RECRUITMENT OF ADVISORS IN ICICI PRUDENTIAL LIFE INSURANCE

Submitted to :

DELHI BUSINESS SCHOOL OF MANAGEMENT & HOSPITALITY

Submitted by :

Ms. Jaishri
BBA IVth Sem

STUDENT DECLARATION

I here by certify that the project report entitled on RECRUITMENT OF ADVISOR IN ICICI PRUDENTIAL LIFE INSURANCE Submitted in partial fulfilment of the requirement for the award degree of Bachelor in Business Administration to Delhi Business School of management & Hospitality is my original work and not submitted or the award of any other degree, diploma, fellowship, or any other similar title or prizes anywhere else.

Jaishri ENROLLMENT NO. 280849004

ACKNOWLEDGEMENT
I would like to take an opportunity to thank all the people who helped me in collecting necessary information and making of the report. I am grateful to all of them for their time, energy and wisdom. Getting a project ready requires the work and effort of many people. I would like all those who have contributed in completing this project. First of all, I would like to send my sincere thanks to MANISHA SANSANWAL for her helpful hand in the completion of my project.

Ms. Jaishri BBA(ivth Sem)

EXECUTIVE SUMMARY

Executive Summary
The objective of this project was to assist ICICI Prudential Life Insurance in expanding their channel by recruiting Tied Agents/ Advisors for the company. For the company to successfully continue its operations, it needs to undergo change to get new business and to get new ideas. Moreover insurance is such a growing sector that it has full potential to have new customers. So it is very essential to have new people in the system, which can add new customers to the company. This was achieved through a five-pronged effort. The first objective of the study was to look for different segments of the people. The second objective of the project was to analyze the person to find whether he is fit for doing insurance. The third objective of the project was to finally introduce some people in the system by recruiting them as advisors of the company. The research methodology consisted of secondary data, which was collected from different colleges, Tata Press Yellow Pages etc and personal interview with people in Delhi.

Objectives of the study

Main Objective:
Recruitment of Advisors for the company.

Sub Objective:
1. To understand the clientele profile 2. To expand the channel base of Priority Circle 3. To provide an enabling environment to foster growth and learning for advisors.

RESEARCH METHODOLOGY

This is an endeavor to locate right kind of people possessing the right kind of skills to become successful financial consultants. The study also tries to find out the kind of people and skills that would further enhance the insurance business. ICICI Prudential insurance business aims at recruiting those who have entrepreneurial skills and necessary drive to survive and flourish in the present competitive and ever increasing insurance industry. The universe of study was limited to Delhi. The universe was divided in different segments. The process of segmentation was primarily aimed at simplifying the universe into smaller parts so each segment can be handled according to its unique features. These segments were as follows: Students 1. B.Com and MBA pass outs 2. Students perusing CA, MFC. Enterprising Women 1. Hobby class operators 2. Beauty Saloon owners 3. Fashion boutiques 4. Kitty Party groups 5. Agents of direct Selling. Property Dealers Commission Agents

CAs, Advocates and other Tax Consultants.

 VRS Scheme holders/ Retired Members The research methodology is discussed in detail later. However, the following is the summary of the same.

STUDENTS
Research methodology: Mail + Call activity Data Source: colleges and respective institutions.

ENTERPRISING WOMEN
Research Methodology: Telecalling Data source: Personal contacts + Local Directories

PROPERTY DEALERS
Research Methodology: Telemarketing Data source: Yellow pages + Local newspaper.

CAs, INCOME TAX CONSULTANTS AND ADVOCATES Research Methodology: Personal Contact
Data Source: Yellow Pages.

LIMITATIONS OF THE STUDY

1. Area covered was confined to some regions only.

2. People were reluctant to join this job as it doesnt provide any fixed salary. 3. People perceived this profession as a low status profession. 4. Availability of data to contact people was a problem. 5. Due to the presence of large number of LIC agents, people refused to become advisors of any company as according to them there exits a huge competition. 6. Insurance business itself doesnt enjoy a good reputation in the society. 7. The candidates like CAs, Advocates and Tax consultants could not arrange a meeting with ASM in spite of their interest.

MEANING OF INSURANCE
Insurance or assurance is device for indemnifying or guaranteeing an individual against loss. Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called premiums. Payment for an individual loss, divided among many, does not fall heavily upon the actual loser. The essence of the contract of insurance, called a policy, is mutuality. The entity that is transferring the risk which may be an individual or association of any type, including a government or government agency is called the "insured". The entity accepting the risk is called the "insurer". The agreement between the two by which the risk is transferred is called the "policy": this is a legal contract that sets out exactly the terms and conditions of the coverage. The fee paid by the insured to the insurer for assuming the risk is called the "premium". This is usually determined by the insurer to fund estimated future claims paid, administrative costs, and profit . For example, let us assume that a couple buys a home costing $ 100,000. Knowing that the loss of their home would bring them financial ruin, they acquire insurance coverage in the form of a homeowner's policy. That policy will pay them the cost of replacing or repairing their home in the event of a catastrophe. The insurance company charges them a premium of $1,000 a year. Risk of loss has been transferred from the homeowners to the insurance company.

The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks. The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral hazards in relation to applicants. Physical hazards include those dangers which surround the individual or property, jeopardizing the well-being of the insured. The amount of the premium is determined by the operation of the law of averages as calculated by actuaries. By investing premium payments in a wide range of revenue-producing projects, insurance companies have become major suppliers of capital, and they rank among the nation's largest institutional investors.

COMMON TYPES OF INSURANCE

Life insurance, originally conceived to protect a man's family when his death left them without income, has developed into a variety of policy plans. In a whole life policy, fixed premiums are paid throughout the insured's lifetime; this accumulated amount, augmented by compound interest, is paid to a beneficiary in a lump sum upon the insured's death; the benefit is paid even if the insured had terminated the policy. Under universal life, the insured can vary the amount and timing of the premiums; the funds compound to create the death benefit. With variable life, the fixed premiums are invested in a portfolio (with earning reinvested), and the death benefit is based on the performance of the investment. In term life, coverage is for a specified time period (e.g., 510 years); such plans do not build up value during the term. Annuity policies, which pay the insured a yearly income after a certain age, have also been developed. In the 1990s, life insurance companies began to allow early payouts to terminally ill patients. Fire insurance usually includes damage from lightning; other

insurance against the elements includes hail, tornado, flood, and drought.

