Embed Size (px)
Citation preview
INDEX
CHAPTER CONTENTS PAGE NO.
1 INTRODUCTION2 LITERATURE
REVIEW3 RESEARCH
METHODOLOGY AND DESIGN
4 DATA ANALYSIS AND
INTERPRETATIONS
5 FINDINGS AND CONCLUSIONS
6 BIBLIOGRAPHY
1
Chapter 1Introduction
2
EXECUTIVE SUMMARY
With new competitors coming every now and then in the field of business, the company
positioning should be strong enough to retain its position in business.
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED has positioned itself
strongly with high-class advisors, unit manager, and technical persons.
The study that is being made is that “TO UNDERSTAND THE ADVISORS
RECRUITMENT PROCESS OF ICICI LIFE INSURANCE AND THEIR ROLE
IN SALES” To make this research mostly Primary data is being used, taking a sample
size of 65 peoples. The Research Methodology that is being implemented in this study is
Sampling Method. The company is having the largest sales force after Life Insurance
Corporation of India ,follows a strict code of recruitment as the advisors or the sales
persons as they are going to be company’s advisor’s or ambassadors.
The result which was found from this research clearly shows a company should be more
flexible to the training program they organized for the high profile advisor. The project
undertaken is the thorough study of the service & activities, which the company is willing
to give each advisor. From the survey it was revealed that ICICI PRUDENTIAL is doing
quite well in all the sections of its operation.
3
Objective:-The objective may be defined as Something worked toward or striven for; a goal .The
objective of my study is to understand the
ADVISORS RECRUITMENT PROCESS in ICICI PRUDENTIAL
LIFE INSURANCE and
THEIR ROLE IN INSURANCE BUSINESS.
4
Chapter 2Literature Review
5
What is Insurance?
Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party happening of a certain event.
Insurance is a protection against a financial loss arising on the happening of an unexpected event. Insurance Companies collect premium to provide for this protection. A loss is paid out of this premium collected from the insuring public. The insurance Company act as a trustee to the amount collected through premium.
Insurance is generally classified in three main categories, (i) Life Insurance, (ii) Health insurance and (iii) General Insurance
To get insurance an individual or an organization can approach to an insurance Company directly, through Insurance Agent of the concerned company or through Intermediaries.
Benefits of InsuranceInsurance is the instrument of Security, saving and peace of mind. It provides several benefits by paying a small amount of premium to an insurance company as:
Safeguards oneself and one's family for future requirementsPeace of mind-in case of financial loss. Encourage saving.Tax rebateProtection from the claim made by creditorsSecurity against a personal loan, housing loan or other types of loanProvide a protection cover to industries, agriculture, women and child
6
India’s Insurance Sector Overview
Indian insurance market size is presently estimated at US$ 66-70 million. By 2006, it
was expected to grow five-fold to US$ 377 million. In 2000-01 fiscal year, total
premiums stood at US$ 9933 million which is 0.41 percent of total global premiums
of US$ 2443.6 billion. Total premiums of Indian insurance industry in 2000-01 fiscal
was 2.32 percent of country's GDP. Per capita premium stood at US$ 9.9. Indian
insurance market potential could be gauged by the fact that currently about 40-42
million people have been brought under insurance whereas the potential is estimated
at 200-250 million. Insurance companies could tap only 5 percent of Indian middle
class segment.
Indian federal government considers insurance as one of major sources of funds for
infrastructure development. The government has identified the following as major
thrust areas:
Timely and reliable statistical data and information about policies and markets
to instill a degree of credibility;
A code of good practices based on international best practices to raise the
standard of Indian insurance sector;
Strengthening of supervision and regulation;
Market participation in decision-making;
High solvency standard' and Developing alternative channels.
Till end of 1999-2000 fiscal year, two state-run insurance companies, namely, Life
Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the
7
monopoly insurance (both life and non-life) providers in India. Under GIC there were
four subsidiaries-- National Insurance Company Ltd, Oriental Insurance Company
Ltd, New India Assurance Company Ltd, and United India Assurance Company Ltd.
