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SUBMITTED BY
RAHUL AGARWAL
ROLL NO. 631
M.B.A (Insurance)
i
ACKNOWLEDGEMENT
This project is teamwork; it would not have been possible without the
guidance and cooperation of a number of people. I wish to extend my
gratitude to all those who facilitated the completion of my project.
At the outset, I would like to give my sincere thanks to Mr. Vijay Singh
UM.
Last but not least I would like to thank the whole team of ICICI
Prudential Life Insurance Company for providing me a comfortable
environment for working.
RAHUL AGARWAL
MBA – INSURANCE
Roll No. – 631
BIMTECH
2
EXECUTIVE SUMMARY
The task in hand was channel development and expanding it. In this, I
had to recruit insurance advisors for the company. The target was set
at least five insurance advisors.
The findings of the research is that some people are interested and in
spite of being busy they want to become insurance advisor, but apart
of this many are not interested either because they do not have time
or the job does not suit them.
3
LITERATURE REVIEW
4
TABLE OF CONTENTS
Chapter Contents Page No.
Acknowledgement iii
Executive summary iv
Literature Review v
Chapter 1 Objective 1
5
Chapter 15 Findings of the study 52
Appendix 59
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CHAPTER 1
OBJECTIVES
7
CHAPTER 2
ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian
businesses. In the 1990s, ICICI transformed its business from a
development financial institution offering only project finance to a
diversified financial services group offering a wide variety of products
and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank.
ICICI BANK
8
mortgages, car loans, personal loans, corporate and trade finances,
credit and debit cards and other banking services.
ICICI Bank is India's second-largest bank with total assets of about Rs.
2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs.
25.40 bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05
bn (US$ 449 mn) for the year ended March 31, 2005). ICICI Bank has a
network of about 614 branches and extension counters and over 2,200
ATMs. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture
capital and asset management. ICICI Bank set up its international
banking group in fiscal 2002 to cater to the cross border needs of
clients and leverage on its domestic banking strengths to offer
products internationally. ICICI Bank currently has subsidiaries in the
United Kingdom, Russia and Canada, branches in Singapore, Bahrain,
Hong Kong, Sri Lanka and Dubai International Finance Center and
representative offices in the United States, United Arab Emirates,
China, South Africa and Bangladesh. Our UK subsidiary has established
a branch in Belgium. ICICI Bank is the most valuable bank in India in
terms of market capitalization.
ICICI Bank's equity shares are listed in India on the Bombay Stock
Exchange and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange (NYSE).
9
At June 5, 2006, ICICI Bank, with free float market capitalization of
about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all the
companies listed on the Indian stock exchanges.
AT A GLANCE
10
2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura
was a Chettiar bank, and had acquired Chettinad Mercantile
Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s.
2002 The Boards of Directors of ICICI and ICICI Bank approve the
merger of ICICI, ICICI Personal Financial Services Limited and
ICICI Capital Services Limited, with ICICI Bank. After receiving all
necessary regulatory approvals, ICICI integrates the group's
financing and banking operations, both wholesale and retail, into
a single.
INTERNATIONAL EXPANSION
11
ICICI has managed this transformation by continually tuning its
strategies with the evolving competitive environment, shifting its
strategy from a product focus to customer focus and capitalizing on
every available market opportunity to ensure greater share of the
customer’s wallet.
PRUDENTIAL Plc
THE COMPANY
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The company aim is to enhance and protect our customers’ and their
dependents’ financial well being, by offering a superior range of
savings, protection and other retail financial services products.
13
In Asia, Prudential Corporation Asia has 23 operations in 12 countries.
These include strategic partnerships with some of the region’s leading
players, including CITIC Group (for life business in China), ICICI Bank
(for life and mutual fund business in India) and Bank of China
International (for Mandatory Provident Fund business in Hong Kong).
Prudential Corporation Asia offers a wide range of savings, protection
and investment products tailored to the needs of our customers in
each of the 12 markets in which it operate. In addition to its life
insurance operations Prudential has asset management businesses in
India, Hong Kong, Japan, Taiwan, Malaysia, Singapore, Korea, Vietnam
and China managing over £26 billion (as of 30 June 2005).
14
Prudential Corporation Asia's distribution is predominantly through its
130,000 tied agents but also through other distribution channels such
as banc assurance agreements (including Standard Chartered Bank in
Hong Kong, Malaysia, Singapore, Taiwan and Thailand).
