Need satisfaction motivated behaviour: static and dynamic aspects
Consumer Behaviour and Satisfaction on ICICI
Transcript of Consumer Behaviour and Satisfaction on ICICI
A Study on Consumer Behaviour
And Customer Satisfaction
AT
ICICI Prudential Life Insurance Service
A.JAGAN
Reg. No. 40908631017 Of KARPAGA VINAYAGA COLLEGE OF ENGINEERING AND TECHNOLOGY Submitted to the FACULTY OF MANAGEMENT STUDIES In partial fulfillment of the requirements For the award of the degree Of MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY
CHENNAI – 600 025
KARPAGAVINAYAGACOLLEGE OF ENGINEERING AND TECHNOLOGY
DEPARTMENT OF MANAGEMENT STUDIES G.S.T. Road, Chinna Kolambakkam, Palayanoor Post, Madhuranthagam (T.K.), Kancheepuram – 603 308.
Phone : 044 27565486, 27598232
BONAFIDE CERTIFICATE
This is to certify that the project report entitled as “A STUDY OF CUSTOMER SATISFACTION” is a bonafide work done by MR.A.JAGAN of Reg.No.40908631017, who carried out study under my supervision certified further that to the best of my knowledge the work reported here in doesn’t from part of any other summer training report on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidates.
Prof. C.V.Rajagopalan
Mr.N.Elanchaezhian
Head of the Department Guide in charge
DECLARATION BY THE STUDENT
This is to state that the training report titled “A Study on
Consumer Behaviour and Customer Satisfaction at ICICI
Prudential Life Insurance Service in Tiruvarur Dist”is
based on the original work carried out by me towards the partial
fulfillment of requirement for the M.B.A program of the Anna
University Chennai. This report has not been submitted to any
other University for the award of any Degree or Diploma.
Date:
Place: A.JAGAN
ACKNOWLEDGEMENT
I give my deepest thanks to the Lord Almighty for giving me all the wisdom, the knowledge and strength to carry out this project in a successful manner.
I am immensely thankful and profoundly grateful to Smt. MEENAKSHI ANNAMALAI,DIRECTOR, KVCET, for having me this amply opportunity to do this professional course in this campus.
I express my sincere gratitude and thanks to Professor. T.RANGARAJULU, PRINCIPAL, KVCET, for facilitating to conduct research study.
I am deeply indebted to Professor. C.V.RAJAGOPALAN, HEAD OF THE DEPARTMENT OF MANAGEMENT STUDIES, KVCET, Whose timely suggestion and encouragement helped and me to complete this project successfully.
I express my sincere and profound thanks to my project guide Mr.N.Elanchaezian, whose guidance, induced information, timely suggestions and encouragement help me to complete this project successfully.
It is my great respect to express my heartiest gratitude to Mr.D. RAMANKUMAR, manager. A Study on Consumer Behaviour and Customer Satisfaction at ICICI Prudential Life Insurance Service in Tiruvarur Dist ., for having devoted much of their precious time in giving me valuable guidance and explaining the details parting to my project work.
I am thankful to all my MBA faculty members, my mother Mrs.S.Sandhiya, my sister S.Harini and all my friends for helping and encouraging me during the period of my project.
D.RAMAN KUMAR ICICI Bank LimitedBranch Manager Tiruvarur Dist…_____________________________________________________________________________________
CERTIFICATE
This is to certify that Mr. A.JAGAN , Final year MBA student of Karpaga vinayaga college of engineering & Technology, Chennai- 600119, has successfully completed his 3 week project work on “ A Study on Consumer Behaviour and Customer Satisfaction at ICICI Prudential Life Insurance Service in Tiruvarur Dist ” from 25.06.2009 to 24.07.2009 under my supervision at District Branch office , ICICI Bank , Tiruvarur - 614101.
Date:Place: D.RAMANKUMAR
Branch Manager
CONTENTS
CHAPTER NO.
TITLE PAGE NO.