In fiscal 2000-01, the Indian federal government lifted all entry restrictions for private
sector investors. Foreign investment insurance market was also allowed with 26
percent cap.
IS INSURANCE A WORTHWHILE CAREER?
Considering that insurance is a profession that is identified with accidents and untoward
incident and those insurance officials have a poor image of over promising and under-
delivering on the insuring public, is insurance an honorable and worthwhile profession?
The answer is yes.
This profession provides a framework for learning about human nature at its raw;
makes one persistent in his efforts; provokes to rethink on revised strategies and
procedures for achieving goals. One is required to think and feel like a lawyer and to
make allowance for the views and feelings of others in arriving at decisions. One is
required to rapidly build up gaps in his knowledge base, should he want to succeed in the
profession. One’s ability to compromise and work with others is continually on trial. One
has an opportunity to become a complete human being who can show care and
consideration for others.
Insurance Regulatory Authority:
On the recommendation of Malhotra Committee, an Insurance Regulatory Development Act (IRDA) passed by Indian Parliament in 1993. Its main aim is to activate an insurance regulatory apparatus essential for proper monitoring and control of the Insurance industry. Due to this Act several Indian private companies have entered into the insurance market, and some companies have joined with foreign partners.
8
In this economic reform process the Insurance Companies will boost the socio-economic development process. The huge amount of funds that will be at the disposal of Insurance Companies will be directed as desired avenues like housing, safe drinking water, electricity, primary education and infrastructure. The growth of the debt market will also get a boost. Above all the policyholders will get better pricing of products from competitive insurance companies.
There are some benefits of life Insurance as: Protection: Life Insurance guarantee full protection against risk of death of the
assured. In case of death, full sum assured is payable.
Long term saving: Life Insurance encourages long term saving. By paying a small premium in easy installments for a long period a handsome saving can be achieved.
Liquidity: Loan can be obtained against a policy assured whenever required.
Tax Profit: Tax relief in income tax and wealth tax can be availed on the premium paid for Life Insurance.
By the year 1956, 154 Indian insurance, 16 non-Indian insurance and 75 provident societies were carrying on Life insurance business in India. On 1st September 1956 all the Insurance Companies were nationalized. On September 1956, LIC Act was passed by Indian Parliament and the state run Life Insurance Corporation of India (LIC) has held the monopoly in countries life Insurance sector.
Life Insurance Products
Almost every company is offering same products, the difference are rates of
premium, or the riders. Some of the important products are as follow:
An Endowment Policy: Under this, policyholder will get survival benefits (if
he/she survives the policy) or his/her nominees, will get sum assured plus
addition bonus, if applicable (in the event of policyholder’s death).
Money back Policy: Under this policy holder will get a portion of his/her sum
assured at regular intervals during their lifetime; in the event of policy holder’s
death, nominee of the policy will get the sum assured, with additions and bonus,
where applicable.
A whole Life Plan: Under this policyholder pay premium virtually through his/her
9
life time, and not be eligible for any of the benefits, which will go only to the policy
nominee.
A tem Plan: Under this policyholder will get insurance cover for a specified term,
typically 5, 10, 15 years. Benefits accrue to nominee only in the event of
policyholder’s death during the period.
Distribution Channels in Life Insurance
Distribution is all about getting your product/service to the right people at the right
time with special consideration for profit and effectiveness. Successful marketing
does not end when a business has developed a product/service and has found
its appropriate target audience with a view to selling it at the 'right price'.
The next issue that needs to be faced is how they are going to distribute and sell
this product/service to the people- the consumers. When a consumer purchases
a product/service, it may have been bought directly from the business, or it may
have been through a number of intermediaries (Brokers, Agents, etc).
10
ABOUT THE COMPANY
The business of insurance done by insurance companies (13 private and 1 public) called
as insurers, is to bring together persons with common insurance interests (Sharing the
same risks), collecting the share or contribution (called premium ) from all of them and
paying out compensation (called claim) to those who suffer.
