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IN ICICI PRUDENTIAL LIFE INSURANCE, HYDERABAD Submitted to JAWAHAR LAL NEHRU TECHNOLOGICAL UNIVERSITY In partial fulfillment of the requirement For the award of the degree of MASTER OF BUSINESS ADMINISTRATION BY Mr.GOGU.MAHESHWARNATH Roll. No.08J11E0021 Under the supervision of Mr.K.SRIKANTH, MBA(M.phil) Asst. Professor


Gandipet, Himayath Nagar, C.B.Post Hyderabad 500075 2008-2010

This project has been collaborative effort. I take this opportunity to thank all those who have helped me in the preparation and successful completion of this project work. First of all, I wish to express my sincere thanks to my guide Mr. K.SRIKANTH, Asst.Professor for his valuable support, guidance and co operation throughout the course of project. I am deeply indebted to Dr.P.BALA ANJI REDDY professor Head, Department of Management Studies for his excellence guidance and unstained support in the course of entire completion of this project. I would like to express my gratitude to Dr.Maheswar, Principal of Hi-Tech College of Engineering & Technology , Hyderabad for his constant help and moral support. Finally I wish to thank Mr.S.SANJAY KUMAR (AM) and other staff members of ICICI PRUDENTIAL LIFE INSURANCE for their valuable support and co operation for the completion of this project. Last but not least, I am extremely happy to express my deep sense of gratitude to my parents who have always supported to me morally and believe me more than I do.



I hereby declare that the project report title CUSTOMER SATISFACTION Submitted by me to the Department of Business Management, Hi-Tech college of Engineering & Technology College, JNTU, Hyderabad, is a Bonafied work undertaken by me and it is not submitted to any other University or Institution for the award of any degree or diploma certificate published any time before.


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This project is based on the Customer Satisfaction of the ICICI PRUDENTIAL insurance Company ltd. It is done to find out whether the customers are satisfied with the Benefits they get with their respective policies or not. Further, in this Project the study includes the introduction of the company wherein I told about the Objectives of the study and profile of the ICICI Prudential. Section 2 includes the Research Methodology wherein I have discussed the Research Design and Various sources of the Data Collection. Thereafter the relevant matter includes the Data analysis and Findings wherein I have analyzed the data collected from the Questionnaire. Lastly it represents the conclusion and the suggestions based on the customer satisfaction survey.

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

With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. Together with banking services, it adds about 7 percent to the countries GDP. In spite of all this growth statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many changes. The liberalization of the industry the insurance industry has never looked back and today stand as one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new 8

distribution techniques and the IT tools has increased the scope of the industry in the longer run. Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction. Insurance is the method of spreading and transfer of risk. The fortunate many who are exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the assets but only compensates the economic or financial loss. In insurance the insured makes payment called premiums to an insurer, and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is usually drawn up in a formal legal contract. Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful they may earn large profits, even if the insurance company pays out in claims every penny received as premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their cost of float.

Reasons for insurance: To financially support family members in the event of untimely death/ disability of earning member To cover medical expenses of the insured in the event of illness To cover risk of loss of property in the event of any uncertainty Classification of insurance: The insurance industry in India can broadly classified in two parts. They are. 9

1) Life insurance. 2) Non-life (general) insurance.

1) Life insurance: Life insurance can be defined as life insurance provides a sum of money if the person who is insured dies while the policy is in effect. In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated and amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened the insurance sector for private participation in 1999, also allowing the private companies to have foreign equity up to 26%. Following the opening up of the insurance sector, 12 private sector companies have entered the life insurance business. Benefits of life insurance: Life insurance encourages saving and forces thrift. It is superior to a traditional savings vehicle. It helps to achieve the purpose of life assured. It can be enchased and facilitates quick borrowing. It provides valuable tax relief. Thus insurance is found to be very useful in the lives of the person both in short term and long term. Fundamental principles of life insurance contract; 1) Principle of almost good faith: A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk 10

being proposed whether requested or not. 2) Principle of insurable interest: Relationships with the subject matter (a person) which is recognized in law and gives legal right to insure that person.

2) Non-life (general) Insurance: Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907 . there emerged many a player on the Indian scene thereafter. The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance business.

LIFE INSURANCE BUSINESS Life Insurance Corporation ICICI Prudential Life Insurance HDFC Standard Life Insurance Max New York Life Insurance Birla Sun Life Insurance Om Kotak Mahindra Life Insurance Reliance Life Insurance Allianz Bajaj Life Insurance Dabur CGU Life Insurance ING Vyasa Life Insurance SBI Life Insurance

NON-LIFE INSURANCE BUSINESS General Insurance Corporation National Insurance Company The New India Insurance Company The Oriental Insurance Company United India Insurance Company Reliance General Insurance TATA-AIG Insurance Royal Sundar ram Alliance General Insurance Bajaj Alliance General Insurance ICICI Lombard Insurance


The Insurance Regulatory and Development Authority (IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Duties, Powers and Functions: Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA. Subject to the provisions of Act and any other law for the time being in force, the authority shall have the duty to regulate, promote and insure orderly growth of insurance business and re-insurance business. Without prejudice to the generality of the provisions contained in sub section (1), the powers and functions of the authority shall include, 1. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration.



Protection of the interest of the policyholders, insurable interest, settlement of insurance claim, surrender value of policy, and other terms and contracts of insurance.

3. Specify requisite qualifications, code of conduct, practical training for intermediary or insurance intermediaries and agents. 4. 5. 6. 7. 8. Specifying the code of conduct for surveyors and loss assessors. Promoting efficiency in the conduct of insurance business. Promoting and regulating organizations connected with the insurance and reinsurance business. Levying fees and other charges for carrying out the purpose of this act. Calling for information from, undertaking inspection of, conduction enquiries and investigations 9. including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business. Control and regulations of the rates, advantages, terms and conditions that may be offered by insurer in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under the section 64U of the Insurance Act, 1938(4 of 1938). 10. Specifying the firm and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries. 11. Regulating investments of funds by insurance companies. 12. Regulating maintenance of margin of solvency. 13. Adjudications of disputes between insures and intermediaries or insurance intermediaries. 14. Supervising the functioning of the Tariff Advisory Committee. 15. Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f). 16. Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector. 17. Exercising such other powers as may be prescribed. 18. Exercising for the License 13

The IRDA has prescribed both qualifications and the disqualifications for a person to be given a license:-