Automobile insurance includes not only insurance against fire and theft but also compensation for damage to the car and for personal injury to the victim of an accident (liability insurance); many car owners, however, carry only partial insurance. In many states liability insurance is compulsory, and a number of states have instituted so-called no-fault insurance plans, whereby automobile accident victims receive compensation without having to initiate a liability lawsuit, except in special cases. Bonding, or fidelity insurance, is designed to protect an employer against dishonesty or default on the part of an employee. Title insurance is aimed at protecting purchasers of real estate from loss by reason of defective title. Credit insurance safeguards businesses against loss from the failure of customers to meet their obligations. Marine insurance protects shipping companies against the loss of a ship or its cargo, as well as many other items, and so-called inland marine insurance covers a vast miscellany of items, including tourist baggage, express and parcel-post packages, truck cargoes, goods in transit, and even bridges and tunnels. In recent years, the insurance industry has broadened to guard against almost any conceivable risk; companies like Lloyd's will insure a dancer's legs, a pianist's fingers, or an outdoor event against loss from rain on a specified day.

Insurance in brief:

Insurance is a method of spreading & transfer of risk.

Losses of unfortunate few are shared by and spread over to many exposed to same risk. Assets created by the owner in expectation of future needs or benefits have value. Loss of assets for any reasons deprives the owner of the expected benefits. Insurance in this context is a mechanism that helps to reduce the adverse consequences due to loss of assets.

THE INSURANCE INDUSTRY

The insurance industry forms an integral part of the global financial market, with insurance companies being significant institutional investors. importance. In recent decades, the insurance sector, like other financial services, has grown in economic This is through direct contributions to gross domestic product (GDP) via increased levels of employment within the sector; and indirectly through higher levels of risk transfer and financial intermediation. Expanding further on this issue, it must be remembered that the insurance industrys primary function is to supply individuals and businesses with coverage against specified contingencies. Insurance companies, therefore, engage in underwriting, managing, and financing risks. According to Sigma (2001) the largest insurance sectors are to be found in the U.S. and Japan, which together generates more than fifty percent of global premium income; followed by the UK, Germany, France and Italy. Furthermore, during the last four decades the global insurance sector has on average outpaced global economic growth. Between 1984 and 2001, the global insurance industry grew at an overall rate of 483.6 percent

(roughly comprising of 664.8 percent from the life insurance sector, and 334.3 percent from the non-life sector. The life insurance sector, has continued to grow at a fast rate.

THE GLOBAL INSURANCE INDUSTRY

The insurance industry forms an integral part of the global financial market, investors. with insurance companies being significant institutional In recent decades, the insurance sector, like other financial This is through direct

services, has grown in economic importance.

contributions to gross domestic product (GDP) via increased levels of employment within the sector; and indirectly through higher levels of risk transfer and financial intermediation. Expanding further on this issue, it must be remembered that the insurance industrys primary function is to supply individuals and businesses with coverage against specified contingencies. Insurance companies, therefore, engage in underwriting, managing, and financing risks. According to Sigma (2001) the largest insurance sectors are to be found in the U.S. and Japan, which together generates more than fifty percent of global premium income; followed by the UK, Germany, France and Italy. Furthermore, during the last four decades the global insurance sector has on average outpaced global economic

growth. Between 1984 and 2001, the global insurance industry grew at an overall rate of 483.6 percent (roughly comprising of 664.8 percent from the life insurance sector, and 334.3 percent from the non-life sector. Over the last few years, growth in the global non-life insurance market has significantly slowed down and has only grown in line with general economic growth (Sigma, 2001). This is in contrast to the life insurance sector, which has continued to grow at a fast rate. Sigma (2002a) estimates this to be in the region of 5.4 percent worldwide since 2000. Measured in total premiums, OECD countries accounted for 95.52 percent and 93.99 percent of the life insurance business, and 91.19 percent and 92.50 percent of non-life insurance premium volume in 1994 and 2001, respectively. Outside of the OECD, a more recent development since the early nineties has been the ability of the emerging markets to strengthen their global market share in the life insurance segment, with growth rates often reaching double-digit figures. Furthermore, insurance markets within the OECD countries have faced falling premium income, reduced capital market yields and low interest rates, all of which has put insurers under some pressure (Sigma, 2002a). Also, the growing importance of the insurance industry in emerging markets is reflected in growing insurance density and insurance penetration of the non-OECD insurance markets (Sigma, 1996, 2001). Nevertheless, and despite these developments, emerging markets still have some way to go before matching the relative sizes and importance that the insurance industry has in industrialized countries.

THE DETERMINANTS OF INSURANCE DEMAND

The theoretical and empirical research to date has suggested that, on average, an overwhelming positive relationship between financial development and economic growth is evident and that a well-developed financial sector contributes to economic growth. differences in the causal relationship However, on a single insurance market country-by-country basis, Ward and Zurbruegg (2000) have shown that between development and economic growth are apparent. Research efforts have, therefore, moved onto understanding the factors that encourage the development of financial institutions. By identifying the determinants These that encourage insurance demand, policymakers are able to aid financial development, thereby positively influencing economic growth. determinants that have been empirically tested can be grouped under three broad subheadings; economic, political / legal, and social factors. To further explore exactly how these factors influence insurance demand, they are each considered in turn below.

Economic factors First, it is important to highlight that the relative importance of an insurance market within a country is likely to depend upon economic development, since with a greater rate of economic growth the consumption of insurance products should increase. Indeed, early findings highlighted that the demand for life insurance is positively correlated with income, see Yaari (1965), Hakansson (1969), Fortune

(1973), Fisher (1973), and Lewis (1989). These results are also confirmed by the more recent cross-country based studies of Beenstock et al. (1986), Truett and Truett (1990), and Browne and Kim (1993). When analyzing the impact of national income on non-life insurance demand, Beenstock. (1988) indicate a positive relationship exists between national income in industrialized countries and spending on propertyliability insurance. Browne et al. (2000) extend these findings when analyzing motor vehicle and liability insurance in OECD countries, and do not only show that a positive and statistically significant relationship can be found between premium density and income, but also that income has a more pronounced effect on motor vehicle insurance, than on general liability insurance consumption. Esho et al. (2003) also test the impact of national income on property and casualty insurance by analyzing data from developed and developing nations between 1984 to 1998. Again, they detect a strong positive relationship between national income and non-life insurance demand. The World Bank confirms these findings and states that non-life insurance can be regarded as a normal good implying that insurance demand rises as income increases (Lester, September 2002). Despite these findings, insurance penetration in some countries differs from the international average.

