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Content Page No

1 Executive Summary

2 Introduction

1. Research Methodology

2. Limitations

3. Objective of study

3 Company Profile

4 Theoretical Background

5 Data analysis

6 Findings and interpretations

1. Findings

2. Interpretation

7 Suggestion

8 Conclusion

9 Annexure

10 Bibliography

INTRODUCTIONIndia is the largest democracy in the world having a population more than one billion. It is 5th largest

in the world in terms of purchasing power parity (PPP). India GDP growth rate is over 6 percent per

year on average for the last decade and saving rate is around 26 percent of GDP

Life Insurance Corporation of India was formed in September 1956 by passing LlC Act, 1956 in Indian

parliament The first general insurance company, Triton Insurance Company Ltd. was established in

Calcutta in 1850. In 1957 the General Insurance Council a wing of Insurance Association of India

formed a code of conduct. In 1961 an insurance act was passed to form General Insurance Company

Ltd. which was amended in 1968. General Insurance business was nationalized with effect from

1.1.73 by the General Insurance Business Act. From 1973, The General Insurance Company (GIC) as a

holding company divided in four subsidiaries as: National Insurance Company Ltd., The New India

Assurance Company Ltd., The Oriental Insurance Company Ltd. and The United Assurance Company

Ltd.

WHAT IS LIFE INSURANCE?

All assets have economic value. The asset would have been created through the efforts of the

owner, in the expectation that, either through the income generated there from or some other

output, some of his needs would be met. In the case of a motor car, it provides comfort &

convenience in transportation. There is no direct income. There is a normally expected life time for

the assets during which time it is expected life time for the assets during which time it is expected to

perform. The owner, aware of this, can so manage his affairs that by the end of that life time, a

substitute is made available to ensure that the value or income is not lost.

How ever if the asset gets lost earlier, being destroyed or made non-functional, through an accident

or other unfortunate event, the owner & those deriving benefits there from suffer.

Hence Insurance is a tool which helps to reduce effects of such adverse events.

HISTORY OF LIFE INSURANCE

The origin and practice of insurance is as ancient as human civilization.

From Cave age till date, the story of evolution of mankind is in fact a saga of continuous search for

security. His problems have been the same, though the form has changed with the social &

economic circumstances.

When man used to live in the caves, he used to search for security against animals because they

could kill him while he was asleep. He was not at all sure if he could hunt every day & get his food.

Because of the above insecurity he used to live in groups so that the other members of the tribe

could come to help in time of crisis. Later on, insurance was practiced in a different form. Small

contribution of food grains were collected from farmers, hoarded in the local temple premises to be

released when there was a famine or others calamities. Today, insurance works on the same

principle. But, with growing financial implication the process started demanding money rather than

community contribution. The modern concept of insurance came to India with the arrival of

Europeans. The first life insurance company was established in India in 1818 as oriental life insurance

company by Europeans for the welfare of widows of Europeans.

It was strange that many of the companies floated were looking after European interest and even

charged extra premium on Indian lives. Bombay mutual life assurance society limited established in

1870 was the first to stop this discrimination. This was the year in which the first insurance act was

past by the British parliament. The insurance business flourished thereafter.

By the year 1955 there were 245 insurance companies and provident societies, out of which 16 were

non Indian companies. A comprehensive legislation “the insurance act 1938” was passed with a view

to consolidate and amend the laws relating to the business of insurance. It came into force with

effect from july 1st 1939. the act was amended in 1950.

The broader objectives of socialism prompted the govt. to nationalize the insurance business, in the

year 1956. the general insurance business was nationalized in 1972, through GIC Act 1972. the life

insurance corporation of India came into existence on 1st September 1956.

NEED OF LIFE INSURANCE

What if customer already has life insurance?

As an individual, for the extent of financial protection you need is different from that as a married

man which in turn is different from that as a parent. At each life stage, it is necessary to re-evaluate

the amount of protection and provision you require and adjust for the same.