Qualifications The person must be : 1. At least 18 years old. 2. Must have passed at least 12th standard or more (if the person is appointed in a place with population of 50,000or more), 10th standard otherwise. 3. Have undergone for at least 100 hours in life or general insurance business as the case may be form an institute, approved and notified by the authority. 4. Should have also passed the pre-recruitments examination conducted by the Insurance Institute of India or any other examination body recognized by the authority. 5. In case of an applicant for the composite insurance agent, the person should have completed at least 150 hours practical training in life and general insurance business, which may be spread over six to eight weeks. Disqualifications The factors that would prevent a person from obtaining a license are that: 1. Has been found to be unsound mind by a court of competent jurisdiction. 2. Has been found guilty of criminal breach of trust, misappropriation, cheating, forgery or attempt to commit any such offence. The licensed once issued can be cancelled whenever the person acquires a disqualification. In case of companies and firms who want to become agents, the test of qualification and disqualification would be applied to all the directors and partners. There are two separate forms, one for individuals and other for those other than 14

individuals, in which the applications are to be made. The two forms are numbered by IRDA-Agent VB and are annexed to the regulation. The applications in the respective forms have to be made to the designated person appointed by the insurer sponsoring the application. The application for the license to be accomplished by proofs: 1. Of fee have been remitted to the authority. 2. Of age. 3. Of having completed the training and passed the prescribed examination. The fee to be send to the authority directly is Rs.250 for new license and for renewals applied for within the prescribed period, at least 30 days before the date of expiry. If the application is made after the date of expiry it would be normally refused. But, if the authority is satisfied that hardship would be caused otherwise, the license may be renewed. Prior to renewal of the license the agent should have completed at least 25 hours practical training in life or general insurance or at least 50 hours practical training in life and general insurance business in the case of a composite insurance agent. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered. Agency law regulations- agency The basics of the insurance business in India are governed by the Agency law, which is the part of the Indian Contracts Act, 1982. Further after the industry got opened up the regulatory authority has been the Insurance Regulatory and Development Authority (IRDA). Agent- The Definition


According to the section 182 of the Indian Contract Act, 1872, an agent is a person employed to do any for another or to represent another in dealing with a third person. In the insurance sector the term Agent is ordinarily applied to a person engaged by the insurer to procure new business.

Powers of Agent An agent can act only to the extent of authority may be expressed or implied. An authority is said to be expressed when it is given by words spoken or written. It is implied when it is to be inferred from the circumstances of the case. Life Insurance Agent The Insurance Act, 1938 defines an agent as, one who is licensed under the act and is paid consideration of his soliciting or procuring insurance business including business relating to continuance, renewal or revival of policies of insurance.


What is customer satisfaction? Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. The level of satisfaction is determined not only by the quality and type of customer experience but also by the customers expectations. A customer may be defined as someone who: has a direct relationship with, or is directly affected by your agency and receives or relies on one or more of your agencys services or products. Customers in human services are commonly referred to as service users, consumers or clients.


An organization with a strong customer service culture places the customer at the centre of service design, planning and service delivery. Customer centric organizations will: determine the customers expectations when they plan listen to the customer as they design focus on the delivery of customer service activities Value customer feedback when they measure performance. Why is it important? There are a number of reasons why customer satisfaction is important in Insurance Sector: Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. Customers have a right to quality services that deliver outcomes. Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their sector. Customers are recognized as key partners in shaping service development and assessing quality of service delivery. The process for measuring customer satisfaction and obtaining feedback on organizational performance are valuable tools for quality and continuous service improvement.



For every problem there is a research. As all the researches are based on some and my study is also based upon some objective and these are as follows. 1. To understand the insurance business and products of ICICI Prudential life insurance co ltd. 2. To find out the peoples perception about life insurance. 3. To find out whether people were really aware of life insurance. 4. To find out how people think about private life insurance. 5. To find out what respondents expect from life insurance. 6. To understand Consumer buying behavior 7. To come out with conclusion and suggestions based on the analysis and the Interpretation of data.


Need and scope of the study Needs of the study

Satisfaction is defined as . . . A persons feeling of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations. Customer Satisfaction can be defined as supplying or gratifying all wants or wishes, fulfilling conditions or desires, or the state of the mind anything that makes a customer feel pleased or contented. Consumer Behavior: Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services ideas, or experiences to satisfy needs and desires

Customer value: The ratio between the customers perceived benefits (economic, functional and psychological) and the resources (momentary, time, effort, psychological) used to obtain those benefits. Customer satisfaction: Customer satisfaction is the individuals perception of the performance of the product or service in relation to his or her expectations. Motivation: The processes that account for an individuals intensity, direction, and persistence of effort toward attaining a goal. Personality can be described ad the psychological characteristics that both determine and reflect how person responds to his or her environment. Perception is defined as the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. Consumer learning is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior.

Scope of the study

This study can be conducted by comparing the performances & products of two private & a government insurance players in insurance industry.

The number of respondents to be surveyed can be improved. The study can be conducted in Indore city only. This study can be conducted to analyze the market stand of ICICI Prudential life insurance Company limited.

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The project is concerned with the STUDY ON CUSTOMER SATISFACTION AT ICICI PRUDENTIAL LIFE INSURANCE. This study is very useful as the financial market become more sophisticated and complex, investor needs a financial intermediary who provides the required knowledge and professional expertise on successful investing and Life insurance

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


Study of consumer behavior & customer satisfaction towards ICICI Prudential Life Insurance Products. The research is carried on in a proper planned and systematic manner. The research was particularly a telephonic research. We have to sell products to list of people which include their names and contact numbers given by ICICI. During the telephonic we have to sell different products by explaining the benefits of a particular product, but. The minimum amount for selling a policy to a customer is equal to or more then Rs. 12000 only. Age limit for selling a product/policies was 1 month to 60 yrs this mean that a policy can be sold to person between the age of 1 month to 60 yrs and not anything exceeding or below it.

The research design of this project is exploratory. Though each research study has its own specific purpose but the research design of this project on ICICI is exploratory in nature as the objective is the development of the hypothesis rather than their testing.


Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis. According to Clifford Woody, Research Methodology comprises of defining & redefining problems, collecting, organizing &evaluating data, making deductions &researching to conclusions. Accordingly, the methodology used in the project is as follows: Defining the objectives of the study Framing of questionnaire keeping objectives in mind (considering the objectives) Feedback from the employees Analysis of feedback Conclusion, findings and suggestions.

Sampling Technique Used This research has used convenience sampling technique. 1) Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient

Selection of Sample Size: For the survey, a sample size of 50 has been taken into consideration.

