Upload
nareshsbc
View
237
Download
0
Embed Size (px)
Citation preview
8/8/2019 divya ramesh2-icici prudential
1/31
SUMMARY, CONCLUSION & A SCHEME OF
RECOMMENDATION
Major Research Findings
A Scheme of Recommendation
Conclusion
Directions for further research
8/8/2019 divya ramesh2-icici prudential
2/31
MAJOR RESEARCH FINDINGS :
m 80% of the respondents have bought a life insurance policy from ICICI Prudential
Life Insurance Company Ltd.
m ICICI Prudentials LifeTime, Retirement Solutions and SmartKid are the most
preferred policies among all types of policies of the company
m 63% of the respondents have a High level of satisfaction for the policy service and
all of the respondents are satisfied with the existing features of their life insurance
policy
m Life Risk cover is the main criterion for buying a Life Insurance policy followed by
benefit of income tax rebate
m Majority of the respondents have implicit faith in Private Life Insurance companies
as they believe they are trustworthy
m 90% of the policy holders opined that the prices of policies of Private Life Insurance
companies are affordable
m The most important guidance/service expected from a Life Insurance advisor is the
thorough and detailed explanation of policy features
m All the respondents (100%) are aware of ICICI Prudential their main source of
awareness being Life Insurance advisors and advertisements
m 90% of the respondents who hold ICICI Prudentials Life Insurance policy would
prefer to go in for another policy only from ICICI Prudential. The most important
reasons for this are brand name, wide varieties of policies to choose from and good
servicing of policies
m The most important value added features in ICICI Prudentials policies are wide
range of options within the same policy, multiple benefits packed in a single policy,
flexibility and good returns
m The important ideas associated with Life Insurance policy of ICICI Prudential are
profitable mode of investment, maximum risk cover provided and pre-sales/during-
sales/after-sales service
m The manifestations of value of ICICI Prudential in the order of ranking are
maximum risk cover, profitable mode of investment, multiple benefits, premium
payable, pre-sales/during-sales/after-sales service and benefit of tax rebate
m 84% of the respondents felt that the premium charged by ICICI Prudential is
affordable and 70% of them felt that the Quality of the company in terms of its value
is high 51
8/8/2019 divya ramesh2-icici prudential
3/31
m 18% of the respondents stated that ICICI Prudential could increase the frequency of
its advertisements, 12% of them felt that the contents of advertisements can be made
simpler. A few of them also feel that the reach of advertisements is to a limited
sector/audience
m Majority of the respondents stated that ICICI Prudentials popularity is growing day
by day. The main reasons for this are marketing and sales strategies adopted,
aggressive promotion, wide network of advisors, good service provide and superior
product features
m The reasons recommended for heavy dose of personnel selling for ICICI Prudential
are to give customers a more personal touch, to stay ahead of competition, to
penetrate deep in the private life insurance market and to increase the sales and
profitability
m
The behavior pattern of front line employees of ICICI Prudential is Good accordingto 63% of the respondents. The other comments about their behavior are They are
very patient, friendly and co-operative
m Only one policy holder of ICICI Prudential has a complaint against the company, the
complaint being that the settlement of policy amount was delayed
m All the respondents stated that the image of ICICI Prudential is Positive. None of
them feel that the companys image is Negative
m Only a few respondents (32%) recommended a Policy Holders Club for ICICI
Prudential
m The role prescriptions suggested for Policy Holders Club include providing status
of their policy, function as a grievance redressal cell, obtain feedback from
customers, address changing needs of customers and to provide regular information
about the companys performance
m Some of the recommendations to enhance the value of ICICI Prudential are The
company needs to be customer-centric and introduce new policies according to
changing needs of customer, allow switching between various options more than
once in a year, provide guaranteed returns, handle complaints effectively, reduce the
premium amount of certain policies and maintain good service throughout the term
of the policy
m The future outlook visualised by 40% of the respondents for ICICI Prudential is
Very Good and 32% of them stated that the companys fut ure is Quite Bright
52
8/8/2019 divya ramesh2-icici prudential
4/31
A SCHEME OF RECOMMENDATION :
Since most of the respondents are from age group 20 to 30 which is a proper
insurable age group, the company should target this segment
From the findings, it is observed that policies, which are much in demand, areLifeTime, Retirement Solutions and SmartKid. Hence the company should focus on
popularising the other types of policies also
The company should strive much harder to gain the trust of customers since it is still
perceived by a few that Life Insurance Corporation of India is more trustworthy as it
is Government backed
The company should provide guidance through their advisors to customers regarding
the availability of different policies and also to advise on the policy best suited to
individual customers. Additionally, advisors should be asked to provide customer
service by way of total guidance such as income tax benefits and other special