Below are some of the events in your life for which you should re-evaluate and plan your life

insurance needs.

Life Stages

1. Marriage

2. Birth of a child

3. Schooling of a child

4. Education of a child

5. Marriage of a child

6. Retirement

How much insurance do customers need?

The main purpose of life insurance is to provide a financial cushion to your loved ones in the event

that something unfortunate should happen to you. One must provide enough, so as to generate a

future income stream that will take care of the financial needs of their dependents.

How much insurance you need depends on your annual income, your expenses and your existing

assets. Use our Insurance Calculator to get a rough estimate of how much you should insure yourself

for.

Concept of Human Life Value

Generally speaking one can estimate the extent of life insurance by calculating one’s “Human Life

Value” (HLV). This is the net present value of ones future earnings. Put simply, it is the amount that a

persons family would permanently lose, should anything unfortunate happen to that person. As a

thumb rule, a 30 year old should insure oneself for about 8 times his or her annual income. At 35,

this is about 6 times. Of course, the exact amount must be adjusted according to the number of

dependents, existing investments and one’s lifestage. For instance, if at 30, a person has two

children and parents to provide for, the amount of insurance should also be higher.

You can calculate your Human Life Value by multiplying your current annual income with the

number of years remaining for your retirement.

Let’s assume that you are 30 years old and you earn 4,00,000 per annum. Now, if your retirement

age is 55 you have 25 years to go before retirement. So your Human Life Value is (25 x 4,00,000) =

Rs. 100,00,000 (one crore rupees).

So, your present Human Life Value is one crore rupees, provided you stay healthy.

If you take factors like inflation and increase in income over a period of time into account, your

Human Life Value is a lot more.

BENEFITS OF INSURANCE

Insurance is the instrument of security, saving and peace of mind. It provides several benefits by

paying a small amount of premium to an insurance company as:

It is gratifying to see insurance market players and practitioners coming together on an occasion like

this to reinforce a common vision to create a progressive and dynamic insurance industry where

each one of us have an important role to play.

After nearly decades of intense debate consensuses developed in India for ending the public sector

monopoly in insurance and open the industry to private sector participants subject to suitable

regulation. Today, to the credit of combined efforts by both the regulators and industry players, the

benefits of insurance are widely acknowledged, public confidence in the industry has been very

much restored and the industry on the whole is far more dynamic.

In the last two years alone, we have witnessed some fundamental changes in the landscape of the

Indian insurance industry. The insurance industry has been opened up, with a restriction of 26% on

foreign ownership to Indian insurers. The total FDI in India in the insurance sector today stands at Rs.

812.50 crores. The total premium income of the Indian insurance industry , both life and non life for

the year ending 31st march 2003 stands at Rs. 71376.11 crores. Out of this the share of life insurance

presmium is 78% i.e Rs. 55738.11 crores and general insurance premium is 22% i.e Rs. 15638 crores.

This is contrast to the premium levels of Rs. 34898 crores in life insurance and Rs.10087.03 crores in

general insurance as on 31st march, 2001. the growth rate of life insurancehas been slightly over 26%

and the general insurance 23% and the combined growth rate stands at 25% over the last two years.

The paid up equity of the insurance industry is Rs. 3916 crores today.

About UsICICI Prudential Life Insurance Company (ICICI Prudential Life) is a joint venture between ICICI Bank Ltd., India's largest private sector bank, and Prudentialplc, a leading international financial services group headquartered in the United Kingdom. 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 plc 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 goal

Vision & Values

Our vision:

To be the dominant Life, Health and Pensions player built on trust by world-class people and service.

This we hope to achieve by:

Understanding the needs of customers and offering them superior products and service; Leveraging technology to service customers quickly, efficiently and conveniently; Developing and implementing superior risk management and investment strategies to offer

sustainable and stable returns to our policyholders; Providing an enabling environment to foster growth and learning for our employees; And above all, building transparency in all our dealings.