THE CURRENT SET-UP:
With opening up of the insurance sector for private participation in the year 2000, private insurance companies mostly together with a foreign joint venture partner have entered into the non-life insurance market. There are six public sector companies including Agriculture insurance companies and eight companies in the private sector.
The business of insurance done by insurance companies (13 private and 1 public), called insurers is to bring together persons with common insurance interests (sharing the same risk), collecting the share or contribution (called premium) from all of them and paying out compensation (called claim) to those who suffer.
SL.NO COMPANY PAID UPCAPITAL (IN
CRORE)
RANK
1. ICICI PRUDENTIAL RS. 925 1ST
2. MAX NEW YORK LIFE RS.305 2ND
3.HDFC STANDARD LIFE RS.255 4TH
4. BAJAJ ALLIANCE RS.250 5TH
5. BIRLA SUN LIFE RS.290 3RD
11
6. TATA AIG LIFE RS.231 7TH
7. OM KOTAK MIHINDRA RS.203 8TH
8. AVIVA LIFE RS.240 6TH
9. ING VYSYA RS.200 9TH
10. SBI LIFE RS.175 10TH
11.AMP SANMAR RS.160 11TH
12. MET LIFE RS.120 12TH
While competition is catching up with the life insurance after liberalization, a look at the
top line private players in terms of the key ratios like expense ratio, efficiency of capital
employed and persistency for the financial year 2008-2009 shows that ICICI
PRUDENTIAL LIFE (IPL) has emerged as a leader.
Even while LIFE INSURANCE CORPORATION (LIC) continues to be the leader
having a market share of 92 percentage in the life insurance market, among the new
private players.
In the short span since the insurance sector was opened up, ICICI Prudential Life
Insurance has literally dictate the market’s evolution. Catering to all age and income
segments, the company started out with the traditional insurance policies that were easy
to understand. The idea was to entice customers used to LIC’S style of functioning.
The gap between ICICI Prudential and the second_in_line private insurer is vast. In fact,
this hiatus has led some analysts to wonder if the company is not a trifle too aggressive.
But others say this has more to do with the company’s customer-centric fous, it’s pan-
India presence and superior risk management and investment strategies ICICI Prudential
is not, however, resting on its laurels. The company will continue to innovate and set the
standards.
12
ABOUT ICICI PRUDENTIAL LIFE INSURANCE
PARTNERS:
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset management Company, which has today emerged as one of the leading mutual funds in India. Riding on the success of this relation, the two companies joined hands once more in 2000, to form ICICI Prudential Life Insurance, with a commitment to provide leading edge life insurance solutions.
PRUDENTIAL PLC
Established in 1848, Prudential Plc is a leading international financial services company IN THE U.K.As of June 2008, the company had over US $300 in billion funds under management and more than 16 million customers worldwide. Prudential has brought to the market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is UK’s largest life insurance company with a vast network of 22 life and mutual fund operation in 12 countries—China, HongKong,India,Japan,korea,Malaysia,Phillipines,Singapore,Tawain,Thialand and Vietnam. Since1923, Prudential, has championed customer centric products and services, supported by over 60,000 staff and agents across the region.
13
PRUDENTIAL IN ASIA:
77 YEARS EXPERIENCE IN ASIA
OVER 65000 STAFF AGENTS
OVER 1 MILLION CUSTOMERS
IN 12 COUNTRIES THROUGHOUT ASIA
ICICI PRUDENTIAL IN INDIA:
ICICI Prudential Life Insurance Company is a joint venture company between ICICI Bank, a premier financial powerhouse and prudential Plc, a leading international financial services group headquater in the United Kingdom. This joint venture is formed in the year December, 2000 and ICICI Prudential was amongst the first private sector companies to begin operations in December, 2000 after receiving approval from the Insurance Regulatory development Authority (IRDA). ICICI Prudential’s equity base stands at Rs 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the period of April – dec 2008 the company garnered Rs 8.6 billion of new business premium for a total sum assured of over Rs 73.6 billion and wrote nearly 3,45,000 policies.
COMPANY PRODUCTS
Insurance Solutions for Individuals
14
ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its 27 products can be enhanced with up to 6 riders, to create a customized solution for each policyholder.
