ICICI prodencial

8/6/2019 ICICI prodencial

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RECRUITMENT OF ADVISORS

IN ICICI PRUDENTIAL LIFE INSURANCE

Submitted to :

DELHI BUSINESS SCHOOL OF MANAGEMENT &

HOSPITALITY


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Submitted by :

Ms. JaishriBBA IVth Sem


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STUDENT DECLARATION

I here by certify that the project report entitled on RECRUITMENT OF ADVISOR IN ICICI

PRUDENTIAL LIFE INSURANCE Submitted in partial fulfilment of the requirement for the

award degree of Bachelor in Business Administration to Delhi Business School of management &

Hospitality is my original work and not submitted or the award of any other degree, diploma,

fellowship, or any other similar title or prizes anywhere else.

Jaishri

ENROLLMENT NO. 280849004


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ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting necessary

information and making of the report. I am grateful to all of them for their time, energy and wisdom.

Getting a project ready requires the work and effort of many people. I would like all those who have

contributed in completing this project. First of all, I would like to send my sincere thanks to

MANISHA SANSANWAL for her helpful hand in the completion of my project.

Ms. Jaishri

BBA(ivth Sem)


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EXECUTIVE

SUMMARY


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Executive Summary

The objective of this project was to assist ICICI Prudential Life Insurance in

expanding their channel by recruiting Tied Agents/ Advisors for the company. For the

company to successfully continue its operations, it needs to undergo change to get

new business and to get new ideas. Moreover insurance is such a growing sector that it

has full potential to have new customers. So it is very essential to have new people in

the system, which can add new customers to the company.

This was achieved through a five-pronged effort. The first objective of the study was

to look for different segments of the people. The second objective of the project was to

analyze the person to find whether he is fit for doing insurance. The third objective of

the project was to finally introduce some people in the system by recruiting them as

advisors of the company.

The research methodology consisted of secondary data, which was collected from

different colleges, Tata Press Yellow Pages etc and personal interview with people

in Delhi.

Objectives of the study


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Main Objective:

Recruitment of Advisors for the company.

Sub Objective:

1. To understand the clientele profile

2. To expand the channel base of Priority Circle

3. To provide an enabling environment to foster growth

and learning for advisors.

RESEARCH METHODOLOGY


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This is an endeavor to locate right kind of people

possessing the right kind of skills to become successful financial consultants. The

study also tries to find out the kind of people and skills that would further enhance

the insurance business. ICICI Prudential insurance business aims at recruiting those

who have entrepreneurial skills and necessary drive to survive and flourish in the

present competitive and ever increasing insurance industry.

The universe of study was limited to Delhi. The universe was divided in different

segments. The process of segmentation was primarily aimed at simplifying the

universe into smaller parts so each segment can be handled according to its unique

features. These segments were as follows:

Students

1. B.Com and MBA pass outs

2. Students perusing CA, MFC.

Enterprising Women

1. Hobby class operators

2. Beauty Saloon owners

3. Fashion boutiques

4. Kitty Party groups

5. Agents of direct Selling.

Property Dealers

Commission Agents

CAs, Advocates and other TaxConsultants.


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VRS Scheme holders/ Retired Members

The research methodology is discussed in detail later. However, the following is

the summary of the same.

STUDENTS

Research methodology: Mail + Call activity

Data Source: colleges and respective institutions.

ENTERPRISING WOMEN

Research Methodology: Telecalling

Data source: Personal contacts + Local Directories

PROPERTY DEALERS

Research Methodology: Telemarketing

Data source:Yellow pages + Local newspaper.

CAs, INCOME TAX CONSULTANTS AND ADVOCATES

Research Methodology: Personal Contact

Data Source: Yellow Pages.

LIMITATIONS OF THE STUDY

1. Area covered was confined to some regions only.


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2. People were reluctant to join this job as it doesnt provide any fixed salary.

3. People perceived this profession as a low status profession.

4. Availability of data to contact people was a problem.

5. Due to the presence of large number of LIC agents, people refused to become

advisors of any company as according to them there exits a huge competition.

6. Insurance business itself doesnt enjoy a good reputation in the society.

7. The candidates like CAs, Advocates and Tax consultants could not arrange a

meeting with ASM in spite of their interest.


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MEANING OF INSURANCE

Insurance or assurance is device for indemnifying or guaranteeing anindividual against loss. Reimbursement is made from a fund to which

many individuals exposed to the same r isk have contr ibuted cer tain

specified amounts, called premiums. Payment for an individual loss,

divided among many, does not fall heavily upon the actual loser. The

essence of the contract of insurance, called a policy, is mutuality.

The entity that is transferring the risk which may be an individual or

association of any type, including a government or government agency

is cal led the " insured" . The ent ity accepting the r isk i s cal led the

"insurer". The agreement between the two by which the risk is transferred

is called the "policy": this is a legal contract that sets out exactly the

terms and conditions of the coverage. The fee paid by the insured to the

insurer for assuming the risk is called the "premium". This is usually

determined by the insurer to fund est imated future c la ims paid,

administrative costs, and profit.

For example, let us assume that a couple buys a home costing $100,000.

Knowing that the loss of their home would bring them financial ruin, they

acquire insurance coverage in the form of a homeowner 's policy. Thatpolicy will pay them the cost of replacing or repairing their home in the

event of a catastrophe. The insurance company charges them a premium

of $1,000 a year. Risk of loss has been transferred from the homeowners

to the insurance company.
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The major operations of an insurance company are underwriting, the

determination of which risks the insurer can take on; and rate making, the

decisions regarding necessary prices for such risks. The underwriter is

responsible for guarding against adverse selection, wherein there is

excessive coverage of high risk candidates in proportion to the coverage

of low risk candidates. In preventing adverse selection, the underwriter

must consider physical, psychological, and moral hazards in relation to

applicants. Physical hazards include those dangers which surround the

individual or property, jeopardizing the well-being of the insured. The

amount of the premium is determined by the operat ion of the law of

averages as calculated by actuaries. By investing premium payments in a

wide range of revenue-producing projects, insurance companies have

become major suppliers of capital , and they rank among the nation's

largest institutional investors.


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Insurance in brief:

Insurance is a method of spreading & transfer of risk.

Losses of unfortunate few are shared by and spread over to many exposed to

same risk.

Assets created by the owner in expectation of future needs or benefits have

value.

Loss of assets for any reasons deprives the owner of the expected benefits.

Insurance in this context is a mechanism that helps to reduce the adverse

consequences due to loss of assets.


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THE INSURANCE INDUSTRY

The insurance industry forms an integral part of the global

financial market, with insurance companies being significant

institutional investors. In recent decades, the insurance

sector, like other financial services, has grown in economic

importance. This is through direct contributions to gross

domestic product (GDP) via increased levels of employment

within the sector; and indirectly through higher levels of risk

transfer and financial intermediation.

Expanding further on this issue, it must be remembered that

the insurance industrys primary funct ion is to supply

individuals and businesses with coverage against specified

contingencies.

Insurance companies, therefore, engage in underwriting,

managing, and financing risks. According to Sigma (2001)

the largest insurance sectors are to be found in the U.S. and

Japan, which together generates more than fifty percent of

g lobal premium income; fol lowed by the UK, Germany,France and Italy. Furthermore, during the last four decades

the global insurance sector has on average outpaced global

economic growth. Between 1984 and 2001, the global

insurance industry grew at an overall rate of 483.6 percent


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(roughly comprising of 664.8 percent from

the life insurance sector, and 334.3 percent from the non--

life sector. The life insurance sector, has continued to grow

at a fast rate.