1 INTRODUCTION 1 - 23
1. INDUSTRY PROFILE
2. COMPANY PROFILE
3. PRODUCT /SERVICE PROFILE
2 REVIEW OF LITERATURE 24
3 RESEARCH METHODOLOGY 25-40
1.STATEMENT OF THE PROBLEM
2.OBJECTIVE OF THE STUDY
3. SIGNIFICANCE OF THE STUDY
4 FINDINGS AND RECOMMENDATION 41-42
BIBLIOGRAPHY 43
ANNEXURE
LIST OF TABLES
S.NO TITLE PAGE NO.
1. Table showing Age group of respondents 18
2. Table showing Qualification of respondents 20
3. Table showing Benefits of choosing the product 22
4. Table showing Disadvantages in insurance plans 24
5. Table showing Investment avenues 26
6. Chi - Square Test 28
LIST OF FIGURES
S.NO TITLE PAGE NO.
1. Age group of respondents 192. Qualification of respondents 213. Benefits of choosing the product 234. Disadvantages in insurance plans 255. Investment avenues 29
INTRODUCTION
Life insurance is a form of insurance that pays monetary proceeds upon the
death of the insured covered in the policy. Essentially, a life insurance policy
is a contract between the named insured and the insurance company wherein
the insurance company agrees to pay an agreed upon sum of money to the
insured's named beneficiary so long as the insured's premiums are current.
With a large population and the untapped market area of this population
insurance happens to be a very big opportunity in India. Today it stands as a
business growing at the rate of 15-20% annually. Together with banking
services, it adds about 7 percent to the countries GDP. In spite of all this
growth statistics of the penetration of the insurance in the country is very
poor. Nearly 80% of Indian populations are without life insurance cover and
the health insurance. This is an indicator that growth potential for the
insurance sector is immense in India.
It was due to this immense growth that the regulations were introduced in
the insurance sector and in continuation the government in 1993 to examine
the various aspects of the industry constituted “Malhotra Committee”. The
key element of the reform process was participation of overseas insurance
companies with 26% capital. Creating a more competitive financial system
suitable for the requirements of the economy was the main idea behind this
reform.
Since then the insurance industry has gone through many changes.
The liberalization of the industry the insurance industry has never looked
back and today stand as one of the most competitive and exploring industry
in India. The entry of the private players and the increased use of the new
distribution are in the limelight today. The use of new distribution
techniques and the IT tools has increased the scope of the industry in the
longer run.
Insurance is the business of providing protection against financial aspects of
risk, such as those to property, life health and legal liability. It is one method
of a greater concept known as risk management –which is the need to mange
uncertainty on account of exposure to loss, injury, disadvantage or
destruction.
Insurance is the method of spreading and transfer of risk. The fortunate
many who are exposed to some or similar risk shares loss of the unfortunate.
Insurance does not protect the assets but only compensates the economic or
financial loss.
In insurance the insured makes payment called “premiums” to an insurer,
and in return is able to claim a payment from the insurer if the insured
suffers a defined type of loss. This relationship is usually drawn up in a
formal legal contract.
Insurance companies also earn investment profits, because they have the use
of the premium money from the time they receive it until the time they need
it to pay claims. This money is called the float. When the investments of
float are successful they may earn large profits, even if the insurance
company pays out in claims every penny received as premiums. In fact, most
insurance companies pay out more money than they receive in premiums.
The excess amount that they pay to policyholders is the cost of float. An
insurance company will profit if they invest the money at a greater return
than their cost of float.
An insurance contract or policy will set out in detail the exact circumstances
under which a benefit payment will be made and the amount of the
premiums.
Classification of insurance
The insurance industry in India can broadly be classified in two parts. They
are.
1) Life insurance.
2) Non-life (general) insurance.
1) Life insurance:
Life insurance can be defined as “life insurance provides a sum of money if
the person who is insured dies while the policy is in effect”.
In 1818 British introduced to India, with the establishment of the oriental
life insurance company in Calcutta. The first Indian owned Life Insurance
Company; the Bombay mutual life assurance society was set up in 1870.the
life insurance act, 1912 was the first statuary measure to regulate the life
insurance business in India. In 1983, the earlier legislation was consolidated
and amended by the insurance act, 1938, with comprehensive provisions for
detailed effective control over insurance. The union government had opened
the insurance sector for private participation in 1999, also allowing the
private companies to have foreign equity up to 26%. Following the opening
up of the insurance sector, 12 private sector companies have entered the life
insurance business.
