Project Report

“A STUDY ON FINANCIAL ANALYSIS OF

ICICI PRUDENTIAL LIFE INSURANCE

Submitted to:
DMSR
G.S. College of Commerce and Economics, Nagpur
(An Autonomous Institution)

Affiliated to:
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur

In partial fulfilment for the award of the degree of

MASTER OF BUSINESS ADMINSTRATION

Submitted by:
Ms. YOGITA SHENDRE

Under the Guidance of:

Dr. KAMLESH THOTE

Department of Management Sciences and Research,

G.S. College of Commerce & Economics,
Nagpur NAAC Accredited “A” Grade Institution

Academic Year 2022-23

 Department of Management Sciences and Research,
G.S. College of Commerce & Economics,
Nagpur NAAC Accredited “A” Grade Institution

Academic Year 2022-23

CERTIFICATE

This is to certify that Ms. Yogita Shendre has submitted the project
report titled, "A Study on Financial Analysis Of ICICI Prudential Life
Insurance", towards the partial fulfillment of MASTER OF BUSINESS
ADMINISTRATION degree examination. This has not been submitted
for any other examination and does not form part of any other course
undergone by the candidate.

It is further certified that he has ingeniously completed his project as

prescribed by DMSR, G. S. College of Commerce and Economics,
Nagpur, (NAAC Reaccredited "A" Grade Autonomous Institution)
affiliated to Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur.

Dr. Kamlesh Thote Dr. Sonali Gadekar

(Project Guide) (Co-ordinator)

Place: Nagpur

Date:

i
 Department of Management Sciences and Research,
G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution

Academic Year 2022-23

DECLARATION
I here-by declare that the project with title “A Study on Financial
Analysis Of ICICI Prudential Life Insurance” has been completed by
me in partial fulfillment of MASTER OF BUSINESS
ADMINISTRATION degree examination as prescribed by DMSR, G. S.
College of Commerce and Economics, Nagpur, (NAAC Reaccredited
"A" Grade Autonomous Institution) affiliated to Rashtrasant Tukadoji
Maharaj Nagpur University, Nagpur and this has not been submitted for
any other examination and does not form the part of any other course
under taken by me.

Ms. Yogita Shendre

Place: Nagpur

Date:

ii
 Department of Management Sciences and Research,
G.S. College of Commerce & Economics, Nagpur
NAAC Accredited “A” Grade Institution

Academic Year 2022-23

ACKNOWLEDGEMENT

With immense pride and sense of gratitude, I take this golden opportunity to
express my sincere regards to Dr. S.S. Kathaley, Principal, G. S. College of
Commerce & Economics, Nagpur.

I am extremely thankful to my Project Guide Dr. Kamlesh Thote for her

guidance throughout the project. I tender my sincere regards to the
Coordinator, Dr. Sonali Gadekar for giving me guidance, suggestions and
invaluable encouragement which helped me in the completion of the project.

I will fail in my duty if I do not thank the non-Teaching staff of the college
for their Co-operation.

I would like to thank all those who helped me in making this project
complete and successful.

Ms. Yogita Shendre

Place: Nagpur

Date:

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 INDEX

SR. NO. PARTICULARS PAGE

NO.

1. INTRODUCTION 6

2. COMPANY PROFILE 10

3. OBJECTIVES OF STUDY AND HYPOTHESIS 23

4. RESEARCH METHODOLOGY 25

4.1 DATA COLLECTION

 PRIMARY DATA
 SECONDARY DATA

4.2 SCOPE

4.3 LIMITATION

5. ANALYSIS OF DATA AND HYPOTHESIS TESTING 31

6. FINDINGS 37

7. CONCLUSION 38
8 SUGGESTION 39
9. BIBLIOGRAPHY 40

10. ANNEXURE 41

4
INTRODUCTION

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Life insurance is a form of insurance that pays monetary proceeds upon the deathof 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 penetrationof 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 distribution techniques
and the IT tools has increased thescope of the industry in the longer run.

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

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

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

Classification of insurance

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

1) Life insurance.

2) Non-life (general) insurance.

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

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

 Benefits of life insurance

 Life insurance encourages saving and forces thrift.

 It is superior to a traditional savings vehicle.
 It helps to achieve the purpose of life assured.

 It can be enchased and facilitates quick borrowing.

 It provides valuable tax relief.

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

 Fundamental principles of life insurance contract;

 Principle of almost good faith:

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

 Principle of insurable interest:

 “Relationships with the subject matter (a person) which is recognized in law

and gives legal right to insure that person”.