Role of insurance in economic development

Investments are necessary for Economic development. Life Insurance plays a major role in mobilization of public savings. Savings out of life insurance funds are utilized in investments for growth. Looking for general insurance business industry trade would be seriously handicap in the absence of insurance cover relating to fire and engineering risk. Social factors Insurance can also be seen as a product that is valued subjectively by its consumer. In fact Hofstede (1995) points out that the level of insurance within an economy depends on the national culture and the willingness of individuals to use insurance as a means of dealing with risk. It is not surprising that Douglas and Wildavsky (1982) show that the demand for life insurance in a country may be affected by the unique culture of the country to the extent that culture affects the degree of risk aversion. Moreover, Schlesinger (1981) reveals that an optimal insurance decision is directly related to the level of risk aversion of the insured person and shows, following Pratt (1964) and Szipiro (1985), that the more risk adverse an individual is the higher the amount insured.This is in line with the work by Outreville (1996), which emphasizes that education promotes an understanding of risk and hence aids insurance demand.

INSURANCE MARKET IN INDIA

The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the nonIndian lives, as Indian lives were considered more risky for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company was established in 1880. The first general insurance company- Tital Insurance Company Limited was established in 1850. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalized monopoly

corporation and LIC was born. Nationalization was justified on the grounds that it would create much-needed funds for rapid

industrialization. This was in conformity with the Government's chosen path of State lead planning and development. The (non-life) insurance business, however, continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. 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. By any yardstick, India, with about 200 million middle class households, presents a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors with the per capita income in India expected to grow at over 6% for the next 10 years and with improvement in awareness levels, the demand for insurance is expected to grow at an attractive rate in India. An independent consulting company, The Monitor Group has estimated that the life insurance market will grow from Rs.218 billion in 1998 to Rs.1003 billion by 2008 (a compounded annual growth of 16.5%)

WINDS OF CHANGE Reforms have marked the entry of many of the global insurance majors into the Indian market in the form of joint ventures with Indian companies. Some of the key names are AIG, New York Life, Allianz, Prudential, Standard Life, Sun Life Canada and Old Mutual. The entry of new players has rejuvenated the erstwhile monopoly player LIC, which has responded to the competition in an admirable fashion by launching new products and improving service standards The following are the key winds of change brought about by privatization. Market Expansion: There has been an overall expansion in the market. This has been possible due to improved awareness levels thanks to the large number of advertising campaigns launched by all the players. The scope for expansion is still unlimited as virtually all the players are concentrating on large cities and towns - except by LIC to an extent there was no significant attempt to tap the rural markets New Product Offerings: There has been a plethora of new and innovative products offered by the new players, mainly from the stable of their international partners. Customers have tremendous choice from a large variety of products from pure term (risk) insurance to unit-linked investment products. Customers are offered unbundled

products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional money-back policies, which is not considered very appropriate for long-term protection and savings. However, there are still some key new products yet to be introduced - e.g. health products.

Customer Service: Not unexpectedly, this was one area that

witnessed the most significant change with the entry of new players. There is an attempt to bring in international best practices in service and operational efficiency through use of latest technologies. Advice and need based selling is emerging through much better trained sales force and advisors. There is improvement in response and turnaround times in specific areas such as delivery of first policy receipt, policy document, premium notice, final maturity payment, settlement of claims etc. However, there is a long way to go and various customer surveys indicate that the standards are still below customer expectation levels Channels of Distribution: Till two years back, the only mode of distribution of life insurance products was through Agents. While agents continue to be the predominant distribution channel, today a number of innovative alternative channels are being offered to consumers. Some of them are bank assurance, brokers, the internet and direct marketing. Though it is too early to predict, the wide spread of bank branch network in India could lead to bank assurance emerging as a significant distribution mechanism.

Why Do I Need Life Insurance?

You need life insurance in order to ensure that your loved ones can cope financially with your loss. That's the bottom line. The reasoning behind life insurance is most evident when you consider sole breadwinners, but applies to everyone who has dependents, even stay-at-home spouses. If you (as the stay-at-home spouse) were to suddenly die, your family would have to find other ways to: ensure care of children; get the family home cleaned; handle dry cleaning and laundry; do grocery shopping; and many other tasks which you currently handle. While your services appear to be 'low cost' because no one is paying you directly, if your family has to replace you with paid help you will quickly see your 'value'.

FACTS OF LIFE INSURANCE INDUSTRY

Life insurance premium accounts for 72% of the total premium collection in India as against the global average of 59%. About LIC

In 2001 LIC sold close to 20 million new Individual Policies In year 2000 the turnover of LIC was worth Rs. 261 Billion LIC has close to 2048 branches, 100 divisions and 7 zonal offices
Market Potential The size of the Insurance market is 31.2 Crores which makes it one of the hottest destination for any company While 5 crores people have a capacity to pay an annual premium of Rs 10000 per annum, 10 crores people have a capacity to pay Rs 7000 per annum , and another 15 crores people have a capacity to pay Rs 3500 per annum

No. Of Players Before nationalization of Insurance in 1956, there were 254 life Insurers and 106 general insurers to serve the population of 36 crores in India UK has more than 500 insurance companies to serve a population of 6 crores

 USA has over 2200 insurance companies to serve a population of 26 Crores Even Japan has 90 Insurance Companies to serve its population of 12 Crores Emerging Trends

The Non life market was the size of Rs 10000 crores last year with a
potential of growing up to at least Rs 45000 Crores provided it develops the way it is expected to develop.

As on date the total insured losses arising out of unfortunate

incident of Sept 11 in WTC is on date $42-43 Billion The Industry The growth rate of the insurance sector is about 10% which is expected to go up to 12% Before opening up the growth rate was 14% which means there is a dip of 4.5% which could be traced to the prevailing economic recession The per capita insurance premium in India is just US $ 8 which is less then even Malaysia which is US $144 Current trends and strategies

Growth of the pension market today: groups as well as individual. Emerging health insurance market with third party administrators
(TPAs) trying to make a place for them selves as regulations are in place and when the

 New types of products Unit linked single

premium-becoming popular. Current trends and strategies New distribution channels are evolving and public will have greater choice even in the matter of point of purchase. Distribution and servicing are becoming more technology intensive and closely regulated. Insurers are trying to distinguish their products but only time and experience will tell. Emerging trends

People are slowly moving from purely savings oriented products to products that offer higher degree of life cover. The realization that insurance is basically about protection. So far insurance has been widely understood by the market as another tax saving oriented investment option

There are several products becoming available in the market that are suited to the life style of the people. There is a lot of scope for tailor made products depending upon the need of the customer.