Savings Solutions
SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of protection.
CashPlus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options.
Saver Protect is a traditional endowment savings plan that offers life protection along with adequate returns.
CashBak 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.
LifeTime & LifeTime II 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.
LifeLink 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.
InvestShield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms.
Protection Solutions
LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options level term assurance, level term assurance with return of premium and single premium.
Child Plans
SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child’s life. SmartKid plans are also available in unit-linked form both single premium and regular premium.
Retirement Solutions
ForeverLife is a retirement product targeted at individuals in their thirties.
15
SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover.
Market-linked retirement products
LifeTime Pension II is a regular premium market-linked pension plan
LifeLink Pension II is a single premium market-linked pension.
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Pru group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.
ICICI Pru Group Term Plan: ICICI Pru flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
16
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer.
Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.
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.
Major Surgical Assistance Benefit: provides financial support in the event of medical emergencies, ensuring benefits are payable to the life assured for medical expenses incurred for surgical procedures. Cover is offered against 43 surgical procedures.
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, SecurePlus and CashPlus
MARKET SHARE: APRIL-FEB 2009 OF ICICI PRU :
With a total business worth Rs.11,500 crore during this fiscal, the market share of
ICICI Prudential Life Insurance has touched 12 percent, reflecting the trust of
retail investors in India for saving towards their long term financial goals,
including life and health insurance,
ICICI-12%
VISION17
TO BE THE DOMINANT PLAYER IN THE LIFE INSURANCE INDUSTRY.
Recruitment of good quality advisors
Intensive product training
Selling skills through training
Superior technology and processes
Innovative financial solutions
INTRODUCTION OF THE TOPIC
18
The task is to choose the good quality advisor those who are having the following quality.
Confidence
Self motivation And Persuasion
Urge to be financially
independent
Relationship skills
I have to recognize where a person (whom I meet to recruit him/her as an advisor) having
all these characteristics or not .If some person is closed enough to these characteristics
then. I discussed the following support pattern.
After getting all these information an advisor basically asked about the working
environment. Then I discussed the working environment and try to convince him/her
that he/she has the potential to become an agent/advisor.
1. To be part of a world class sales team.
2. Work from his/her (advisor) own office or residence.
3. Work full time or part time.
4. Earn commission, bonus and incentives.
5. No upper limits on earnings.
6. Flexible career.
Therefore the first and for most problem is to convinced that person those who
having enough patience to listen my companies idea/views.
The role of the advisor is to quite effective to search a good prospect.
FUNCTION OF ADVISORS:
19
Advisors provide on going financial advice for his /her client/prospect. In our
official term prospect is a person who can buy life insurance from us.
The advisors study the prospects needs and persuade them to buy a policy.
Complete all formalities for proposal of new insurance, including filling up forms.
collecting premium. arranging medical examination, collecting proofs (of
age/income), reports and information required by the underwriter.
After having sold a new insurance policy, the advisor has to ensure that the
policy continues. without a lapse. till it becomes a claim. For that reason an
advisor has to do the following:
1. Keep in touch with the policy holder to make sure that renewal premiums are
paid in time.
2. Ensure that nominations are made or changed, if necessary
3. Assist in collecting claim amounts.
As an advisor you contribute in bringing in new business for the company offer
world class pre and post sales service to the clients with the support of the
organization.
But an advisor to us means much more than a salesman or a, saleswoman, at ICICI
Prudential recognize our advisors as the ambassadors of our organization in the market
place and we consider the advisor force would be our biggest differentiating factor in the
coming years.
That is why; we take a lot of care in recruiting and developing our advisor force, so that
we can maintain our standards of quality in service and salesmanship.
The competition and the customer awareness have forced the times to be a knowledge
20
oriented marketplace. Appreciating the same we strive to get people with reasonably
good graduation background as our advisors. We also acknowledge and recognize prior 11
sales experience of the persons, at the time of recruitment.
The other function is to be of assistance to the policy holder in case he/she needs a loan
under the policy.