benefits that may be available for a policy
A few of the policy holders of ICICI Prudential are not aware of the extra value-
added features in their policy which proves that the entire details may not be
highlighted to customers. Hence the positive features already existing in policies
should be highlighted. Thus the customer will find extra value in their policies
The promotional policy of the company can be improved in terms of frequency,
contents and reach
The company should go in for a heavy dose of personnel selling in order to give
customers a more personal touch
The frontline employees should be more customer focussed in order to enhance the
customer value
The settlement of claims should be expedited and never unduly delayed so that the
customer is not handicapped. This will also help the company to avoid migration of
its customers
It is recommended that a Policy Holders Club for ICICI Prudential may be
established
The role prescriptions for the club would be to function as a grievance redress cell, to
provide regular information about companys performance, to obtain the suggestions
and feedback from club members so that their views are incorporated while framing
benefits for the customers (policyholders) 53
8/8/2019 divya ramesh2-icici prudential
5/31
The value of ICICI Prudential in the eyes of customers can be enhanced by being
customer-centric, increasing awareness about the company among customers,
introduce new policies according to changing needs of customers, to provide
switching between various options more than once a year, give guaranteed returns,
handle complaints effectively, to put across facts related to policy in a more simpler
way to customers, reduce the premium amount on certain policies, maintain good
service throughout the term of the policy and providing value for money for their
policies
The two new policies that can be introduced by the Company are an exclusive
health policy and also a policy that provides life insurance cover to the whole family
It is highly desirable to explore the possibility of the company and policyholders to
co-create the value. This co ncept of co-creation rests on the key foundations of
dialogue, access, risk assessment and transparency. The personalised co-creationexperiences are the source of unique value for the company and the customers alike
Value migration is quite prevalent in life insurance industry. Value migration arise
from a companys inability to understand business designs i.e. activities in which
businesses engage and the relationships they cultivate in order to deliver utility to
customers and earn profits to the company. Customers move from those companies
to other companies that are better designed to maximise customer utility. How can a
company ward off value migration? The strategy is simple; companies must be
customer creating and customer satisfying organisation s i.e. they must do the
things that induce customers to do business with them. We recommend this strategy
to ICICI Prudential.
CONCLUSION
To conclude, the aforesaid recommendations, if they are not put in cold storage, they can
go a long way to nourish the growth and development of ICICI Prudential. Our analysis
calls for nothing less than an effective Customer Value Management.
54
8/8/2019 divya ramesh2-icici prudential
6/31
DIRECTIONS FOR FURTHER RESEARCH
The following are the Green Pastures for further research:
Quantitative measurement of customer value both at the macro-level and at the
micro-level in the Insurance industry
The determination of Customer Life Time Value in Insurance industry
Customer Retention through Customer Value Management in Insurance industry
Interface between Customer Equity and Customer Value Management in Insurance
industry
Benchmarking the Customer Value Management practices in Insurance industry
55
8/8/2019 divya ramesh2-icici prudential
7/31
ANNEXURESelect Bibliography
Questionnaire
Research instrument used
Data incidental to research
8/8/2019 divya ramesh2-icici prudential
8/31
SELECT BIBLIOGRAPHY
BOOKS
Services Marketing
Valarie A. Zeithaml
Tata McGraw-Hill Publishing Company Ltd.,
II Edition, 2003
Page Nos. 522, 523, 494, 162, 163, 164
Services Marketing 2e - Operation Management & Strategy
Kenneth E. Clow & David L. Kurtz
Biztantra Publication, New Delhi
II Edition, 2003
Chapter 12
Page Nos. 313 to 317
Services Marketing
Christopher Lovelock
Prentice Hall Inc., New Jercy
III Edition
Page Nos. 460 to 488, 337 to 359
The Marketing Whitebook
Published by Business World
A text book on :
Customer Value Management
MAGAZINES
Smart Manager
Harvard Business ReviewBusiness India
Business Today
56
8/8/2019 divya ramesh2-icici prudential
9/31
INSURANCE RELATED
IRDA Journals
Quarterly Report
ICICI Prudential Life Insurance Company Ltd.
January 1st 2004 to March 31st 2004
WEBSITES VISITED
www.irdaindia.org
www.iciciprulife.com
www.mamma.com
57
8/8/2019 divya ramesh2-icici prudential
10/31
QUESTIONNAIRE :
Kindly tick your option and fill up the blanks wherever required.
1. Name :
2. Age :
3. Residence Area/ Location in Bangalore :
4. Do you have a Life Insurance policy at present?
a) Yes b) No
5. If Yes to Question 4, then
a) Name of the Life Insurance Company :
b) Policy Type Please specify :
c) Your level of satisfaction for the expected policy service (i) High (ii) Medium
(iii) Low
6. If No to Question 4, what are the reasons ?
7. Are you satisfied with the existing features of your Life Insurance Policy ?
a) Yes b) No
8. If No to Question 7, what additional features would you like to have incorporated in
your Life Insurance policy?