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2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be establishedin 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-nationalizationgeneral insurance business.

ICICI Prudential Life Insurance Company (ICICI Prudential Life) is a joint venture between
ICICI Bank Ltd., India's largest private sector bank, and Prudential. ICICI Prudential Life was
amongst the first private sector life insurance companies to begin operations in December 2000
after receiving approval from Insurance Regulatory Development Authority of India (IRDAI).
ICICI Prudential Life's capital infused stands at Rs. 48.16 billion (as of March 31, 2015) with
ICICI Bank Ltd. and Prudential holding 74% and 26% stake respectively. For the financial
year 2015, the company garnered a total premium of Rs. 153.07 billion. The company has
assets under management of Rs. 1001.83 billion as on March 31, 2015. For over a decade,
ICICI Prudential Life has maintained its dominant position (on new business retail weighted
basis) amongst private life insurers in the country, with an array of products to match the
different life stage requirements of customer and enable them to achieve their long term
financial goals.

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 1. COMPANY PROFILE

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

between ICICI Bank Limited and Prudential plc of UK was incorporated onJuly
20, 2000 as a company under the Companies Act, 1956 (‘the Act’). The Companyis licensed by
the Insurance Regulatory and Development Authority (‘IRDA’) for carrying life insurance
business in India.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse and prudential plc, a leading international financial services group
headquartered in the United Kingdom (UK). The company brings together the local market
expertise and financial strength of ICICI Bank and Prudential’s International life insurance
experience. The company was granted a certificate of Registration by the IRDA on November
24, 2000 and eighteen days later, issued its first policy on December 12. ICICI Prudential was
amongst the first private sector insurance companies to begin operations in December 2000
after receiving approval from Insurance Regulatory Development Authority (IRDA).

From its early days, ICICI Prudential seemed to have the wherewithal for a large- scale
business. By March 31, 2002, a little over a year since its launch, the company had issued
100,000 policies translating into premium income of approximately Rs. 1,200 million on a sum
assured of over Rs.23 billion.

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When the company began its operations, the need was to build a brand that was relatable to,
symbolized trust and was easily recognized and understood. It launched a corporate campaign
ICICI Prudential also made using the theme of ‘Sindoor’ to epitomize protection, trust,
togetherness and all that is Indian; endearing itself to the masses. The success of the campaign,
‘the calling card of the company’ saw the brand awareness scores almost at par with its 40 year
old competitor. The theme of protection was also extended to subsequent product and category
specific campaigns –from child plans to retirement solutions –which highlight how the
company will be with its customers at every step of life.

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

ICICI Prudential’s equity base stands at Rs. 1185 crore with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. For the year ended March 31, 2006, the company
garnered Rs.2, 412 crore of weighted new business premium and wrote 837,963 policies. The
sum assured in force stands at Rs.45, 888 crore.

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

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

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

Beginning operations in December 2000, ICICI Prudential’s success has been meteoric,
becoming the number one private life insurer within months of launch. Today, it has one of the
largest distribution networks amongst private life insurers in India, with branches in 54 cities.
The total number of policies issued stands at more than 780,000 with a total sum assured in
excess of Rs.160 billion.

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

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

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

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

ICICI Prudential has recruited and trained more than 72,000 insurance advisors to interface with
and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide
superior quality of service to customers.

About the Promoters

ICICI Bank (NYSE:IBN) is India’s second largest bank with an asset base of Rs.2513.89
billion as on March 31, 2006. ICICI Bank provides a broad spectrum of financial services to
individuals and companies. This includes mortgages, car and personal loans, credit and debit
cards, corporate and agricultural finance. The Bank services a growing a customer base of more
than 17 million customers through a multi channel access network which includes over 620
branches and extension counters, 2200 ATMs, call centers and internet banking
(www.icicibank.com)

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

the US and Asia, provides retail financial services products and services to more than 16 million

customers, policy holder and unit holders world wide. As of December 31, 2005, the company

had over US$ 400 billion in funds under management. Prudential has brought to market an

integrated range of financial services products that now includes life assurance, pensions, mutual

funds,banking, investment management and general insurance. In Asia, Prudential is the leading

European life insurance company with a vast network of 23 life and mutualfund operations in

twelve countries –China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,

Singapore, Taiwan, Thailand and Vietnam.

