ICICI GROUP
COMPANY PROFILE
The Industrial Credit and Investment Corporation of India Limited (ICICI) was formed in 1955 which is incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry.
Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited.
ICICI was also among the first Indian companies to raise funds from international markets.
WHAT IS ‘ICICI GROUP’?
ICICI Group is a diversified universal banking group.
ICICI Group’s expertise spans a vast range of financial services, including banking, broking, mutual funds, insurance, home loans, venture funds and much more.
The Group is the largest consumer credit provider and the biggest private sector, life and general insurer in India.
STRUCTURE OF ‘ICICI GROUP’
ICICI Prudential
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 (UK).
The company was granted a certificate of Registration by the IRDA on November 24, 2000 and eighteen days later, issued its first policy on December 12.
ICICI Prudential was the first life insurer to invest in multiple channels and offer the customer choice and access
ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 132 cities and towns in India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to Trivandrum in the south.
The company has 9 bank partnerships for distribution, having agreements with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-operative banks, as well as over 200 corporate agents and brokers, it has also tied upwith NGOs, MFIs and corporates for the distribution of rural policies.
ICICI Prudential Life's capital stands at Rs. 37.72 billion (as on February, 2008) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively.
ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings.
The AAA rating is the highest credit rating, and is a clear assurance of ICICI Prudential’s ability to meet its obligations to customers at the time of maturity or claims.
VISION
Understanding the needs of customers and offering them superior products and service.
Leveraging technology to service customers quickly, efficiently and conveniently.
Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders.
Providing an enabling environment to foster growth and learning for our employees.
And above all, building transparency in all our dealings.
CORE VALUES
The success of the company will be founded in its unflinching commitment to 5 core values*–
Integrity
Customer First
Boundary less
Ownership
Passion.
DEPARTMENTS AND BRANCHES
Branches:
The largest distribution networks amongst private life insurers in India.
It has a strong presence across India with over*945 branches in addition to*550 micro-offices and an advisor base of 270,000.
Distribution Network:
1.Agents (Financial Advisors):-
Anybody possessing the minimum qualification of 10+2 after completing 100 hrs of training from the training institute approved by IRDA.
2. Corporate Agents:-
Any corporate may apply for license to sell insurance after complying with the requirements of IRDA.
3. Bancassurance:-
If the corporate agent is a bank, then it is known as bancassurance.
Banks can sell the policies to their existing as well as prospective clients.
This is becoming quite popular these days and the bank earns huge fund based income.
Bancassurance has 1% share in total premium collection in 2004-05.
4. Broker:-
They are like corporate agents with only difference that they can sell the products of more than one insurance company.
Departments:
a) Marketing Department:
This department mainly deals with the marketing and promotion part of the Insurance Company.
They spend most of their time in formulating strategies to make their products known to the common people and to promote the same in a easy and cost effective way.
b) Sales Department:
This department mainly deals with the sales part of the Insurance Company; the department includes designations like Sales Manager and Financial Advisor who personally contacts with people for performing the task of sales of various products.
c) Accounts/ Financial Department:
This department has the task of keeping track of the various expenses incurred by the various other departments of the organization and also performs the task of allocating various funds to different departments according to their requirements.
d) Human Resource Department:
This department is handled by the Human Resource manager of the company.
The function of this department involves the well being of the employees of the company, i.e., to see whether there is employee grievance in the organization or not
e) Investment Department:
This department deals with the task of investing the money of the policy holders in such way that will ensure both safety of the money and also a steady return on the same.
The task of this department is very difficult as it deals with the money given by the policy holders, so it requires lot of thinking on the part of the personnel of this department before deciding where to invest the money.
f) Actuarial Department:
This department is under the supervision of an Actuary who decides the premiums and charges to be taken from the policy holder on the basis of certain information’s (like Age, Annual Income etc.) provided by the prospective customer.
The task also involves the calculation of mortality charges which requires high statistical knowledge from one’s point of view.
So, this department involves in the calculation of various amounts to be charged from the prospective customers.
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 4 riders, to create a customized solution for each policyholder.
Savings & Wealth Creation Solutions
Save'n'Protect
CashBak
LifeTime Gold & LifeTime
LifeLink Super
Premier Life Gold
InvestShield Life New
InvestShield Cashbak
LifeStage RP
Protection Solutions
LifeGuard is a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium & single premium.
HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.
Education insurance plans
Education insurance under the Smart Kid brand provides 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
ForeverLife is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually.
LifeTime Super Pension is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase price) at the time of retirement.
LifeLink Super Pension is a single premium unit linked pension plan.
Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options.
PremierLife Pension is a unique and convenient retirement solution with a limited premium paying term of three or five years, to suit professionals and businessmen, especially those who require more flexibility and customization while planning their finances.