THE GLOBAL INSURANCE INDUSTRY

The insurance industry forms an integral par t of the global f inancial

market, with insurance companies being s igni ficant ins ti tu tional

investors. In recent decades, the insurance sector, like other financial

services, has grown in economic importance. This is through direct

contributions to gross domestic product (GDP) via increased levels of

employment within the sector; and indirectly through higher levels of risk

transfer and financial intermediation.

Expanding further on this issue, it must be remembered that the insurance

industrys primary function is to supply individuals and businesses with

coverage against specified contingencies.

Insurance companies, therefore, engage in underwriting, managing, and financing

risks. According to Sigma (2001) the largest insurance sectors are to be found in the

U.S. and Japan, which together generates more than fifty percent of global premium

income; followed by the UK, Germany, France and Italy. Furthermore, during the last

four decades the global insurance sector has on average outpaced global economic


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growth. Between 1984 and 2001, the global insurance

industry grew at an overall rate of 483.6 percent (roughly comprising of 664.8 percent

from the life insurance sector, and 334.3 percent from the non-life sector. Over the

last few years, growth in the global non-life insurance market has significantly slowed

down and has only grown in line with general economic growth (Sigma, 2001). This

is in contrast to the life insurance sector, which has continued to grow at a fast rate.

Sigma (2002a) estimates

this to be in the region of 5.4 percent worldwide since 2000. Measured in total

premiums, OECD countries accounted for 95.52 percent and 93.99 percent of the life

insurance business, and 91.19 percent and 92.50 percent of non-life insurance

premium volume in 1994 and 2001, respectively.

Outside of the OECD, a more recent development since the early nineties

has been the abili ty of the emerging markets to strengthen their global

market share in the l ife insurance segment , with growth rates often

reaching double-digit figures. Furthermore, insurance markets within the

OECD countries have faced falling premium income, reduced capital

market yields and low interest rates, all of which has put insurers under

some pressure (Sigma, 2002a). Also, the growing importance of the

insurance industry in emerging markets is reflected in growing insurance

density and insurance penetration of the non-OECD insurance markets

(Sigma, 1996, 2001) . Nevertheless, and despi te these developments,emerging markets still have some way to go before matching the relative

sizes and importance that the insurance industry has in industrialized

countries.


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THE DETERMINANTS OF INSURANCE DEMAND

The theoretical and empirical research to date has suggested that, on

average, an overwhelming posit ive relat ionship between f inancial

development and economic growth is evident and that a well-developed

financial sector contributes to economic growth. However, on a single

country-by-country basis, Ward and Zurbruegg (2000) have shown that

d iff erences in the causa l r el at ionship between insurance marke t

development and economic growth are apparent. Research efforts have,

therefore, moved onto understanding the factors that encourage the

development of financial institutions. By identifying the determinants

that encourage insurance demand, policymakers are able to aid financial

development, thereby positively influencing economic growth. These

determinants that have been empirically tested can be grouped under

three broad subheadings; economic, political / legal, and social factors.To further explore exactly how these factors influence insurance demand,

they are each considered in turn below.

Economic factors

First , i t is important to highl ight that the relat ive importance of an

insurance market within a country is l ikely to depend upon economicdevelopment, since with a great er rat e of economic growth the

consumption of insurance products should increase. Indeed, ear ly

f indings highl ighted that the demand for l ife insurance is posi tively

correlated with income, see Yaari (1965), Hakansson (1969), Fortune


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(1973), Fisher (1973), and Lewis (1989). These results are also confirmed

by the more recent cross-country based studies of Beenstock et al.

(1986), Truett and Truett (1990), and Browne and Kim (1993).

When analyzing the impact of national income on non-life insurance

demand, Beenstock. (1988) indicate a positive relationship exists between

national income in industrialized countries and spending on property-

liabili ty insurance. Browne et al . (2000) extend these findings when

analyzing motor vehicle and liability insurance in OECD countries, and

do not only show that a positive and statistically significant relationship

can be found between premium density and income, but also that income

has a more pronounced effect on motor vehicle insurance, than on general

liability insurance consumption. Esho et al. (2003) also test the impact of

national income on property and casualty insurance by analyzing data

from developed and developing nations between 1984 to 1998. Again,

they detect a strong positive relationship between national income andnon-life insurance demand. The World Bank confirms these findings and

states that non-life insurance can be regarded as a normal good implying

that insurance demand r ises as income increases (Lester , September

2002). Despite these findings, insurance penetration in some countries

differs from the international average.


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Role of insurance in economic development

Investments are necessary for Economic development.

Life Insurance plays a major role in mobilization of public savings.

Savings out of life insurance funds are utilized in investments for growth.

Looking for general insurance business industry trade would be seriously

handicap in the absence of insurance cover relating to fire and

engineering risk.

Social factors

Insurance can also be seen as a product that is valued subjectively by its

consumer. In fact Hofstede (1995) points out that the level of insurance

within an economy depends on the national culture and the willingness of

individuals to use insurance as a means of dealing with risk. I t is not

surprising that Douglas and Wildavsky (1982) show that the demand for

life insurance in a country may be affected by the unique culture of the

country to the extent that culture affects the degree of r isk aversion.

Moreover, Schlesinger (1981) reveals that an optimal insurance decision

is directly related to the level of risk aversion of the insured person and

shows, following Pratt (1964) and Szipiro (1985), that the more risk

adverse an individual is the higher the amount insured.This is in line with

the work by Outreville (1996), which emphasizes that education promotes

an understanding of risk and hence aids insurance demand.


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INSURANCE MARKET IN INDIA

The history of l ife insurance in India dates back to 1818 when it was

conceived as a means to provide for English Widows. Interestingly in

those days a higher premium was charged for Indian lives than the non-

Indian lives, as Indian lives were considered more risky for coverage.

The Bombay Mutual Life Insurance Society started its business in 1870.

It was the first company to charge same premium for both Indian and

non-Indian lives. The Oriental Assurance Company was established in

1880. The first general insurance company- Tital Insurance Company

Limited was established in 1850. Til l the end of nineteenth century

insurance bus iness was a lmos t ent ir ely in the hands of overseas

companies.

Insurance regulation formally began in India with the passing of the LifeInsurance Companies Act of 1912 and the provident fund Act of 1912.

Several frauds during 20's and 30's sullied insurance business in India.

By 1938 there were 176 insurance companies. The first comprehensive

legislation was introduced with the Insurance Act of 1938 that provided

strict State Control over insurance business. The insurance business grew

at a faster pace after independence. Indian companies strengthened their

hold on thi s bus iness but desp it e the growth tha t was witnessed ,

insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life

insurers and provident societies under one nationalized monopoly


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corporation and LIC was born. Nationalization was justi fied on the

grounds that it would create much-needed funds for rapid

industrialization. This was in conformity with the Government's chosen

path of State lead planning and development.

The (non-life) insurance business, however, continued to thrive with the

private sector t i ll 1972. Their operations were restricted to organized

trade and industry in large cities. The insurance sector in India has come

a full circle from being an open competitive market to nationalization and

back to a l iberal ized market again. Tracing the developments in the

Indian insurance sector reveals the 360-degree turn witnessed over a

period of almost two centuries.

By any yardstick, India, with about 200 million middle class households,

presents a huge untapped potential for players in the insurance industry.