Achievements

Beginning operations in December 2000, ICICI Prudential’s success has been meteoric,
becoming the number one private life insurer within months of launch. Today, it has one of the
largest distribution networks amongst private life insurersin 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% growthat Rs. 7.5 billion, driven mainly
by the company’s range of unique unit-linked policies and pension plans. The company’s
retail market share amongst private companies stood at 36%, making it clear leader in the
segment. To add to its achievements, in the year 2003/04 it was adjudged Most Trusted
Private Life Insurer (Economic Times ‘Most Trusted Brand Survey’ by ACNeilsen ORG-
MARG).

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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.

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

Promotion

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

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

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

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

BRAND VALUES

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

DISTRIBUTION SYSTEM

Tied Agency

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

Bancassurance and Alliances

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

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CUSTOMER SERVICE AND OPERATIONS

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

The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity. Units
such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution
Unit are all committed to providing effective solutions to over lakhs of customers across the
country.

Information Technology

The Information Technology function at ICICI Prudential is committed to enable business

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

This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of efficiency
and provide robust, scalable and highly available platform for deployment of business
application.

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

Finance

Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to

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

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Human Resource

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

Business Excellence

The Business Excellence function is committed to building a quality mindset across the
organization. ICICI Prudential is the first organization in the Insurance Industrythat has adopted
the Six Sigma Methodology for process efficiency and measurement. The team is also driving
the Malcolm Baldrige framework across the organization, an intervention that examines
management of key inputs for BusinessExcellence.

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

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

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

Bancassurance Models

Globally we have 4 kinds of Bancassurance business models:

 Distribution alliance between the insurance company and the bank

 JV between the two
 Merger between bank and insurer
 Bank builds or buys own insurance products

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

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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 dueto further clarifications
required from the customer.

2) Login
A proposal which is complete i.e., duly filled with all necessary documentsattached 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 sentback 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 aDecline

6) Cancellation

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

7) Lapse

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

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 FreelookPeriod.

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

21
 The joint strengths

A powerful joint venture partnership with each

carrying a set of strengths
complementing each others

Reputation
Brand
strength

Insuran
ce
Infrastructure
PRUDENTIA experti
ICIC
Customer L se
I
base Market Product

LoIc
nan
lkonvoawtlo
edrs
ge Distributi

on
Operations

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 AIM OBJECTIVES OF STUFY AND HYPOTHSIS

AIM:

 The company’s vision is to make ICICI Prudential the dominant life andpension
Player built on trust by world-class people and services.

 Hope to achieve this by Understanding the needs of customers and offeringthem

superior Products and Services. Leveraging technology to service the customers
quickly, efficiently and conveniently.

 Developing and implementing superior Ur deal in risk management And Investing

strategies to offer sustainable and stable return to the Policy holders.

 Providing an environment to foster growth and learning of our employees Andabove all
building transparency in organizations.

OBJECTIVES:

 Comprehensive life cover on the payment of affordable premium

 Includes both Death Benefit and Maturity/Survival Benefit

 Serves the dual purpose of life cover and investment, enabling you to plan multiple
financial objectives well in advance

 Tax benefits applicable on premium payment as per Section 80C and maturity benefits
under Section 10(10D) of the Income Tax Act, 1961

 Life insurance retirement plans help you to strategically plan your retirementfund.

 Offers a free look Period of – (i) 15 days from the date of receiving the ICICI Prudential
Life Insurance policy, if the policy has not been purchased through Distance Marketing,
and (ii) 30 days from the date of receiving the policy, in case of electronic policy purchase
or is purchased through Distance Marketing

23
 HYPOTHESIS

 HYPOTHESIS

H0: people are NOT aware of the ICICI life insurance.

H1: people are aware of ICICI life insurance.

24
 RESEARCH MHETHODOLOGY

Research in common parlance refers to a search for knowledge. Once can also define as a

scientific and systematic search for pertinent information on a specific topic. In fact research

is an art of scientific investigation. The Advanced Learner’s Dictionary of current English

lays down the meaning of research as “a careful investigation or inquiry especially through

search for new facts in any branch of knowledge”.

Redman and Mory define research as “systematized effort to gain new knowledge”. Some people

consider research as movement, a movement from the known to the unknown. It is actually a

voyage of discovery. We all process the vital instinct of inquisitiveness for, when the unknown

confronts us. We wonder and our inquisitiveness makes us probe and attain full and fuller

understanding of the unknown. This inquisitiveness is the mother of all knowledge and the

method, which man enjoys for obtaining the knowledge of whatever the unknown can be termed

as research. Research is an academic activity and such the term should be used in a technical

sense. According to Clifford Woody research comprises defining and redefining problems,

formulating hypothesis or suggested solutions, collecting organizing and evaluating data making

deductions and reaching conclusions and at last carefully testing the conclusions to determine

whether they fit the formulating hypothesis.