Our values:

The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundary-less, Humility and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work. Every member of the ICICI Prudential team is committed to the 5 core values and these values shine forth in all we do.

Boundary less – I will treat organization agenda as paramount

Integrity – What I do when nobody is watching me

Humility – Openness to learn a change

Customer First – Service excellence towards Internal and External Customers

Passion – Demonstrates infectious energy and enthusiasm

We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth

Promoters

ICICI Bank

ICICI Bank Limited (NYSE:IBN) is India's leading private sector bank, with consolidated total assets of Rs 8260.79 bn. as at March 31, 2015. ICICI Bank's subsidiaries include India's leading private sector insurance companies, the largest online retail brokerage and among its largest mutual funds and private equity firms. ICICI Bank's presence currently spans 17 countries, including India.

ABOUT THE PROMOTERS

ICICI Bank is India's second-largest bank with total assets of about Rs.112, 024 crore and a network

of about 450 branches and offices and about 1750 ATMs. It offers a wide range of banking products

and financial services to corporate and retail customers through a variety of delivery channels and

through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life

insurance, venture capital, asset management and information technology. ICICI Bank posted a net

profit ofRs.l, 637 crores for the year ended March 31, 2004. ICICI Bank's equity shares are listed in

India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and

the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed

on the New York Stock Exchange (NYSE).

Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the

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

customers, policyholder and unit holders worldwide. As of June 30, 2004, the company had

over US$300 billion in funds under management.

Prudential has brought to market an integrated range of financial services products that now

includes life assurance, pensions, mutual funds, banking, investment management and general

insurance. In Asia, Prudential is the leading European life insurance company with a vast

network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India,

Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

About Prudential Plc

Prudential plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for more than 166 years and has ￡496 billion in assets under management (as at 31 December 2014). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

Key PersonsMr. Sandeep BakhshiManaging Director & Chief Executive Officer

Mr. Puneet NandaExecutive Director (Chief Marketing Officer)

Mr. Sandeep BatraExecutive Director

Mr. SatyanJambunathanChief Actuary (Appointed Actuary)

Mr. Manish KumarChief Investment Officer

Mr. Deepak KingerExecutive Vice President (Chief Compliance Officer)

Mr. BinayAgarwalaChief Financial Officer

Mr. Pratyay BhattacharyaVice President (Chief Risk Officer - Enterprise Risk)

Mr. Amish BankerSenior Vice President (Chief Risk Officer - Operational Risk)

Mr. Navin SharmaSenior Vice President (Chief Internal Audit)

Corporate Social Responsibility (CSR)The Company's objective is to pro-actively support meaningful socio-economic development in India and enable a larger number of people to participate in and benefit from India's economic progress. This is based on the belief that growth and development are effective only when they result in wider access to opportunities and benefit a broader section of society.

The Corporate Social Responsibility Policy (CSR Policy) of ICICI Prudential Life sets out the framework guiding the Company's CSR activities. The Policy also sets out the rules that need to be adhered to while taking up and implementing CSR activities.

Click here to view ICICI Prudential Life's CSR Policy

PRIVATE SECTOR INSURANCE MARKET

SHARES

In today’s Private insurance sector ICIC Prudential holds the highest i.e.

huge30%share in the private insurance market, as compared to all other which together

comprise of the rest 70% of the market share. In the financial year ended march 31, 2005, the

company garnered rs.1584 crore of new business premium for a total sum assured of Rs.

13780 crore and wrote nearly 615000 policies. The company has a network of about 56000

advisors: as well as 7 banc assurance and 150 corporate agent tie-ups for the past four years,

ICICI Prudential has retained its position as the no.1 private life insurer in the country with a

wide range of flexible products that meet the needs of the Indian customer at every step in

life.

DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private life insurers in

India, having commenced operations in 74 cities and towns in India. These are: Agra,

Ahmedabad, Ajmer, Allahabad, Amritsar, Anand, Aurangabad, Bangalore, Bareilly, Bharuch,

Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun,

Durgapur, Faridabad, Goa, Guntur, Guwhati, Gurgaon, Gwalior, Hyderabad, Hubli, Indore,

Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata,

Kolhapur, Kota, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore, Meerut,

Mehsana, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot,

Ranchi, Rourkela, Saharanpur, Salem, Shimla, Siliguri, Surat, Thane, Thrissur, Trichy,

Trivandrum, Udaipur, Vadodara, Vapi, Vashi, Vijayawada and Vizag.

The company has seven banc assurance tie-ups, having agreements with ICICI Bank, Federal

Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some co-operative banks, as

well as over 150 corporate agents and brokers. It has also tied up with NGOs, MFIs and

corporate for the distribution of rural policies and organizations like Dhan for distribution of

Salaam Zindagi, a policy for the socially and economically underprivileged sections of

society. ICICI Prudential has recruited and trained about 56,000 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.

Awards & Recognition

For the project on Digitization, ICICI Prudential Life Insurance has won the 1st Prize for Innovation at the Import Awards 2014.

ICICI Prudential Life featured as the top Life Insurance Brand in the “BrandZ Top 50 Most Valuable Indian Brands 2014” study conducted by the global research agency Mill ward Brown & WPP. This study recognizes India’s most outstanding brands across categories that have built a good reputation for themselves over the years.

Products:

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its 13 products can be enhanced with up to 4 riders, to create a customized solution for each policyholder.

Savings Solutions:

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

ICICI PruCashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a child's higher education or purchase of an asset.

Protection Solutions:

ICICI PruLifeGuardis a protection plan, which offers life covers at very low cost. It is available in 3 options - level term assurance, level term assurance with return of premium and single premium.

Child Solutions:

ICICI PruSmartKidprovides 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 child's life.

Market-linked Solutions:

ICICI PruLifeLink is a single premium Market Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.

ICICI Pru.LifeTimeoffers customers the flexibility and control to customize the policy to meet the changing needs at different life stages. It offers 3 investment options - Growth Plan, Income Plan and Balanced Plan.

Retirement Solutions:

ICICI PruForeverLife is a retirement product targeted at individuals in their thirties. Market-linked retirement productsICICIPru

LifeTimePensionis a regular premium market-linked pensionplan

ICICI PruLifeLink Pensionis a single premium market-linked pension plan.

Single Premium Solutions:

ICICI PruAssureInvest is a single premium savings product with life cover for terms of 5, 7 or 10 years.

ICICI PruReAssure is a retirement product for senior citizens who are on the verge of retirement or have just retired.

ICICI Prudential also launched ''Salaam Zindagi'',a social sector group insurance policy targeted at the economically underprivileged sections of the society.

Group Insurance Solutions:

ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

ICICI Pru Group Gratuity Plan:

ICICI Pru''s 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 Pru''s 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& disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an

additional amount equal to the sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.

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.Major Surgical Assistance Benefit: provides financial support in the event of medical emergencies, ensuring that benefits are payable to the life assured for medical expenses incurred for surgical procedures. Cover is offered against 43 different surgical procedures.

Insurance Plans

Savings Plans:

Most endowment policies are a good way of saving for the future. A policy can be designed to make your savings grow and have them available to you at the end of a fixed number of years. Or, a policy could provide you with an income every three or four years.

You can browse through these policies to find one that best suits your needs:

•SmartKid -a superior way to guarantee your child’s future no matter what the uncertainty.

•LifeTime - a complete market-linked insurance plan that adapts itself to your changing protection and investment needs, throughout a lifetime.

•Save'n' Protect - a traditional endowment savings plan that offers both high returns and protection.

•CashBak - an endowment savings plan that allows you to get back substantial survival benefits without having to wait till the maturity date.