Benefits of life insurance
Life insurance encourages saving and forces thrift.
It is superior to a traditional savings vehicle.
It helps to achieve the purpose of life assured.
It can be enchased and facilitates quick borrowing.
It provides valuable tax relief.
Thus insurance is found to be very useful in the lives of the person both in
short term and long term.
Fundamental principles of life insurance contract;
1) Principle of almost good faith:
“A positive duty to voluntary disclose, accurately and fully, all facts,
material to the risk being proposed whether requested or not”.
2) Principle of insurable interest:
“Relationships with the subject matter (a person) which is recognized in law
and gives legal right to insure that person”.
2) Non-life (general) Insurance:
Triton insurance co. ltd was the first general insurance company to be
established in India in 1850, whose shares were mainly held by the British.
The first general insurance company to be set up by an Indian was Indian
mercantile insurance co. Ltd., which was stabilized in 1907. There emerged
many a player on the Indian scene thereafter.
The general insurance business was nationalized after the promulgation of
General Insurance Corporation (GIC) OF India undertook the post-
nationalization general insurance business.
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.
Personality can be described ad the psychological characteristics that both
determine and reflect how person responds to his or her environment.
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.
1. INDUSTRY PROFILE
1.1 Insurance in India
The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360-
degree turn witnessed over a period of almost two centuries.
1.2 A Brief history of the Insurance Sector
The business of life insurance in India in its existing form started in India in
the year 1818 with the establishment of the Oriental Life Insurance
Company in Calcutta.
Some of the important milestones in the life insurance in India are;
1912: The Indian Life Assurance
For over 50 years, life insurance in India was defined and driven by only one
company- the Life Insurance Corporation of India (LIC). With the Insurance
Regulatory and Development Authority (IRDA) Bill 1999 paving the way
for entry of private companies into both life and general sectors there was
bound to be newfound excitement- and new success stories. Today, just three
years since their entry, their cumulative share has crossed 13% (source:
IRDA), far exceeding expectations. Clearly insurance is on a growth path.
The percentage of premium income to GDP, which was just 2.3% in 2000-01
rose to 3.3% in 2002-03; and life insurance has emerged as the dominant
contributor to this growth.
The industry presented a huge opportunity. Life insurance penetration, for
instance, was at an abysmal 22% of the insurable population. However,
private players have had to rise to many challenges. They were faced with
attitudinal barriers towards the category and the perception that insurance
was only a tax saving tool. Insurance per se had lost it basic rationale:
protection. It was’t surprising then that its potential lay frozen and
unexploited. The challenge for private insurance players was to change the
established category driver and get customers to evaluate life insurance as an
investment-cum-protection tool.
PREMIUM UNDERWRITTEN BY LIFE INSURERS
The life insurance industry recorded a premium income of Rs.82854.80 crore during the financial year 2005-06 as against Rs.66653.75 crore in the previous financial year, recording a growth of 24.31 per cent. The contribution of first year premium, single premium and renewal premium to the total premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 percent), respectively. In the year2000-01, when the industry was opened up to the private players, the life insurance premium was Rs.34, 898.48 crore which constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening up, single premium had declined from Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shift with the single premium income rising to Rs. 10336.30 crore showing 74.11 per cent growth over 2003-04.
(Rs. lakh)
Insurer 2004-05 2005-06
First year premium including
Single premium
LIC* 1734761.74 2065306.36
(6.34) (19.05)
Private Sector 244070.58 556457.34
(152.74) (127.99)
Total 1978832.32 2621763.70
(14.68) (32.49)
Renewal Premium
LIC 4618580.96 5447422.62
(19.47) (17.95)
Private Sector 67962.05 216293.48
(343.12) (218.26)Total 4686543.01 5663716.10
(20.75) (20.85)
Total Premium
LIC 6353342.70 7512728.98
(15.63) (18.25)
Private Sector 312032.63 772750.82
(178.83) (147.65)
Total 6665375.33 8285479.80
(18.91) (24.31)
1.3 Brief Review of Scenario – Insurance
Insurance in India started without any Regulation in Nineteenth century.
