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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Contents
Chapter-11. Executive summary
2. Company profile
3. Organizational chart
4. Department study
Chapter-21. Literature review
2. Methodology
3. Objectives of the study
4. Measuring tools
Chapter-31. Graphs and analyses
2. Findings
3. Suggestions
4. Conclusion
Chapter-41. Appendix
2. Questionnaire
3. Bibliography
Babasabpatilfreepptmba.com Page 1
A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
CONTENTS
1. Executive summary
2. Company profile
3. Organizational chart
4. Department study
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
EXECUTIVE SUMMARY ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial services
group headquartered in the United Kingdom. ICICI Prudential was amongst the first private
sector insurance companies to begin operations in December2000receiving approval from
Insurance Regulatory Development Authority (IRDA).
The company gives much importance to the induction programs so that the employees
will become more familiar with the company environment, and also pays much attention
towards training programs which helps and supports the advisors at each and every level of
their performance.
The survey was conducted by taking sample of 50 respondents. The area of survey was
conducted in company premises of Hubli branch.
In this project I found out reasons for advisors turnover and suggested few measures to
retain them for betterment of company through training methods. This project emphasizes on,
“Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance
Co Ltd.”
Company Profile
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and prudential plc, a leading international financial services
group headquartered in the United Kingdom. ICICI Prudential was amongst the first private
sector insurance companies to begin operations in December2000receiving approval from
Insurance Regulatory Development Authority (IRDA).
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
VALUES:
Every member of the ICICI Prudential team is committed to 5 core values:
Integrity, Customer first, Boundary less, Ownership, and passion. The values shine fourth in all
we do, and have become the keystones of our success.
VISION AND MISSION
Their vision is to make ICICI Prudent ional Life Incurrence company the dominant new
Insure in the life Insurance industry. This they hope to archive through their commitment to
excellence, focuses on service speed innovation and leveraging our technological expertise
The success of the Organization will be founded on its strong focus on values and clarity of
purpose this includes as follow.
Understanding needs of the customer and offering them superior products
and services.
Building long lasting relationships with their partners.
Providing and enabling environment to foster growth and learning for their
employees
Introduction As finance is the lifeblood for all economic activities, one aspect of financial arena,
which plays a very important role, is the Insurance.
Insurance is the outcome of Man’s search for safety and security, and to find out ways
and means to minimize the hardship, which are beyond his control. Because of the economic
reforms introduced by our government we can see that due to this Globalization and
privatization there is enormous increase in the private sector players queuing in the insurance
sector. This entry of Private players has enhanced the competitiveness and Quality of service
with many innovated products.
Now in India there are totally 28 players including 14 Life and 14 General Insurance
Companies. And Life Insurance is one of the most common forms of insurance.
ICICI Prudential Life Insurance Company is an emerging star in the Private players with
the competition being Global in nature.
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Growth of ICICI Prudential:ICICI Prudential Life has retained its leadership position over the past eight years, in the Indian
private life insurance sector.
Some of the factors that distinguish us from other players in the market are:
Assets held are over Rs. 32,000 crores as on March, 2009
Total capital stands at Rs. 4,780 crores (as of March, 2009) with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively
Posted a growth of 13% (April 1, 2008 to March 31, 2009) for garnering total
received premium (new business + renewal) of Rs 15,356 crores as against Rs
13,563 crores in FY2008
Underwritten over 9 million policies since inception
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
ICICI PRUDENTIAL LIFE INSURANCE PRODUCTS
Insurance Solutions for Individuals:
ICICI Prudential Life Insurance offers a range of innovative, customer-centric products
that meet the needs of customers at every life stage. Its products can be enhanced with up to 5
riders, to create a customized solution for each policyholder.
Savings Solutions
Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of
protection.
Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection
as well as liquidity options.
Save’n’Protect is a traditional endowment savings plan that offers life protection along
with adequate returns.
CashBack 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.
Life Time Gold; offer customers the flexibility and control to customize the policy to
meet the changing needs at different life stages. Each offer 4 fund options? Preserver,
Protector, Balancer and Maximiser.
Life Link II is a single premium Market Linked Insurance Plan which combines life
insurance cover with the opportunity to stay invested in the stock market.
Premier Life is a limited premium paying plan that offers customers life insurance
cover till the age of 75.
Invest Shield Life is a Market Linked plan that provides capital guarantee on the
invested premiums and declared bonus interest.
Invest Shield Cash is a Market Linked plan that provides capital guarantee on the
invested premiums and declared bonus interest along with flexible liquidity options.
Invest Shield 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
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Lifeguard is a protection plan, which offers life cover at very low cost. It is available in
3 options? Level term assurance, level term assurance with return of premium and
single premium.
Home Assure is a mortgage reducing term assurance plan designed specifically to help
customers cover their home loans in a simple and cost-effective manner.
Child Plans
Smart Kid 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 child’s life. Smart Kid plans
are also available in unit-linked form? Both single premium and regular premium.
Retirement Solutions
Forever Life is a retirement product targeted at individuals in their thirties.