ROLE OF AN ADVISOR:
1. Identify future clients/prospect
2. Making appointment.
2. Conduct financial review meeting with prospect.
4. Close sale.
5. Get referral
6. Provide service to clients/prospect.
7. Follow internal sales and reporting system.
After analyzing the quality(which the company is looking for), back office service
(which the company is giving to that person). functions to be performed, role to be played .
I used to describe the benefits which the advisor can get out of his/her joining
as an advisor in ICICI Prudential Life Insurance Company.
21
OPPORTUNITIES
1. No start up capital is required to becoming an advisor.
2. Flexible working environment.
3. Be his/her own boss.
4. Unlimited earning potential.
5. To be part of world class team.
Besides these ICICI Pru has given the following benefits to the individual those who are
willing to join as an advisor in our company.
REMUNERATION
The advisor is remunerated by way of commission on the premium paid under
policies canvassed by him/her. The rates of commission vary according to the plans of
insurance and the term of the policy. It also differs between first year premiums and
subsequent premiums. To analyze the premium structure it is necessary to discuss
the product portfolio. ICICI Pru has more than 28, types of different policy and we can
classify them in to three groups.
In IC1C1 Prudential each point is recognized by equal amount of rupees and this
quality is determined at the beginning of the year by the company. This year one point is
amounted to twelve rupees. Before the year ending total points multiplied by the rupee and
the amounted sum is used to buy a gift for that advisor.In ICICI Prudential some contest and
initiative will be taken at the beginning of the year. These are discussed below:
22
CONTEST AND INITIATIVES :
1. ICICI Pru star club -India
2. ICICI Pru star club - international.
3. Presidents club.
CLUB MEMIBERSHIP:
PRESIDENTS CLUB: One advisor can get a membership in this club by
qualifying the following details.
Qualification criteria:
Logins between 1st Jan; 2009 up to 3l" Dec. 2009.
# Issuals between 1st Jan, 2009 up to 15th Jan, 2009.
# Only urban and enforce policies will be considered at the time of results.
# Activation based on Activity Chart.
# Baseline WRP Rs. 30. 00.000.
# No lives criteria for qualification.
# Persistency required minimum 85 percent based on premiums.
WRP (weighted received premium includes):
All first year policy premiums as per login and issuance criteria mentioned.
# 100 percent of regular premiums received
# 10 percent of single premiums and top- up received.
23
Period of login and issuance :
Logins: 1st April '05 to 31st March
Issuance: 1st April '09 to 15th April '09
Activity chart :
No of months since licensing Minimum no of months
Or Duration of contest Advisors need to be Active
1, 2,3 100%
4,5,6 3 months
7, 8, 9 6 months
10, 11,12 9 months
Winning criteria :
Top 225 advisors based on % over achievement of the Baseline
Top 25 in the above group will travel with spouse
Atomization Criteria fulfillment according to Activity Chart
Only urban and inforce policies will be considered at the time of final results
Persistency required 85% based on premium.
The company facilitate the rest of the advisors to take their spouse along at the Advisor
cost. Based on performance the advisor can qualify for the BEST STAR CLUB.
24
RECRUITMENT AND SELECTION PROCEDURE :
Approaching the Agency
¯
Filling up the compulsory IRDA
form
¯
Scheduling the training
¯
Conduction of examination
¯
Final selection as LA
The person has to pay Rs. 1000/- for becoming an Advisor. That person is given an 8
days intensive training in which he is also given product details.
After the training is over the person has to give an examination named as IC 33 taken by
Insurance Regulatory and Development Authority.
Once the person clears his examination a code is generated in his name. The person
now becomes an Advisor and is ready to bring business.
There are also some criteria examined to be an Insurance Advisor:-
Age Above 25 ? Yes / No
Married ? Yes / No
Are you a graduate ? Yes / No
25
Living in same city for more than 5 years ? Yes / No
Household income about 2 Lakhs ? Yes / No
The person who fulfills three criteria out of the above five is eligible to become an
advisor.