It was story of a typical colonial era. A few British companies dominated
the market mostly in large urban centers.
Insurance was nationalized mainly on 3 counts First, Indian lives were
not insured. Second, even if they were insured, they were treated as
substandard lives and extra premium was charged. Third, there were
gross irregularities in the functioning of Life insurance was nationalized
in the year 1956, and then general insurance was nationalized in the year
1972. In 1999, the private insurance companies were allowed back again
into insurance sector with maximum cap of 26 percent foreign holding.
1818 The British introduce to India, with the establishment of the
Oriental Life Insurance Company in Calcutta.
1850 Non life insurance debuts, with Triton Insurance Company.
1870 Bombay Mutual life Assurance Society is the first Indian-owned
life insurer
1907 Indian mercantile Insurance is the first Indian non-life insurer.
1912 The Indian life assurance companies’ act enacted to regulate the life
insurance business.
1938 The insurance act, which forms the basis for most current insurance
laws, replaces earlier act.
1956 Life insurance nationalized, government takes over 245 Indian and
foreign insurers and provident societies.
1956 Government sets up LIC
1972 Non life insurance nationalized, GIC set up.
1993 Malhotra committee, headed by former RBI governor
R.N.Malhotra, set up to draw up a blue print for insurance sector
reforms.
1994 Malhotra Committee recommends re-entry of private players,
autonomy to PSU insurers.
1997 Insurance regulator IRDA (Insurance Regulatory and Development
Authority) set up.
2000 IRDA starts giving licensed to private insurers
2001 ICICI Prudential Life Insurance came into the market to sell a
policy.
2002 Banks were allowed to sell insurance plans, as TPAs enter the
scene, insurers start settling non-life claims in the cashless mode.
1.4 The Insurance Regulatory and Development Authority (IRDA):
Reforms in the Insurance sector were initiated with the passage of the IRDA
Bill in Parliament in December 1999. The IRDA since its incorporation as a
statutory body in April 2000 has fastidiously stuck to its schedule of framing
regulations and registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems
to the insurance sector and in particular the life insurance companies were
the launch of the IRDA’s online service for issue and renewal of licenses to
agents.
The approval of institutions for imparting training to agents has also ensured
that the insurance companies would have a trained workforce of insurance
agents in place to sell their products, which are expected to be introduced by
early next year.
Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life
insurance and 6 general insurance companies have been registered
2. COMPANY PROFILE
ICICI Prudential Life Insurance Company Limited (‘the Company’) a
joint venture
Between ICICI Bank Limited and Prudential plc of UK was incorporated
on July
20, 2000 as a company under the Companies Act, 1956 (‘the Act’). The
Company
Is licensed by the Insurance Regulatory and Development Authority
(‘IRDA’) for carrying life insurance business in India.
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 brings together the local market expertise and financial
strength of ICICI Bank and Prudential’s International life insurance
experience. 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 amongst the first private sector
insurance companies to begin operations in December 2000 after receiving
approval from Insurance Regulatory Development Authority (IRDA).
From its early days, ICICI Prudential seemed to have the wherewithal for a
large-scale business. By March 31, 2002, a little over a year since its launch,
the company had issued 100,000 policies translating into premium income
of approximately Rs. 1,200 million on a sum assured of over Rs.23 billion.
When the company began its operations, the need was to build a brand that
was relatable to, symbolized trust and was easily recognized and understood.
It launched a corporate campaign ICICI Prudential also made using the
theme of ‘Sindoor’ to epitomize protection, trust, togetherness and all that is
Indian; endearing itself to the masses. The success of the campaign, ‘the
calling card of the company’ saw the brand awareness scores almost at par
with its 40-year-old competitor. The theme of protection was also extended
to subsequent product and category specific campaigns –from child plans to
retirement solutions –which highlight how the company will be with its
customers at every step of life.