Market Share among Private players
Interpretation:
ICICI PRUDENTIAL BECOMES THE MARKET LEADER AMONG PRIVATE PLAYERS:
ICICI Prudential strengthens its position at the top of the heap by increasing its market share by 4% in the month of Jan 2008, followed by Bajaj Allianze with 21% market share. These two private players contribute 50% of the total insurance market among the private players.
Awareness of ICICI Prudential life insurance
% of respondents who are under different plans of ICICI Prudential life insurance co.
ANALYSIS:
From the survey it was found that amongst 100 respondents
41% of the respondents are under invest gain plan
36% of the respondents are under unit gain plan
8% of the respondents are child gain plan
15% of the respondents are whole life plan
CONCEPTUAL BACKGROUND
Satisfaction is defined as . . .
“A person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.”
Customer Satisfaction can be defined as supplying or gratifying all wants or wishes, fulfilling conditions or desires, or the state of the mind anything that makes a customer feel pleased or contented
Consumer Behavior:
Consumer behavior is defined as the behavior that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services ideas, or experiences to satisfy needs and desires
Customer value:
The ratio between the customers’s perceived benefits (economic, functional and psychological) and the resources (momentary, time, effort, psychological) used to obtain those benefits.
Customer Satisfaction:
Customer satisfaction is the individual’s perception of the performance of the product or service in relation to his or her expectations.
Motivation:
The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.
Perception is defined as the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world.
Consumer learning is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behavior.
CUSTOMER SERVICE AND OPERATIONS OF ICICI PRUDENTIAL
The 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 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
Information Technology
The Information Technology function at ICICI Prudential is committed to enable business through the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the customers:
Life Asia Solutions Group that provides flexibility in designing better product offerings to end-users, the Solutions Group- Web that provides real-time information to customers and is responsible for customer relationship management, IT Architecture & Corporate Solutions
This team works as an in house R&D Solution Group, exploring new technological initiatives and also caters to information needs of corporate functions in the organization.
THE CONSUMER ADOPTION PROCESS
The consumer adoption process is the process by which customers learn about new products, try them, and adopt or reject them.
Today many marketers are targeting heavy users and early adopters of new products recognizing that specific media can reach both groups and tend to be opinion leaders.
The consumer adoption process is influenced by many factors beyond the marketer’s control, including consumers and organizations willingness to try new products, personal influences and the characteristics of the new products or innovations
STAGES OF ADOPTION PROCESS
AWARENESS
INTEREST .
EVALUATION
TRIAL
ADOPTION
In case of insurance sector, the process mix includes the various interactions that take place between the insurance agent and the customer in the process of selling the policy to the customer till the settlement of claims.
process of selling the policy to the customer
Insurance agent calls up the customer
Insurance agent meets the customer
Financial review form (FRF)
Insurance agent suggests two or three policies
Insurance agent explains the different policy plans in detail to the customer
A feedback form customer selects the policy plan, insurance agent submits the duly filled and signed form in the insurance office
An average twelve days time is taken by the company to verify the submitted documents.
After the twelve days period, the insurance agent meets the customer to provide him a policy document, which consists of the terms and conditions of the policy a reconfirmation regularly collects the premium
SUGGESTIONS
Consumer should be aware of company’s profile and returns associated with insurance.
Company should publish their performance by comparing it with their competitors.
Company should adopt strategies to explore that private insurance companies are safer and securer than public insurance company like LIC Middle income people suggest that premium can be collected on monthly basis instead of twice a year.
Company’s reputation is more important because bad impression on image or brand name is considered while decision making among consumers.
To increase the market share of the company. There are some recommendations.
SUGGESTIONS
Open some more branches in semi urban and rural area.
Improve customer services.
Trained the financial advisors more efficiently.
Things you didn't know about ICICI Prudential
The logo is the combination of ICICI Bank’s I-man and Prudential’s lady prudence. The I-man signifies the dynamic individual with drive and conviction, while Prudence epitomizes wise conduct.
Every three minutes ICICI Prudential protects one more Indian life.
ICICI Prudential is the only Indian life insurance company to have an equity base of more than Rs. 5 billion.
ICICI Prudential is the only life insurance company to implement a Six Sigma quality programme.
Of the company’s 2,000 plus employees, less than 5% have prior experience in the life insurance industry.
The average age of its employees is 29 years.
Insurance is a safeguard against uncertain events that may occur in the future. Over the last 5 to 6 years, the ICICI Prudential life insurance company has tripled investor’s money than the other competent; this progress leads to increase the company image and makes a way to lead the total insurance market.
Thus the study also comprise company image is the highly important criteria that consumers consider before taking up a life insurance