9. What benefits you expect from your Life Insurance policy?
a) Mainly life risk cover
b) Benefit of Income Tax rebate
c) To avail of loan facility against your policy
d) Appreciation of capital invested
10. Do you think Private Life Insurance companies are relatively more trustworthy?
a) Yes b) No
11. If No to Question 10, what are the reasons ?
12. What do you feel about the prices of policies of Private Life Insurance companies ?
a) High b) Low c) Affordable 58
8/8/2019 divya ramesh2-icici prudential
11/31
13. What guidance/service you expect from a Life Insurance agent/advisor while buying
a Life Insurance policy Specify.
14. Are you aware of ICICI Prudential Life Insurance Company?
a) Yes b) No
15. If Yes to Question 14, from which source did you become aware of?
a) Friends b) Life Insurance Advisor c) Colleagues d) Advertisement e) Neighbor
f) Others
16. If you are aware of life insurance policies of ICICI Prudential and also life insurance
companies, which one you prefer?
a) ICICI Prudential b) Other private companies
17. Please state the reasons for your preference as mentioned above in Question 16.
18. What additional features (extra value added features) do you find in ICICI Prudential
Life Insurance policy?
19. What meanings/ideas do you associate with the Life Insurance policy of ICICI
Prudential?
a) Maximum risk cover b) Profitable mode of investment
c) Tax rebate d) Multiple benefits
e) Premium f) Pre-sales/during-sales/after-sales service
20. Please rank the above manifestations of value in descending order of merit.
21. What do you feel about the premium policy of ICICI Prudential?
a) High b) Low c) Affordable
22. Please rate the quality of ICICI Prudential Life Insurance policies in terms of its
Value.a) High b) Medium c) Low
23. Are you satisfied with ICICI Prudential company in servicing of policies?
a) Yes b) No
24. If No to Question 23, please state reasons
59
8/8/2019 divya ramesh2-icici prudential
12/31
25. Please comment on the promotional policy of ICICI Prudential in terms of its theme,
logo, content, reach, frequency and impact.
26. The Life Insurance policy of ICICI Prudential is becoming popular day by day. Do
you agree to this statement?
a) Yes b) No
27. If Yes to Question 26, what may be the reasons for its popularity?
28. Do you recommend heavy dose of personnel selling for ICICI Prudential?
a) Yes b) No
29. If Yes to Question 28, please state reasons.
30. Have you visited ICICI Prudential company anytime for any transaction?
a) Yes b) NO
31. If Yes to Question 30, please give your comments on the behavior of key
personnel/frontline employees of this company.
32. How does ICICI Prudential handle forfeiture of policy?
33. Do you have any complaints regarding the services provided by this company?
a) Yes b) No
34. If Yes to Question 32, please specify the complaints
35. If Yes to Question 32, please suggest the remedial measures.
36. What do you feel about the image of ICICI Prudential life insurance company?a) Good b) Bad c) Ugly
37. If bad, please suggest how best we can enhance the Insurance Products in the minds
of policyholders?
60
8/8/2019 divya ramesh2-icici prudential
13/31
38. Do you recommend a Policy Holders Club for ICICI Prudential?
a) Yes b) No
39. If Yes to Question 36, what are the activities or role prescriptions you suggest for it?
40. Please give your recommendations for enhancing the value of life insurance policy of
ICICI Prudential life insurance company?
41. What is the Future Outlook you visualise for ICICI Prudential Life Insurance
Company?
THANK YOU
61
8/8/2019 divya ramesh2-icici prudential
14/31
EXPLANATION OF THE RESEARCH INSTRUMENT USED
Research Instruments used to test the Hypotheses :
Nonparametric Test Chi-Square Test
Since the measurement scale is nominal it is possible to use the chi-square one sample
test. It is the most widely used non-parametric test of significance. Typical cases are
when persons or events are classified into two or more nominal categories.
Using this technique we test for significant differences between the observed distribution
of data and expected distribution based on null hypothesis.
We establish a null hypothesis based on the expected frequency of objects in each
category. The deviations of actual frequencies in each category are compared with
hypothesised frequency. The value of chi-square is the measure that expresses the extent
of this difference.
Formula for chi-square is :
Chi- -Eij)/Eij where Oij is the observed frequency in the i,jth cell and Eij
is the expected frequency in the i,jth cell.
Calculate the value of chi-square
Calculate the degrees of freedom as d.f. = (r-1)(c-1)
Critical test value : Enter the table of critical values of chi-square with the d.f. and the
significance level
If the calculated value is greater than the critical value, then reject the null hypothesis.
Z Test
The formula for z-test is as follows :
Z = p1 p2
sizes n1 and n2
P = n1p1 +n2p2
n1 +n2
Q = 1 P
Critical Test Value : Enter the table value of critical values of Z at the desired
significance level
If the calculated value is greater than the critical value, then reject the null hypothesis.