Sources of Data Collection: 23

Research will be based on two sources: 1. Primary data 2. Secondary data

Questionnaire: Primary data was collected by preparing questionnaire for customers. The questionnaire was filled through telephonic research.

Secondary data will consist of different literatures like books which are published, articles, internet, the company manuals and websites of company- Magazines and brochures are some other sources of secondary data followed for the study. In order to reach relevant conclusion, research work needed to be designed in a proper way. This research methodology also includes: Familiarization with the concept of insurance and its various terms. Thorough study of the information collected. Conclusions based on findings.

Statistical Tools Used


The main statistical tools used for the collection and analyses of data in this project are: Questionnaire Pie Charts Bar Diagrams

Limitations of study Limitations of study

Due to the following unavoidable and uncontrollable factors the factors,the result might not be accurate. Some of the problems faced while conducting the survey are as follows: Time and cost constraints were also there. Chances of some biasness could not be eliminated. A Samples size of fifty has been use due to time limitations. A majority of respondents show lack of cooperation and are biased towards their own opinions.

Sampling plan: It is very difficult to collect information from every member of a population .As time and costs are the major limitation that the researcher faces.

A sample of 100 was taken the sample size of 100 individuals were selected on the basis of convenient sampling technique. The individuals were selected in the random manner to form sample and data were collected from them for the research study.



Industrial Profile

Insurance in India The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. A Brief history of the Insurance Sector The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance in India are; 1912: The Indian Life Assurance For over 50 years, life insurance in India was defined and driven by only one companythe Life Insurance Corporation of India (LIC). With the Insurance Regulatory and Development Authority (IRDA) Bill 1999 paving the way for entry of private companies into both life and general sectors there was bound to be new-found excitement- and new success stories. Today, just three years since their entry, their cumulative share has crossed 13% (source: IRDA), far exceeding expectations. Clearly insurance is on a growth path. The percentage of premium income to GDP which was just 2.3% in 2000-01 rose to 3.3% in 2002-03; and life insurance has emerged as the dominant contributor to this growth. 27

The industry presented a huge opportunity. Life insurance penetration, for instance, was at an abysmal 22% of the insurable population. However, private players have had to rise to many challenges. They were faced with attitudinal barriers towards the category and the perception that insurance was only a tax saving tool. Insurance per se had lost it basic rationale: protection. It wasnt surprising then that its potential lay frozen and unexploited. The challenge for private insurance players was to change the established category driver and get customers to evaluate life insurance as an investment-cumprotection tool.

Insurance in India started without any Regulation in Nineteenth century. It was story of a typical colonial era. A few British companies dominated the market mostly in large urban centers.
Insurance was nationalized mainly on 3 counts First, Indian lives were not insured. Second, even if they were insured, they were treated as substandard lives and extra premium was charged. Third, there were gross irregularities in the functioning of Life insurance was nationalized in the year 1956, and then general insurance was nationalized in the year 1972. In 1999, the private insurance companies were allowed back again into insurance sector with maximum cap of 26 percent foreign holding.

1818 The British introduce to India, with the establishment of the Oriental Life Insurance company in Calcutta. 1850 Non life insurance debuts, with Triton Insurance Company. 1870 Bombay Mutual life Assurance Society is the first Indianowned life insurer 1907 Indian mercantile Insurance is the first Indian non-life insurer.

1912 The Indian life assurance companies act enacted to regulate the life insurance business. 1938 The insurance act, which forms the basis for most current insurance laws, replaces earlier act. 1956 Life insurance nationalized, government takes over 245 Indian and foreign insurers and provident societies. 1956 Government sets up LIC 1972 Non life insurance nationalized, GIC set up. 1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up to draw up a blue print for insurance sector reforms. 1994 Malhotra Committee recommends re-entry of private players, autonomy ot PSU insurers. 1997 Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up. 2000 IRDA starts giving licensed to private insurers 2001 ICICI Prudential Life Insurance came into the market to sell a policy. 2002 Banks were allowed to sell insurance plans, as TPAs enter the scene, insurers start settling non-life claims in the cashless mode.
The Insurance Regulatory and Development Authority (IRDA): Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering 29

the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

With the demographic changes and changing life styles, the demand for insurance cover has also evolved taking into consideration the needs of prospective policyholder for packaged products. There have been innovations in the types of products developed by the

insurers, which are relevant to the people of different age groups, and suit their requirements. Continued innovations in product development has resulted in a wide range of flexible products to meet the requirements for cover at different stages of life -today a variety of products are available ranging from traditional to Unit linked providing protection towards child, endowment, capital guarantee, pension and group solutions. A number of new products have been introduced in the life segment with guaranteed additions, which were subsequently withdrawn/toned down; single premium mode has been popularized; unit linked products; and add-on/riders including accidental death; dismemberment, critical illness, fixed term assurance risk cover, group hospital and surgical treatment, hospital cash benefits, etc. Comprehensive packaged products have been popularized with features of endowment, money back, whole life, single 30

premium, regular premium, rebate in premium for higher sum assured, premium mode rebate, etc., together with riders to the base products. Historical Perspective Prior to 1956 1956 2001 -242 companies operating

-Nationalization- LIC monopoly player -Government control -Opened up sector

Contribution to Indian Economy Life Insurance is the only sector which garners long term savings. Spread of financial services in rural areas and amongst socially less privileged. Long term funds for infrastructure. Strong positive correlation between development of capital markets and insurance/pension structure. Employment generation. Insurance Industry prior to de-regulation Prior to deregulation in 2000, market was a public monopoly. Public Monopoly - 2000 Offices - Over 800,000 agents Distribution through tied agents only Sales approach primarily on a tax savings platform Traditional style product offering : Endowment and money back plans Inadequate and inflexible products Pensions: Small part of product offer Limited focus on customer needs 31

Improving Service Standards Pre Deregulation Limited Distribution

Channel Access Advisors

Service Points Branch Network

Use of IT Limited use of IT

Post Deregulation Service through Distribution

Multi Channel Access

Multiple Service Use of IT Points Advisors Call Centers Shorter time around time Brokers & Email Corporate agents Claims Website Bancassurance Policy Issuance Branch Network


Company profile

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 42.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2000 branches (inclusive of 1,095 micro-offices), over 261,000 advisors; and 24 bancassurance partners. ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver worldclass financial solutions to customers all over India.



The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product development, distribution, the sales process or servicing. Here's a peek into what makes us leaders. 1. Our products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease. 2. Having the right products is the first step, but it's equally important to ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products . 3. Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process. 4. Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term. 5. Last but definitely not the least, our 28,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life.