Depending on your particular needs, Savings Plans could allow you to do one or more of the following:

•Plan For Tangibles: buy that fashionable car, that huge refrigerator, etc.

•Plan For A Cosy Nest: by facilitating the purchase of that home you have always dreamt of.

•Plan For Milestones: ensure a good education for your children, children's wedding, etc.

•Save on Deferred Taxes: because the interest income and maturity benefits of the Policy are tax exempt.

•Lifestyle Planning: maintain your lifestyle - even if your income was to reduce in the future.

•Legacy Creation: buy property; invest in shares, bonds, etc. for your children or grandchildren.

•Attain Greater Heights: ensure that your children's education continues undisrupted.

Protection Plans

We all hope to live a full life till a ripe old age... to ensure our children's sustenance and healthy growth. But what if a sudden disability or illness strikes? Besides the grief and the pain, such an event also completely

disrupts life for all the people who are financially dependent on us. Our life insurance policies offer a comprehensive range of protection benefits:

•Lifeguard - A low cost-high protection plan that offers protection over a specified period.

•Riders - Additional benefits that one can add on to the policy. The rider can be opted for at the time of taking the basic policy. Additional premium is charged for each rider.

•An insurance policy can be tailor made to provide protection to you and your loved ones. If something were to happen to you, it can help:

•Safeguard Your Better Half: ensure life's continuity for your loved one.

•Dear and Near Ones: ensure continuity of lifestyle for your dependents.

•Attain Greater Heights: ensure your children's education continues undisrupted.

Unforeseen circumstances: bear the cost of fighting an illness, disability, etc.

Retirement Plans

Most of you picture yourselves enjoying the fruits of labor after retirement, going on your dream vacation, or helping your children's career take wing. But do you realize that financing all this will most likely depend partly on your personal savings? Because personal savings and investments represent a significant source of retirement income for many people, you can never save too much.

Currently, you are at a stage where you are juggling many roles, as nurturing parents, dutiful caregivers to elders, supportive life partners, while trying to maintain a career. It is too easy to get carried away handling and solving the day-to-day problems to not look into your retirement needs. It may also seem too far away to be of concern. But a look at the issues below will make the need for some strategic planning at this stage amply clear.

Today, thanks to a healthier lifestyle and advances in medicine, the average Indian lives longer. This makes the challenge of accumulating enough money for retirement even more difficult, since it may have to last longer. Also, with the falling interest rate scenario and the rising costs of medical expenses retirement means monetary uncertainty for most of us. More so, because there is also the ever-persistent evil of inflation, which erodes your purchasing power. The graph below illustrates how much Rupees will 10,000/- amount to after some years:

Inflation erodes your purchasing power

5yr 10yr 20yr 30yr0

1000

2000

3000

4000

5000

6000

7000

8000

Inflation rate at 10%

Inflation rate at 5%

Therefore, the message is simple - no matter whether you are 30 or 50, you should start planning early to have a healthy retirement kitty. (See graph below for an illustration)

Start early, Gain more

A B0

200000400000600000800000

100000012000001400000160000018000002000000

Saving

Retirement Kitty

As can be seen the cost of delaying is high. Situation A is when you are saving Rs 10000 annually from the age of 25 to 34 years and Situation B is when you save the same annual amount from the age of 35 to 59 years. As can be seen in the example, even after investing your money for a 2.5 times longer duration, the maturity value in the second case is much lesser (the figures are based on a hypothetical interest rate of 10%). The longer your money is allowed to grow at a compounded rate, the more dramatic will the difference be eventually.

Therefore, the message is simple - Put Time on Your Side and Start Early.

ICICI Prudential Life Insurance believes in the philosophy of providing meaningful and comprehensive insurance solutions to plan your retirement. Our insurance solutions are the most optimal tools to plan your retirement because they give you Safety, Liquidity, Tax benefits, Health cover and Life protection and thus ensure that you are comprehensively covered.