Saturation of markets in many developed economies has made the Indian

market even more attractive for global insurance majors with the per

capita income in India expected to grow at over 6% for the next 10 years

and with improvement in awareness levels, the demand for insurance is

expected to grow at an attractive rate in India. An independent consulting

company, The Monitor Group has estimated that the life insurance market

wil l grow from Rs.218 bi l l ion in 1998 to Rs.1003 bi l l ion by 2008 (a

compounded annual growth of 16.5%)


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WINDS OF CHANGE

Reforms have marked the entry of many of the global insurance majors

into the Ind ian market in the fo rm of joint ven tures with Indian

companies. Some of the key names are AIG, New York Life, Allianz,

Prudential, Standard Life, Sun Life Canada and Old Mutual.

The entry of new players has rejuvenated the erstwhile monopoly player

LIC, which has responded to the competition in an admirable fashion by

launching new products and improving service standards

The following are the key winds of change brought about by

privatization.

Market Expansion: There has been an overall expansion in the

market. This has been possible due to improved awareness levels

thanks to the large number of advertising campaigns launched by all

the players. The scope for expansion is still unlimited as virtually all

the players are concentrating on large cities and towns - except by LIC

to an extent there was no significant attempt to tap the rural markets

New Product Offer ings: There has been a plethora of new andinnovative products offered by the new players, mainly from the stable

of their international partners. Customers have tremendous choice

from a large variety of products from pure term (risk) insurance to

unit-l inked investment products. Customers are offered unbundled


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products with a variety of benefits as riders from

which they can choose. More customers are buying products and

services based on their true needs and not just traditional money-back

pol icies, which is not considered very appropriate for long-term

protection and savings. However, there are still some key new products

yet to be introduced - e.g. health products.

Customer Service : Not unexpec tedly, thi s was one a rea tha t

witnessed the most significant change with the entry of new players.

There is an attempt to bring in international best practices in service

and operational efficiency through use of latest technologies. Advice

and need based selling is emerging through much better trained sales

force and advisors. There is improvement in response and turnaround

times in specific areas such as delivery of first policy receipt, policy

document, premium notice, f inal matur ity payment , set tlement of

claims etc. However, there is a long way to go and various customer

surveys indicate that the standards are still below customer expectation

levels

Channels of Distribution: Till two years back, the only mode of

distribution of l ife insurance products was through Agents. While

agents continue to be the predominant distribution channel, today a

number of innovat ive a lternative channels are being offered to

consumers. Some of them are bank assurance, brokers, the internet and

direct marketing. Though it is too early to predict, the wide spread of

bank branch network in India could lead to bank assurance emerging

as a significant distribution mechanism.


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Why Do I Need Life Insurance?

You need life insurance in order to ensure that your loved ones can cope financially

with your loss. That's the bottom line.

The reasoning behind life insurance is most evident when you consider sole

breadwinners, but applies to everyone who has dependents, even stay-at-home

spouses. If you (as the stay-at-home spouse) were to suddenly die, your family would

have to find other ways to: ensure care of children; get the family home cleaned;

handle dry cleaning and laundry; do grocery shopping; and many other tasks which

you currently handle. While your services appear to be 'low cost' because no one is

paying you directly, if your family has to replace you with paid help you will quickly

see your 'value'.


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FACTS OF LIFE INSURANCE INDUSTRY

Life insurance premium accounts for 72% of the total premium collection

in India as against the global average of 59%.

About LIC

In 2001 LIC sold close to 20 million new Individual Policies

In year 2000 the turnover of LIC was worth Rs. 261 Billion

LIC has close to 2048 branches, 100 divisions and 7 zonal offices

Market Potential

The size of the Insurance market is 31.2 Crores which makes it one

of the hottest destination for any company

While 5 crores people have a capacity to pay an annual premium of

Rs 10000 per annum, 10 crores people have a capacity to pay Rs

7000 per annum , and another 15 crores people have a capacity to

pay Rs 3500 per annum

No. Of Players

Before nat ionaliza tion of Insurance in 1956, there were 254 l ife

Insurers and 106 general insurers to serve the populat ion of 36crores in India

UK has more than 500 insurance companies to serve a population of

6 crores


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USA has over 2200 insurance companies to

serve a population of 26 Crores

Even Japan has 90 Insurance Companies to serve i ts population of

12 Crores

Emerging Trends

The Non life market was the size of Rs 10000 crores last year with a

potent ial of growing up to at least Rs 45000 Crores provided i t

develops the way it is expected to develop.

As on date the total insured losses ari sing out of unfor tunateincident of Sept 11 in WTC is on date $42-43 Billion

The Industry

The growth ra te o f the insurance sec to r i s about 10% which i s

expected to go up to 12%

Before opening up the growth rate was 14% which means there is a

dip of 4.5% which could be t raced to the prevail ing economic

recession

The per capi ta insurance premium in India is just US $ 8 which is

less then even Malaysia which is US $144

Current trends and strategies

Growth of the pension market today: groups as well as individual.

Emerging health insurance market with third party administrators

(TPAs) trying to make a place for them selves as and when the

regulations are in place


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New types of products Unit l inked single

premium-becoming popular.

Current trends and strategies

New distribution channels are evolving and public will have greater

choice even in the matter of point of purchase.

Distribution and servicing are becoming more technology intensive

and closely regulated.

Insurers are t rying to dist inguish their products but only t ime and

experience will tell.

Emerging trends

People are slowly moving from purely savings oriented products to

products that offer higher degree of life cover.

The realization that insurance is basically about protection. So far

insurance has been widely understood by the market as another tax

saving oriented investment option

There are several products becoming available in the market that

are suited to the life style of the people.

There is a lot of scope for tailor made products depending upon the

need of the customer.

Bank assurance

Insurance products distr ibuted through the bank counters al l over

the country can bring vast improvement in the insurance coverage in

the quickest possible time


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Banks today a re the mos t c redible agenc ies

(However Banks also do have to go for Bankers Blanket

Insurance!!!)

The public has immense faith in them

Regulators keep a t ight vigil over them

Millions of bank staff are highly educated and trained Banks can

accept lower commissions, and the benefit goes on to the consumer

by charging a lower premium rate

Half of insurance policies sold in Europe is through banks

Insurance and IT

Key areas where differentiation is considered critical for the future of the

insurance companies include the following:

Product Development

Back Office Customer Service

Distribution


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LIFE INSURANCE MARKET IN INDIA

Many may not be aware that the life insurance industry of India is as old

as i t is in any other part of the world. The first Indian life insurance

company was the Oriental Life Insurance Company, which was started in

India in 1818 at Kolkata. A number of players (over 250 in life and about

100 in non-l ife) mainly with regional focus f lourished all across the

country.

However, the Government of India, concerned by the unethical standards

adopted by some players against the consumers, nationalized the industry

in two phases in 1956 ( li fe) and in 1972 (non- li fe). The insurance

business of the country was then brought under two public sector

companies, Life Insurance Corporat ion of India (LIC) and General

Insurance Corporation of India (GIC).

In l ine with the economic reforms that were ushered in India in early

ninet ies, the Government set up a Committee on Reforms (popularly

called the Malhotra Committee) in April 1993 to suggest reforms in the

insurance sector. The Committee recommended throwing open the sector

to private players to usher in competition and bring more choice to the

consumer. The objective was to improve the penetration of insurance as a

percentage of GDP, which remains low in India even compared to some

developing countries in Asia.


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Reforms were initiated with the passage of Insurance Regulatory and

Development Authority (IRDA) Bill in 1999.