Secure plus Pension is a flexible pension plan that allows one to select between 3
levels of cover.
Market-linked retirement products
Lifetime Pension: is a regular premium market-linked pension plan
Life Link Pension II is a single premium market-linked pension plan.
Invest Shield Pension is a regular premium pension plan with a capital guarantee on the
investible premium and declared bonuses.
Golden Years: is a limited premium paying retirement solution that offers tax benefits
up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and payout stages.
ICICI Prudential also launched “Salaam Zindagi”, a social sector group insurance policy
targeted at the economically underprivileged sections of the society.
Health Solution
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Health Assure: Is a regular premium plan which provides long term cover against 6
critical illnesses by providing policyholder with financial assistance, irrespective of the
actual medical expenses.
Health Assure Plus: Is a regular premium plan which provides long term cover against
6 critical illnesses by providing financial assistance, irrespective of actual medical
expenses, as well as an equivalent life insurance cover
Flexible Rider Options
ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
Accident & disability benefit : If death occurs as the result of an accident during the
term of the policy, the beneficiary receives an additional amount equal to the rider sum
assured under the policy. If the death occurs while traveling in an
authorized mass transport vehicle, the beneficiary will be entitled to twice the sum
assured as additional benefit.
Accident Benefit : This rider option pays the sum assured under the rider on death due
to accident.
Critical Illness Benefit : protects the insured against financial loss in the event of 9
specified critical illnesses. Benefits are payable to the insured for medical expenses
prior to death.
Income Benefit : This rider pays the 10% of the sum assured to the nominee every year,
till maturity, in the event of the death of the life assured. It is available on SmarKid,
Secure Plus and Cash Plus
Waiver of Premium: In case of total and permanent disability due to an accident, the
premiums are waived till maturity. This rider is available with Secure Plus and Cash Plus. UNIT LINKED INSURANCE PRODUCTS
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
ULIPs are a category of goal-based financial solutions that combine the safety of insurance
protection with wealth creation opportunities. In ULIPs, a part of the investment goes towards
providing you life cover. The residual portion of the ULIP is invested in a fund which in turn
invests in stocks or bonds; the value of investments alters with the performance of the
underlying fund opted by you.
Simply put, ULIPs are structured in such that the protection element and the savings element
are distinguishable, and hence managed according to your specific needs. In this way, the ULIP
plan offers unprecedented flexibility and transparency. ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset management. ICICI
Bank is a leading player in the retail banking market and has over 13 million retail customer
accounts. The Bank has a network of over 570 branches and extension counters, and 2,000
ATMs.
Awards and Achievements
Innovation Award for launching
Diabetes Care – Prudence Award
2006
People Award for excellence in
training and people development
Prudence Award 2006
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
India's Most Customer Responsive
Insurance Company - Economic
Times Customer Responsiveness
Awards
Most Trusted Private Life Insurer: The Economic Times - A C Nielsen
Survey of Most Trusted Brands – 2004
Prudence Customer Centricity
Award - 2004 & 2005: Prudential
Corporation Asia
Best Life
Insurer 2003:
Outlook
Money
Awards 2003-
04
IMM Award for Excellence: Institute of Marketing & Management
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Organization with Innovative HR Practices: Indira Group of Institutes
Super brand 2003-04
Organization with Innovative HR Practices: Asia-Pacific H R Congress
Awards for HR Excellence
Most Trusted Private Life Insurer: The Economic Times - A C Nielsen
Survey of Most Trusted Brands – 2006
Best New Insurer: Outlook Money Awards 2003
Work flow model of insuranceStages in Policy Issuance
1) Proposal
A Proposal Stage is the First stage before the policy is issued at COPS. At this stage,
the application form is received by COPS, but it is pending for issuance due to further
clarifications required from the customer.
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
2) Login
A proposal which is complete i.e., duly filled with all necessary documents attached to
it & accepted by the Branch ops, is called a Login
3) Reject
An Application gets rejected at the Branch Ops level due to necessary details not filled
in the form or necessary documents not submitted is a Reject. It is then sent back to the
Advisor for completion.
4) Issuance
Issuance means a policy that is issued to the Customer by Central Ops.
5) Decline Status
When a customer refuses to take a policy post login but before Issuance is called a
Decline
6) Cancellation
When the cheque given by the customer bounces, it amounts to cancellation of the
policy.
7) Lapse
A policy for which the Customer fails to pay subsequent premiums is a lapsed
Policy.
8) Free look
Post issuance of the policy, the policyholder has the option to turn down the policy
within 15 days from the date of issuance. This period of 15 days is called Free look
Period.
9) Surrender: When a customer wants to discontinue with the policy.
Insurance: Definition and Meaning
Functional definition:
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
In the words of R.S.Sharma “Insurance is a Co-operative devices to spread the loss caused
by particular risk over a number of persons who were exposed to it and who agree top insure
themselves against the risk”
Contractual Definition:
According to E.W.Patterson, “Insurance is a contract by which one party, for a
consideration called a premium, assures a particular risk of other party ad promises to pay to
him or his nominee a certain or ascertainable sum of money on a specified contingency.