8/8/2019 divya ramesh2-icici prudential
15/31
DATA INCIDENTAL TO RESEARCH
IEPA ATTRIBUTE MODEL FOR ICICI PRUDENTIAL
The IEPA model offers a simple framework for thinking about the kinds of attributes that
might matter to consumers and the relationship among these attributes. Life Insurance
has many different attributes. So it is necessary to identify the attribute benefit
associations that have the greatest potential within a particular customer segment.
Life Insurance Attributes
For most of the people buying a Life Insurance policy is not an easy decision as it is
rather difficult for them to directly evaluate its worth. Hence some people respond to this
uncertainty by postponing the decision to purchase a life insurance policy while some
others would try to know more about the policy attributes. Some of the attributes for life
insurance are as listed below :a) Intrinsic Attributes : These attributes involve the physical composition of a product
like form, materials and manufacturing. Since Life Insurance is a service product
there are no intrinsic attributes to it.
b) Extrinsic Attributes : This includes brand, price, packaging and support services
i. Brand Attributes : This includes name of the product (Life Insurance), brand name
(ICICI), name of the company (ICICI Prudential) and the brand logo. The
customers purchase decision can be influenced by as many as brands among the
private life insurance companies.
ii. Packaging Attributes : This is a perfect illustration that attributes can hve attributes.
Packaging attributes in this case refer to the glossy art paper used for the companys
brochure and also the multi-colour printing on the brochures.
iii. Augmented Product Attributes : These attributes denote services the company
provides to enhance a customers product use or their usage experience like product
delivery, guidance of advisors, customer assistance, after-sales service, security and
authenticity.
iv. Price Attributes : Buyer behavior is not influenced by only the price of the basic
product. It is also influenced by the price of premium, customer assistance and
pre/during/after-sales service.
63
8/8/2019 divya ramesh2-icici prudential
16/31
c) Performance Attributes : These describe the way in which a Life Insurance product
performs its functions. This can be evaluated only after using the product. These
attributes are product features, policy service and the benefits provided by the
policies.
d) Abstract Attributes : These attributes condense the information contained in several
attributes into a single attribute.
i. Weighted Multiattribute Evaluations : These weighted evaluations are quality,
brand image, authenticity, satisfaction and transparency. There are several
dimensions of product quality like product performance, policy features,
trustworthiness and serviceability.
ii. User Imagery Attributes : For a brand like ICICI and a product like life insurance
consumers have an idea about the kind of person/customer who uses that product.
For ICICI Prudential these attributes are A wide range of products, productstailored to fit a familys unique needs, products to cover the customer at every step
of life, insurance coverage throughout ones life, for a childs education and a
regular stream of income from investment.
iii. Use Situation Attributes : Customers carry ideas about when a product/service
should be used. Life Insurance is considered as a unique asset. It acts as an asset in
case of eventuality like death or disability. This in turn ensures that the goals are
met for an individual or for the dependants in his/he absence.
Attribute-Benefit matrix for Life Insurance
Sl. No. Attributes Benefits
1 Brand (ICICI)
Quality
Credible, Preferred by consumers
Attracts potential life insurance
buyers
2 Price Helps to save money
3 Authenticity
Reliability
Credible
Hassle free investment
4 Wide range of products Easy to choose from
5 Satisfaction Increased customer loyalty
64
8/8/2019 divya ramesh2-icici prudential
17/31
THE IEPA MODEL FIG 1
a Materials b Form
c Manufacturing d Support Service
e Brand f Package and Price
g Objective h Subjectivei Weighted Multiattributes j User Imagery
k Use Situation
Relationships among life insurance attributes
Sl. No. Attributes Relationship
1 Life Insurance Financial Security
2 Brand (ICICI) / Quality Financial Service
3 Multi-colour print Attractiveness
4 Guidance (Advisors) Satisfactory Service
5 Customer Assistance Satisfactory Service
6 Security Life Insurance Policy
7 Authenticity / Brand Image Trustworthiness
8 ICICI Prudential Range of life insurance products
9 Price Affordability
10 Product Features Benefits consumers
65
Attributes
Intrinsic Extrinsic Performance Abstract
a b c d e f g
h
i
k
8/8/2019 divya ramesh2-icici prudential
18/31
TASK ASSIGNED BY THE COMPANY - PRODUCT COMPARISON
TABLE 1
Life Insurance
Companies
Riders Tata AIG SBI Life ICICI Prudential Birla Sun
Life
LIC HDFC
Standard
Payor Benefit Yes
Crirtical Illness -
Accelerated
Yes Yes
Critical Illness - Lumpsum Yes
Term Assurance Yes Yes Yes Yes Yes
Accident & Disability
Benefit
Yes Yes Yes Yes Yes
Accident Benefit Yes Yes Yes
Triple Accidental Cover Yes
Waiver of Premium Yes Yes Yes Yes Yes
Income Benefit Yes
Critical Illness Yes Yes Yes Yes
Major Surgical Assistance Yes
Critical Illness - Plus Yes
Accelerated Sum
Assurance
Yes
Note : ICICI Prudential is the only company that provides Income Benefit Rider.