15
ICICI PRU – THE WINNING COMBINATION
ICICI Prudential 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, 2005, 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 60,000 advisors, as well as 7-banc assurance (which
now has increased to 13) 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.
16
ICICI prudential life insurance company limited is the no. 1 player
among the Indian private insurance companies. The ICICI prudential
brand name has the highest recall among all private companies. "The
task for the ICICI prudential is to build a relevant brand that customer
should trust" says Shikha Sharma MD and CEO of ICICI Prudential life.
When the insurance industry was first opened up and private players
entered the field in 2000, there was a host of challenges that lay
before them. Consumer attitude towards insurance were largely
indifferent, and insurance was regarded as an inflexible, tax-saving
product that offered low returns. Rarely was it recognized for its
multidimensional protection instrument. Service levels were low and
products were not transparent and typically sold as the "one
size-fits-all "kind with very little relevance to a consumer's actual need.
The most broad based challenges for all companies was to spread
awareness about life insurance - how it works, its benefits and most of
all, its absolute necessity for anyone who has dependents. At a more
company specific level, the task for ICICI prudential (ICICI prudential
life insurance company) was to build a relevant brand that customers
could trust.
Being a front - runner in the life insurance industry, ICICI Prudential has
always performed both the task as well as the brand with the help of
advertising and PR. The Company's addressed various myths and
misconceptions about life insurance, seeking to change customer
attitudes. For instance, life insurance had long been regarded as
expensive, rigid, difficult to understand and good only for tax saving.
As a result of ICICI Prudential's advertising, life insurance is now
increasingly seen as 1 complete solution to meet one's myriad needs-
health, Health, life, child protection and retirement. It's a financial
product that provides a stable return on investment, protects life at
17
affordable cost, secures a child's future, does retirement planning in
the most effective way and provides additional health protection. It is
now becoming an integral part of the consumer's wealth management
basket.
18
According to recent syndicated ORG-MARG studies, the ICICI prudential
brand name and advertising had the highest recall amongst all private
players and was only marginally behind LIC.
Six year since the liberalization of the life insurance industry, we see
consumers becoming increasingly aware of and actively managing
their financial affairs. They are looking at insurance companies to offer
them a complete solution and, one of the biggest
DISTRIBUTION
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with several corporate agents as well as banks such as ICICI Bank,
Federal Bank and Bank of India. It has also tied up with BASIX, Dhan,
CASPOR, Shepherd and World Vision for distribution of Salaam Zindagi,
a policy for the socially and economically underprivileged sections of
society. Further it leverages its state-of-the-art IT infrastructure to
provide superior quality of service to the customers. Two dynamic
companies, one dynamic joint venture ICICI Prudential Life Insurance
Company Limited.
With ICICI Prudential not only offers the best to the clients but also
gives the best to the clients.
20
CHAPTER 3
Channels Of Distribution
21
Cognizant solutions make the relationship, both with partners and end
customers, frictionless. This is accomplished through a mix of
applications and tools ranging from partner relationship management,
customer relationship management and improved reporting and
analysis. We also build e-business solutions such as on-line market
places and self-service customer and partner information portals. The
benefits include:
• Faster-quote processing
1. AGENT/ ADVISOR
Section 182 of the Indian contract act defines the words "agent" and
"principal" an agent is a person employed to do any act for another or
to represent another in dealing with a third person. The person for
whom such act is done or who is so represented is called the
“principal". In insurance industry the term "Agent" .is ordinarily applied
to a person engaged by the insurer to procure new business.
22
The rule as to agency is expressed in maxim "Qui facit alium, facit
perse" i.e. one who acts through others acts for himself. Therefore
contracts entered into through an agent, and obligation arising from
acts done by an agent may be enforced in the same manner and will
have the same legal consequences, as if the contracts have been
entered into and the acts done by the principal himself.
Under- section 183 of the act any person who is so the age of majority
according to the law to which he is subject and who is of sound mind
can employ an agent. Section 184 provides that as between the
principal and third person, any person may become an agent. Thus
though a minor may be employed as an agent and the principal would
be bound by his act the minor himself will not be liable to his principal.
No consideration is necessary to create an agency.
23
AUTHORITY OF AN AGENT
2. BROKERS
3. BANCASSURANCE
ICICI PRUDENTIAL has banc assurance tie ups with more than 13
banks.
Advantages:
24
Extensive reach including the rural pockets.
4. OTHERS
4.1. INTERNET
BENEFITS
• Benefit to proposer.
• Benefit to policyholder(E.C.S.)