According to the U.S Life Office Management Association Inc (LOMA), Life Insurance is
defined as follows: Life insurance provides a sum of money if the person who is insured dies
whilst the policy is in effect.
Other terms used in relation to insurance and their meaning:
Agent: The authorized representative of the insurer, licensed by the concerned authorities like
IRDA to canvass insurance.
Bonus: The yearly share of policy holders profit declared by the company based on its profits
which gets added to the policy amount and is payable upon its maturity.
Claim: The amount entitled to the policy holder or his nominee/assignee under a policy
contract in the event of the happening of the contingency insured against.
Insurable Interest: Evidence suggesting financial losses due to the occurrence of the event
insured against.
Policy: The evidence of contract between the insurer and the insured. A stamped sealed and
signed document issued by the insurer to the insured in proof of insuring his life.
Premium: The amount mentioned in the policy contract to be paid by the insurer periodically
to the insurer to keep the policy in full force.
There are two kinds of insurance as given below:-
1. Life Insurance:
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Human lives are insured under life insurance. A Life Insurance is a combination of
savings as well as security element. The insured is assured that the insurance company
will pay his family the insured amount in the case of premature death. Is he is alive and
the policy matures for payment, the savings so made will be helpful in his old age. Only
the Life Insurance Corporation of India transacts life insurance business in India.
2. General Insurance:
All insurance other than Life Insurance fall under General Insurance. Only the general
insurance corporation of India transacts General Insurance business in India.
The following are different types of general insurance:
Marine Insurance:-
The marine insurance is the oldest form of insurance and covers all the marine
perils. Due to marine perils, the ship can be damaged or destroyed, cargo can be
lost and consequently there can be lost of freight. Therefore, the marine
insurance covers the risk to ship, cargo, and freight on the high seas.
Fire Insurance:
The fire insurance covers the risk of fire to property because there is
every likelihood of fire spreading in big factories, go-downs, ware housing,
house shops and ships. The fire insurance not only covers the risk of fire, but
also the consequential losses from such fire.
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
The Life Insurance:
Life Insurance is one of the most common forms of insurance. It has acquired top
position all over the world.
“Life insurance is a contract fare by the insured promised to pay a uniform rate premium of
fixed intervals of time against which the insurer agrees to pay a fixed amount on the happening
of the event which may be the death of the insured on the expiry of certain number of years”.
The advantages of Life Insurance
Life insurance is brought not because someone is going to die, but because someone is
going to live.
Life insurance means peace of mind.
Life insurance promises payment of the full sum assured from the moment the first
premium is paid.
Life insurance encourages regular savings and guards against extravagances.
In most cases life insurance possesses a cash value after the first three years.
Life insurance removes the worry of looking after your savings. Experts safely and
profitably invest your money on your behalf by experts.
Life insurance guarantees payment in cash and is backed by the Government of India.
Life insurance is a tax saving product.
Life insurance is free from loss, from theft, fire, misplacement etc.
A life insurance contract is one sided, i.e., always in favour of the insured and his
family. One can withdraw from the contract anytime, but the company’s cannot.
Life insurance replaces uncertainty with certainty. It provide a complete, balanced and perfect
hedge against economic threats, which confront all person, the danger of living too long or the
danger of dying soon.
Insurance Market in India:
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
The term “insurance market” is used to denote the means available for the placing of
insurance and the various organizations that are willing to accept risks. It comprises of the
demand side i.e., the buyers and the supply side i.e. sellers and the intermediaries. The rational
behind the opening up to the sector was to five individual and corporate insurance consumers a
competitive environment that can deliver products and service in tune to their requirements. At
the same time and open insurance market will enable capital formation. Reducing the need for
India to seek external capital to support its infrastructure of development program. The
industry is believed to benefit from any increased private participation especially in terms of
technology from other global players as these players enter into joint ventures with India
counterparts. The partnership between Indian and foreign firms will also enable the market to
grow beyond the currents rates and will offer wider choice for the consumer through the
introduction of new products, service and price option. New players are aggressive in their
marketing campaigns and the challenging LIC, virtually in all aspects.
How Insurance Works
Suppose there are 1000 person all aged 35 years and healthy lives. They are insured for one
year against the risk of death. Each person is insured for Rs. 50,000. if the past experience
indicates the 4 out of 1000 people die during the year, expected amount claimed to be paid to
the family of 4 persons would come to Rs. 2,00,000. The contribution to be paid by the each of
the 1000 will come to Rs.200 per year. Thus, all the 1000 persons share loss caused to the 4
unfortunate families. 996 persons who survived till 1 year have not lost any thing as they have
secured peace of mind and a feeling of security for their family. While insurance cannot
prevent accident or premature death, it can help, protect the family of the deceased against the
loss of income caused by the main breadwinner. In return for specified payments, insurance
will provide protection against the insurance of an uncertain event such as premature death.
The business of insurance company called insurer is to bring together persons who are
exposed to similar risk, collect contribution (premium) from them on sum equitable basis and
pay the losses (claim) to the unfortunate few who suffer.