IRDA was set up as an independent regulatory authority, which has put in

place regulations in line with global norms. So far in the private sector,

12 life insurance companies and 9 general insurance companies have been

registered


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Insurance Regulatory and Development

Authority (IRDA) ACT, 1999

Prior to 1999 the there were only two players in the market

Life insurance corporation of India (LIC)

General Insurance Corporation (GIC)

Then to protect the interests of the policyholders, to regulate, promote

and ensure orderly growth of the insurance industry, IRDA was set up.

After this the private players started entering the market.

This is a corporate body established for the purpose and objects as set out

in explanation to the title.

The authority replaces Controller under insurance act 1938.

It states that if authority is superseded by central govt. the insurance may

be appointed till such t ime as Authority is reconstituted.

Constitution of IRDA

The insurance regulatory and development authority consist of the

following members.

1. Chairperson

2. Less than five whole time members


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3. Less than four part time members.

Member should be person of ability, integrity & standing.

They Should have experience in the field of :

1. Life Insurance

2. General Insurance

3. Actuarial science.

4. Finance

5. Economics

6. Law

7. Accountancy

8. Administration

Chairperson, members, officers and other employees of

authority shall be public servants.

Functions of IRDA :

To issue certificate of registration, renew, withdraw,

suspend or cancel such registration.

To protect the interest of policyholders/insured in the

matter of insurance contract with the insurance company.


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To specify requisite

qualification, code of conduct and training for insurance intermediaries and

agents.

To specify code of conduct for surveyors /loss assessors.

To promote efficiency in the conduct of insurance

business

To promote and regulate professional organizations

connected with the insurance and reinsurance business.

To undertake inspection, conduct enquiries and

investigations including audit of insurers and insurance intermediaries.

To control and regulate the rates terms and conditions tobe offered by the insurer regarding general insurance business not so controlled

by tariff advisory committee under section 604 of Insurance act, 1938.

To regulate investment of funds by the insurance

companies.


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Life Insurance Industry in the year 2000-2001 had 16 new entrants,

namely:

S. No Reg.

Number

Date of Reg. Name of the Company

1 101 23.10.2000 HDFC Standard Life Insurance Company

Ltd.

2 104 15.11.2000 Max New York Life Insurance Co. Ltd.

3 105 24.11.2000 ICICI Prudential Life Insurance

Company Ltd.

4 107 10.01.2001 Kotak Mahindra Old Mutual Life

Insurance Limited

5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.

6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.

7 111 30.03.2001 SBI Life Insurance Company Limited .

8 114 02.08.2001 ING Vysya Life Insurance Company

Private Limited

9 116 03.08.2001 Bajaj All ianz Life Insurance Company

Limited

10 117 06.08.2001 Metlife India Insurance Company.
http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.maxnewyorklife.com/http://www.iciciprulife.com/http://www.iciciprulife.com/http://www.omkotakmahindra.com/http://www.omkotakmahindra.com/http://www.birlasunlife.com/http://www.tata-aig.com/http://www.sbilife.co.in/http://www.ingvysyalife.com/http://www.ingvysyalife.com/http://www.allianzbajaj.co.in/http://www.allianzbajaj.co.in/http://www.metlife.co.in/http://www.hdfcinsurance.com/http://www.hdfcinsurance.com/http://www.maxnewyorklife.com/http://www.iciciprulife.com/http://www.iciciprulife.com/http://www.omkotakmahindra.com/http://www.omkotakmahindra.com/http://www.birlasunlife.com/http://www.tata-aig.com/http://www.sbilife.co.in/http://www.ingvysyalife.com/http://www.ingvysyalife.com/http://www.allianzbajaj.co.in/http://www.allianzbajaj.co.in/http://www.metlife.co.in/


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Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002)

Life Insurance Industry in this year, so far has 3 new entrants;

namely

S.No. Registration

Number


1 121 03.01.2002 AMP Sanmar Life Insurance

Company Limited.

2 122 14.05.2002 Aviva Life Insurance Co. India

Pvt. Ltd.

Yr: 2003-2004: (From 1st Jan 2003 till Date)

Life Insurance Industry in this year, so far has 1 new entrants;

namely

S.No Registration

Number


1 127 06.02.2004 Sahara India Insurance Co. Ltd.
http://www.ampsanmar.com/http://www.ampsanmar.com/http://www.avivaindia.com/http://www.avivaindia.com/http://www.ampsanmar.com/http://www.ampsanmar.com/http://www.avivaindia.com/http://www.avivaindia.com/


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Life Insurance Corporation of India Act, 1956

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

1956.

The life insurance business of 154 Indian Life offices constituted by 16 non-Indian

insurers operation in India and 75 provident societies was taken over by the

Government of India.

LIC of India Act was passed by the parliament on 18th june1956 and it came into

effect from 1st July1956.


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ABOUT ICICI PRUDENTIAL

Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI

and Prudential plc of U.K. In November 2000, ICICI Prudential Life

Insurance was granted Certification of Registration for carrying out life

insurance business by the Insurance Regulatory & Development Authority

of India. The Company issued its first policy on December 12, 2000.

ICICI Prudential Life Insurance Company is a joint venture between

ICICI Bank, a premier financial powerhouse and Prudential plc, a leading

international f inancial services group headquartered in the United

Kingdom. ICICI Prudential was amongst the first private sector insurance

companies to begin operations in December 2000 after receiving approval

from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank

and Prudential plc holding 74% and 26% stake respect ively. In the

financial year ended March 31, 2005, the company garnered Rs 1584

crores of new business premium for a total sum assured of Rs 13,780

crores and wrote nearly 615,000 policies. The company has a network of

about 56,000 advisors; as well as 7-banc assurance and 150 corporate

agent tie-ups. For the past four years, ICICI Prudential has retained its

position as the No. 1 private life insurer in the country, with a wide


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range of flexible products that meet the needs of

the Indian customer at every step in life.

ICICI Prudential Life Insurance's new business has grown 77% in '04-05 to cross Rs

1,000 crores, with annualized new business premium of Rs 1,256 crores. The

company's total received premium, which includes renewal premium, has crossed Rs

2,363 crores for '04-05.

In the year 2004-05, 80% of the premium has been generated from unit-

l inked plans, with nearly 40% of the premium collections going into

equity. Indian policyholders have been increasingly opting for unit-linked

plans, which offer higher exposure to equities, ever since lower interest

rates have forced insurers to cut bonuses on traditional policies.

In contrast, the private life insurance agent force has grown by leaps and

bounds. The need for higher geographical penetration has seen insurance

companies recruit ing aggressively. At last count , they added up to a

massive 1,50,000. ICICI PruLife topped the l ist among the private

players, which had close to 50,000 agents, while Bajaj All ianz had

30,000 agents. At least six of the 11 private life insurance players had an

agent force of 10,000 and plus.

This included Tata AIG, Max New York, HDFC Standard and Birla SunLife. All these insurance companies have allocated large amounts of fresh

capital to build the agent network across major cit ies in the past few

years.


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Our vision:

To make ICICI Prudential the dominant Life and Pensions player built on trust byworld-class people and service.

This we hope to achieve by:

Understanding the needs ofcustomers and offering them superior products and

service

Leveraging technology to service customers quickly, efficiently andconveniently

Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our

employees

And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 core

values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of

the values describe what the company stands for, the qualities of our people and the

way we work. .