From day one, the company has unflinchingly focused on being mass-market
player, developing products, creating a distribution network and deploying
resources that would further its goal. Apart from ramping up thoroughly
training its advisors, the company has twelve ‘Bancasurance’ partners –the
largest in the country. It swiftly revised and added to its initial range of
products, pioneering market-linked products and pension plans, to offer
customers the most flexible life insurance policies in the country. In
February 2004, ICICI Prudential increased its capital base by Rs. 500
million, its ninth capital hike, bringing the total paid –up equity capital to
Rs. 6,750 million. With the authorized capital of the company standing at
Rs. 12 billion, ICICI Prudential continues to have the highest capital base
amongst all life insurers in the country. The challenge ICICI Prudential now
faces is to retain its top-notch position and continues to deliver the finest life
insurance and pension solutions to its ever-growing customer base.
ICICI Prudential’s equity base stands at Rs. 1185 crore with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the year ended
March 31, 2006, the company garnered Rs.2, 412 crore of weighted new
business premium and wrote 837,963 policies. The sum assured in force
stands at Rs.45, 888 crore. The company has a network of over 72,000
advisors; as well as 9 bancasurance partners and over 200 corporate agent
and broker tie-ups.
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.
For the past five years, ICICI Prudential has retained its position as the No.1
private insurer in the country, with a wide range of flexible products that
meet the needs of the Indian customer at every step in life.
Beginning operations in December 2000, ICICI Prudential’s success has
been meteoric, becoming the number one private life insurer within months
of launch. Today, it has one of the largest distribution networks amongst
private life insurers in India, with branches in 54 cities. The total number of
policies issued stands at more than 780,000 with a total sum assured in
excess of Rs.160 billion.
ICICI Prudential closed the financial year ended march 31, 2004 with a total
received premium income of Rs. 9.9 billion; up 135% last years total
premium income of Rs.4.20 billion. New business premium income shows a
106% growth at Rs. 7.5 billion, driven mainly by the company’s range of
unique unit-linked policies and pension plans. The company’s retail market
share amongst private companies stood at 36%, making it clear leader in the
segment. To add to its achievements, in the year 2003/04 it was adjudged
Most Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand
Survey’ by AC Nielsen ORG-MARG). It was also conferred the ‘Outlook
Money-Best Life Insurer’ award for the second year running. The company
is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work,
not life’ campaign. Notably, ICICI Prudential was also short-listed to the
final round for its ‘Sindoor campaign in EFFIES 2002.
ICICI Prudential’s success is rooted in its philosophy to always offer the
customer a choice. This has been the driving force behind its multi-channel
distribution strategy, which includes advisors, banks, direct marketing and
corporate agents. In fact, ICICI Prudential was the first life insurer to invest
in multiple channels and offer the customer choice and access; thus reducing
dependency on any one channel, great strides in the retirement solutions and
pensions market.
The Company’s penetration of the retirement market was driven by the
focused approach towards creating awareness through sustained campaign;
‘Retire from work, not life’. Within six months, the campaign rewarded
ICICI Prudential with an increased share of 23% of the total pensions market
and 78% amongst private players. 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 up with NGOs, MFIs and corporate for
the distribution of rural policies.
ICICI Prudential has recruited and trained more than 72,000 insurance
advisors to interface with and advise customers. Further, it leverages its
state-of-the-art IT infrastructure to provide superior quality of service to
customers.
PRUDENTIAL plc, Established in London in 1848, through its business in
the UK and Europe, the US and Asia, provides retail financial services
products and services to more than 16 million customers, policy holder and
unit holders world wide. As of December 31, 2005, the company had over
US$ 400 billion in funds under management. Prudential has brought to
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 the leading European life
insurance company with a vast network of 23 life and mutual fund
operations in twelve countries –China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
Promotion:
ICICI Prudential is a case study in how advertising and marketing can play a
vital role in re-shaping an industry. It has demonstrated how an industry
where the customer was nothing more than a policy number has changed to
one where ‘customer preference’ rules the roost.