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
The working of an agency
The important activities in a life insurance company are:-
Procuring proposal from prospective buyers of Life Insurance.
Insurance. The underwriting department would do this.
Issuing a policy document.
Keeping track of the performance of the insurance contract like timely payment of
renewal premium.
Attending to the various requirements that may arise during the duration of the contract.
Actuarial department deciding on the premiums to be charged by the insurer.
Investing the premiums collected and maximizing the investment return (Interest on
Investment).
Why should you take insurance
Insurance is desired to safeguard oneself and ones family against possible losses on account of
risk and perils. It provides financial compensation for the losses suffered due to the happening
of unforeseen events. By taking life insurance a person can have peace of mind and need not
worry about the financial consequences in case of any untimely death.
Along with the growth of overall population in the country, crossing the benchmark of hundred
crore, there gap been a significant awareness for the need for insurance in the other as well as
rural segments and even among the lower middle class and illiterate class of the population.
We in India have around 30 crore middle class educated and enlightened people who have not
realized that insurance is as necessary as the other basic necessities of life such as food, shelter,
clothing.
NEED FOR THE INSURANCE:
Unlike other avenues of savings where the amount saved with interest is payable only on
maturity, insurance plans provide for payment of the total sum assured along with a bonus, if
any, on any eventuality even before the maturity of the policy. And another advantage of
insurance is that an insurer can avail loans against the security of the policy from the insurance
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
company. Even banks and other financial institutions advances loans with insurance policies as
a collateral security.
To provide for one’s family and perhaps; others in the event of death, especially premature
death. Originally, policies were to provide for short period of time, covering temporary risky
situations, such as sea voyages. As lie insurance became more established, it was realized what
a useful tool it was for a number of situation, including:
Temporary needs/threats:-
The original purpose of life insurance remains an important element, namely providing
for replacement of income on death etc.
Regular savings:-
Providing for one’s family and oneself, as a medium o long term exercise (through a
series of regular payment of premiums). This has become more relevant in recent times
as people seek financial independence from their family.
Investment;
It is the insurance that builds up the savings of the society and thus safeguard the
economy from the ravages of inflation. Unlike regular saving products, investment
products are traditionally lump sum investments, where the individual makes one time
payment.
Retirement:
Provisions for one’s own later years become increasingly necessary, especially in a
changing cultural and social environment. One can buy a suitable insurance policy,
which will provide periodical payments in one’s old age.
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Management team:
Mr. V. Vaidyanathan: Managing Director and CEO
Ms. Anita Pai: Executive Vice president – Customer
Service, Technology and Marketing
Dr. Ajeet Chatterjee, Appointed Actuary
Mr. Puneet Nanda: Executive Vice President
Board of Directors:
The ICICI produentional Life Insurance Company Limited Board Comprises reputed
people from the finance industry both from India and abroad.
Mr.Chanda D.Kochhar, Chairperson
Mr. N.S. Kannan, Director
Mr. K.Ramkumar, Director
Mr. Barry Stowe, Director
Mr. Adrisan O’Connor, Director
Mr. Keki Dadiseth, Independent Director
Prof. Marti G. Subranhmanyam, Independent Director
Ms. Rama Bijapurkar, Independent Director
Mr. Vinod Kumar Dhall, Independent Director
Mr. V. Vaidyanathan, Managing
Director and
CEO
Organization structure
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Departmental Study: Sales and Distribution
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Senior Voice President
Vice President
ZM Manager
Regional Manager
Associate Regional Manager
Area Manager/Sales Manager
Sourcing structure
Business Manager
CEO
Senior business Manager
Senior Agency
Manager
Agency Manager
Unit Manager
A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
This section is divided into four parts
Managers Utilities - In this section important announcements for
managers, tools like Pre-recruitment profiling, manager related
initiatives, etc are found.
Advisor Utilities - This section hold advisor related tools like,
Electronic benefit illustrations, Advisor Initiatives, Important
announcements, statutory changes that affect advisors, etc.
Contests - Details of all current contests that are running will be found
under this heading.
Contest Updates and Results - Updates of all contests and results
declared will be available for view in this section
Group - information on our group products, printable pre quote and
application forms, etc will be housed in this section.
Finance
The staff in finance section is responsible for the following:
Planning & MIS – Monitoring of Organization performance - Sales, Quality,
Trends - on a continuous basis. With insights into MIS, socio economic factors
& competitor behavioral patterns, they contribute to sales targets, strategic
initiatives, projected branches, projected work force…the road ahead!!!
Internal Audit – Risk Management, Business Continuity Plan, Best practices,
policy manuals are not mere words on paper…adhere to them. They ensure
‘Practice what you preach’!!!
Compliance – They ensure that every action is within the regulatory
framework!!!
CCU –They ensure that every rupee is spent economically, prudently, cost
effectively!!!
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Distribution Payouts – They roll out commission payouts, referral, bonuses,
contest spends & effectiveness…basically the sales goodies!!!
EPU – Cost discipline, expense processing, vendor payments, reimbursements,
salary payouts…They handle E-TRACK!!!