BEING AN ADVISOR
Being have a career as an advisor with ICICI Pru life insurance aspire to provide
state of the art customer service and opportunities and avenues for enterprising people to
grow and prosper.
Backed by the latest technology, they will offer their customer:-
Complete and diversified product portfolio
Faster and more accurate service
Multi-channel distribution system
Would people be interested in a job where:-
Earning potential is unlimited
Have a clear career path
Supported with your own efforts, consultants and supervisor training.
Provides a comprehensive benefit package
If so, they may want to consider joining the team and become an advisor with them.
26
WORKING ENVIRONMENT OF AN ADVISOR:
To be part of world class sales team.
Work from your own office or residence.
Work full time or part time.
Earn commission, bonus and incentives.
No upper limit of earning.
Flexible career.
What does it take to be an ICICI Prudential advisor?
At ICICI Prudential, we believe that our Advisors are our ambassadors to the customers.
They are a key source of business for the organization, and are
The continuing link with our clients. That is why, we take a lot of care in recruiting and
developing our advisor force, so that we continue to set higher standards of quality in
service and salesmanship. To cater to the needs of the knowledge-oriented marketplace,
we look for graduates who are service-oriented, good communicators and enjoy meeting
new people. Prior sales experience is an added benefit.
TRAINING
At ICICI Prudential, we understand the importance of training in a dynamic business
environment. Our advisors go through both generic and specific, professional programs
that help them remain well informed and knowledgeable about the company’s products in
the market. There is a further focus on soft skills such as communication, managing long-
term relationships and selling skills, which are very relevant in a service-driven industry
like life insurance.
27
State of the art infrastructure training facilities coupled with an excellent faculty,
guarantee an exceptional learning environment. For advisors who might be occupied with
their daily business/professional routines, ICICI Prudential also offers convenient training
options such as online and self-learning are also provided by the organization.
A 15-day training schedule covers the mandatory IRDA training requirements and ICICI
Prudential product-training module. Revision session ensure that the candidates
thoroughly understand the course contents and are well prepared for the licensing
examination. Theoretical training is interspersed with practical appointment settings with
potential customers, giving advisors a feel of how their business will work from the very
first day. All through, the Unit Manager and the management provide continuous support
to the advisors in achieving independence towards garnering business.
28
OPPURTUNITY FOR BEING AN ADVISOR
No start up capital required.
Flexible working environment
Be your own boss.
Unlimited earning potential
To be a part of world class team.
COMMISSION STRUCTURE
Year 1 Year 2 Year 3
Number of policies sold 100 150 200
Average Premium Rs. 20000 20000 20000
Total Premium earned Rs. 2000000 4000000 4000000
Average Commission including
bonuses estimate @ 22.5%*
450000 675000 900000
Earning from New Business Rs. 450000 675000 900000
Commission on Renewal Premium @
6% for year 2, 3 and 3 % after that
120000 180000
120000
Earning from Renewal business Rs. 120000 300000
Total Earning Rs. 45000 795000 1200000
* Depending on the product mix Commission can go upto 35% in the 1st year, 7.5 % in
the 2nd and 3rd year and 5% 4th year onwards.
29
Chapter 3
Research Methodology
30
REASEARCH METHDOLOGY
The study of research methodology gives the student the necessary training in gathering
material, participation in field work when required, and also training in techniques for the
collection of data appropriate to particular problem, in the use of statistics, questionnaires
and controlled experimentation and in recording evidences, sorting it out and interpreting
it. Knowledge of research methodology plays a key role in project work. It consists of
series of actions or steps necessary to effectively carry out research and the desired
sequencing of these steps.
Data Collection Method
Data can be collected by Primary as well as secondary method.
Primary Data Sources
Questionnaire methods and discussions were used to collect data.
Questionnaire Designed: Questionnaire was used for the survey.
Secondary Data Sources
The secondary data sources were collected from the company manuals, handbooks,
websites and management books and are edited to suite the purpose.