Brand-building in a complex category like life insurance is an uphill and
multi-faceted task. At the time of launching operations, the communications
task was to build credibility, so as to give the customer the confidence that it
was ‘a company that could be trusted to invest funds with’. The aim was to
encourage people to view insurance not as a compulsory tax saving
instrument, but as a means to lead a worry-free, secure life and in the
process, create the differentiator for brand ICICI Prudential.
The brand proposition for all the campaigns was reflected in the line:
‘Suraksha: Zindagi ke har kadam par’. The campaign featured a significant
competitive advantage, the sound financial backing and credentials of ICICI
Prudential, and showcased products from different segments. The
advertising idea was encapsulated in the symbol of protection –the
‘Sindoor’. This campaign contributed extensively to raising brand awareness
and creating a distinctive identity for the company.
The Company recently tied up with the Forbes Six Sigma rated Dabbawalla
organization in Mumbai for a direct marketing exercise. In a Unique effort to
create awareness about a tax saving product, the company attached a
creative of a bitten apple to Mumbai’s ubiquitous lunchboxes. It worked
wonderfully with Mumbai’s office-goers and one that translated into
substantial business for the company.
Brand Values:
Market Research reveals that the values people associate with ICICI
Prudential are, indeed, those that the company hopes to project: lifelong
protection and value for money. The core value is protecting your loved
ones, throughout life’s ups and downs. It is a powerful proposition; one,
which ICICI Prudential, is taking into the market place.
CUSTOMER SERVICE AND OPERATIONS
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 betweenthe
clients and the agents, the branches and the underwriters, and manages work.
The Vision at Customer Service is to deliver ‘World Class Service’ at every
opportunity. Units such as the 9 to 9 contact centres, Outbound Call Centre,
Customer Care and Query Resolution Unit are all committed to providing
effective solutions to over lakhs of customers across the country.
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 Group is in charge of developing and
maintaining a blueprint for the IT architecture for the enterprise as a whole.
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. IT Infrastructure group is responsible for
providing hardware, software, and network services to the whole
organization. This group runs the 'Digital Nervous System' of the Enterprise
at the highest levels of efficiency and provide robust, scalable and highly
available platform for deployment of business application.
Marketing
The Marketing function at ICICI Pru covers an array of activities - brand and
media management, channel support, direct marketing and corporate
communications. The Brand and Communications team is in charge of
advertising, consumer research, media planning & buying and Public
Relations; that helps develop and nurture ICICI Prudential's corporate
identity while effectively communicating its varied product offerings to the
customer. Channel marketing provides support to the sales force by
streamlining the design and development of collaterals and sales tools across
distribution channels. The Direct marketing team was set up to generate high
quality leads for profitable business. The team achieves this through target
database acquisition and communicating customized product information
through e-mailers, telemarketing and innovative direct mailers.
Finance
Finance function in ICICI Prudential is committed to create an infrastructure
that is aligned to shareholder expectations. Finance basically comprises of
four functions. . Corporate Planning and MIS provide feedback on business
strategies. This includes driving the budgeting process, providing strategic
inputs for decision-making and management reporting and analysis. The
Accounts function includes preparation and maintenance of financial
records, funds management, and expense processing and treasury operations.
Compliance ensures that every action is within the regulatory framework.
This includes reviewing compliance requirements and supporting the ethical
framework of ICICI Pru life. Internal audit provides assurance to the
management over the organizations' control framework and include process.
Human Resource
The people strategy of ICICI Prudential is “To build a committed team with
a culture of innovation, learning and growth. The Human Resource Function
at ICICI Prudential drives the people strategy of the business. With its initial
focus on operational excellence to deliver benefits and services to staff
members, HR is now committed to building capability through state of the
art processes. A robust performance management system, compensation
system and a segmented training architecture enable it to deliver value to the
organization.
Stages in Policy Issuance
1) Proposal
A Proposal Stage is the First stage before the policy is issued at COPS. At
this stage, the application form is received by COPS, but it is pending for
issuance due to further clarifications required from the customer.
2) Login
A proposal, which is complete i.e., duly filled with all necessary documents
attached to it & accepted by the Branch ops, is called a Login
3) Reject
An Application gets rejected at the Branch Ops level due to necessary details
not filled in the form or necessary documents not submitted are a Reject. It is
then sent back to the Advisor for completion.