VISION The companys vision is to make ICICI Prudential the dominant life and Pensions player built n trust by world-class people and service. They hope to achieve this by: 34

1. Understanding the needs of customers and offering them superior products and services. 2. Leveraging technology to device customers quickly, efficiently and conveniently. 3. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to their policyholders. 4. Providing an enabling environment to faster growth and learning for their employees. 5. Building transparency in all their dealings. The success of the company is due to its unflinching commitment to five core values: 1. Integrity 2. Customer first 3. Boundary less 4. Ownership 5. Passion Each of the core values describe what the company stands for, the qualities of their people and the way they work. 1. ICICI Bank set up its international boundary in fiscal 2002 to cater to the crossbascules needs of client and leverage on products internationally. 2. It currently has subsidiaries in United Kingdom and Canada, branches in Singapore and Behr in and representative offices in US, United Arabs emirates and Bangladesh. 3. ICICI Banks equity shares are listed in INDIA on the stock exchange; Mumbai and the National Stock Exchange on India Limited and its American Depository Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).


PROMOTERS ICICI BANK ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with over 50 years of financial experience and with assets of Rs. 1812.27 billion as on 30th June, 2005. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is a leading player in the retail banking market and has over 13 million retail customer accounts. The Bank has a network of over 570 branches and extension counters, and 2,000 ATMs. PRUDENTIAL PLC Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholders 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. 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 Prudential Life's capital stands at Rs. 42.72 billion (as of June 30, 2008) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the quarter ended June 30, 2008, the company garnered Retail Weighted New Business Premium of Rs. 1,174 crores as against Rs 810 crores for the quarter ended June 30, 2007, thereby 36

posting a growth of 45% and has underwritten over 6 lakh policies over this period. The company has assets held over Rs. 30,600 crore as on August 31, 2008. ICICI Prudential Life is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims. For the past seven years, ICICI Prudential Life has retained its leadership position in the life insurance industry with a wide range of flexible products that meet the needs of the Indian customer at every step in life.

DISTRIBUTION ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 2000 branches (including 1,095 micro-offices) and an advisor base of over 261,000 (as on August 31, 2008). The company has 24 banc assurance partners having tie-ups with ICICI Bank, Bank of India, South Indian Bank, Shamrao Vitthal Co-Op Bank, Jalgaon Peoples Co-op Bank, Ernakulam District Co-op Bank, Idukki District Co-op Bank, Ratnagiri Sindhudurg Gramin Bank, Solapur Gramin Bank, Wainganga Kshetriya Gramin Bank, Aryawart Gramin Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank, Baitarani Gramya Bank, Ratnagiri District Central Co-op Bank, Seva Vikas Co-op Bank, Sangli Urban Co-Operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Co-Operative Bank, The Haryana State Co-Operative Bank, Renuka Nagrik Sahakari Bank, Amanath Co-Operative Bank, Arvind Sahakari Bank, Bhandara Urban Co Operative Bank

SALES DISTRIBUTION Tied Agency Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large advisor force that targets various customer segments. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business. With focus on sales & people development, tied agency has emerged as a robust, predictable and sustainable business model. Banc assurance and Alliances 37

ICICI Prudential was a pioneer in offering life insurance solutions through banks and alliances. Within a short span of two years, and with nearly a large number of partners, B & A has emerged as a vital component of the companys sales and distribution strategy, contributing to approximately one third of companys total business. The business philosophy at B&A is to leverage distribution synergies with our partners and add value to its customers as well as the partners. Flexibility, adaptation and experimenting with new ideas are the hallmarks of this channel.

Board of the Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Ms. Chanda D. Kochhar, Chairperson Mr. N. S. Kannan, Director Mr. K. Ramkumar, Director Mr. Barry Stowe, Director Mr. Adrian OConnor, Director Mr. Keki Dadiseth, Independent Director Prof. Marti G. Subrahmanyam, Independent Director Ms. Rama Bijapurkar, Independent Director Mr. Vinod Kumar Dhall, Independent Direct Mr. V. Vaidyanathan, Managing Director & CEO

Management Team
The ICICI Prudential Life Insurance Company Limited Management team comprises reputed people from the finance industry both from India and abroad. Mr.V.Vaidyanathan, Managing Director & CEO Dr. Avijit Chatterjee, Appointed Actuary Mr. Puneet Nanda, Executive Vice President


Mr.V.Vaidyanathan Managing Director & CEO ICICI Prudential Life Insurance Company Limited

Mr. V. Vaidyanathan is the Managing Director & CEO of ICICI Prudential Life Insurance Company. Vaidyanathan was a lateral hire and joined the ICICI Group in 2000 with 10 years of banking experience. Within a year, he was appointed the Managing Director of ICICI Personal Financial Services Limited, with the responsibility to set up the consumer financing business for ICICI Limited. At 38, he was appointed as Executive Director on the Board of ICICI Bank and was responsible for Retail Banking, SME Banking and Rural Banking businesses. During his career with the ICICI Group, he has built a strong retail banking business, which includes deposits, private banking, mortgages, autoloans and credit cards and has also led these businesses to market leadership. He also headed the Small and Medium enterprises (SME) banking and Rural Banking Business of ICICI Bank. Under his leadership over the last decade, the retail banking business has grown to 1400 bank branches in 800 cities, 25 million customers , USD 30 bn in assets, a corresponding liability base, and a strong team of 26000 employees . The bank continues to add over 3 million new customers every year. Having handled both sides of the balance sheet over the past two decades, he is a banker whose experience goes across cycles. He has groomed and left behind a strong leadership team in ICICI Bank. He was also on the board of ICICI Lombard General Insurance, and was the chairman of ICICI Home Finance Co limited. He was earlier on the board of CIBIL, Indias first credit bureau. His contribution in this sphere is widely recognized in industry circles and within the ICICI Group. He was recently profiled among India's Top 25 executives by Business Today, a leading business magazine in India. He is an alumnus of Birla Institute of Technology and Harvard Business School, AMP. He is an avid runner, has participated in 4 marathons and occasionally plays golf. He lives in Mumbai with his family including his father, wife and three children.


Dr. Avijit Chatterjee Appointed Actuary ICICI Prudential Life Insurance Company Limited

Avijit Chatterjee is Appointed Actuary of ICICI Prudential Life Insurance where he has overall responsibility for statutory reporting, risk appetite, pricing, valuation, reinsurance, etc. In addition to his role as Chief Actuary, Avijit will also be responsible for the entire Risk framework for the company alongwith internal audit and legal departments. He has been with the company since September 2007. Prior to joining ICICI Prudential Life, Avijit spent 15 years in various positions in one of UK's leading life insurance company. His areas of work included group-wide capital management, product supervision, management of the group actuarial team and providing actuarial input on all material transactions conducted by group entities. Avijit holds a Ph.D. in pure mathematics, is a Fellow of the Faculty of Actuaries (FFA) in Scotland and is also a Fellow of the Institute of Actuaries of India (FIAI).