4.2. TELE-MARKETING
25
can reach directly to the target customer without any
delay in time.
26
CHAPTER 4
27
4. Appropriate Performance Appraisal
28
CHAPTER 5
The competition and the customer awareness have forced the times to
be a knowledge-oriented marketplace. Appreciating the same we strive
to get people with reasonably good graduation background as our
advisors. We also acknowledge and recognize prior sales experience of
the persons, at the time of recruitment.
29
At ICICI Prudential Life, your hard work pays off in the form of
compensation and recognition.
The success that ICICI Prudential Life celebrates with pride in the
organization and a culture that grooms as well as it demands.
It is a culture that:
30
An insurance advisor is someone who can provide valuable services to
the community by helping people to attain financial security and build
funds for their future needs; thereby helping them on their way to
financial freedom. You could work at your own pace and pattern –
exploit your skills and efforts and can achieve unlimited growth; in
addition to achieving personal satisfaction that’s pretty hard to find in
a 9-to-5 job, nowadays.
If you are looking for a profession that allows you to value your
independence, turn to ICICI Prudential Life Insurance. Being a life
advisor with us allows you to stay independent, financially as well as in
terms of working hours. It gives you a unique opportunity to positively
change people’s lives by ensuring that they secure their own as well as
their family’s future.
31
Be a part of world-class team.
CHAPTER 6
1. Rewarding Career
2. A Successful Team
3. Attractive Remuneration
32
4. Independence
5. World-Class Training
7. Infrastructure Support
33
technology and people support that will enable you to build a
profitable long-term business.
34
CHAPTER 7
As a Life Advisor with ICICI Prudential Life you would enjoy the
following benefits:
2. Mentoring
3. Flexibility
4. Satisfaction
You will help people manage their assets and plan their financial
security, arid experience deep satisfaction from making a
positive difference in others lives. You act as a strategist in
annuities, business insurance, estate planning and personal
35
investment, providing both short and long term solutions to
financial risks.
5. Freedom
6. Earnings
9. Job Offer
36
These are like –
1. Certificates
2. Banners
37
THE SUPPORT PACKAGE TO MAKE A SUCCESSFUL ADVISOR
38
CHAPTER 8
1. Personal Integrity
39
We want people who can establish effective relationships with
different types of people and can excite and spur them to action.
40
Knowledge about yourself
FUNCTIONS OF AN ADVISOR
The insurer has to assess the risk involved in every proposal for
insurance, for which the necessary information would include
details on personal life styles, habits, family etc. The advisors
41
who gets to meet the proposer closely, is in a position to provide
some of this valuable information.
During the sales an advisor can follow the famous AIDAS approach:
A Attention
I Interest
D Desire
A Action
S Satisfaction
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CHAPTER 9
SELECTION PROCESS
43
You are ready to become a part of the ICICI Prudential Advisory Family.
Their people are self-driven and passionate about what they are
building. They celebrate hard on their successes and face adversity
with resolve and maturity.
Their leaders and HR teams work closely to evolve careers, and tailor-
make opportunities for you.
ELIGIBILITY CRITERIA
44
A constantly learning mind, confident in your ability to contribute
and deliver.
Pleasing personality
45
2nd year: 7.5%, 3rd year: 7.5%, 4th year 5%, 5th year: 5% onwards till
the maturity of the policy.
2. Documents Required
3. Demand Draft
4. Training
46
Full time
Part time
On line
47
CHAPTER 10
The ICICI PRUDENTIAL felicitates these shining stars for their stellar
performance
RECOGNITION PROGRAMS
President's club
Achiever's club
48
ICICI Prudential Star clubs
MDRT Membership
Memento Worth Rs. 500 Worth Rs. 300 Worth Rs. 150
Sates Worth Rs. 4000 Worth RS. 3,000 Worth Rs. 2000
Promotional
Items
49
TIGER TEAM
It includes:
Recognition as "Tiger"
Selection Criteria
MOBILE TIGER
It includes
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Performance Criteria:
PINNACLE PROGRAM
It includes:
Personal development
Performance criteria:
It includes:
51
Personal development
Performance criteria:
AGENCY CHAMPION
It includes:
Performance Criteria
52
UM ASM
Advisor Advisor
BSM
Trainer Role
12-18 Months
Advisor
53
CHAPTER 11
Any Life Advisor found violating the restrictions listed below is liable to
be terminated from the services of the company.