Sampling technique:
Stratified sampling technique is adopted to conduct the research. Stratified sampling is a
selection method for achieving a greater degree of representatives, therefore decreasing
31
the probable sampling error. It is based on the concept that a homogeneous population
produces samples with smaller sampling errors than does a heterogeneous population.
Stratified sampling is accomplished by placing all the members of the population into
groups according to some characteristics that is common among them, that is
homogeneous subsets of the population. Then specified number of unit is chosen from
each of the groups or strata by purposive means.
Sample Size:-
Sample size was taken 65 to undertake the survey.
32
CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
Analysis 1
Age of respondents: the following is the distribution of age of the respondents.
33
Age <25 Years 25-35 Years 35-45 Years >45 Years
Number of
individuals
29 17 14 5
Interpretation: Less than 25 years of age individuals constitute 48.33% of sample size .Whereas individuals with more than 45 years of age constitute only 8.33%.
Analysis 2
Sex of respondents
34
Interpretation: Sample is dominated by males which constitute 73.33% of total size.
More males are recruited as agents.
Analysis 3
Occupation of Respondents
Occupatio
n
Studen
t
Pvt.
Employee
Govt.
Employee
Others
Number 14 8 17 26
35
Interpretation: Sample is dominated by students and Others who are interested in
becoming insurance agents.
Analysis 4
Are you satisfied with the training provided to you?
36
Interpretation: Most of the individuals are satisfied with the training process which
ICICI provides to them.
Analysis 5
Marital status:
Interpretation: 52.30% of the sample size is married people.
Analysis 6
Question: Do you think insurance agent business is career oriented?
Yes – 49 No- 16
37
Interpretation: Almost 64.54% of Individuals think insurance agent business is career
oriented.
Analysis 7
Question: How will you rate ICICI’s training program ?
o Excellent
o Good
o Fair
o Poor
38
Interpretation: 81.66% trainee rate program as Good & Excellent .
Analysis 8
Question: Were you able to acquire skills from training ?
Yes: 47 No: 18
Interpretation: Most of the candidates think that they were able to acquire skill
form training and gained confidence.
39
Analysis 9
Question: Given a chance would you like to make extra money from other
business?
Yes: 59 No: 6
Interpretation: 90.76% of the individuals would like to make extra money from
some other business.
40
CHAPTER 5
FINDINGS ANDCONCLUSION
Findings:The findings are based on the survey undertaken and interview of individuals and I came across that although the training process was beneficial to advisors but they still lack confidence in this business and mostly take it as part time business. The other findings are summarized as follows:
41
People don’t show interest in trainings.
People can have only one license which also restricts them to become
an agent.
People do not afford the training period.
People are not interested to invest Rs1000 for an agents job.
People like to have a fixed salary job.
RECOMMENDATIONS
42
1. Try to know the reason for being not interested.
2. Try to make them aware as much as possible regarding product profile which is best
in the market like S&P, life time, life time pension and smart kids.
3. Convince them by saying that we also have evening classes or on line training
program so that; that person can easily afford this time.
4. If the person will make one policy he/she will be able to earn that much of money by
means of commission not only that during training period IRDA charge Rs8500/ per
trainee but ICICI Pru is taking only Rs1000/.
5. Try to fix minimum targets for new recruited as they are new in field.
6. Team leader should constantly motivate and suggest the beginners.
43
Chapter 6
Bibliography
BOOKS: MARKETING MANAGEMENT
(PHILIP KOTLER)(RAJAN SAXENA)
RESEARCH METHODOLOGY,(C.R.KOTHARI)
COMPANY BROCHURE:
44
APPENDIX
SURVEY QUESTIONNAIRE
46
1. Name:
2. Age:
3. Sex: Male Female
4. Occupation:
Government Employee Private Employee Student Others
5. Are you satisfied with the training provided to you?
o Yes
o No
6. Are you Married ?o Yes
o No
7. Do you think insurance agent business is career oriented? o Yes
o No
8. How will you rate ICICI’s training program?
o Excellent
o Good
o Fair
47
o Poor
9. Were you able to acquire skills from training?
o Yes
o No
10. Given a chance would you like to make extra money from other business?o Yes
o No
48