4) Issuance
Issuance means a policy that is issued to the Customer by Central Ops.
2.4 PRODUCT/SERVICES PROFILE
ICICI Prudential’s ultimate promise is financial security. A strong brand
certainly boosts sale, but without customer-friendly, innovative products,
even the best brand would not last long.
ICICI Prudential’s product range has been developed on the understanding
that different people have their own sets of needs at various stages of their
lives. It has thus built a flexible portfolio of products that can be customized
to cater to varying needs of people at each stage, and thus ensures protection
in every step of life. The company’s philosophy has been to help customers
understand their financial needs and work closely with them to customize a
product that would meet. Advisors can offer a complete range of products –
Savings plans, Child plans, Market-linked plans, Protection plans, and
Retirement plans – and tailor a flexible solution to meet customers’
changing needs at every stage of life. In fact, ICICI Prudential was the first
to un-bundle product benefits, pioneering the concept of ‘riders’ and soon
after introduce comprehensive market-linked and retirement plans.
ICICI Prudential has launched a handful of products that are analyzed
below:
ICICI Prudential's life insurance products may be loosely categorized under
three forms: pure life insurance products without an investment angle to
them; a product that is a mix of a cumulative investment scheme and an
insurance product; and, finally, standard products such as money-back and
endowment policies.
Single Premium Bond: The Single Premium Bond is the name of a policy
that combines the features of an investment in a cumulative deposit scheme
with that of an insurance product.
Policyholders are required to pay a one-time premium based on a target sum
assured. At maturity, the policyholder gets the sum assured and guaranteed
additions that work out to a compound return of 4.5 per cent the sum
assured.
The insurance part of the package comes in the form of death benefits that
are paid in the case of the demise of the policyholder. The size of the death
benefit is linked to the number of years left for the policy to expire. On
maturity date, the maturity value is also paid in addition to the death benefits
Life Guard policies: The company offers two pure life insurance products
that have an umbrella name, Life Guard. One of them involves a one-time
premium for which there are no maturity benefits. The other requires regular
premium payments that are returned at the end of the policy. Life Guard
offers absolutely no investment-related return and is suitable for individuals
looking for an unadulterated insurance package.
Insurance Solutions for Individuals
ICICI Prudential Life Insurance offers a range of innovative, customer-
centric products that meet the needs of customers at every life stage. Its
products can be enhanced with up to 5 riders, to create a customized solution
for each policyholder.
Savings Solutions
Secure Plus is a transparent and feature-packed savings plan that offers 3
levels of protection.
Cash Plus is a transparent, feature-packed savings plan that offers 3
levels of protection as well as liquidity options.
Save ‘n’ Protect is a traditional endowment savings plan that offers life
protection along with adequate returns
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 and Lifetime II offer customers the flexibility and control to
customize the policy to meet the changing needs at different life
stages. Each offers 4 fund options –Preserver, Protector, Balancer and
Maxi miser.
Lifeline Super is a single premium Unit Linked Insurance Plan, which
combines life insurance cover with the opportunity to stay, invested
Premier Life is a limited premium-paying plan that offers customers life
insurance cover till age of 75.
Invest Shield Life is a Unit Linked plan that provides capital guarantee
on the invested premiums and declared bonus interest.
Invest Shield Cash is a Unit Linked plan that provides capital guarantee
on the invested premiums and declares bonus interest along with
flexible liquidity options.
Invest Shield Gold is a Unit Linked plan that provides capital guarantee
on the invested premiums and declares bonus interest along with
limited premium payment terms.
Protection Solutions
Lifeguard is a protection plan, which offers life covers at very low cost.
It is available in 3 options –level term assurance with return of
premium and single premium.
Home Assure is a mortgage reducing term assurance plan designed
specifically to help customers cover their home loans in a simple and
cost-effective manner.
Child Plans
Smart Kid education plans provide guaranteed educational benefits to a
child along with life insurance cover for the parent who purchases the
policy. The policy is designed to provide money at important
milestones in the child’s life. Smart Kid plans are also available in
unit-linked form – both single premium and regular premium.