Bank assurance Insurance products distributed through the bank counters all over the country can bring vast improvement in the insurance coverage in the quickest possible time

 Banks today are the most credible agencies (However Banks also do have to go for Bankers Blanket Insurance!!!) The public has immense faith in them Regulators keep a tight vigil over them

Millions of bank staff are highly educated and trained Banks can
accept lower commissions, and the benefit goes on to the consumer by charging a lower premium rate

Half of insurance policies sold in Europe is through banks

Insurance and IT Key areas where differentiation is considered critical for the future of the insurance companies include the following:

Product Development Back Office Customer Service Distribution

LIFE INSURANCE MARKET IN INDIA

Many may not be aware that the life insurance industry of India is as old as it is in any other part of the world. The first Indian life insurance company was the Oriental Life Insurance Company, which was started in India in 1818 at Kolkata. A number of players (over 250 in life and about 100 in non-life) mainly with regional focus flourished all across the country. However, the Government of India, concerned by the unethical standards adopted by some players against the consumers, nationalized the industry in two phases in 1956 (life) and in 1972 (non-life). The insurance business of the country was then brought under two public sector companies, Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). In line with the economic reforms that were ushered in India in early nineties, the Government set up a Committee on Reforms (popularly called the Malhotra Committee) in April 1993 to suggest reforms in the insurance sector. The Committee recommended throwing open the sector to private players to usher in competition and bring more choice to the consumer. The objective was to improve the penetration of insurance as a percentage of GDP, which remains low in India even compared to some developing countries in Asia.

Reforms were initiated with the passage of Insurance Regulatory and Development Authority (IRDA) Bill in 1999.

IRDA was set up as an independent regulatory authority, which has put in place regulations in line with global norms. So far in the private sector, 12 life insurance companies and 9 general insurance companies have been registered

Insurance Regulatory and Development Authority (IRDA) ACT, 1999

Prior to 1999 the there were only two players in the market Life insurance corporation of India (LIC) General Insurance Corporation (GIC) Then to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry, IRDA was set up. After this the private players started entering the market. This is a corporate body established for the purpose and objects as set out in explanation to the title. The authority replaces Controller under insurance act 1938. It states that if authority is superseded by central govt. the insurance may be appointed till such time as Authority is reconstituted.

Constitution of IRDA
The insurance regulatory and development authority consist of the following members. 1. Chairperson 2. Less than five whole time members

3. Less than four part time members. Member should be person of ability, integrity & standing. They Should have experience in the field of :

1. Life Insurance 2. General Insurance 3. Actuarial science. 4. Finance 5. Economics 6. Law 7. Accountancy 8. Administration Chairperson, members, officers and other employees of authority shall be public servants.

Functions of IRDA :
To issue certificate of registration, renew, withdraw, suspend or cancel such registration. To protect the interest of policyholders/insured in the matter of insurance contract with the insurance company.

 agents.

To

specify

requisite intermediaries and

qualification, code of conduct and training for insurance

To specify code of conduct for surveyors /loss assessors. business To promote and regulate professional organizations connected with the insurance and reinsurance business. To undertake inspection, conduct enquiries and To promote efficiency in the conduct of insurance

investigations including audit of insurers and insurance intermediaries. To control and regulate the rates terms and conditions to be offered by the insurer regarding general insurance business not so controlled by tariff advisory committee under section 604 of Insurance act, 1938. companies. To regulate investment of funds by the insurance

Life Insurance Industry in the year 2000-2001 had 16 new entrants, namely: S. No 1 2 3 4 5 6 7 8 9 10 Reg. Number 101 104 105 107 109 110 111 114 116 117 23.10.2000 15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Kotak Prudential Mahindra Life Old Insurance Life Company Ltd. Mutual Insurance Limited Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited . ING Vysya Life Insurance Company Private Limited Bajaj Allianz Life Insurance Company Limited Metlife India Insurance Company. Date of Reg. Name of the Company

Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002) Life Insurance Industry in this year, so far has 3 new entrants; namely S.No. 1 2 Registration Number 121 122 03.01.2002 14.05.2002 AMP Sanmar Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Yr: 2003-2004: (From 1st Jan 2003 till Date) Life Insurance Industry in this year, so far has 1 new entrants; namely Date of Reg. Name of the Company

S.No 1

Registration Number 127

Date of Reg. 06.02.2004

Name of the Company Sahara India Insurance Co. Ltd.

Life Insurance Corporation of India Act, 1956

Life insurance business was nationalized in India with effect from 19th January 1956.

The life insurance business of 154 Indian Life offices constituted by 16 non-Indian insurers operation in India and 75 provident societies was taken over by the Government of India.

LIC of India Act was passed by the parliament on 18th june1956 and it came into effect from 1st July1956.

ABOUT ICICI PRUDENTIAL

Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI and Prudential plc of U.K. In November 2000, ICICI Prudential Life Insurance was granted Certification of Registration for carrying out life insurance business by the Insurance Regulatory & Development Authority of India. The Company issued its first policy on December 12, 2000. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential's equity base stands at Rs. 9.25 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 crores of new business premium for a total sum assured of Rs 13,780 crores and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7-banc assurance 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.

ICICI Prudential Life Insurance's new business has grown 77% in '04-05 to cross Rs 1,000 crores, with annualized new business premium of Rs 1,256 crores. The company's total received premium, which includes renewal premium, has crossed Rs 2,363 crores for '04-05. In the year 2004-05, 80% of the premium has been generated from unitlinked plans, with nearly 40% of the premium collections going into equity. Indian policyholders have been increasingly opting for unit-linked plans, which offer higher exposure to equities, ever since lower interest rates have forced insurers to cut bonuses on traditional policies. In contrast, the private life insurance agent force has grown by leaps and bounds. The need for higher geographical penetration has seen insurance companies recruiting aggressively. At last count, they added up to a massive 1,50,000. ICICI PruLife topped the list among the private players, which had close to 50,000 agents, while Bajaj Allianz had 30,000 agents. At least six of the 11 private life insurance players had an agent force of 10,000 and plus. This included Tata AIG, Max New York, HDFC Standard and Birla Sun Life. All these insurance companies have allocated large amounts of fresh capital to build the agent network across major cities in the past few years.