Investment Operations – They being the custodian of investments, benchmark
their performance with the best in the industry. They manage the cash flow!!!
Accounts – Financial Accounting, Expense provisioning, Income Accruals…
They strive on the excellence & transparency of their systems & controls, to
keep the auditors, customers & shareholders assured that the financial story is
said right!!!
Marketing
The team here is responsible for an array of activities: TV commercials, press
and outdoor hoardings, news articles, product brochures, direct mail or on-
ground activities. Given the breadth of activities that they are involved in, they
receive dozens of queries from their internal customers everyday! Through this
section, they aim to resolve some of the most common requests they receive.
The teams in marketing include:
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Human resourceThe Human Resource Function at ICICI Prudential drives the people strategy of
the business. With its initial focus on operational excellence to deliver benefits
and services to staff members, HR is now committed to building capability
through state of the art processes. A robust performance management system,
compensation system and a segmented training architecture enable it to deliver
value to the organization.
This section is responsible for recruitment, selection and development of human
resource that is necessary for the company.
Customer service and OperationsThe Operations department oils the work processes between the customer and
the company to ensure consistent and quality service to the customer. To
streamline the operations, the Operations department interfaces between the
clients and the agents, the branches and the underwriters, and manages work
processes.
The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity. Units
such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution
Unit are all committed to providing effective solutions to over lakhs of customers across the
country
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
CONTENTS
1. Literature review
2. Methodology
3. Objectives of the study
4. Measuring tools
Literature ReviewIntroduction to Retention
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Retention means ensuring that once the best person has been recruited, they stay with
the business and are not “poached” by rival companies. Employees should therefore be
carefully selected, managed and retained, just like any other resource.
Why Retention?
Key employee retention is critical to the long term health and success of the business.
Managers readily agree that retaining the best employees ensures customer satisfaction,
product sales, satisfied coworkers and reporting staff, effective succession planning and deeply
imbedded organizational knowledge and learning. If managers can cite these facts so well, why
do they behave in ways that so frequently encourage great employees to quit their jobs?
Employee retention matters. Organizational issues such as training time and investment; lost
knowledge; mourning, insecure coworkers and a costly candidate search aside, failing to retain
a key employee is costly.
Employee retention is critically important for a second societal reason, too. Over the next few
years while Baby Boomers (age 40 to 58) retire, the upcoming Generation X population
numbers 44 million people (ages 25-34), compared to 76 million Baby Boomers available for
work. Simply stated: there are a lot fewer people available to work.
Employee retention is one of the primary measures of the health of the organization. If you are
losing critical staff members, you can safely bet that other people in their departments are
looking as well. Exit interviews with departing employees provide valuable information you
can use to retain remaining staff. Heed their results. You’ll never have a more significant
source of data about the health of your organization.
If you are committed to building an organization that will someday achieve what Jim Mullen of
Mullen Advertising calls "corporate greatness," employee retention should be at the top of your
to-do list (right along with hiring the right people in the first place).
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Philosophically, employee retention is important; in almost all cases, it is senseless to allow
good people to leave your organization. When they leave, they take with them intellectual
property, relationships, investments (in both time and money), an occasional employee or two,
and a chunk of your future.
And from a more practical standpoint, retention is important for the following reasons:
Replacing qualified employees can be extremely difficult, exceptionally expensive, and
very often unnecessary.
Training new employees is costly.
Poor retention creates a "revolving door" culture within the organization, lowering
morale and confidence.
Poor retention affects your customers (no matter the type of business you have, your
customers develop important relationships with their contacts within your
organization).
High turnover eats away at your organization's productivity, ability to deliver, and
overall efficiency. This sad reality always manages to impact your customers
negatively in one way or another.
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
The first thing to understand about employee retention is that there is no magic wand, no single
answer as to how to retain your employees. Many factors that you cannot control affect
retention, including but not limited to:
Shifting markets
Demand for specific skills
Business conditions
Demographics
Lifestyle changes
Technology issues
Trends in work/life decisions as employees' needs change
How to Attract and Motivate Efficient Financial Advisors
"Today, we are faced with a greater challenge than ever before. It's not the changing
vehicle technology, insurer relationships, or even equipment and products we use, but it
is the immediate need for quality people to enter our industry so that we have the
human resources to repair vehicles."
Sampling methodology
Sample size: 50 Financial Advisors
Sampling Method : Convenience sampling
Survey conducted on the Advisors of ICICI Prudential.
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SAMPLING TEST:
Sample size (n):50.
Sample element: respondents. (Advisors)
Sample units: students, professionals, house wives businessmen and others.
Sample extent: Hubli company premises.
30% of 50 sample sizes are considered for pilot study.
:. 50*30/100=15(pilot study)
Out of 15 respondents 9 respondents are satisfied with unit managers.
:. 9/15=0.60
:. P (population proportion) =0.60
:. 0.60*100=60%.
Then our null hypothesis Ho and alternative hypothesis H1 becomes
Ho: More than or equal to 60% of the respondents are satisfied with the
Unit managers
H1: Less than 60% of the respondents are not satisfied with the unit managers,
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Calculation of standard deviation
Zcal value can be calculated by using the formula.
