio.Personalised financial planning for your employee that takes care of his/her changing financial
needs at every stage of life.Quality service initiatives and transparency across all operations, promising superlative
60
7/30/2019 Amar Project1
61/69
operational efficiency.
Group Term Assurance : Helps provide affordable cover to members of a group.
Group Gratuity Plan : Helps employers fund their statutory gratuity obligation in a flexible and
hassle-free manner.
Group Superannuation Plan : A flexible scheme (defined benefit and defined contribution) to
provide a retirement kitty for each member of the group.
LIMITATIONS OF THE SURVEY
- Risk of being identified as a summer trainee( icici prudential) while visiting different life
insurance companies.
- Time
- Climatic conditions.
61
7/30/2019 Amar Project1
62/69
62
7/30/2019 Amar Project1
63/69
RECOMMENDATIONS
AND
SUGGESTIONS
63
7/30/2019 Amar Project1
64/69
RECOMMENDATIONS AND SUGGESTIONS
Basic Understanding
There are some very basic understandings in this industry, insurance industry, that I have always
kept in mind throughout my recommendations and which I feel is utmost essential to keep in
mind before formulating any kind of strategies by the company. These understandings are:
An insurance policy is a product which needs a lot of convincing before it can be sold because
what I analyzed in this internship that there are very few people who have a basic knowledge
about life insurance especially the lower middle class society. While selling these policies there
are many different kinds of customers that an advisor/agent faces:
- Customer1: He/she knows about insurance and is interested in being insured
- Customer2: He/she does not have any interment knowledge a
insurance and the advisor/agent has to explain everything and
in the end the advisor/agent gets nothing out of it.
- Customer3: He/she goes through the briefs but takes a lot of time to be convinced.
Promotions.
A customer usually gets convinced through following ways:
- By first knowing what your customer needs.
- Then telling him what he/she can benefit out of it.
- Giving him/her time to think.
Insurance is all a game of showing the future to your customers and giving them a solution to
their future problems, because no body wants to get insured but everyone needs it.
64
7/30/2019 Amar Project1
65/69
CONCLUSION
65
7/30/2019 Amar Project1
66/69
CONCLUSION
ICICI Prudential life insurance company is the number one private life insurance company in
India with a market share of 42.2%. Birla sunlife stands second in private life insurance
companies with a market share of 18.5%. Looking in private sector ICICI Prudential has been
the dominant player because the amount of gap between the market share is huge.
But if we analyze in all sectors of life insurance then LIC has been the most dominant player
since 1956. The impact of LIC has been so much in both rural and urban areas that people use
the term LIC instead of life insurance.
ICICI prudential faces a big challenge infront of them to stay in the race with Life insurancecorporation(LIC) because with the entrance of other companies like Max newyork , Tata-AIG &
Aviva the competition has become more tough.
But insurance is also growing day by day, India has a population of 1.2 billion and only 33.3%
population is insured. This means insurance is an upcoming industry but ICICI prudential has to
work a lot on their strategies to overcome LIC.
66
7/30/2019 Amar Project1
67/69
BIBLIOGRAPHY
67
7/30/2019 Amar Project1
68/69
BIBLIOGRAPHY
PASSTRAK Life Insurance License Exam Manual
by Dearborn Financial Service
The Life Insurance Game
by Ronald Kessler
All about life insurance agents
by Vaswar Das Gupta
Laws of Insurance
by Kay Strang
WEBSITES
www.iciciprulife.com
68
http://g/exec/obidos/search-handle-url/index=books&field-author=Dearborn%20Financial%20Service/104-1168900-1707107http://www.iciciprulife.com/http://g/exec/obidos/search-handle-url/index=books&field-author=Dearborn%20Financial%20Service/104-1168900-1707107http://www.iciciprulife.com/7/30/2019 Amar Project1
69/69