Our 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 of customers and offering them superior products and service Leveraging technology to service customers quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundary less, 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.

Promoters ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management Company, which has today emerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to YOU. Riding on the success of this relationship, the two companies joined hands once more in 2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading-edge life insurance solutions. ICICI Bank has 74% stake in the company, and Prudential plc has 26%. ICICI Bank (NYSE:IBN) is Indias second largest bank with an asset base of Rs. 106812 crores. ICICI Bank provides a broad spectrum of financial services to individuals and companies. This includes mortgages, car and personal loans, credit and debit cards, corporate and agricultural finance. The Bank services a growing customer base of more than 7 million customer accounts and 5 million bondholders accounts through a multi-channel access network. This includes about 450 branches and extension counters, 1675 ATMs, call centres and Internet banking. ICICI Bank posted a net profit of Rs.1, 206 crores for the year ended March 31, 2003. ICICI Bank is the only Indian company to be rated above the country rating by the international rating agency Moodys and the only Indian company to be awarded an investment grade international credit

rating. The Bank enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies. Established in 1848, Prudential plc is a leading international financial services company in the UK, with around US$250 billion funds under management and more than 16 million customers worldwide. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is Auks largest life insurance company with a vast network of 22 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudential has championed customercentric products and services, supported by over 60,000 staff and agents across the region. Fact sheet ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudentials equity base stands at Rs. 925 crores with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the period

April-December 2004, the company garnered Rs 860 crores of new business premium for a total sum assured of over Rs 7,360 crores and wrote nearly 345,000 policies. Today the company is the No.1 private life insurer in the country. Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 69 cities and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Durgapur, Aurangabad, Faridabad, Bangalore, Goa, Guntur, Bareilly, Gurgaon, Bhatinda, Guwahati, Bhopal, Gwalior, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vapi, Varanasi, Vashi, Vijayawada and Vizag. The company has seven bank assurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some co-operative banks, as well as over 160 corporate agents and brokers. It has also tied up with organizations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society.

Distribution Channels
Till date insurance agents still remain the main source through which the insurance products are sold. The concept is very well established in the country like India. But still the increasing use of other sources is imperative. It therefore makes sense that the well-balanced alternative channel of distribution. At present the distribution channels that are available in the market are: Direct selling Corporate agents Group Selling Brokers and corporative Societies Banc assurance

ABOUT THE PROMOTERS ICICI Bank is India's second-largest bank with total assets of about Rs.112,024 crore and a network of about 450 branches and offices and about 1750 ATMs. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and information technology. ICICI Bank posted a net profit of Rs.1, 637 crores for the year ended March 31, 2004. ICICI Bank's equity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American

Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldwide. As of June 30, 2004, the company had over US$300 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

ORGANISATION STRUC

Binay Agarw al

PRODUCTS AND SERVICES SNAPSHOT

Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customercentric products that meet the needs of customers at every life stage. Its 20 products can be enhanced with up to 6 riders, to create a customized solution for each policyholder. Savings Solutions

SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of protection. CashPlus 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 childs marriage, expenses for a childs higher education or purchase of an asset. LifeTime & LifeTime II offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offers 4 fund options Preserver, Protector, Balancer and Maximiser.

LifeLink II is a single premium Market Linked Insurance Plan that 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 the age of 75.

InvestShield Life is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest. InvestShield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity options. InvestShield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared 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, level term assurance with return of premium and single premium. 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 childs 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

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

ICICI Prudential also launched Salaam Zindagi, a social sector group insurance policy targeted at the economically underprivileged sections of the society. 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 Prus 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 superannuating scheme to provide a retirement kitty for each 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 Prus 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 & 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 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. Major Surgical Assistance Benefit: provides financial supports in the event of medical emergencies, ensuring benefits are payable to the life assured for medical expenses incurred for surgical procedures. Cover is offered against 43 surgical procedures.

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 on SmarKid, 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.

SERVICE STANDARDS Six sigma ICICI prudential realized early on that quality could be a significant differentia with respect to the competition. Hence it launched a six-sigma initiative as a quality measurement tool to understand and fulfill customer needs, set industry benchmarks and make its operations salable with a focus on customers and costs.

Through Six sigma there has been a continuous focus on the customer, which fits in ideally with a focus on the customer, which fits in ideally with ICICI Prudentials customer centric approach. Investment philosophy Their investment philosophy aims to proactively achieve superior riskadjusted returns on our funds under management. The focus is on ensuring long-term safety, Stability and profitability of portfolio. The framework to achieve this objective is based on sound investment process and controls coupled with a rigorous and sophisticated risk management strategy. There is clearly articulated asset allocation strategy depending on risk characteristics of corresponding liability. Portfolio management is a function o extensive research and is based on data and reasoning. Debt investments target a judicious mix of credit and interest rate risk. Investments in equity target long term appreciation and follow a value oriented investment style. Information technology At ICICI Prudential, the strategic use of technology provides the consumer with value added services. There is a robust system, which is employed as the backbone of the company. Initiatives have been taken to provide complete CRM solutions so that the consumer can access complete information on the policies online, from accessing payment details to sending in the premium. Channel partners can manage their

entire business on the web through premium alerts, client diaries and premium calculators.

The following companies have the following market share of the insurance industry. NAME OF THE PLAYER LIC ICICI PRUDENTIAL BIRLA SUNLIFE BAJAJ ALLIANZ SBI LIFE HDFC STANDARDLIFE TATA AIG MAX NEW YORK AVIVA OM KOTAK MAHINDRA ING VYASA AMP SANMAR METLIFE MARKET SHARE (%) 82.3 5.63 2.56 2.03 1.80 1.36 1.29 0.90 0.79 0.51 0.37 0.26 0.21

90 80 70 60 50 40 30 20 10 0

LIC

ICICI PRUDENTIAL BIRLA SUNLIFE BAJAJ ALLIANZ SBI LIFE

HDFC STANDARDLIF E TATA AIG

MARKET SHARE(%)

MAX NEW YORK AVIVA

The market share was distributed among the private players. Though LIC still holds 82.3% of the insurance sector, the upcoming natures of these private players are enough to give more competition to LIC in the near future. LICs market share has decreased from 95%(2002-2003) to 81%(2004-05).