We do believe that we are on the threshold of an exciting new opportunity, where we

can play a significant role in redefining and reshaping the sector. Given the quality of

our parentage and the commitment of our team, there are no limits to our growth.


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Promoters

ICICI and Prudential came together in 1993 to form Prudential ICICI

Asset Management Company, which has today emerged as one of the

leading mutual funds in India. The two companies bring together two of

the strongest financial service brands in Asia, known for their

professionalism, excellent quality of service and long term commitment

to YOU. Riding on the success of this relationship, the two companies

joined hands once more in 2000, to form ICICI Prudential Life Insurance,

with a commitment to provide leading-edge life insurance solutions.

ICICI Bank has 74% stake in the company, and Prudential plc has 26%.

ICICI Bank (NYSE:IBN) is Indias second largest bank with an asset

base of Rs. 106812 crores. ICICI Bank provides a broad spectrum of

financial services to individuals and companies. This includes mortgages,

car and personal loans, credit and debit cards, corporate and agricultural

f inance. The Bank services a growing customer base of more than 7

million customer accounts and 5 million bondholders accounts through a

multi-channel access network. This includes about 450 branches and

extension counters, 1675 ATMs, call centres and Internet banking. ICICI

Bank posted a net profit of Rs.1, 206 crores for the year ended March 31,

2003. ICICI Bank is the only Indian company to be rated above the

country rating by the international rating agency Moodys and the only

Indian company to be awarded an investment grade international credit


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r at ing. The Bank enjoys the h ighest AAA (or

equivalent) rating from all leading Indian rating agencies.

Established in 1848, Prudential plc is a leading international financial

services company in the UK, with around US$250 bill ion funds under

management and more than 16 million customers worldwide. Prudential

has brought to market an integrated range of financial services products

that now includes l ife assurance, pensions, mutual funds, banking,

investment management and general insurance. In Asia, Prudential is

Auks largest life insurance company with a vast network of 22 life and

mutual fund operations in twelve countries - China, Hong Kong, India,

Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,

Thailand and Vietnam. Since 1923, Prudential has championed customer-

centric products and services, supported by over 60,000 staff and agents

across the region.

Fact sheet

ICICI Prudential Life Insurance Company is a joint venture between

ICICI Bank, a premier f inancial powerhouse, and Prudential plc, a

leading international financial services group headquartered in the United

Kingdom. ICICI Prudential was amongst the first private sector insurance

companies to begin operations in December 2000 after receiving approval

from Insurance Regulatory Development Authority (IRDA).

ICICI Prudentials equity base stands at Rs. 925 crores with ICICI Bank

and Prudential plc holding 74% and 26% stake respectively. In the period


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April-December 2004, the company garnered Rs

860 crores of new business premium for a total sum assured of over Rs

7,360 crores and wrote nearly 345,000 policies. Today the company is the

No.1 private life insurer in the country.

Distribution

ICICI Prudential has one of the largest distribution networks amongst

private life insurers in India, having commenced operations in 69 cities

and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad,

Amr it sa r, Aurangabad, Banga lo re , Bare il ly , Bha tinda, Bhopa l,

Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun,

Durgapur, Far idabad, Goa, Guntur, Gurgaon, Guwahat i, Gwalior ,

Hyderabad, Hubli , Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur,

Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam,

Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Mysore,

Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi,

Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum,Udaipur, Vadodara, Vapi, Varanasi, Vashi, Vijayawada and Vizag.

The company has seven bank assurance tie-ups, having agreements with

ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord

Krishna Bank and some co-operative banks, as well as over 160 corporate

agents and brokers. It has also tied up with organizations like Dhan for

distribution of Salaam Zindagi, a policy for the socially and economically

underprivileged sections of society.


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Distribution Channels

Till date insurance agents still remain the main source through which the

insurance products are sold. The concept is very well established in the country

like India. But still the increasing use of other sources is imperative. It therefore

makes sense that the well-balanced alternative channel of distribution. At

present the distribution channels that are available in the market are:

Direct selling

Corporate agents

Group Selling

Brokers and corporative Societies

Banc assurance

ABOUT THE PROMOTERS

ICICI Bank is India 's second-largest bank with total assets of about

Rs.112,024 crore and a network of about 450 branches and offices and

about 1750 ATMs. I t 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, l ife and non-life insurance, venture

capital , asset management and information technology. ICICI Bank

posted a net profit of Rs.1, 637 crores for the year ended March 31, 2004.

ICICI Bank's equity shares are l isted 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


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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 bill ion in funds under management. Prudential has brought to

market an integrated range of f inancial services products that now

includes life assurance, pensions, mutual funds, banking, investment

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

European l ife insurance company with a vast network of 24 l ife and

mutual fund operations in twelve countries - China, Hong Kong, India,

Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,

Thailand and Vietnam.


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ORGANISATION STRUC

BiAg


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PRODUCTS AND SERVICES SNAPSHOT

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

20 products can be enhanced with up to 6 riders, to create a customized

solution for each policyholder.

Savings Solutions

SecurePlus is a transparent and feature-packed savings plan that

offers 3 levels of protection.

CashPlus is a transparent, feature-packed savings plan that offers 3

levels of protection as well as liquidity options.

Save n Protect is a traditional endowment savings plan that offers

life protection along with adequate returns.

CashBak is an ant icipated endowment pol icy ideal for meeting

milestone expenses like a childs marriage, expenses for a childs

higher education or purchase of an asset.

LifeTime & LifeTime II offer customers the flexibility and control

to customize the policy to meet the changing needs at different life

stages. Each offers 4 fund options Preserver, Protector, Balancer

and Maximiser.


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LifeLink II is a single premium Market Linked Insurance Plan that

combines life insurance cover with the opportunity to stay invested

in the stock market.

Premier Life i s a l imited p remium-paying p lan tha t o ffer s

customers life insurance cover till the age of 75.

InvestShield Life is a Market Linked plan that provides capi tal

guarantee on the invested premiums and declared bonus interest.

InvestShield Cash is a Market Linked plan that provides capital

guarantee on the invested premiums and declared bonus interest

along with flexible liquidity options.

InvestShield Gold is a Market Linked plan that provides capital

guarantee on the invested premiums and declared bonus interest

along with limited premium payment terms.

Protection Solutions

LifeGuard is a protection plan, which offers life cover at very low cost.

I t is available in 3 options level term assurance, level term assurance

with return of premium and single premium.

Child Plans

SmartKid education plans provide guaranteed educational benefits to a

child along with life insurance cover for the parent who purchases the

policy. The policy is designed to provide money at important milestones

in the childs life. SmartKid plans are also available in unit-linked form

both single premium and regular premium.


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Retirement Solutions

ForeverLife is a retirement product targeted at individuals in their

thirties.

SecurePlus Pension is a flexible pension plan that allows one to

select between 3 levels of cover.

Market-linked retirement products

LifeTime Pension II is a regular premium market-linked pension

plan

LifeLink Pension II is a single premium market-linked pension

plan.

InvestShield Pension is a regular premium pension plan with a

capital guarantee on the investible premium and declared bonuses.

ICICI Prudential also launched Salaam Zindagi, a social sector group

insurance policy targeted at the economically underprivileged sections of

the society.

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies

seeking to enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Prus group gratuity plan helpsemployers 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.


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ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible

defined contribution superannuating scheme to provide a retirement kitty

for each member of the group. Employees have the option of choosing

from various annuity options or opting for a partial commutation of the

annuity at the time of retirement.