Zcal =Po-P/S.D
:. Po (sample proportion)
As per the data collected, out of 50respondents 33 respondents are satisfied with the unit
managers. Therefore our Po value becomes,
Po= 33/50 = 0.66
:. Po = 0.66
:. Zcal = 0.66-0.60/0.069
=0.06/0.069
Zcal= 0.869.
:. Z table value @5% level of significance is (i.e. at 5% (alpha))
:. Ztable = 2.90
:. Zcal = 0.869
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Conclusion: Null Hypotheses Ho is accepted and alternative hypotheses H1 is rejected
Objectives of the study:
To identify the factors which influence the financial advisors to perform better at
their work place through training programs at ICICI PRUDENTIAL LIFE
INSURANCE CO.LTD
To understand the level of job satisfaction of financial advisors at ICICI
PRUDENTIAL LIFE INSURANCE CO.LTD
To know how training benefits to the advisors.
To know the effectiveness of the trainer in conducting training program.
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Measuring Tools:
Questionnaire is considered as a measuring tool for this survey.
Data collection method:
Data was collected from both primary and secondary sources. The study was based on
sampling method, 50 respondents were selected for the study. All the interviews were
conducted in the company premises and through telephonic survey.
Primary data collection
Primary Data was collected through questionnaire and Personal interview and through
telephonic survey. Each interview took about 10 to 15 minutes
Secondary data collection
Secondary data was collected from company manuals, broachers, company guide, company
trainer, and information from Internet.
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
CONTENTS
5. Graphs and analyses
6. Findings
7. Suggestions
8. Conclusion
Results and Discussions with Graphs and Charts
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
1) FrequenciesDo you feel the induction training given to you is important in your organization?
FrequencyPercentValid PercentCumulative Percent
Valid Strongly Agree 9 18.0 18.0 18.0
Agree 22 44.0 44.0 62.0
Disagree 15 30.0 30.0 92.0
Strongly disagree 4 8.0 8.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 9 respondents are strongly agree with the induction program
is important, 22 respondents are agree with induction program is important,15 respondents are
disagree with the induction program and only 4 respondents are strongly disagree with the
induction program is important one which is given to advisors in the organization.
2) Frequencies:What type of training methods are used in your organization?
Frequency Percent Valid Cumulative
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Percent Percent
Valid On the job
training
4 8.0 8.0 8.0
Class room
training
39 78.0 78.0 86.0
others 7 14.0 14.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 4 respondents have attended the on the job training,39
respondents have attended the class room training and 7 respondents have attended the other
types of training programs conducted in the organization.
3) Frequencies
What is your opinion about the training program given in the organization?
Frequency Percent Valid
Percent
Cumulative
Percent
Valid Highly
satisfied
15 30.0 30.0 30.0
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Satisfied 27 54.0 54.0 84.0
Neither
satisfied nor
dissatisfied
4 8.0 8.0 92.0
dissatisfied 4 8.0 8.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 15 respondents are highly satisfied with training program, 27
respondents are satisfied with the training program,4 respondents are neither satisfied nor
dissatisfied with the training program,4 respondents are dissatisfied with the training program
conducted by the organization.
4) Frequencies
Did you find any improvements at your work place after attending training programs
conducted by the organization?
Frequency Percent Valid
Percent
Cumulati
ve
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Percent
Valid Yes 48 96.0 96.0 96.0
No 2 4.0 4.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 48 respondents are found improvements at their work place
after attending training programs, and only 2 respondents are not found any improvements at
their work place after attending training programs in the organization.
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5) FrequenciesWhat kind of improvements you found at your work place?
Frequency Percent Valid
Percent
Cumulative
Percent
Valid increase in confidence level 10 20.0 20.0 20.0
Healthy relationships 7 14.0 14.0 34.0
communication skills 10 20.0 20.0 54.0
efficiency level 11 22.0 22.0 76.0
reduces stress and frustration 12 24.0 24.0 100.0Total 50 100.0 100.0
Analysis: out of 50 respondents 10 respondents have found improvement in confidence level,
7 respondents have found improvements in building healthy relationship among the employees
in the organization, 10 respondents have found improvement in their communication skills, 11
respondents have found improvement in their efficiency level, and 12 respondents have found
improvement in reducing their stress and frustration at their work place
6) Frequencies
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Do you feel training provided in the organization is effective
Frequency Percent Valid
Percent
Cumulative
Percent
Valid yes 44 88.0 88.0 88.0
no 6 12.0 12.0 100.0
Total 50 100.0 100.0
Analysis: out of 50 respondents 44 respondents have said the training program conducted in
the organization is effective and 6 respondents have said the training program conducted in the
organization is not effective one.
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7) FrequenciesAre your suggestions considered in decision making by management in the organization?