Mr. Puneet Nanda Executive Vice President ICICI Prudential Life Insurance Company Limited

Mr. Puneet Nanda is Executive Vice President at ICICI Prudential Life Insurance Company. He looks after the Corporate Center which includes Investment Management, Human Resources, Finance and Accounts, Compliance, Investor/analyst relationship, Business Intelligence and Corporate Strategy, Product Development, Corporate Communications and Sales Strategy. Mr. Nanda has been with the company since inception and was the Chief Investment Officer responsible for the setting up and managing the investment function prior to getting elevated to his current role. Prior to joining ICICI Prudential, Mr. Nanda has worked with a leading investment bank and an international financial services company.


Mr. Nanda is an engineer by qualification and has also completed his Post Graduate Diploma in Management from the Indian Institute of Management, Lucknow in 1994.

BRAND VALUES Market Research reveals that the values people associate with ICICI Prudential are, indeed, those that the company hopes to project: lifelong protection and value for money. The core value is protecting your loved ones, throughout lifes ups and downs. It is a powerful proposition; one, which ICICI Prudential, is taking into the market place. ACHIEVEMENTS Beginning operations in December 2000, ICICI Prudentials success has been meteoric, becoming the number one private life insurer within months of launch. Today, it has one of the largest distribution networks amongst private life insurers in India, with branches in 54 cities. The total number of policies issued stands at more than 780,000 with a total sum assured in excess of Rs.160 billion. ICICI Prudential closed the financial year ended march 31, 2004 with a total received premium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20 billion. New business premium income shows a 106% growth at Rs. 7.5 billion, driven mainly by the companys range of unique unit-linked policies and pension plans. The companys retail market share amongst private companies stood at 36%, making it clear leader in the segment. To add to its achievements, in the year 2003/04 it was adjudged Most Trusted Private Life Insurer (Economic Times Most Trusted Brand Survey by ACNeilsen ORG-MARG). It was also conferred the Outlook Money-Best Life Insurer award for the second year running. The company is also proud to have won Silver at EFFIES 2003 for its Retire from work, not life campaign. Notably, ICICI Prudential was also short-listed to the final round for its Sindoor campaign in EFFIES 2002. 41

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

Stages in Policy Issuance

1) Proposal A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the application form is received by COPS, but it is pending for issuance due to further clarifications required from the customer. 2) Login A proposal which is complete i.e., duly filled with all necessary documents attached to it & accepted by the Branch ops, is called a Login 3) Reject An Application gets rejected at the Branch Ops level due to necessary details not filled in the form or necessary documents not submitted is a Reject. It is then sent back to the Advisor for completion. 4) Issuance Issuance means a policy that is issued to the Customer by Central Ops. 5) Decline Status When a customer refuses to take a policy post login but before Issuance is called a Decline


6) Cancellation When the cheque given by the customer bounces, it amounts to cancellation of the policy. 7) Lapse A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy. 8) Freelook Post issuance of the policy, the policyholder has the option to turn down the policy within 15 days from the date of issuance. This period of 15 days is called Freelook Period. 9) Surrender: When a customer wants to discontinue with the policy.

ProductS And Services

ICICI Prudentials ultimate promise is financial security. A strong brand certainly boosts sale, but without customer-friendly, innovative products, even the best brand would not last long. ICICI Prudentials product range has been developed on the understanding that different people have their own sets of needs at various stages of their lives. It has thus built a flexible portfolio of products that can be customized to cater to varying needs of people at each stage, and thus ensure protection in every step of life. The companys philosophy has been to help customers understand their financial needs and work closely with them to customize a product that would meet. Advisors can offer a complete range of products Savings plans, Child plans, Market-linked plans, Protection plans, and Retirement plans and tailor a flexible solution to meet customers changing needs at every stage of life. In fact, ICICI Prudential was the first to un-bundle product benefits, pioneering the concept of riders and soon after introduce comprehensive market-linked and retirement plans. ICICI Prudential has launched a handful of products that are analyzed below: 43

ICICI Prudential's life insurance products may be loosely categorized under three forms: pure life insurance products without an investment angle to them; a product that is a mix of a cumulative investment scheme and an insurance product; and, finally, standard products such as money-back and endowment policies.

Single Premium Bond: The Single Premium Bond is the name of a policy that combines the features of an investment in a cumulative deposit scheme with that of an insurance product. Policy-holders are required to pay a one-time premium based on a target sum assured. At maturity, the policy-holder gets the sum assured and guaranteed additions that work out to a compound return of 4.5 per cent the sum assured. The insurance part of the package comes in the form of death benefits that are paid in the case of the demise of the policy-holder. The size of the death benefit is linked to the number of years left for the policy to expire. On maturity date, the maturity value is also paid in addition to the death benefits that would have been paid earlier. Life Guard policies: The company offers two pure life insurance products that have an umbrella name, Life Guard. One of them involves a one-time premium for which there are no maturity benefits. The other requires regular premium payments that are returned at the end of the policy. Life Guard offers absolutely no investment-related return and is suitable for individuals looking for an unadulterated insurance package.

INSURANCE SOLUTIONS FOR INDIVIDUALS ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 5 riders, to create a customized solution for each policyholder. Savings Solutions Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection.


Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options.

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

CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a childs marriage, expenses for a childs higher education or purchase of an asset.

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

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

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

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

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

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

Protection Solutions LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options level term assurance with return of premium and single premium. HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner. 45

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 single premium market linked pension plan. InvestShield Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses Golden Years: is a limited premium paying retirement solution that offers tax benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and payout stages.

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


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

Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. ICICI Pru Group Gratuity Plan: ICICI 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 superannuation 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. 1. Accident and disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.


2. Accident Benefit: This rider option pays the sum assured under the rider on death due to accident. 3. 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 4. Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available in SmartKid, SecurePlus, and CashPlus. 5. 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 Secure Plus and Cash Plus.