TABLE 2
Life Insurance
Companies
Products Offered Tata AIG SBI Life ICICI Pru Birla Sun
Life
LIC HDFC
Term Assurance Plan Yes Yes Yes Yes Yes
Child Plan Yes Yes Yes Yes Yes
Endowment Plan Yes Yes Yes Yes Yes
Annuity Plan (Retirement) Yes Yes Yes Yes Yes Yes
Money Back Plan Yes Yes Yes Yes Yes YesMarket Linked Plan Yes Yes Yes
Unit Linked Child Plan Yes
Premium Back Term Plan Yes Yes
Health Insurance Plan Yes Yes
Triple Cover Plan Yes
Whole Life Plan Yes Yes
Loan Cover TA Plan Yes
66
8/8/2019 divya ramesh2-icici prudential
19/31
TABLE 3
Company Products Offered Product Type
TATA
AIG
ICU, Health First, Nirvana, Assure
Golden Years Plan, Assure Career
Builder, MahaLife Gold
Critical illness, prolonged
hospitalisation, flexible pension
policy, Regular Deferred Pension
Plan, child plan, whole life plan
Birla Sun
LifeFlexi Secure Life, Premium BackTerm Plan, Term Plan, Flexi SavePlus, Flexi Cash Flow
Retirement plan, Premium Back
Plan, Term Plan, Endowment Plan,
Money Back Plan
SBI Life Life Long Pension, Sanjeevan
Supreme, Setubandhan, Scholar,
Sudarshan, Swadhan
Retirement Plan, Money back
plan, LI for NRIs, Child Plan,
Endowment, Level term assurance
HDFC
Standard
Childs Plan, Personal Pension
Plan, Endowment Assurance Plan,
Unit Linked Endowment Plan,Money Back Plan, Single premium
Whole Life Plan, Term Assurance,
Loan Cover TA, Unit Linked
Pension Plan
Child Plan, Savings Plan, Life
Insurance with savings, Unit
Linked Plan, Money Back Plan,Investment Plan, Term Plan, Term
Plan with Loan, Unit Linked Plan
LIC Anmol Jeevan, Bima Plus, Asha
Deep (II), Jeevan Chaya, Komal
Jeevan, Pension Plans, Pension
Plus, Varishtha Pension Bima
Yojana, Jeevan Samriddhi, Money
Back Policy, Jeevan Anand, JeevanRekha, Endowment Assurance
Policy, Jeevan Mitra
Pure term assurance, unit linked
plan, health plan, Child plans,
Pension Plans, Money Back Plans,
Security & Savings, Triple Cover
Plan
ICICI
Prudential
Retirement Solutions, Smart Kid
Child Plans, Cash Plus, LifeGuard,
Save n Protect, Secure Plus,
LifeTime, Smart Kid
Annuity Plan, UL Child Plan,
Endowment, Term Policy,
Endowment, Endowment, Unit
Linked, Child Plan
TABLE 4
Limitations As compared to ICICI Prudential
1. TATA AIG :
- Limited no. of critical illnesses covered under the health plans, no cover against
major surgery.
- No exit option provided in case of Retirement plan
67
8/8/2019 divya ramesh2-icici prudential
20/31
- Child plan of TATA AIG does not provide options on investment plans and top ups
unlike the Smart Kid Policy.
- Whole Life Plan doesnt provide investment options and there is no flexibility of
increasing or decreasing the death benefit unlike LifeTime policy
- Savings, required liquidity, additional protection & multiple options are not provided
by one single policy
2. Birla Sun Life Insurance :
- This plan does not provide something similar to Regular Deferred Pension Plan.
- Does not have a policy exclusively for children. The Flexi Cash Flow plan provides
lumpsum tax free payment at regular intervals to meet the financial obligations of a
child
- No major surgical rider provided
- Savings, required liquidity, additional protection & multiple options are not provided
by one single policy
3. SBI Life Insurance :
- Unlike ICICIS Retirement solutions no options are provided for in this plan. Also
there are no riders provided for the retirement plan.
- Only premium waiver rider provided for the child plan. No options provided for the
plan as in Smart Kid Child Plans.
- Benefits can be availed from the time of 18 yrs. and not during different age of the
child unlike the Smart Kid Child Plan.
- No major surgical rider provided in any of the policies
4. HDFC Standard Life Insurance :
- Childrens Plan does not provide the option of availing benefit at different critical
educational milestones of the child.
- Pension plan is a savings contract and not exactly an annuity plan like that provided
by ICICI Pru. Also no loan can be taken against the pension policy
- Savings, required liquidity, additional protection & multiple options are not provided
by one single policy
5. LIC :
- No maturity benefit provided by the Term Assurance Plan
- No loan facilities available against some of the policies 68
8/8/2019 divya ramesh2-icici prudential
21/31
- Health Insurance policy covers only a limited no. of ailments
- Childrens plan does not provide the option of availing benefit at different critical
educational milestones of the child. No options provided for the child plan as in
Smart Kid Child Plans.