Frequenc
y
Percent Valid
Percent
Cumulative
Percent
Valid always
considers
6 12.0 12.0 12.0
some
times
considers
11 22.0 22.0 34.0
never
considers
33 66.0 66.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 33 respondents opinion is, the management never considers
the advisors suggestions in decision making, 11 respondents opinion is, the management some
times considers the advisors suggestions in decision making, and 6 respondents opinion is, the
management always considers the advisors suggestions in decision making,
8) Frequencies
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Are you satisfied with the non monetary benefits provided in the organization?
Frequency Percent Valid
Percent
Cumulative
Percent
Valid highly satisfied 2 4.0 4.0 4.0
Satisfied 4 8.0 8.0 12.0
neither satisfied nor
dissatisfied
23 46.0 46.0 58.0
Dissatisfied 9 18.0 18.0 76.0
highly dissatisfied 12 24.0 24.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 2 respondents are highly satisfied with non monetary benefits
provided in the organization, 4 respondents are satisfied with the non monetary benefits
provided in the organization, 23 respondents are neither satisfied nor dissatisfied with the non
monetary benefits provided in the organization,,9 respondents are dissatisfied with the non
monetary benefits provided in the organization, and 12 respondents are highly dissatisfied with
the non monetary benefits provided in the organization .
9) Frequencies
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Do you feel whether the management recognizes and rewards for your achievements and
performance
Frequency Percent Valid
Percent
Cumulative Percent
Valid Always recognizes 38 76.0 76.0 76.0
some times recognizes 7 14.0 14.0 90.0
never recognizes 5 10.0 10.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 38 respondents opinion is, the management always recognizes
and rewards for their achievements and performance, 7 respondents opinion is, the
management some times recognizes and rewards for their achievements and performance, and
5 respondents opinion is, the management never recognizes and rewards their achievements
and performance,
10) FrequenciesAre you satisfied with the relationships between you and middle level management?
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A Study on Retention of Financial Advisors through training programs at ICICI Prudential Life Insurance Co Ltd.
Frequency Percent Valid
Percent
Cumulative
Percent
Valid highly satisfied 1 2.0 2.0 2.0
Satisfied 4 8.0 8.0 10.0
neither satisfied nor
dissatisfied
14 28.0 28.0 38.0
dissatisfied 18 36.0 36.0 74.0
highly dissatisfied 13 26.0 26.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 1 respondent is highly satisfied with the relationship between
advisors and top level management, 4 respondents are satisfied with the relationship between
advisors and top level management, 14 respondents are neither satisfied nor dissatisfied with
the relationship between advisors and top level management, 18 respondents are dissatisfied
with the relationship between advisors and top level management, and 13 respondents are
highly dissatisfied with the relationship between advisors and top level management
11) FrequenciesAre you satisfied with the commission rate given by the company?
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Frequency Percent Valid
Percent
Cumulative
Percent
Valid highly satisfied 4 8.0 8.0 8.0
satisfied 24 48.0 48.0 56.0
neither satisfied nor
dissatisfied
12 24.0 24.0 80.0
dissatisfied 9 18.0 18.0 98.0
highly dissatisfied 1 2.0 2.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 4 respondents are highly satisfied with the commission rate
given by the company, 24 respondents are satisfied with the commission rate given by the
company 12 respondents are neither satisfied nor dissatisfied with the commission rate given
by the company,9 respondents are dissatisfied with commission rate given by the company and
only 1 respondent is highly dissatisfied with the commission rate given by the company.
12) FrequenciesAre you satisfied with your unit managers?
Frequency Percent Valid Cumulative
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Percent Percent
Valid highly satisfied 3 6.0 6.0 6.0
Satisfied 33 66.0 66.0 72.0
neither
satisfied nor
dissatisfied
13 26.0 26.0 98.0
highly
dissatisfied
1 2.0 2.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 3 respondents are highly satisfied with their unit managers, 33
respondents are satisfied with their unit managers 13 respondents are neither satisfied nor
dissatisfied with their unit managers and only one respondent is highly dissatisfied with their
unit managers.
13) FrequenciesAre you satisfied with the team spirit in your working environment?
Frequency Percent Valid
Percent
Cumulative
Percent
Valid highly 30 60.0 60.0 60.0
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satisfied
satisfied 14 28.0 28.0 88.0
neither
satisfied nor
dissatisfied
6 12.0 12.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents, 30 respondents are highly satisfied with the team spirit in the
organization, 14 respondents are satisfied with the team spirit in the organization, and
remaining 6 respondents are neither satisfied nor dissatisfied with the team spirit in the
organization.
14) Frequencies
Are you satisfied with your job?
Frequency Percent Valid
PercentCumulative
Percent
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Valid yes 12 24.0 24.0 24.0
no 38 76.0 76.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 38 respondents are not satisfied with their job, and remaining
12 respondents are satisfied with their job.
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15) Frequencies
Any suggestions to improve training program
Frequency Percent Valid
Percent
Cumulative
Percent
Valid Explanation about
insurance
11 22.0 22.0 22.0
Explanation about
stock market
7 14.0 14.0 36.0
Explanation about
selling skills
25 50.0 50.0 86.0
Others 7 14.0 14.0 100.0
Total 50 100.0 100.0
Analysis: Out of 50 respondents 11 respondents suggests to give more explanation about
insurance in training program, 7 respondents suggests to give more explanation about stock
market, 25 respondents suggests to give more explanation about selling skills. And 7
respondents suggest some other options to explain in training program.