ICICI PRUDENTIAL PRIORITY CIRCLE

THE PRIORITY CIRCLE Priority circle is an opportunity to diversify the business and widen the gamut of services and solutions offered to the clients. One can now enhance the business with capital investment and yet earn high returns. Step into the arena of private life insurance, one of the most dynamic industries today with Priority Circle of ICICI prudential life insurance company ltd, the leader in todays private life insurance industry. The vast reach 91 branches spread over 61 locations A committed team of tied and corporate agents, brokers, banks and call centre executives An advisor force of more than 46000 agents.

Tie ups with Indias leading banks like ICICI bank, Bank of India, federal bank and south Indian bank ICICI prudential customers enjoy the privilege of approaching the company as per their convenience. Its vast reach across India places the company far ahead of its pears. The pleasant experience service The company maintains its undisputed leadership by proactively

achieving superior risk adjusted returns on its funds. The prime focus is

on ensuring long-term safety, profitability, stability of the portfolio.

Quality service at ICICI Pru is not an isolated function but a practice. From people and products to process at every stage of the policy, it is an experience for the customers so everyones a customer service associate including you.

THE ADVISORS FORTE An advisor at ICICI Prudential is one of the main strengths of the company. Its a partnership that results in unlimited growth opportunity with the company. THE ROLE To identify prospective customers, provide tailor-made solutions to cater to their individual needs, conduct regular reviews to keep customers on track and last but not the least, achieve targets. THE BENEFIT A premium product portfolio that caters to a wide range of financial needs, excellent back-end support, attractive returns and benefits, round the clock customer service and extensive training for that edge over the competition THE ADVANTAGE

No start up capital, no supervisor, flexible working environment and an unlimited earning potential.

ICICI PRUDENTIAL PRIORITY CIRCLE CONTROL STRUCTURE

The control structure of ICICI Prudential Priority Circle goes like this:

COUNTRY HEAD

HIMALAYAS AND PENINSULA SALES HEAD

ZONAL HEAD

TERRITORY MANAGER

MANAGER PRIORITY CLIENTS

As a whole till Zonal Head the levels are same in all sectors of ICICI but after that when comes the Territory Manager, the unique levels of Priority Circle begins.

Under the Country Head come 2 regions: 1. Peninsula 2. Himalayas Under those come their respective Sales Head, Zonal Head, Territory Manager, and Manager Priority Clients. Management Team: Country Head (CEO) Himalayas Sales Head Zonal Head Territory Manager : : : : Mrs. Shikha Sharma. Mr. Chander Chalani. Mr. Vikas Seth. Mr. Sumeet Sahni. Mr. Anuj Pawra.

Manager Priority Clients :

The MPCs are not allowed to sell insurance directly, but they have to go through the advisors under them. The advisors under the MPCs are the High Network Individuals, which bring business. They are selected by the MPCs by completing certain formalities. The person has to pay Rs. 1500/- for becoming an Advisor. That person is given 9 days intensive training in which he is also given product details.

After the training is over the person has to give an examination named as IC 33 taken by Insurance Regulatory and Development Authority.

Once the person clears his examination a code is generated in his name. The person now becomes an Advisor and is ready to bring business.

NATURE OF JOB AS A TRAINEE

At priority circle, the nature of the job included recruitment of the channel members who were further assigned to solicit insurance. The database was prepared, which had the names of selected people across Delhi. They were invited to the office for the first meet with the manager- priority clients. The MPCs job is to explain the course of action followed to join the business. After the first meet if the prospect is satisfied he is given a document called market 100 to explore his contacts which would help him grow his business. The prospect fills the document and brings it to the office. The MPC scrutinizes the document. The next step is to meet the territory manager who would judge the prospect whether he is capable to do the job or not. If the territory manager is satisfied, then the person fills other formalities like form, age proof and other documents and is ready to receive the training. The lead trainer of the branch conducts the training for about 9 days, following which an exam is held. After clearing the exam the IRDA license is given, post, which the advisor is ready to sell insurance and do financial consulting for his clients.

Characteristics of a good Insurance advisor

These were some of the qualities that we searched in a person who could be an asset to the company and could give business .It is not necessary to have good academic background but a good salesman should have the following qualities: He should be speedy, needy and greedy. He should be presentable. He should have good communication skills. He should be ready to serve with a good smiling face. At ICICI Priority circle, the aim is to achieve Production Growth through RECRUITMENT. Part of this growth is accomplished by improving the productivity of the existing Agency members. However, bringing sufficient numbers of high quality new producers into the sales organization each year is a must. The main focus thus remains recruitment of HNI (High Network Individuals) Clients. Recruitment is the prospecting, identification and training of advisors so as to enable him to do business, post licensing. Broadly recruitment can be identified as a 5-step process: 1. 2. 3. 4. 5. The SEARCH for talent To ENGAGE the prospective Advisor The EVALUATION of potential Advisor The CONFIRMATION of intent The LICENSING of Advisors

SEARCH FOR TALENT In this stage we need to identify the advisors we need to recruit to become a successful team. We need to clearly understand the profile we are looking out for. The search must be continuous and systematic just like prospecting for sales. We must search among several sources on a regular basis. The sources were divided into different segments for a more systematic and focused approach. These were:

The first segment to be taken under study was that of students with some commerce background. The segment is further sub-grouped as follows: 1. Pass out B.Com students 2. Students pursuing C.A 3. Students of M.F.C 4. Pass out students of MBA. Our main selling point for this segment was that these students have some finance knowledge. We gave them a career opportunity as they could be promoted as a unit manager as soon as they meet the required target. The required information of such students was collected from there respective institutions. Those students whose response was positive were called in the premises

of ICICI Prudential for an informal interview where they were told about the job and the opportunities involved.

The second segment was that of enterprising women. The segment was further divided into sub groups, which were as follows. 1. Hobby classes operators. 2. Beauty Saloon owners. 3. Fashion boutiques. 4. Kitty party groups. 5. Agents of direct selling products like Tupperware, Avon. Our main Point in approaching them was that these women already had a wellestablished network in their respective fields and hence in a position to exploit them further. If they are aware of the opportunities and are ready to take risk then they just needed to tap the market that is already there for them. To locate this segment of prospective financial consultant we used our personal contacts. The women who were positive were then told about the companys project of locating financial consultant. The third segment of property dealers, commission agents, retired members from banking industry.