- Unlike ICICIS Retirement Solutions no options are provided for in this plan. No
riders are available with this plan
Product Description ICICI Prudential
1. ICICI Pru Life Guard : Policy to insure your life and also provide total security to
your family. Choices of 3 level term products Level term assurance, Level term
assurance with returns of premium and Single premium. Applicants can be aged b/n
18 and 50 yrs. Riders are given only for level term assurance and level term
assurance with return of premium Accident & Disability benefit rider. No maturity
benefits available for Level term assurance & Single premium. This is a Term Policy.
2. Smart Kid : This is a child plan that provides flexibility to structure the benefits
according to your needs. Term of plan & maturity age of child can also be chosen.
Child receives policy benefits in two different structures. In case of death of parent
the child continues to receive policy benefits. Riders are Income benefit, Accident &
Disability benefit & Accident benefit. Parents aged between 20 & 60 yrs with
children in age group of 0-12 yrs can apply.
3. Save n Protect : Policy for savings with life cover. On maturity of this policy at the
end of term insured gets the full sum assured plus guaranteed additions. In event of
death of assured after 7 yrs. of commencement similar benefits are made available to
beneficiary. If the death occurs before 7 yrs. only basic premium paid is returned to
nominee without interest. Extended Life cover available with this policy. Riders are
critical illness, major surgical, Accident & Disability benefit & Accident benefit.
Anybody upto 60 yrs. can apply.
4. Secure Plus : Gives added protection savings and multiple options. 3 levels of cover
offered are standard, basic and enhanced. Offers flexibility of shifting between the
level of covers. Additional riders are income benefit rider and Waiver of premium
rider. Anyone upto 60 yrs. of age can apply. If value of investment is more then the
accumulated value of the policy them that too will be paid at maturity. Maturity
8/8/2019 divya ramesh2-icici prudential
22/31
proceeds in lumpsum or in equal annual installments. For first year guaranteed bonus
is payable.
5. Cash Plus: This plan gives savings, required liquidity, additional protection and
multiple options. If value of investment is more then the accumulated value of the
policy them that too will be paid at maturity. Maturity proceeds in lumpsum or in
equal annual installments. 3 levels of cover are standard, basic and enhanced. Offers
flexibility of shifting between the level of covers. Additional riders are income
benefit rider and Waiver of premium rider. Anyone upto 60 yrs. of age can apply.
Option of withdrawing from accumulated value every year after the first 5 yrs, hence
provides liquidity. For first year guaranteed bonus is payable.
6. ICICI Retirement Solutions : ICICI provides 3 different options for retirement
solutions i.e. (i) LifeTime Pension (ii) Life Link pension which are Linked deferredpension plans and (iii) Forever Life which is a regular deferred pension plan & (iv)
Secure Plus. In linked deferred pension plan the money is invested in market linked
funds to generate higher returns. In regular deferred pension plan there is no question
of fixing the return to the market linked investment. Provides flexibility of choosing
retirement age, annuity provider, annuity options. Entry age 18 yrs. to 72 yrs.
Riders are Accident and disability, Critical illness & Major surgical assistance
rider.
7. Smart Kid Child Plans : This plan is for the childs future liability like education,
marriage or career establishment. Products offered are Unit linked regular
premium, unit linked single premium, regular premium smart kid. Unit linked regular
premium is for parents aged b/n 20 and 60 yrs. with child in the age group of 0-15
yrs. Age of child at maturity is 22-25 yrs. Premium holiday available. Unit linked
single premium is for parents aged b/n 20 and 50 yrs. with the child in the age group
of 0-15 yrs. Age of child at maturity is 22-25 yrs. This plan is for a lumpsum
investment for the childs future. Regular premium is for parents aged b/n 20 and 60
yrs. with child in the age grp of 0 12 yrs. This plan ha two options (i) To avail of
benefits during the first 5 consecutive yrs of the policy upto 22 yrs of age and (ii) To
avail of benefits at critical educational milestones of child four times during different
age of the child. Same riders available. Four investment options are Income, growth,
balancer and preserver. Flexibility of choosing these investment plans provided. 70
8/8/2019 divya ramesh2-icici prudential
23/31
8. LifeTime : Plan for savings, life protection and investment needs over a lifetime.
Helps to choose a specified level of protection based on need. Part of premium is
invested for obtaining returns. Benefits are death benefit and liquidity. Choice of
investments is growth, income, balanced, preserver. Switching b/n various plans is
allowed four times in a year. Top up investment at any time when you have surplus
funds. Flexibility of increasing or decreasing death benefits and premium holiday.
Same riders provided. Age limit Anybody from the age of 0 to 60 yrs. Death,
liquidity and withdrawal benefits available.