ICICI Pru Group Term Plan: ICICI Prus flexible group term solution

helps provide affordable cover to members of a group. The cover could

be uniform or based on designation/rank or a multiple of salary. The

benefit under the pol icy 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

pol icy a t a marginal cost, depending on the speci fic needs of the

customer.

Accident & disability benefit: If death occurs as the result of an

accident during the term of the policy, the beneficiary receives an

additional amount equal to the sum assured under the policy. If the

death occurs whi le t raveling in an authorized mass t ransport

vehicle, the beneficiary will be entitled to twice the sum assured as

additional benefit.

Accident Benefit: This rider option pays the sum assured under the

rider on death due to accident.


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Critical Illness Benefit: protects the insured

against financial loss in the event of 9 specified critical illnesses.

Benefits are payable to the insured for medical expenses prior to

death.

Major Surgical Assistance Benefit: provides financial supports in

the event of medical emergencies, ensuring benefits are payable to

the l if e assured for med ical expenses incur red fo r surgica l

procedures. Cover is offered against 43 surgical procedures.

Income Benefit: This rider pays the 10% of the sum assured to the

nominee every year, t i l l maturity, in the event of the death of the

life assured. It is available on SmarKid, SecurePlus and CashPlus

Waiver of Premium: In case of total and permanent disability due

to an accident, the premiums are waived till maturity. This rider is

available with SecurePlus and CashPlus.

SERVICE STANDARDS

Six sigma

ICICI prudential realized early on that quality could be a significant

differentia with respect to the competition. Hence it launched a six-sigma

ini tiat ive as a quali ty measurement tool to understand and ful fi ll

customer needs, set industry benchmarks and make its operations salable

with a focus on customers and costs.


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Through Six sigma there has been a continuous focus on the customer,

which fits in ideally with a focus on the customer, which fits in ideally

with ICICI Prudentials customer centric approach.

Investment philosophy

Their investment philosophy aims to proactively achieve superior risk-

adjusted returns on our funds under management. The focus i s on

ensuring long-term safety, Stability and profitability of portfolio.

The framework to achieve this objective is based on sound investment

process and controls coupled with a r igorous and sophist icated r isk

management s trategy. There i s c lear ly art iculated asset a llocat ion

strategy depending on risk characteristics of corresponding liability.

Portfolio management is a function o extensive research and is based on

data and reasoning. Debt investments target a judicious mix of credit and

interest rate risk. Investments in equity target long term appreciation and

follow a value oriented investment style.

Information technology

At ICICI Prudent ia l, the s trategic use of technology provides the

consumer with value added services. There is a robust system, which is

employed as the backbone of the company. Initiatives have been taken to

provide complete CRM solut ions so that the consumer can access

complete information on the policies online, from accessing payment

details to sending in the premium. Channel partners can manage their


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

premium calculators.

The following companies have the following market share of the insurance

industry.

NAME OF THE PLAYER MARKET SHARE (%)

LIC 82.3

ICICI PRUDENTIAL 5.63

BIRLA SUNLIFE 2.56

BAJAJ ALLIANZ 2.03

SBI LIFE 1.80

HDFC STANDARDLIFE 1.36

TATA AIG 1.29

MAX NEW YORK 0.90

AVIVA 0.79

OM KOTAK MAHINDRA 0.51

ING VYASA 0.37

AMP SANMAR 0.26

METLIFE 0.21


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0

10

20

30

40

50

60

70

80

90

MARKET SHARE(%)

LIC

ICICI

PRUDENTIAL

BIRLA

SUNLIFE

BAJAJ

ALLIANZ

SBI LIFE

HDFCSTANDARDLIF

E

TATA AIG

MAX NEW

YORK

The market share was distributed among the private players. Though LIC still holds82.3% of the insurance sector, the upcoming natures of these private players areenough to give more competition to LIC in the near future. LICs market share hasdecreasedfrom 95%(2002-2003) to 81%(2004-05).


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ICICI PRUDENTIAL PRIORITY

CIRCLE

THE PRIORITY CIRCLE

Priority circle is an opportunity to diversify the business and widen the

gamut of services and solut ions offered to the clients. One can now

enhance the business with capital investment and yet earn high returns.

Step into the arena of private l ife insurance, one of the most dynamic

industries today with Priority Circle of ICICI prudential life insurance

company ltd, the leader in todays private life insurance industry.

The vast reach

91 branches spread over 61 locations

A committed team of tied and corporate agents, brokers, banks

and call centre executives

An advisor force of more than 46000 agents.

Tie ups with Indias leading banks l ike ICICI bank, Bank of India,

federal bank and south Indian bank ICICI prudential customers enjoy the

privilege of approaching the company as per their convenience. Its vast

reach across India places the company far ahead of its pears.

The pleasant experience service

The company maintains i ts undisputed leadership by proactively

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


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on ensuring long-term safety, profitability, stability

of the portfolio.

Quality service at ICICI Pru is not an isolated function but a practice.

From people and products to process at every stage of the policy, it is an

experience for the customers so everyones a customer service associate

including you.

THE ADVISORS FORTE

An advisor a t ICICI Prudent ia l i s one of the main s trengths of the

company. Its a partnership that results in unlimited growth opportunity

with the company.

THE ROLE

To identify prospective customers, provide tailor-made solutions to cater

to their individual needs, conduct regular reviews to keep customers on

track and last but not the least, achieve targets.

THE BENEFIT

A premium product portfolio that caters to a wide range of financial

needs, excellent back-end support, attractive returns and benefits, round

the clock customer service and extensive training for that edge over the

competition

THE ADVANTAGE


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No start up capital, no supervisor, flexible working

environment and an unlimited earning potential.


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ICICI PRUDENTIAL PRIORITY CIRCLE CONTROL

STRUCTURE

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

As a whole till Zonal Head the levels are same in all sectors of ICICI but

after that when comes the Ter ri tory Manager , the unique levels of

Priority Circle begins.

HIMALAYAS ANDPENINSULASALES HEAD

ZONAL HEAD

TERRITORYMANAGER

COUNTRYHEAD

MANAGER PRIORITYCLIENTS


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Under the Country Head come 2 regions:

1 . Peninsula

2 . Himalayas

Under those come their respective Sales Head, Zonal Head, Territory

Manager, and Manager Priority Clients.

Management Team:

Country Head (CEO) : Mrs. Shikha Sharma.

Himalayas Sales Head : Mr. Chander Chalani.

Zonal Head : Mr. Vikas Seth.

Territory Manager : Mr. Sumeet Sahni.

Manager Priority Clients : Mr. Anuj Pawra.

The MPCs are not allowed to sell insurance directly, but they have to go

through the advisors under them.

The advisors under the MPCs are the High Network Individuals, which

bring business. They are selected by the MPCs by completing certain

formalities.

The person has to pay Rs. 1500/- for becoming an Advisor. That person is

given 9 days intensive training in which he is also given product details.


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After the training is over the person has to give an

examina tion named as IC 33 t aken by Insurance Regulatory and

Development Authority.

Once the person clears his examination a code is generated in his name.

The person now becomes an Advisor and is ready to bring business.


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NATURE OF JOB AS A TRAINEE

At prior ity circle, the nature of the job included recruitment of the

channel members who were further assigned to solicit insurance. The

database was prepared, which had the names of selected people across

Delhi . They were invited to the off ice for the f ir st meet with the

manager- pr ior i ty cl ients. The MPCs job is to explain the course of

action followed to join the business.