Research is thus an original contribution to the existing stock of knowledge making for its

advancement.

25
 Selecting the problem: - The research problem undertaken for study must be
carefully selected. The task is a difficult one although it may not appear to be so.
Help may be taken from a research guide in this connection. Nevertheless, every
researcher must find out his own salvation for research problems cannot be borrowed.
A problem must spring from the researchers mind like a plant 11 springing from its
own seed if our eyes need glasses, it is not the optician alone who decides about the
number of the lenses we require. We have seen ourselves ad enable him to prescribe
for us the right number by co-operating with him. Thus a research guide can at the
most only a help researcher choose a subject.

Statement of problem :- The present study is entitled as of critical studyof progress.

An ICICI Prudential Life Insurance Company Ltd. With special reference to
branches in Kolhapur. Now days various private companies entered into insurance
sector. Hence, there is a tough competition. Then what is the role of ICICI Prudential
Life Insurance Company Ltd. In present status of market we make critical

RESEARCH DESIGN:

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

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

DATA TYPE: In this research the type of data collection is

 Primary data
 Secondary data

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

 Questionnaire

 Disscusions
 Interviews

 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 anddata were collected from them for the research study.
26
 DATA COLLECTION

Methods of data collection:

The tack of data collection begins after a research problem has been defined. While
deciding about the method of data collection to be used for the study, the researcher keep
in mind two types of data namely primary and secondary. The primary data are those
which are collected a fresh and for the first time and thus happen to be original in
character. The secondary data on the other hand, are those which have already been
collected by someone else and which have already been passed through the statistical
process. The researcher would have to decide which sort of data he would be using (thus
collecting) for his study and accordingly he will have to select one or the other method of
data collection. The methods of collecting primary and secondary data differ since
primary data are to be originally collected while in case of secondary data the nature of
data collection work is merely that of compilation.

DIFFERENT METHODS OF COLLECTING DATA

There are two types of data collection
1. Primary data
2. Secondary data

1) Primary Data:

Primary data can be collected either through experiment are throughsurvey. If

the researcher conducts an experiment he observes some quantitative
measurements or the data with the help of which he examines the truth
contained in his hypothesis.

The primary data will be collected by the following sources:

a) Questionnaires.
b) Interviews
c) Discussions

27
2) Secondary Data:

Secondary data means data that are already available i.e. they refer to the data
which have already been collected and analyzed by someone else. When the
researcher utilizes secondary data then he has to look into various sources from
where he can obtain them. Researcher mustbe very careful in using secondary
data. He must make a minute scrutiny because it is just possible that the
secondary data may be unsuitable or may be inadequate in the context of the
problem which the researcher wants to study. Secondary data will be collected
from published sources like official publication, reports of committees, Research
institutes, news papers, magazines.

28
1.2 SCOPE:

1. It is useful for the management.

2. gives information to the investors about the earning capacity of theBusiness.

3. With the help of Ratio Analysis comparison of profitability and financial Soundness
can be made.

4. Current year’s ratios are compared with those of previous years and if some Weak
spots are located remedial measures are taken to correct them.

5. It gives information to the financial institution for providing the finance to the
company.

29
LIMITATIONS:

1. Study is largely based on secondary published information.

2. Insufficient time available for the study and submission of the report.

3. It depends on past information.

4. Only the last 5 years data is considered for the study

5. Only limited sample size had been considered for the and therefore, Theconclusions
drawn based on this may not be a reflection of the entire

30
 ANALYSIS OF DATA AND HYPOTHESIS TESTING

1. Age of the respondents

PARTICTULARS PERCENTAGE
NO.OF. RESPONDENT
Less than 25 11 11%
25 - 35 40 40%
35 - 45 20 20%
Above 45 29 29%
TOTAL 100 100

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 Age of the Respondents

ANALYSIS:

From the survey it was found that amongst 100

respondents

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

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

2. Qualification of the respondents.

PARTICUALR PERCENTAGE
NO.OF.RESPONDENT
Graduate 52 52%
Post Graduate 29 29%
Diploma 8 8%
Other discipline 11 11%
TOTAL 100 100%

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 ANALYSIS:

From the survey it was found that amongst 100

respondents

a) 52% of the respondents were graduate

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

Respondents who are under different plans of ICICI Prudential life Insurance co.