The method of research was telemarketing. Under Telemarketing, a telephone call was made to the targeted person wherein the intention was to make the person aware of the objectives under study. For this purpose we tried to allure the target customers to become an agent. However the call must be made keeping this in mind a few things such as: 1. The intended person must have time to listen to us. 2. We must not offend them in any way. 3. We should be considerate enough to respect the value of their time and must not waste his time in unnecessary Jargons. 4. Care must b taken while introducing main subject , so that we are able to arouse interest . 5. the person should feel important rather than irate customer.

The last segment was of CAs, Income Tax Consultants and Advocates. The data source of this segment was through Yellow Pages. We adopted the method of direct interview after taking appointments on phone.

Firstly we called up people and explained them about the work profile .If we found them interested, an appointment was fixed with the MPC. The Manager clearly explains the business opportunity and studies the prospective candidates profile. Candidates another round of screening was done by Unit Manager with his respective ASM (channel development) and they short listed the most capable candidates. Capability doesnt mean that the person should have some specific qualifications. Capability meant that the chosen candidates must have at least interpersonal skills and should be keen enough to learn during training process. He must also realize the importance of marketing in the field. We preferred people with finance background as it becomes easier for them to understand the insurance industry. The second round of selection was consisted of an informal interview with the candidate. There were main three purpose of this: 1. To reinforce the purpose of study i.e. selecting the right kind of people. 2. To make the candidates aware of growing opportunities in this line of work and make them aware about the developments in the insurance industry. 3.To make the candidates understand about nominal investment on their part, as they already infrastructure and resources and increasing returns. The selected candidate has to fill an application form along with the fees of Rs.1500 which includes Rs.450 as license fees which is issued by IRDA and Government of India ,rest includes the examination fees.

ENGAGE Engage is highlighting the positive sides of the business opportunity with ICICI Prudential. FISRST MEETING The first meeting is the face-to-face interaction between the manager and the prospective Advisor. The manager should set up an appointment for at least 30-45 minutes. During the meeting the manager should cover: About the company The opportunity of Life Insurance Business The manger must get the advisor to fill the Advisor Profile during this meeting. It will give the manager a greater in depth of prospective advisor as a person, not his financials but him as an individual with his own dreams, goals and aspirations. Before finishing, he manger should ensure that the individual has a complete understanding of the advisors profession. The manger should collect information about the prospective advisors family, current earning stream and his inclination towards Life Insurance as a business opportunity.

The manger should seek a second appointment with the prospect if possible, invite him to the branch for the second meeting and schedule a meeting with the Territory Manager. TOOLS Recruitment Presenter A tool to sell Advisor as a business opportunity to the prospective candidates. Business Opportunity Presentation At the branch level, the managers may get together an invite a group of prospective advisors to the office. The Senior Manager on the business opportunity will then make a formal presentation. It is a very effective tool and you will be able to convince a greater number of advisors with this activity. Branch Visit The branch visit should give him the feel of the Priority Circle Concept and create interest in Insurance Advisor- as a career with ICICI Prudential. EVALUATION Evaluation is assessing the prospective advisors potential, inclination and ability to do business. Managers need to ensure that they have the right kind of profile interested to be a part of their team.

PREFERRRED QUALITIES Passion to succeed Result oriented Well networked Communication Skills Need for Money Need for Recognition / Achievement Committed and Hardworking TOOLS It is a psychometric Testing Tool used to understand the psychographics characteristics of your prospective advisors to evaluate if they match with requirements for getting selected as an ICICI Prudential advisor. It evaluates them on the following parameter: Dominance Influence Stability Compliance

CONFIRMATION Confirmation is the advisor making a final decision to join us as an advisor. The procedure requires complete documentation by the prospective advisor.

Document Requirements: 1. ICICI Pru Application form 2. IRDA form v A 3. Age Proof to substantiate age stated on Application form. (accepted list of age proofs is provided in Annexure 2 ) 4. Address Proof to substantiate the communication address provided on the application form. (Accepted list of address proofs is provided in Annexure 2)
5. Education Proof to fulfill IRDA requirement that the candidate has passed at

least 12th std. Or equivalent. (Accepted list of qualification proofs is provided in Annexure 2). In case of who are qualified to attend a shorter duration of training the accepted list of qualifications / institutes is provided in Annexure 6. 6. Applicable Examination Form 7. 6 photographs 8. DD for Rs. 1000 favoring- ICICI Prudential Life Insurance Co. Ltd, payable at Mumbai. 9. License Agreement duly signed by the advisor. On receiving the completed applications, the manager does a quick scrutiny of the documents.

TRAINING BATCH SIZE ESTIMATION The minimum batch size for a full time batch is 15 and for a part time batch is 20. Depending on the number of completed applications received form Monday to Thursday; the manger will determine the training batch size. No split cases will be considered while determining the batch size.

LICENSING / TRAINING PERIOD Licensing is the final step in recruitment of the advisor. Training is conducted in the last stage. The prospective should complete 100 hours of their training. At ICICI Prudential, we understand the importance of training in a dynamic business environment. The advisors go through both generic and specific, professional programs that help them remain well informed and knowledgeable about the companys products in the market. There is a further focus on soft skills such as communication, managing long-term relationships and selling skills, which are very relevant in a servicedriven industry like life insurance.

State of the art infrastructure training facilities coupled with an excellent faculty, guarantee an exceptional learning environment. For advisors who might be occupied with their daily business/professional routines, ICICI Prudential also offers convenient training options such as online and self-learning are also provided by the organization.

A 17-day training schedule covers the mandatory IRDA training requirements and ICICI Prudential product-training module. Revision session ensure that the candidates thoroughly understand the course contents and are well prepared for the licensing

examination. Theoretical training is interspersed with practical appointment settings with potential customers, giving advisors a feel of how their business will work from the very first day. All through, the Unit Manager and the management provide continuous support to the advisors in achieving independence towards garnering business. After the training they have to undergo online examination conducted by IRDA, after qualifying the examination they get a certificate from RNIS (Ritu Nanda institute of insurance)

Types of training
The selected candidates were given a option to select the type of training depending upon their comfort and convenience. There were two types of training available.

Online Training In this type of training the person has to complete his IRDA training for 100 hours on the internet. After that he is required to attend the six days product training manually. So the person who is busy with his job this training is quite suitable for them.

Manual training In this type training he has to complete both the product training and the IRDA training manually. So he has to attend the continuous training for fifteen days. This training is suitable for the person who is ready to take out his fifteen days. During the manual training, the company provides free lunch.