SWOT ANALYSIS STRENGTHS: i. ii. ICICI Prudential is the largest private player in India, with a market share of around 36% amongst the private players ICICI Prudential has deposited a paid up capital of Rs 925 crore with IRDA caution deposit, the highest among all the life insurance company in India where as LIC has deposited Rs 60 crore so far. iii. iv. ICICI Prudential is the first life insurance company to offer ECS debit facility. ICICI Prudential is the first company to introduce unit link life insurance and pension products. Presently the maximum numbers of ranges are under ULIP life insurance, investment as well as pension plan. 48



Flexibility to switch your fund value at your own discretion four times a year viz. maximizer, protector, balancer, preserver. Greater transparency-policy holder knows what is happening to his money and where the company has invested his money. Liquidity options-you can make complete or partial withdrawals any time after 3 years. Life insurance plans are eligible for deduction under sec 80.

WEAKNESSES: i. ii. iii. iv. v. vi. vii. Industry in nascent stage. Rural areas still not covered. Not very known among Indian population. Lack of credibility among the people because ICICI being a private player. Premiums are high as compared to its competitors. Very few branches in the country. Products: The policy doesnt have the surrender option before third year. Plan does not offer any guarantee or assured return. Product profile is not very comprehensive.


Mortality, management and administrative charges are sky scrapping as compared to its competitors.

OPPORTUNITIES i. ii. iii. Liberalization of Indian economy. As the industry is growing the whole market is virgin. The whole private sector is opened to be trapped even though the competition is fierce from government owned insurance companies. iv. v. Its a volume business that is even if the company has few good corporates the turnover cease to increase by manifold. Products: Preserver funds look good due to comfortable liquidity in the economy and there is little chance hike in short-term rate by RBI. Finance minister unveiled a budget favoring consumer spending, boosting demand and therefore higher economic growth.

THREATS i. ii. iii. The government players will become aggressive thus growth is going to be tough. Entry of other players is not ruled out. Apprehension towards ICICI Prudential being a private life insurance company.



We expect the industry to rationalize in future that is mergers and acquisitions will happen, which will impact the industry and ICICI Prudential fortunes.


Products: Past performance of these plans is not indicative of the future performance of the plan. The sum invested in the funds is subject to market risks and there can be no assurance that the objective of plan will be achieved. All benefits payable under the policy are subject to tax laws and other financial enactment, as they exist from time to time


Meaning and Defination of Marketing
Marketing, more than any other business functions deals with customers. Creating customers value and satisfaction are the heart of modern marketing thinking and practice. Marketing is the delivery of customers by promising superior value and to keep current customers by delivering satisfaction. The American marketing association has defined marketing, as Marketing is the performance of business activities that direct the flow of goods and services from producers to consumer or user. Philip Kotler definition of marketing is Marketing is a social and managerial 52

process by which individuals and groups obtain what they need and want through creating and exchanging products and value with other. Functions of Marketing Marketing as business authorities conceive it today is aboard function of business composed of many elements. Until recently even outstanding authorities defined marketing as The performance of business activities that direct the flow of goods and services from producers to consumer or user. while this definition still not broad enough. It does not encompass the idea that marketing also includes the identification of the market and the markets needs and that is guides the development of the products and services to fulfill those needs profitably.

Various Activities That A Marketer Follows Identifying specific markets for products and services; Identifying existing and future needs and wants of these markets; Guiding the development of products, packages and services to fill these needs at a profit, and selling delivering and collecting for, and effecting legal transfer of these goods services to the ultimate consumer or user. An even simpler definition and one easier to remember is the right product or service at the right price at the right place at the right time and doing it at a profit.

Definition Of Marketing Research The American Marketing Association defines marketing research as The systematic gathering, recording and analysis of data about problems relating to marketing of goods and services. According to Kotler, Marketing research is the systematic design, collection analysis and reporting of data and finding relevant of a specific marketing situation


facing the company. The key word in the above definition is Systematic. this is the difference between research and haphazard gathering of findings. For a study/research to be systematic there must be two qualities in the least. First, it should be orderly so that the measurements have accuracy and there is a fair crosssection. Second, it should be impartial in analysis and interpretation

Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires. Gaining high levels of customer satisfaction is very important to a business because satisfied customers are most likely to be loyal and to make repeated orders and to use a wide range of services offered by a business. The need to satisfy customer for success in any commercial enterprises is very obvious. The income of all commercial enterprises is derived from the payments received for the products and services to its external customers. Customers are the sole reason for the existence of commercial establishments. Since sales are the most important goal of any commercial enterprise, it becomes necessary to satisfy customers. For customer satisfaction it is necessary to establish and maintain certain important characteristics like: a. Quality b. Fair prices c. Good customer handling skills d. Efficient delivery e. Serious consideration of consumer complaints. Satisfaction is the feeling of pleasure or disappointment attained from comparing a products perceived performance (outcome) in relation to his or her expectations. If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted 54

There are 7 steps to Satisfaction Customer

It's a well known fact that no business can exist without customers. In the business of Website design, it's important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Because it's critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved. 1. Encourage Face-to-Face Dealings This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a project. My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person, rather than a voice on the phone or someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking, you're well on your way to a sale. 2. Respond to Messages Promptly & Keep Your Clients Informed This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. Even if you're not able to solve a problem right away, let the customer know you're working on it. A good example of this is my Web host. They've had some trouble with server hardware which has caused a fair bit of downtime lately. At every step along the way I was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were working again. They also apologized repeatedly, which was nice. Now if they server had just gone down with no explanation I think I'd have been pretty annoyed and may have moved my business elsewhere. But because they took time 55

to keep me informed, it didn't seem so bad, and I at least knew they were doing something about the problems. That to me is a prime example of customer service. 3. Be Friendly and Approachable A fellow Site Pointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous. 4. Have a Clearly-Defined Customer Service Policy This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesn't work, then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service, who should they tell? There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site -- and anywhere else it may be useful. 5. Attention to Detail (also known as 'The Little Niceties') Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalized sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective, but remember to do them. Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued. 6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship. 56

Take this as an example: you're working on the front-end for your client's exciting new ecommerce Endeavour. You have all the images, originals and files backed up on your desktop computer and the site is going really well. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution versions of all the images you've used on the site. A note accompanies it which reads: "Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able to make use of some in your brochure." Your client is heartily impressed, and remarks to his colleagues and friends how very helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer will send several referrals your way. 7. Honour Your Promises It's possible this is the most important point in this article. The simple message: when you promise something, deliver. The most common example here is project delivery dates. Clients don't like to be disappointed. Sometimes, something may not get done, or you might miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss. Conclusion Customer service, like any aspect of business, is a practiced art that takes time and effort to master. All you need to do to achieve this is to stop and switch roles with the customer. What would you want from your business if you were the client? How would you want to be treated? Treat your customers like your friends and they'll always come back.