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Findings:
54% of the respondents are highly satisfied with the training programs given in the
organization and 30% of the respondents are satisfied with the training programs given
in the organization. This indicates more than 70 % of the trainees are satisfied with the
training program
36% of the respondents are not satisfied with the relationship between advisors and the
middle level management and only 8% of respondents are satisfied with the
relationship between advisors and middle level management.
50% of respondents have suggested the trainer to give more explanation about selling
skills so that they can sell more products and which also helps them to achieve their
targets set by the company.
60% of the respondents are highly satisfied with team spirit in the organization. This
indicates the management has given much importance to team work. This team spirit
motivates the employees to perform better at their work place, and also helps to build
up healthy relationship among the employees in the organization.
76% of the respondents opinion is, the management always recognizes and rewards for
their achievements. This shows that the management always motivates the employees
in the form of rewarding them for their achievements.
66% of the respondents are satisfied with their unit managers.Therfore this indicates
that, in the organization unit managers are more co operative with the advisors and
always motivate them for better performance at their work place.
Suggestions
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Provide the opportunity for career and personal growth through training programs,
challenging assignments which would help in retaining the Advisors.
To compete with other competitors and retain the Advisors the company should try to
give them higher commission rate.
The factors which influence the advisors to perform better at their work place are
incentives, medical facilities, traveling allowances, commission. This also helps the
company to retain their advisors for a longer period.
Create reasons for people to join ICICI Prudential and to stay. See that they enjoy their
jobs, their responsibilities, and their possible career paths and this can be done by
conducting Get together and parties for the Advisors and make them realize that are a
part of ICICI family which will also help in building strong relations with each other.
Conclusion
From my study I conclude that retaining of Financial Advisor is very essential for every
Insurance Company, if there is frequent attrition of the advisors the company will have to bear
huge expenses while hiring a new advisor and retaining of any employee. the management has
maintained good relation with the advisors, and has also given much importance for team
work, team spirit in the organization and motivated them in each and every level of
performance, and is trying to train advisors to perform better at their work place and these
training programs also helps to build up their confidence and efficiency level in their works. A
little more efforts in retention programs and training programs can help the company to retain
the advisors for a longer period as an asset of the company.
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Contents
Appendix
Bibliography
Questionnaire
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BIBLIOGRAPHY
Text book:
Subba Rao.
Company broachers.
Web sites:
www.google.com
www.iciciprulife.com
www.insurance.com
“A Study on Retention of Financial Advisors through Training Programs at
ICICI PRUDENTIAL LIFE INSURANCE CO LTD.”
QUESTIONNAIRE
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Dear Sir/Madam,
1. Personal Details
Advisors Name: _________________________________
Address : _________________________________
_________________________________
Contact No : __________________________________
1) Do you feel the induction training given to you is important in your organization?
Strongly agree agree disagree strongly disagree
2) What type of training methods are used in your organization?
a) On the job training b) Class room training
c) Others
3) What is your opinion about the training program given in the organization?
Highly satisfied satisfied neither satisfied nor dissatisfied highly dissatisfied
Dissatisfied
4) Did you find any improvements at your work place after attending training program
conducted by the organization?
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a) Yes b) No
If yes,
5) What kind of improvements you found at your work place?
Increase in confidence level
Buildups healthy relationships among the employees in the organization
Improvement in communication skills and conveying capacity
Increase in the efficiency level in contribution towards team work
Reduces the stress and frustration at work place
6) Do you feel the training provided in the organization to the advisors is effective?
a) Yes b) No
7) Are your suggestions considered in decision making by management in the
organization?
a) Always considers
b) Some times considers
c) Never considers
8) Are you satisfied with the non monitory benefits provided in the organization?
Highly satisfied satisfied neither satisfied nor dissatisfied highly dissatisfied
Dissatisfied
9) Do you feel whether the management recognizes and rewards for your achievements
and performance?
a) Always recognizes
b) Some times recognizes
c) Never recognizes
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10) Are you satisfied with the relationship between advisors and middle level
management?
Highly satisfied satisfied neither satisfied nor dissatisfied highly dissatisfied
Dissatisfied
11) Are you satisfied with the commission rate given by the company?
Highly satisfied Satisfied Neither satisfied nor Dissatisfied Highly dissatisfied
Dissatisfied
12) Are you satisfied with your unit managers?
Highly satisfied Satisfied satisfied nor Dissatisfied Highly dissatisfied
Dissatisfied
13) Are you satisfied with your job?
a) YES b) NO
14) Are you satisfied with the team spirit in your working environment?
Highly satisfied satisfied neither saisfird nor dissatisfied highly dissatisfied
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Dissatisfied
15) Any suggestions to improve training program?
a) more explanations about insurance
b) more explanation about stock market
c) More explanation about selling skills
d) Others
Thank You
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