1. Prohibition Of Rebates
2. Restrictions On Advertisements
54
in writing from the Chief Marketing Officer of ICICI Prudential Life
Insurance Company Limited.
Representations by intermediaries;
Leaflets;
Telephone solicitations;
Business cards;
Videos;
Faxes; or
55
Any other communication with a prospect or a policyholder
that urges him to purchase, renew, increase, retain, or
modify a policy of insurance.
3. Payment Of Premiums
4. Other Restrictions
56
Force a policyholder to terminate the existing policy and to
affect a new proposal for him within three years from the
date of such termination.
Definitions
57
(c) Authority: means the insurance regulatory and
development authority established under the provisions of
section 3 of the IRDA act, 1999.
58
(k) Proposal Form: means an application for purchase of an
insurance product that shall be the basis of insurance
contract.
(ii) All the words and expressions used here in and not defined but
defined in the Insurance act, 1938 or in the IRDA act, 1999,shall have
the meanings respectively assigned to them in those acts.
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b) The designated person may, on receipt of the application along
with the evidence of payment of fees to the authority, and on
being satisfied that the applicant:
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place with a population of 5 thousand or more as per the last
census.
5. Practical Training
6. Examination
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The applicant shall have passed the pre-recruitment examination
in life or general insurance business or both as the case may be,
conducted by the insurance institute of India, Mumbai or any
other examination body.
7. Fees Payable
8. Code Of Conduct
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(e) Inform promptly the prospect about the acceptance or
rejection of the proposal by the insurer.
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(k) Advise every individual policyholder to effect
nomination or assignment or change of address or exercise
of options, as the case may be, and offer necessary
assistance in this behalf, wherever necessary.
9. Cancellation Of License
PROGRAM FLOW
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They have to complete 100 hours training which is mandatory by IRDA.
Week 1
Insurance basics
Week 2
Tele calling
Week 3
Revision
Mock test
CHAPTER 12
RESEARCH METHODOLOGY
1. Prospecting
It includes:
Tele calling
Existing database
2. Suspecting
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It includes:
Making appointments
3. Sales Pitch
It includes:
Personal interview/discussion
4. Formalities
It includes:
Training
After fulfilling all the above requirements, deposit the form to the
DOPS.
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CHAPTER 13
Being a private player the company would run away, what about
the security of people's money?
67
Solution To Second Problem
No doubt LIC give more commission in 1st year but the cumulative
commission is around 35%(including 5% bonus). In case of private
companies commission paid is around 40%.
In case person is interested but do not have time for regular training as
full time or part time in that case he/she can go for online module.
Person already having agency in that case he/she can take agency in
name of immediate family members. In this way they can have agency
of more than 1 company which will help to provide customers different
products under one roof.
68
CHAPTER 14
LEARNINGS
69
CHAPTER 15
FINDINGS
1. When you hear the word insurance, what comes to your mind
first?
70
2. Insurance companies are now privatized?
70% 27% 3%
71
3. Can you name a few insurance companies?
72
4. Do you have an insurance policy?
Yes No
82% 18%
Yes No
73
5. The main aim to buy insurance policies is to
74
6. Do you plan to buy insurance policy in next 3-4 months?
75
7. Would you be willing to buy insurance policy from a private
company?
76
8. Do you know which channel of distribution is most popular in
selling insurance?
77
9. How much is the earning of an advisor?
78
10. Do you have any idea about the benefits of an advisor?
79
11. Do you currently have an agency for any insurance company?
Yes No
37% 63%
Yes No
80
12. Would you like to join as an insurance advisor?
81
CHAPTER 16
CONCLUSION
After the detailed Knowledge of each and every aspect of the project, I
would like to conclude the whole topic
So I Conclude That:
As a result of this and a few other problems not many people are
interested in becoming an insurance advisor.
BUT…………
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Majority of people are not aware about the Privatization of
Insurance so give them a detailed knowledge about the
companies and their working environments.
At last I would like to conclude that the overall experience was good,
giving good exposure and it was great doing this project because of full
support by the ICIC1 Prudential team.
83
RECOMMENDATIONS
84
BIBLIOGRAPHY
IC – 02
www.icicibank.com
www.prudential.co.uk
www.irdaindia.org
www.iciciprulife.com
85
APPENDIX
QUESTIONNAIRE
1. Name:
2. Telephone Number:
3. When you hear the word insurance, what comes to your mind first?
L.I.C. Investment Tax Saver Don’t Know
86
Yes No Can’t say
13. Do you currently have an agency for any insurance company? If yes
Company name:
87