Customer Satisfaction Strategies Followed By Icici prudential

The different strategies followed by Icici prudential consists of Customer 57

relationship management, strategy to providing better facility to the owner, and strategy to provide better after sales service to customer.

Customer Relationship Management

CRM as a tool was used to create positive word-of-mouth, to monitor customer experiences and generate referrals. A series of CRM activities were implemented with regular direct communication, events and customer satisfaction surveys, etc. This study will help me to find and customer satisfaction level, To know the reason for decline of customers at service station, To know the perception of customers regarding the charges or rates offered by the service centers and To know any suggestion from customers to improve the service centers. The study is scheduled through primary data and other information thereby preparing Questionnaire, which focus of various variables, and attributes that are important to know the satisfaction level and the factors affecting the purchase decision. The survey caused at the Hyderabad Dist with the sample size of 100.The collected data are tabulated and analyzed data and all suggestions are given according to the analyzed data graphs and charts are used to illustrate the statistical data and findings.


Companies use the following methods to measure customer satisfaction. 1) Complaints and suggestion system: Companies obtaining complaints through their customer service centers, and further suggestions were given by customers to satisfy their desires. 2) Customer satisfaction surveys Responsive companies obtain a direct measure of customer satisfaction by periodic surveys. They send questionnaires to random sample of their customers to find out how they feel about various aspects of the companys performance and also solicit views on their competitors performance. It is useful to measure the customers willingness to 58

recommend the company and brand to other persons. 3) Lost Customer Analysis. Companies should contact customers who have stopped buying or who have switched to another supplier to learn why this happened 4) Consumer Behavior Vs Consumption Behavior Consumer behavior refers to the manner in which an individual reaches decision related to the selection, purchases and use of goods and services. Walters and Paul says that, consumer behavior is the process whereby the individuals decide what, when, how and from whom to purchase goods & services. Consumer behavior relates to an individual person (Micro behavior) where as consumption behavior relates to and to the mass or aggregate of individuals (Macro behavior) consumers behavior as a study focuses on the decision process of the individual consumer or consuming unit such as the family. In contrast the consumption behavior as a study is to do with the explanation of the behavior of the aggregate of consumers or the consuming unit. Consumer is a pivot, around which the entire system of marketing revolves. The study of buyer behavior is one of the most important keys to successful mark.


1. What according to you life insurance is?

PARTICULARS Risk Coverage Tax Savings Good return Security All the above TOTAL NO.OF.RESPONDENT 10 3 4 3 80 100 PERCENTAGE 10% 3% 4% 3% 80%


Life Insurance is
Risk Coverage Security 100 80 60 40 20 0 NO.OF.RESPONDENT Tax Savings All the above Good return TOTAL

ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) e) 10% of the respondents say risk coverage. 3% of the respondents say tax savings. 4% of the respondents say good returns. 3% of the respondents say financial security. 80% of the respondents say all of the above.

2. How aware are you regarding insurance? PARTICULARS Yes No TOTAL NO.OF.RESPONDENT 2 98 100 PERCENTAGE 2% 98% 100%


100 90 80 70 60 50 40 30 20 10 0





ANALYSIS: From the survey it was found that amongst 100 respondents a) 98% of the respondents say that they are aware of insurance. b) Only 2% are unaware of insurance.

3. What are your preferable criteria for selecting an insurance company?


criteria for selecting insurance company

% n i e l p o e p f o o n

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% realibility service income policy scheme

2 6
25-30 2

2 4 6
30-35 2

4 2 3
35-40 4

2 2 5
40-45 2 2 5

2 2 4
45-60 2
realibility service income policy scheme

4 6 6 age

2 3

2 4

ANALYSIS: Here all age of people give preference to choose insurance company on the basis of policy scheme firstly, and then second selection base is income, third chosen criteria is service and last criteria of chosen of insurance company is reliability and creditworthiness. So on the basis of this survey we can say that people mainly give importance of chosen an insurance company is what type of policy Scheme Company has, means policy fulfill individual need or not.

4. Are you currently insured?



No. of Respondents


Yes No Total

31 19 50

62% 38% 100%

No. of Respondents

19 Yes No 31

ANALYSIS: From the survey it was found that amongst 50 respondents a) 62% of the respondents are already insured. b) 38% of the respondents are not insured.

5. Are you satisfied with your current insurer?


Particulars Yes No Total

No. of Respondents 41 9 50

Percentage 82% 18% 100%

No. of Respondents

Yes No


ANALYSIS: From the survey it was found that amongst 50 respondents a) 82% of the respondents are satisfied. b) 18% of the respondents are not satisfied.

6. Are you aware of ICICI Prudential life insurance pvt ltd?




PERCENTAGE 17% 83% 100%

Awareness of ICICI Pru

Yes 100 80 60 40 20 0 NO.OF.RESPONDENT No TOTAL

ANALYSIS: From the survey it was found that amongst 100 respondents a) 83% of the respondents say that they are aware of ICICI Prudential life insurance co. b) 17% of the say that they are unaware of ICICI Prudential life insurance co

7. Which one is your favorite insurance company?


Particulars LIC ICICI HDFC Birla Sun Life Bajaj Allianz Others Total

No. of Respondents 24 7 5 4 4 6 50

Percentage 48% 14% 10% 8% 8% 12% 100%

0.6 0.5 0.4 0.3 0.2 0.1 0 LIC ICICI HDFC Birla Sun Bajaj Allianz Others

Share in %

Insurance companies

ANALYSIS: From the survey it was found that amongst 50 respondents a) b) c) d) e) f) 48% of the respondents likes LIC. 14% of the respondents likes ICICI. 10% of the respondents likes HDFC. 8% of the respondents likes Birla Sun Life. 8% of the respondents likes Bajaj Allianz. 12% of the respondents likes other companies.

8. Are you interested in the products offered by ICICI Prudential? 67

Particulars Yes No Cant Say Total

No. of Respondents 30 12 8 50

Percentage 60% 24% 16% 100%

No. of Respondents

Yes No 12 30 Can't Say

ANALYSIS: From the survey it was found that amongst 50 respondents a) 60% of the respondents are attracted towards ICICI products. b) 24% of the respondents are not attracted towards ICICI products. c) 16% of the respondents cant Say about it.