After the first meet if the prospect is satisfied he is given a document

called market 100 to explore his contacts which would help him grow

his business. The prospect fills the document and brings it to the office.

The MPC scrutinizes the document. The next step is to meet the territory

manager who would judge the prospect whether he is capable to do the

job or not. If the territory manager is satisfied, then the person fills other

formalities l ike form, age proof and other documents and is ready to

receive the training.

The lead trainer of the branch conducts the training for about 9 days,

fol lowing which an exam is held. After clear ing the exam the IRDA

license is given, post, which the advisor is ready to sell insurance and do

financial consulting for his clients.


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Characteristics of a good Insurance advisor

These were some of the qualities that we searched in a person who could be an asset to

the company and could give business .It is not necessary to have good academic

background but a good salesman should have the following qualities:

He should be speedy, needy and greedy.

He should be presentable.

He should have good communication skills.

He should be ready to serve with a good smiling face.

At ICICI Priority circle, the aim is to achieve Production Growth through

RECRUITMENT. Part of this growth is accomplished by improving the

productivity of the existing Agency members. However, bringing

suf fi ci en t numbers o f h igh qua li ty new producer s into the sales

organization each year is a must. The main focus t hus remains

recruitment of HNI (High Network Individuals) Clients.

Recruitment is the prospecting, identification and training of advisors so

as to enable him to do business, post licensing.

Broadly recruitment can be identified as a 5-step process:

1. The SEARCH for talent2. To ENGAGE the prospective Advisor3. The EVALUATION of potential Advisor4. The CONFIRMATION of intent5. The LICENSING of Advisors


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SEARCH FOR TALENT

In th is s tage we need to ident i fy the advisors we need to recrui t to

become a successful team. We need to clearly understand the profile weare looking out for. The search must be continuous and systematic just

like prospecting for sales. We must search among several sources on a

regular basis.

The sources were divided into different segments for a more systematic

and focused approach. These were:

Thefirst segmentto be taken under study was that of students with some commerce

background.

The segment is further sub-grouped as follows:

1. Pass out B.Com students

2. Students pursuing C.A

3. Students of M.F.C

4. Pass out students of MBA.

Our main selling point for this segment was that these students have some finance

knowledge. We gave them a career opportunity as they could be promoted as a unit

manager as soon as they meet the required target.

The required information of such students was collected from there respective

institutions. Those students whose response was positive were called in the premises


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of ICICI Prudential for an informal interview where they

were told about the job and the opportunities involved.

Thesecond segmentwas that ofenterprising women.

The segment was further divided into sub groups, which were as follows.

1. Hobby classes operators.

2. Beauty Saloon owners.

3. Fashion boutiques.

4. Kitty party groups.5. Agents of direct selling products like Tupperware, Avon.

Our main Point in approaching them was that these women already had a well-

established network in their respective fields and hence in a position to exploit them

further. If they are aware of the opportunities and are ready to take risk then they just

needed to tap the market that is already there for them.

To locate this segment of prospective financial consultant we used our personal

contacts.

The women who were positive were then told about the companys project of locating

financial consultant.

The third segment ofproperty dealers, commission agents, retired members from

banking industry.


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The method of research was telemarketing.

Under Telemarketing, a telephone call was made to the targeted person wherein the

intention was to make the person aware of the objectives under study. For this purpose

we tried to allure the target customers to become an agent.

However the call must be made keeping this in mind a few things such as:

1. The intended person must have time to listen to us.

2. We must not offend them in any way.

3. We should be considerate enough to respect the value of their time and must not

waste his time in unnecessary Jargons.

4. Care must b taken while introducing main subject , so that we are able to arouse

interest .

5. the person should feel important rather than irate customer.

The last segmentwas ofCAs, Income Tax Consultants and Advocates.

The data source of this segment was through Yellow Pages. We adopted the

method of direct interview after taking appointments on phone.


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Firstly we called up people and explained them about the work profile .If we

found them interested, an appointment was fixed with the MPC. The Manager

clearly explains the business opportunity and studies the prospective candidates

profile. Candidates another round of screening was done by Unit Manager with

his respective ASM (channel development) and they short listed the most

capable candidates. Capability doesnt mean that the person should have some

specific qualifications. Capability meant that the chosen candidates must have at

least interpersonal skills and should be keen enough to learn during training

process. He must also realize the importance of marketing in the field. We

preferred people with finance background as it becomes easier for them to

understand the insurance industry.

The second round of selection was consisted of an informal interview with the

candidate. There were main three purpose of this:

1. To reinforce the purpose of study i.e. selecting the right kind of people.

2. To make the candidates aware of growing opportunities in this line of work

and make them aware about the developments in the insurance industry.

3.To make the candidates understand about nominal investment on their part, as

they already infrastructure and resources and increasing returns.

The selected candidate has to fill an application form along with the fees of

Rs.1500 which includes Rs.450 as license fees which is issued by IRDA and

Government of India ,rest includes the examination fees.


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ENGAGE

Engage is highlighting the positive sides of the business opportunity with

ICICI Prudential.

FISRST MEETING

The first meeting is the face-to-face interaction between the manager and

the prospective Advisor.

The manager should set up an appointment for at least 30-45 minutes.During the meeting the manager should cover:

About the company

The opportunity of Life Insurance Business

The manger must get the advisor to fill the Advisor Profile during this

meeting. I t wil l give the manager a greater in depth of prospective

advisor as a person, not his financials but him as an individual with his

own dreams, goals and aspirations.

Before f inishing, he manger should ensure that the individual has a

complete understanding of the advisors profession. The manger should

collect information about the prospective advisors family, current

earning stream and his inclination towards Life Insurance as a business

opportunity.


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The manger should seek a second appointment with

the prospect if possible, invite him to the branch for the second meeting

and schedule a meeting with the Territory Manager.

TOOLS

Recruitment Presenter

A tool to sell Advisor as a business opportunity to the prospectivecandidates.

Business Opportunity Presentation

At the branch level, the managers may get together an invite a group of

prospective advisors to the office. The Senior Manager on the business

opportunity will then make a formal presentation. It is a very effective tool and

you will be able to convince a greater number of advisors with this activity.

Branch Visit

The branch visit should give him the feel of the Priority Circle Concept and

create interest in Insurance Advisor- as a career with ICICI Prudential.

EVALUATION

Evaluation is assessing the prospective advisors potential, inclination andability to do business. Managers need to ensure that they have the right kind of

profile interested to be a part of their team.


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PREFERRRED QUALITIES

Passion to succeed

Result oriented

Well networked

Communication Skills

Need for Money

Need for Recognition / Achievement

Committed and Hardworking

TOOLS

It is a psychometric Testing Tool used to understand the psychographics

characteristics of your prospective advisors to evaluate if they match with

requirements for getting selected as an ICICI Prudential advisor. It evaluates them

on the following parameter:

Dominance

Influence

Stability

Compliance


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CONFIRMATION

Confirmation is the advisor making a final decision to join us as an advisor.

The procedure requires complete documentation by the prospective advisor.

Document Requirements:

1. ICICI Pru Application form

2. IRDA form v A

3. Age Proof to substantiate age stated on Application form. (accepted list of age

proofs is provided in Annexure 2 )

4. Address Proof to substantiate the communication address provided on the

application form. (Accepted list of address proofs is provided in Annexure 2)

5. Education Proof to fulfill IRDA requirement that the candidate has passed at

least 12th std. Or equivalent. (Accepted list of qualification proofs is provided in

Annexure 2). In case of who are qualified to attend a shorter duration of

training the accepted list of qualifications / institutes is provided in Annexure 6.6. Applicable Examination Form

7. 6 photographs

8. DD for Rs. 1000 favoring- ICICI Prudential Life Insurance Co. Ltd, payable at

Mumbai.