71
8/8/2019 divya ramesh2-icici prudential
24/31
TASK ASSIGNED BY THE COMPANY - SURVEY
QUESTIONNAIRE
Kindly tick your options in the box provided and fill up the blanks wherever required.
1. Name : ___________
2. Age : ________
3. Residence Area/Location in Bangalore : __________________
4. Contact No. : ________________
5. Do you have a Life Insurance policy at present?
Yes
No
6. If Yes to Question 5,
a. Name of the Insurance Company : ______________________
b. Policy Type (Specify) : ____________________
c. Your level of satisfaction for existing policy servicing
High Medium Low
7. If No to Question 5, what are the reasons?
____________________________________________________________________
____________________________________________________________________
8. Are you satisfied with the existing features of your Life Insurance policy?
Yes
No
9. If No to Question 8, what additional features would you like to have incorporated in
your Life Insurance policy?
_______________________________________________________________________
_______________________________________________________________________
10. What benefits you expect from your Life Insurance Policy?
Mainly life risk cover
Benefit of Income Tax rebate
To avail of loan facility against your policyAppreciation of capital invested
11. How did you come to know about Life Insurance ?
Friends Advertisement
Colleagues Others (Specify)
Neighbors
72
8/8/2019 divya ramesh2-icici prudential
25/31
12. How many Life Insurance companies are you aware of and their names
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
13. Do you think private Life Insurance companies are trustworthy?
Yes
No
14. If No to Question 13, what are the reasons?
_______________________________________________________________________
_______________________________________________________________________
15. In case if you were offered the choice of becoming a Life Insurance advisor for any
Life Insurance company, would you be interested?
Yes
No
THANK YOU
73
8/8/2019 divya ramesh2-icici prudential
26/31
TABULATION, ANALYSIS & EVALUATION OF DATA
Life Insurance business in India has been the exclusive privilege of nationalised LIC
since 1956. However since the liberalisation process has started this sector has seen the
entry of a number of private players. Today, about a dozen serious contenders are vying
for the available share of business. No doubt Life Insurance has growth potential as a
business opportunity because of the sheer size of our country and the huge population,
many of whom are still untouched for this business. The need for scientifically evolved
data about such potential segment of customers is felt by anyone who wants to either tap
new business or to expand the existing business. Therefore an independent customer
survey is conducted to find out the customers preferred requirement of Life Insurance.
NOTE : This customer survey is conducted for ICICI Prudential Life Insurance
Company Ltd.
This survey is conducted with the following objectives :
(a) To find out the satisfaction level of customers with the existing features of their Life
Insurance policy
(b) Benefits expected by the customers from their Life Insurance policy
(c) The number of potential customers for Life Insurance &
(d) The number of customers who would be willing to become a Life Insurance advisor
The data is collected from customers of different Life Insurance companies Both
Private & LIC. The data is collected from 50 respondents with the help of structured
questionnaire. Each data is then analysed by tabulation method working out percentage.
Table : 1 Name Profile
Name Given No. Percentage
Male 33 66%
Female 17 34%
The fact that all the respondents have revealed their names indicates their willingness to
unconditionally participate in this survey. It is inferred from the table that 66% of the
respondents are males and 34% of them are females.
74
8/8/2019 divya ramesh2-icici prudential
27/31
Table : 2 Age of Respondents
Age (Between) No. Percentage
22 & 30 16 32%
31 & 40 10 20%
41 & 50 18 36%
51 & 60 6 12%
It is seen from the table that majority of the respondents are from potential insurable age
bracket i.e. from 22 yrs. to 50 yrs.
Table :3 Area-wise distribution of respondents
Area No. Percentage
Bangalore North 26 52%
Bangalore Central 10 20%
Bangalore East 5 10%
Bangalore West 5 10%
Bangalore South 4 8%
Here it is seen that 52% of the respondents are from Bangalore-North and 20% of are
from Bangalore-Central. Low percentage of 10% each are from Bangalore-East & West
and 8% are from Bangalore-South. Though this does not throw any specific light on
preferred requirement of customers for Life Insurance, yet the research is mostly
concentrated in Bangalore North and Central as they are highly populous areas with
middle income group.
Table : 4 Do you have a Life Insurance policy at present?
Policy No. Percentage
Yes 45 90%
No 5 10%
This survey is based on certain objectives as mentioned above and therefore this is to
find out as to how many respondents have a Life Insurance policy at present. It is
8/8/2019 divya ramesh2-icici prudential
28/31
confirmed that 90% of the respondents have a Life Insurance policy and the rest 10%
indicate the potential customers for the Company.
Table :5(a) If Yes to Qn 4 :Name of the Life Insurance Company
Name of Company No. Percentage
LIC 45 100%
ICICI Prudential 2 4%
Tata AIG 1 2%
The data indicates that all the respondents (100%) - who are said to have a Life Insurance
Policy have purchased it from LIC. Also a very small percentage of them have additional
policy purchased from private insurers like ICICI Prudential & Tata AIG.