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PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Invest gain plan 41 41%

Unit gain plan 36 36%
Child gain plan 8 8%
Whole life plan 15 15%
Pension plan No No
TOTAL 100 100%

INSURANCE PLANS OF ICICI PRUDENTIAL

15%

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

ANALYSIS:

From the survey it was found that amongst 100 respondents

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

b) 36% of the respondents are under unit gain plan
c) 8% of the respondents are child gain plan
d) 15% of the respondents are whole life plan
e) No body under pension plan

Respondents benefits of choosing the particular products .

34
 PARTICULARS NO.OF.RESPONDENT PERCENTAGE
Risk coverage 60 60%
Additional benefit 20 20%
Maturity date 12 12%
Sum Assured 8 8%
TOTAL 100 100%

Benefits of Particular Products

100
90
80
70 Risk coverage
60 Additional benefit
50 Maturity date
40
Sum Assured
30
20 TOTAL
10
0
1 2

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

Respondents who wants to invest in these different avenues

35
PARTICUALRS NO.OF.RESPONDENT PERCENTAGE
Recurring Deposit 40 40%
Equity Fund 25 25%
Balanced Fund 10 10%
Mutual Fund 11 11%
Debt Fund 5 5%
Cash Fund 9 9%
TOTAL 100 100%

INVESTMENT AVENUES

5% 9%

11% 40% R.D

Equity
Balanced
fundMutual
Fund
10% Debt Fund
Cash Fund
25%

ANALYSIS:

From the survey it was found amongst 100 respondents

a) 40% of respondents say that they want to invest in R.D

b) 25% of respondents say that they want to invest in equity
c) 10% of respondents say that they want to invest in balancedfund
d) 11% of respondents say that they want to invest in mutualfund
e) 5% of respondents say that they want to invest in debt market
f) 9% of respondents say that they want to invest in cash

36
 FINDINGS
On an analysis and evaluation of the data collected from the respondents thefollowing
findings were found.

 Total 100 respondents have been approached out of which 75 are the potentialrespondents
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 interested to give their personal records.
 About 12.67% of respondents have already been covered by other insurancecompanies.
 About 10% of respondents have given invalid records.
 About 10% of respondents are newly employed or trainees.
 About 10% of respondents interested in investment plan after knowing ICICI
PRUDENTIAL LIFE INSURANCE products.

37
 CONCLUSION

It can be concluded that most of the respondents have selected the ICICI Prudential Life Insurance
for security and better customer service. It is also clear that the personal factors like Gender, Age,
Occupation, Size of the family,and Annual income influence the level of satisfaction and have most
of the respondents have to selected the ICICI prudential. From the percentage analysisit is clear that
the respondent’s occupation, Annual income and gender are the most influencing factors in the
selection of policies from ICICI prudential. Age, qualification and No. of children of the respondent
are the factors which have least influence in availing policies. From the survey it is found that th e
respondents are satisfied about the customer services of ICICI prudential. They expect that if services
are further improved, certainly the company would achieve new heights. Satisfied customer would
recommend others to avail ICICI prudential policies. Besides, they also expect that new products and
innovative schemes to be launched in order to retain its existing customers and also to attract new
customers

38
 SUGGESTIONS

1) Based on findings, the researcher gives the following suggestion to improve

the performance of ICICI Prudential.

2) In case of ICICI Prudential, to get more perception of the respondents,ICICI it has

to launch attractive policies.

3) It has to offer value addition for the proposed policies.

4) The company must make wide publish through various media about its produces
about its products and schemes.

5) The promotional efforts should be made with the help of the Agent. Sothat it can
be easily reach the prospective buyers of Insurance.

6) Premium advice should be send periodically and the mode of premium payment
should be convenient from the insured point of view.

7) The Forms and the Policy Documents should be printed in vernacularlanguage.

39
 BIBLIOGRAPHY

REFERENCE BOOKS:

 PRASANNA CHANDRA: FINANCIAL MANAGEMENT, (TMH), 6/E,2004

 M.Y. KHAN & P.K. JAIN: FINANCIAL MANAGEMENT,

WEBSITES:

http://www.iciciprulife.com/public/default.htm
http://www.iciciprulife.com/public/Life-plans/Plan-Life-need.htm
http://www.iciciprulife.com/public/Life-plans/Plan-Life-need.htm
http://www.iciciprulife.com/public/Others/Download-Center.htm
http://www.iciciprulife.com/public/About-us/Prudential-Edge.htm
http://www.iciciprulifer-Relations/IR-Main-page.htm

40
 ANNEXURE

1. Age of the respondents ?

a. Less than 25

b. 25 - 35

c. 35 – 45

d. Above 45

2. Qualification of the respondents ?

a. Graduate

b. Post Graduate

c. Other Discipline

d. Diploma

41