9. What is your main concern while taking an insurance policy? 68

Particulars Tax Benefit Security Investments/Savings Total

No. of Respondents 20 16 14 50

Percentage 40% 32% 28% 100%

25 No. of Respondents 20 15 Series1 10 5 0

Be ne fit Se cu rit y av i In ve st m en t/S ng s




10. What % of respondents who are under different plans of ICICI Prudential life 69

Ta x

ANALYSIS: From the survey it was found that amongst 50 respondents a) 40% of the respondents are concerned about Tax Benefit. b) 32% of the respondents are concerned about their Security. c) 28% of the respondents are concerned about Investment/Savings.

insurance co? PARTICULARS Invest gain plan Unit gain plan Child gain plan Whole life plan Pension plan TOTAL NO.OF.RESPONDENT 41 36 8 15 No 100 PERCENTAGE 41% 36% 8% 15% No 100%


15% 8% 41%

Invest gain plan Unit gain plan Child gain plan Whole life plan Pension plan


ANALYSIS: From the survey it was found that amongst 100 respondents a) b) c) d) e) 41% of the respondents are under invest gain plan 36% of the respondents are under unit gain plan 8% of the respondents are child gain plan 15% of the respondents are whole life plan No body under pension plan

11. What % of respondents benefits of choosing the particular products? 70

PARTICULARS Risk coverage Additional benefit Maturity date Sum Assured TOTAL

NO.OF.RESPONDENT 60 20 12 8 100

PERCENTAGE 60% 20% 12% 8% 100%

Benefits of Particular Products

100 90 80 70 60 50 40 30 20 10 0

Risk coverage Additional benefit Maturity date Sum Assured TOTAL

ANALYSIS: a) 36% of the respondents say that a benefit of choosing the particular Product is for Safety of life. b) 20% of the respondents say that a benefit of choosing the particular products is for additional benefit to family c) 12% of the respondents say that a benefit of choosing the particular products is for maturity date d) 8% of the respondents say that a benefit of choosing the particular products is for sum assured

12. According to you, in what areas should the insurance companies work upon? 71

Particulars Easy Procedures Fewer premiums More Returns Transparency Total

No. of Respondents 14 10 9 17 50

Percentage 28% 20% 18% 34% 100%

18 16 No. of Respondents 14 12 10 8 6 4 2 0 Easy Returns Fewer premiums More Returns Transperancy 17 14 10 9 Series1

ANALYSIS: From the survey it was found that amongst 50 respondents a) b) c) d) 28% of the respondents want Easy procedures. 20% of the respondents want fewer premiums. 18% of the respondents want more returns. 34% of the respondents want Transparency.

13. Do you think that services have improved after allowing private players in 72

insurance sector? Particulars Yes No Total No. of Respondents 40 10 50 Percentage 80% 20% 100%

20% Yes No 80%

ANALYSIS: From the survey it was found that amongst 50 respondents a) 80% of the respondents think that services have improved. b) 20% of the respondents think that services have not improved.



On an analysis and evaluation of the data collected from the respondents the following findings were found: 74

Before establishment of private concerns the share of LIC was 22% hence there is a wide scope for private concerns to enter in to market. Total 100 respondents have been approached out of which 75 are the potential respondents who have shown interest for investment and finance plan Above 20% of respondents are shown interest for investment and financial plan About 33.33% of respondents are not interest to give their personal records. About 12.67% of respondents have already been covered by other insurance companies. About 10% of respondents have given invalid records. About 10% of respondents are newly employed or trainees. About 10% of respondents interested for investment plan after knowing ICICI prudential life insurance products. Most of the people buy life insurance as just a tax benefit tool or as a life cover while only a few of the respondent take it as a saving option.The reason for this is lack of knowledge of insurance benefits among the people.

A Majority of the respondent buy insurance products because of the need reason while rest of the respondents buy for the brand purpose. A Majority of the people come to know about the policies from the Direct Selling Agents. A Majority of the people are satisfied by the incentives associated with their policies. Most of the respondents are satisfied by the services offered by there insurance company while some says that they are not satisfied by the services. Most of the respondents want more Transparency from the side of the company.

The study has provided with the useful data from the respondents. There has a lot to be recommended. Following are the recommendations:


There is a need for better promotion for the investment products & services. The bank should advertise its products through television because it will reach to the masses. More returns should be provided on Insurance plans. As the bank provides the Insurance facility to its customers. It should provide this facility by tie up with the other Insurance organizations as well. The main reason is that, the entire customers do not want Insurance of only one company. They should have choice while selecting a suitable Insurance plans. This will definitely add to the goodwill & profit for the bank.

After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth ICICI in private sector, we come at the conclusion that 76

There is very tough competition among the private insurance companies on the level of new trend of advertising to lull a major part of Customers. ICICI is not left behind in the present race of advertisement. The entry of more Pvt. players in the Insurance Sector have expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers. ICICI has vast market and very firm grip on its traditional customers and monopoly of life insurance products.

IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.



Name Age Occupation

- _____________ - _____________ - _____________ 78

Q1. Are you currently insured? - Yes - No If yes, please give the details of company, plan, premium etc. Q2. Are you satisfied with your current insurer? - Yes - No Q3. Which is your favorite insurance company? - LIC - ICICI - HDFC - Birla sun life - Bajaj Allianz - Others Q4 Are you interested in the products offered by ICICI Prudential? - Yes - No - Cant say

Q5. What is your main concern while taking an insurance policy? Tax benefit Security Investment/Savings

Q.6 Does this policy satisfy your financial needs? (Please rate on the scale of 1 to 10 with 1 being least satisfied)


Q.7 Please express your opinion for the premiums paid for the above policy? -Very high [ ] -High [ ] -Moderate [ ] -Low [ ] -Very Low [ ] Q.8 How do you come to know about this policy? (Please tick). - Advertisements [ ] - Friends and relatives [ ] - Direct selling agents [ ]. - Others (please specify) _____________________.

Q.9 Are there any incentives (tax benefits or Bonuses) associated with this policy? (Please give appropriate details about it). ___________________________________________________________ ___________________________________________________________ ____

10. Are you satisfied with the incentives associated with your policy? -Highly satisfied [ ]. -Satisfied [ ] -Moderate [ ] -Unsatisfied [ ] 80

-Highly Unsatisfied [ ]. 11. According to you, in what areas should the insurance companies work upon? Less complicated procedures Fewer premiums More returns Transparency

Q12. Do you think that services have improved after allowing private players in insurance sector? - Yes - No

Your comments on ICICI Prudential

__________________________________________________________________ __________________________________________________________________


Websites 81

Magazines Material provided by the company survey

Search Engines Books: Business research methodology Quantitative Methods Philip Kotler 2000 /e Gary Armstrong & Philip Kotler G.C. Beri - Marketing Management

- Principles Of Marketing - Marketing Research