Note : Some of the respondents have more than one Life Insurance policy in their name.
Table : 5(b) If Yes to Qn 4 : Policy Type (Specify)
Policy Type No. Percentage
LIC Endowment 17 38%
LIC Money Back 13 29%
LIC Bima Plus 1 2%
LIC Whole Life 1 2%
LIC Jeevan Samriddhi 1 2%
LIC Jeevan Shri 1 2%
LIC Jeevan Mitra 1 2%
ICICI Pru LifeTime 1 2%
Tata AIG Nirvana 1 2%
Dont Know 11 24%
The table indicates that LICs Endowment policy is preferred the most among all types
of policies of LIC followed by Money Back Policy. Amongst Pvt. Insurers, ICICI
Prudentials LifeTime & Tata AIGs Nirvana policies seem to be preferred. Nearly a
quarter percent of the people do not know the type of policy they own.
Note : Some of the respondents have more than one Life Insurance policy in their name.
76
8/8/2019 divya ramesh2-icici prudential
29/31
Table :6 If No to Qn 4 : What are the reasons?
Reasons No. Percentage
Not thought about it 2 40%
Cant afford the premium 2 40%
Dont feel the need for it 1 20%
This data helps to know the reasons for not having a Life Insurance policy. From the
table it is observed that 40% of the respondent have not thought about buying a Life
Insurance policy and an equal percentage of them feel that they cannot afford payment of
the premium from their income. Another 20% feel no need for a Life Insurance policy.
Table :7 Are you satisfied with the existing features of your Life Insurance Policy?
Particulars No. Percentage
Satisfied 45 100%
Not Satisfied Nil Nil
This data indicates that all respondents who have a Life Insurance policy are satisfied
with their policy features. This infers that the existing policies are properly laid out.
Table : 8 What benefits you expect from your Life Insurance policy?
Benefits No. Percentage
Life Risk Cover 31 69%
Income Tax rebate 29 64%
Avail loan facility 14 31%
The table shows that life risk cover is the main criteria with majority of respondents
(69%) while buying a Life Insurance policy. However at the same time these same
respondents (64%) look for additional financial benefits by way of income tax rebates
while buying a policy. Also almost one-third of the respondents i.e. 31% think of
availing the additional benefit of loan against their policies.
Note : The respondents expect multiple benefits from their Life Insurance policy.
77
8/8/2019 divya ramesh2-icici prudential
30/31
Table : 9 In case you were offered the choice of becoming a Life Insurance Advisor,
would you be interested?
Interested No. Percentage
Yes 13 26%
No 37 74%
This is to know the interest of respondents to enter the Life Insurance field as an advisor.
Almost three-fourths (74%) of them do not feel interested. Only 26% of the respondents
showed willingness to act as insurance advisor.
Table : 10 At the moment are you truly interested in buying any Life Insurance
Policy?
Truly Interested No. Percentage
Yes 5 13%
No 35 87%
The data indicates that a majority of the respondents 87% are not interested in buying a
Life Insurance policy at the moment. Only 13% of them showed true interest in buying a
Life Insurance policy. This number also includes those who do not have any Life
Insurance policy at present.
Note : This question was asked only to 40 respondents out of the total number of
respondents.
78
8/8/2019 divya ramesh2-icici prudential
31/31
FINDINGS
Majority of the respondents are from potential insurable age bracket
10% of the respondents are likely to constitute potential customers for the Life
Insurance company
A very small percentage of the respondents have purchased additional policy
from private insurers
The most preferred policies appear to be LICs Endowment, ICICI Prudentials
LifeTime & Tata AIGs Nirvana
Reasons for not buying a Life Insurance policy are seen as not thought about it so
far & not being able to afford the premium
All the present policy holders appear to be satisfied with the features as being
offered now in their policy
The benefit expected from a Life Insurance policy for the majority is mainly liferisk cover with income tax benefit also being kept in view
Majority of the respondents have not shown any interest to enter the Life
Insurance field as an advisor
Majority of the respondents are not interested in buying additional Life Insurance
policy at present
CONCLUSION & SUGGESTIONS
The majority of present policyholders being with LIC the respondents generally tend to
compare the features and benefits and the affordability of premium by comparing it with
LICs existing policies. Unless policies designed with comparatively innovative and new
features are offered by private insurers the respondents may tend to be not interested in
going in for their policies. Also many respondents are seen to be not aware of different
types of policies now being offered by private insurer which may actually benefit the
insured. Hence a lot of responsibility rests on the Company to locate and also to educate
and brief them about suitable policies so that a potential customer for insurance policy
actually turns into a policyholder. The private insurer should target the prospective
additional policy buyer more consistently since such customers are already aware of the
benefits accrued to them by owning a Life Insurance policy.
79