ICICI Prudential offers flexible products for planning your retirement:

ForeverLife - A deferred annuity plan that helps you save for retirement while providing you life insurance protection.

LifeLink Pension-A single premium plan which allows you to park a lump sum amount for a secure future.

LifeTime Pension - A plan which gives you the twin benefit of market-linked annuity and life insurance cover.

ReAssure - A plan that helps you invest your money prudently and safely and offers you the benefit of a regular income while providing you life insurance protection.

Depending on your particular needs, our Retirement Solutions could allow you to do one or more of the following:

Maintaining the Same Living Standard Post-retirement:

Get your retirement monies to earn you the benefit of a regular income while providing life insurance protection. So now you can really enjoy even your post-retirement days.

Provide for a Lifetime of Pension:

Annuities can play a valuable role in retirement saving. A deferred annuity allows you to accumulate money for retirement on a tax-deferred basis. You are also in control of when you want to begin receiving payments. An annuity gives you a fixed income for life.

Protect Your Better Half:

If you are married, it is preferable that your retirement plan includes your spouse. The "Joint Life Last Survivor" annuity option in ICICI ForeverLife pays benefits as long as either one of you is living.

Investment Plans:

Often you may have some investible funds lying idle - a bonus or maybe a windfall. You can either secure your family through insurance or invest it for growth. The need for insurance is crucial but you also want to see your money grow through market investments. But in volatile market conditions how do you secure both?

Relax, because now you can hedge your investments with safer investment vehicles that provide you with a diversified portfolio.

ICICI Prudential Life Insurance presents a package of Investment Solutions, which provide you high returns, while guaranteeing complete peace of mind.

This follows from our understanding that life has many facets and they are manifested through its various needs. Therefore our philosophy is to provide you with comprehensive insurance solutions that cater to your dual needs of earning potentially high returns as well as stay insured for life. Thus we offer you a unique package of Investment Solutions that combine the best of insurance and investment.

ICICI Prudential offers flexible solutions for planning your investment.

LifeLink - an investment plan that gives you the flexibility of choosing your investment options while keeping you insured for life.

AssureInvest - a single premium endowment plan that gives you potentially high returns coupled with insurance protection.

Depending on your particular needs, Investment Plans could allow you to do one or more of the following:

•Plan for Tangibles: buy that fashionable car, that huge refrigerator, etc.

•Earn Market-linked Returns: earn market-related returns while your family remains protected, even in volatile market conditions.

•Save on Deferred Taxes: because the interest income and maturity benefits of the Policy are tax exempt.

•Lifestyle Planning: maintain your lifestyle - even if your income was to reduce in the future.

•Legacy Creation: buy property; invest in shares, bonds, etc. for your children or grandchildren.

SWOT ANALYSIS

Strengths

The biggest strength of this organization is the:

Money power, which makes them ignorant about the gestation period.

Brand image, Business experience, and Innovative products

The agents are very selectively chosen have excellent communication skills.

Service quality, which is the crux of their mission.

Large network branches which is helped to customer for the payment

Weaknesses

High targets for financial advisors and for the sales departments.

Many competitors in the market offer same product by the little difference in the premium and offerings.

Sustainable to risk associated with investments in money market.

Try to catch middle-lower level people also.

Opportunity

Huge market is literally untapped; out of estimated 320 millions insurable markets only 20% of the population is insured.

Health insurance and pension schemes, an estimated market potential of approximately $15 billion.

ICICI Prudential should give the insurance coverage both to the parent and child so that their life could be covered in both cases. The customer doesn’t mind paying some extra premium for that.

Threats

Players like Bajaj and Birla Sun life with low premium for the similar plans.

Entry of many other private companies with equally strong experience and financial strength of foreign partners making the competition difficult and saturating the urban markets.

Current Govt. policies do not encourage gross domestic savings. If the tax liability of the service class rises, the customer will have little money to invest.