9. License Agreement duly signed by the advisor.

On receiving the completed applications, the manager does a quick scrutiny of thedocuments.


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TRAINING BATCH SIZE ESTIMATION

The minimum batch size for a full time batch is 15 and for a part time batch is

20.

Depending on the number of completed applications received form Monday to

Thursday; the manger will determine the training batch size.

No split cases will be considered while determining the batch size.


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LICENSING / TRAINING PERIOD

Licensing is the final step in recruitment of the advisor.

Training is conducted in the last stage. The prospective should complete 100 hours of

their training.

At ICICI Prudential , we understand the importance of t raining in a

dynamic business environment. The advisors go through both generic and

specific, professional programs that help them remain well informed and

knowledgeable about the companys products in the market. There is a

further focus on soft skills such as communication, managing long-term

relationships and selling skills, which are very relevant in a service-

driven industry like life insurance.

State of the art infrastructure training facilities coupled with an excellent faculty,

guarantee an exceptional learning environment. For advisors who might be occupied

with their daily business/professional routines, ICICI Prudential also offers convenient

training options such as online and self-learning are also provided by the organization.

A 17-day training schedule covers the mandatory IRDA training requirements and

ICICI Prudential product-training module. Revision session ensure that the candidates

thoroughly understand the course contents and are well prepared for the licensing


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examination. Theoretical training is interspersed with practical appointment settings

with potential customers, giving advisors a feel of how their business will work from

the very first day. All through, the Unit Manager and the management provide

continuous support to the advisors in achieving independence towards garnering

business.

After the training they have to undergo online examination conducted by IRDA, after

qualifying the examination they get a certificate from RNIS (Ritu Nanda institute of

insurance)

Types of training

The selected candidates were given a option to select the type of training depending

upon their comfort and convenience. There were two types of training available.

Online Training

In this type of training the person has to complete his IRDA training for 100 hours on

the internet. After that he is required to attend the six days product training manually.

So the person who is busy with his job this training is quite suitable for them.


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Manual training

In this type training he has to complete both the product training and the IRDA

training manually. So he has to attend the continuous training for fifteen days. This

training is suitable for the person who is ready to take out his fifteen days. During the

manual training, the company provides free lunch.


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THE EXAM

Upon completing the training the candidate is eligible to appear either for an online

(internet) exam or a manual (paper based) exam, based on the guidelines issued by

IRDA for that city.

The exam slots should be booked such that the exam is scheduled no later than 4 days

from the date of completion of the training.

After the prospective advisor has taken the exam an his result are obtained and he has

cleared them, the company handovers a WELCOME KIT to the candidates

comprising of:

1. Welcome letter

2. Laminated identity card

3. Copy of the agency agreement

4. IRDA License

5. Bank Account introductory letter

6. 100 visiting cards (from the branch)

7. Commission Booklet

8. Reward and recognition booklet

9. ICICI Prupartner Email ID and Password

10. Pin mailer to access ICICI Prudential websites.


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ANALYSIS AND FINDINGS

The main purpose of the study was to locate the right kind of people possessing the

right mix of interpersonal and marketing skills. The research process helped in

locating such people.

After obtaining the positive response from the various selected segment another round

of screening was done. The research helped in locating the interested people. Now the

company had to select the most capable one. Capability does not mean people having

specific Qualifications, capability means that the chosen candidates must at least

possess interpersonal skills and should be keen enough to learn during the training

process. He/She must also realize the importance of marketing industry.


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The research results were as follows:

Students

Sample size: 75Positive responses: 19

Candidates Selected: 2

In the complete segment, we had a good response. We contacted passed out

students who were unemployed. The screening process was intentionally

designed to be a little difficult, as they have to move into the hierarchy of the

company after meeting the targets. This was the reason behind the selection of

only two candidates.

56

19

2

Negative

responses

Positive

Responses

Candidates

Selected


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Enterprising Women

Sample size: 25

Positive Responses: 10

Candidates selected: Nil

In this segment there was good response in the sense that there were many

positive candidates, though none was selected. The main reason was that in

spite of their interest, they lacked in decision-making skills. It was found that

their husband took all their decisions. The company wanted their consultants tobe decision makers not decision takers. Hence there was no financial consultant

taken from this segment.

15

10

Negative Responses

Positive Responses


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Property Dealers

Sample Size: 35

Positive response: 9

Candidates selected: 2

In spite of contacting so many property dealers only two were converted. The

reason for this was that property dealers are not good at keeping appointments.

It was difficult to personally contact even those who were interested. Hence it

was a time consuming process and many were dropped because they could not

give time to companys representative. Moreover, the nature of work in

property dealing is unpredictable. Some time there are no deals while there may

be times that a big party makes a deal. Therefore only those dealers who

understand the risk were selected.

26

9

2

Negative responses

Positive responses

Candidates selected


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Commission Agents

People Contacted: 7

Positive Response: Nil

This segment was dropped because there were no positive responses. The

reason for this was that all the commission agents were engaged in the selling of

the products of other insurance companies.

Retired Members / VRS holdersPeople contacted: 23

Positive Responses: 5

Candidate Selected: 1

The response from this segment was moderate but only one candidate was

converted. The reason was that such people were neither energetic nor

enthusiastic to work despite of having the knowledge of the industry.

18

5

1

Negative responses

Positive responses

Candidate selected


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CAs, Tax Consultants, Advocates

People Contacted: 5

Positive Response: 2

Candidates Selected: 2

The response from this segment was the best of all. There were a couple of

reasons for that. First of all, all these candidates were contacted on the basis of

references. Secondly, these people are risk takers. They are willing to enter into

new ventures and also have the kind of resources that are useful for insurance.

3

2

2NegativeResponses

PositiveResponses

Candidatesselected


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SWOT ANALYSIS

STRENGTHS:

1. No. 1 Private Player in the insurance industry in India.

2. Life Insurance linked with Investments

3. Tax benefits

4. Security against loans

5. Helps in future planning and provides financial consultancy.

6. Covers risk.

WEAKNESS:

1. Negativity relating insurance and Agents.

2. No fixed Salary.

OPPURTUNITIES:

1. High Network Individuals (HNI)

2. A clear career path

3. All round support through exclusive advertising, own in house consultant, and

world-class training.

4. A comprehensive benefit package.


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THREATS:

1. Dynamic environment

2. Increasing Competition

3. Non-creativity

4. An Unfocused approach

5. Complacency and arrogance


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CONCLUSION

ICICI Prudential is the No.1 private insurance company, so people are more

attracted towards it. The only thing required by the company is to give a stable

career and more benefits. Due to LIC, people have a negative mindset towards

the word Agent as well as the insurance industry in general. But ICICI

prudential through its pinnacle program and other facilities is providing a very

bright career to the youth. There is lack of information about this career;

therefore, the company needs to capitalize on this opportunity by providing the

right kind of information to people and present it in a right light.

The results of the study can be concluded as follows:

The segment of students gave a good response but due to hard screening only

two were converted. The segment of enterprising women was not that responsive and hence was

unsuitable for the job of financial consultant.

The segment of commission agents was again not responsive and no consultant

was obtained.

The segment of retired members did not possess that energy that was required.

So, the conversions were le

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