THE EXAM Upon completing the training the candidate is eligible to appear either for an online (internet) exam or a manual (paper based) exam, based on the guidelines issued by IRDA for that city. The exam slots should be booked such that the exam is scheduled no later than 4 days from the date of completion of the training.

After the prospective advisor has taken the exam an his result are obtained and he has cleared them, the company handovers a WELCOME KIT to the candidates comprising of: 1. Welcome letter 2. Laminated identity card 3. Copy of the agency agreement 4. IRDA License 5. Bank Account introductory letter 6. 100 visiting cards (from the branch) 7. Commission Booklet 8. Reward and recognition booklet 9. ICICI Prupartner Email ID and Password 10. Pin mailer to access ICICI Prudential websites.

ANALYSIS AND FINDINGS

The main purpose of the study was to locate the right kind of people possessing the right mix of interpersonal and marketing skills. The research process helped in locating such people. After obtaining the positive response from the various selected segment another round of screening was done. The research helped in locating the interested people. Now the company had to select the most capable one. Capability does not mean people having specific Qualifications, capability means that the chosen candidates must at least possess interpersonal skills and should be keen enough to learn during the training process. He/She must also realize the importance of marketing industry.

The research results were as follows: Students Sample size: 75 Positive responses: 19 Candidates Selected: 2 In the complete segment, we had a good response. We contacted passed out students who were unemployed. The screening process was intentionally designed to be a little difficult, as they have to move into the hierarchy of the company after meeting the targets. This was the reason behind the selection of only two candidates.

2 19

Negative responses Positive Responses Candidates Selected 56

Enterprising Women
Sample size: 25 Positive Responses: 10 Candidates selected: Nil In this segment there was good response in the sense that there were many positive candidates, though none was selected. The main reason was that in spite of their interest, they lacked in decision-making skills. It was found that their husband took all their decisions. The company wanted their consultants to be decision makers not decision takers. Hence there was no financial consultant taken from this segment.

10 Negative Responses Positive Responses 15

Property Dealers
Sample Size: 35 Positive response: 9 Candidates selected: 2 In spite of contacting so many property dealers only two were converted. The reason for this was that property dealers are not good at keeping appointments. It was difficult to personally contact even those who were interested. Hence it was a time consuming process and many were dropped because they could not give time to companys representative. Moreover, the nature of work in property dealing is unpredictable. Some time there are no deals while there may be times that a big party makes a deal. Therefore only those dealers who understand the risk were selected.

2 9 Negative responses Positive responses Candidates selected 26

Commission Agents
People Contacted: 7 Positive Response: Nil This segment was dropped because there were no positive responses. The reason for this was that all the commission agents were engaged in the selling of the products of other insurance companies.

Retired Members / VRS holders

People contacted: 23 Positive Responses: 5 Candidate Selected: 1 The response from this segment was moderate but only one candidate was converted. The reason was that such people were neither energetic nor enthusiastic to work despite of having the knowledge of the industry.
1 5 Negative responses Positive responses Candidate selected 18

CAs, Tax Consultants, Advocates

People Contacted: 5 Positive Response: 2 Candidates Selected: 2 The response from this segment was the best of all. There were a couple of reasons for that. First of all, all these candidates were contacted on the basis of references. Secondly, these people are risk takers. They are willing to enter into new ventures and also have the kind of resources that are useful for insurance.

2 3

Negative Responses Positive Responses Candidates selected

SWOT ANALYSIS
STRENGTHS: 1. No. 1 Private Player in the insurance industry in India. 2. Life Insurance linked with Investments 3. Tax benefits 4. Security against loans 5. Helps in future planning and provides financial consultancy. 6. Covers risk. WEAKNESS: 1. Negativity relating insurance and Agents. 2. No fixed Salary. OPPURTUNITIES: 1. High Network Individuals (HNI) 2. A clear career path 3. All round support through exclusive advertising, own in house consultant, and world-class training. 4. A comprehensive benefit package.

THREATS: 1. Dynamic environment 2. Increasing Competition 3. Non-creativity 4. An Unfocused approach 5. Complacency and arrogance

CONCLUSION
ICICI Prudential is the No.1 private insurance company, so people are more attracted towards it. The only thing required by the company is to give a stable career and more benefits. Due to LIC, people have a negative mindset towards the word Agent as well as the insurance industry in general. But ICICI prudential through its pinnacle program and other facilities is providing a very bright career to the youth. There is lack of information about this career; therefore, the company needs to capitalize on this opportunity by providing the right kind of information to people and present it in a right light. The results of the study can be concluded as follows: The segment of students gave a good response but due to hard screening only two were converted. The segment of enterprising women was not that responsive and hence was unsuitable for the job of financial consultant. The segment of commission agents was again not responsive and no consultant was obtained. The segment of retired members did not possess that energy that was required. So, the conversions were less. The segment of CAs and advocates was the most responsive probably due to the fact that the candidates were very few and located primarily from recommendations.

From the results we can conclude that the selection model of ICICI Prudential Life Insurance Company for the purpose of selecting the right profile of the distribution channel is very comprehensive and fulfills the objective optimally. Such selection process would help in: Reducing Attrition No or Minimum advertising Training of consultants The training module of the company involves: The better understanding of the product provided by the company. Regular interaction between Unit Managers and the consultants. Discussions on the changes occurring in the industry Training the consultants on how to access the needs and requirements of the customers. Giving Incentives in the form of competition among consultants and memberships.

RECOMMENDATIONS
Agents are the lifeblood of the insurance industrys distribution channel. They are the main forces that bring business to the company. Unless and until the agents are qualified and have the caliber to understand the current market scenario, they cannot remain long in the business. Hence, an optimally selected sales force is the need of the hour, for an industry like insurance. The following are the recommendations to the company: 1. There should be weekend batches of training for the people who cannot take their full six days of the week from their busy schedule. 2. Anything can click in this line of work and hence the company should evaluate the candidates subjectively. 3. Advertisements should be given in the newspapers so that number of people interested in such an opportunity increases. 4. Various MBA institutes should be targeted to get people with good marketing as well as interpersonal skills. 5. There should be some fixed salary with some fixed targets.

BIBLIOGRAPHY
1.

www.iciciprulife.com www.insuranceguide.com

2. www.financialexpress.com
3.

4. www.economictimes.com 5. www.google.com
6.

www.askjeeves.com

7. ICICI Prudential Training Modules 8. ICICI Prudential Brochures