LIC has woken up from sleep and is following competitive strategies. Its huge surplus in Life Fund gives a capability to lodge Price war.

SCOPE OF THE STUDY

The study is for the products of ICICI Prudential Life Insurance and Consumer Perception of life insurance product will be limited to the New Delhi and NCR only. The information will be based on the company’s website, literature provided by the company and questionnaire analysis.

METHODOLOGY

Primary Sources:

Data collected from Insurance companies through verbal Questionnaire

Secondary Sources:

•IRDA act, 1999

•Handbook of Insurance agents of different Life Insurance companies

•Internet websites of IRDA and various Life Insurance companies & various websites.

The primary study will be targeted towards the marketers. The study will also include semi-structured interview with marketing managers of various Insurance companies who are successfully selling Life Insurance Policies to Indian Consumers.

The Secondary Sources will help in tracing the historical framework of Insurance companies of post independent India as well as the pre-privatization and post-privatization Insurance environment in India. This secondary study will help in serving the theoretical groundwork for the study.

COMPETITION INFORMATION:

•Bajaj Allianz General Insurance: Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength.

•Birla Sun Life Insurance: The Aditya Birla Group contributes its knowledge of the Indian market while Sun Life Financial contributes global expertise in the areas of protection and wealth management.

•HDFC Standard Life Insurance: HDFC and Standard Life have a long and close relationship built upon shared values and trust. Providing long term financial security to policy holders will be the constant endeavor.

•ING Vysya Life Insurance: ING, the world’s second largest life insurance company together with Vysya Bank, one of India’s leading private sector banks, forms ING Vysya Life Insurance.

•Life Insurance Corporation (LIC): Life Insurance Corporation (LIC) has been one of the pioneering organizations in India who introduced use of Information Technology in their business.

•MetLife India: The Metropolitan Life Insurance Company is the number one insurer in the U.S. It is helping build financial independence for its customers.

•Oriental Insurance: The Oriental Insurance Company Ltd. (OICL) is one of the leading General Insurance companies in India and is a subsidiary of the General Insurance Corporation (GIC) of India.

•Royal SundaramAlliance Insurance: Royal Sundaram marks the coming together of Sundaram Finance; one of India’s most respected and trusted finance companies, and Royal and Sun Alliance, one of the largest insurance groups in the world.

•Tata AIG Insurance:Life insurance & general insurance for individuals & corporates by Tata AIG. This site will guide you on how to capitalize on opportunities and protect against uncertainties.

RECOMMENDATIONS

The insurance companies should now try to identify the gap between current level of customer service and customer expectations. Some of the strategies being recommended are as follows:

Product Differentiation: Offering a product that is distinctly different from other products available in the market.

Innovativeness: Identifying means of a delightful customer experience.

Riders: These are additional offerings along with the main product.

Flexibility: The companies should make their products flexible for the convenience of their customer.

Hassle Free Service: All bureaucracy in customer interactions should be eliminated.

Proper Policy Documentation: Wrong interpretations/ non-awareness of policy document by the customer may have serious implications in the long term and the possibility of the same should be alleviated by the insurance companies.

Data collecting methods

Primary data

o Questionnaire, Interview.

Secondary data

o Directory, Data base from college.

Limitations

People were not interested in listening to issues like life insurance even if they were not

insured of it.

Most of the people are of the thought that private life insurance company will not last for

long and hence; they prefer to invest in Government undertakings.

After carrying out fieldwork, it was identified that many people do not give their correct

contact numbers or reference for feedback.

Professionals like Doctors, Engineers, and Chartered Accountants do not see it as prestigious

profession and perceive it as a marketing job

Lack of proper database affected the search work.

Due to short time period I cannot reach to each segment of customer.

There is no fix payment structure for advisors.

Q.1) do you think insurance is important?

No of respondents Percentage (%) Yes 30 100No 00 00Total 30 100