Retirement Solutions
Forever Life is a retirement product targeted at individuals in there
thirties.
Secure Plus Pension is a flexible pension plan that allows one.
Market-linked retirement products
Lifetime Pension II is a regular premium market-linked pension plan.
Lifeline Pension II is single premium market linked pension plan.
Invest Shield Pension is a regular premium pension plan with a capital
guarantee on the investible premium and declared bonuses
Golden Years: is a limited premium paying retirement solution that offers
tax benefits up to Rs 100,000 u/s 80C, with flexibility in both the
accumulation and payout stages.
Health Solutions
Health Assure and Health Assure Plus: Health Assure is a regular
premium plan which provides long term cover against 6 critical
illnesses by providing policy holder with financial assistance,
irrespective of the actual medical expenses. Health Assure Plus
offers the added advantage of an equivalent life insurance cover
Cancer Care: is a regular premium plan that pays cash benefit on the
diagnosis as well as at different stages in the treatment of various
cancer conditions.
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’s 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’s 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.
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 and disability benefit: If death occurs as the result of an
accident during the term of the policy, the beneficiary receives an
additional amount equal to the rider sum assured under the policy.
If the death occurs while traveling in an authorized mass transport
vehicle, the beneficiary will be entitled to twice the sum assured as
additional benefit.
Accident Benefit: This rider option pays the sum assured under the
rider on death due to accident.
Critical Illness Benefit: Protects the insured against financial loss in
the event of 9 specified critical illnesses. Benefits are payable to
the insured for medical expenses prior to death
Income Benefit: This rider pays the 10% of the sum assured to the
nominee every year, till maturity, in the event of the death of the
life assured. It is available in Smart Kid, Secure Plus, and Cash
Plus
REVIEW OF LITERATURE
To get better understanding of research study it is needless to say that one has to concentrate on the empirical evidence. So a careful study has been made by the researcher to review the various studies, which have been conducted earlier in this regard. Given below are the brief reviews of related researcher work.
In the 2001 M. Mohamed Ibrahim conducted survey on market strategy of insurance policy in Trichy. Random Sampling selected hundred Respondents and Questionnaire were Administered to them. The study shows that Businessmen are in the top for using insurance. They are highly interested to invest in finance plan. These are the findings of the study.
In the year 2003 R. Kumar conducted the survey of insurance companies in Chennai. The sample size is two hundred respondents’ data collected is of primary questionnaire method. The findings were that the advertisement given by the company is not adequate for researching all the potential customers. Respondents were not satisfied with of private company. The Business people are using the insurance.
In the year 2005, J. Fayasudeen conducted study on customer satisfaction of insurance service in Chennai city. 50 respondents were selected by random sampling and questionnaires were administered to them. The study shows that 70% of respondents using insurance. Majority of the respondents are
satisfied with overall performance of the service provider.
RESEARCH METHODOLOGY
STATEMENT OF THE PROBLEM “To study the awareness of insurance sector and in particular the
Awareness of ICICI Prudential Life Insurance Co. among the people of
Tiruvarur District”
OBJECTIVE OF THE STUDY
For every problem there is a research. As all the researches are based
on some and my study is also based upon some objective and these
are as follows.
1. To understand the insurance business and products of ICICI Prudential life insurance co ltd.
2. To find out the people’s perception about life insurance.
3. To find out whether people were really aware of life insurance.
4. To find out how people think about private life insurance.
5. To find out what respondents expect from life insurance.
6. To understand Consumer buying behavior
7. To come out with conclusion and suggestions based on the analysis .
TABLE NO: 1
AGE OF THE RESPONDENTS:
PARTICTULARS NO.OF.RESPONDENT
PERCENTAGE
Less than 25 11 11%
25 – 35 40 40%35 – 45 20 20%
Above 45 29 29%TOTAL 100 100%
ANALYSIS:
From the survey it was found that amongst 100 respondents
11% of the respondents are less than 25 years old.40% of the respondents are between 25 and 35 years of age.20% of the respondents are between 35 and 45 years of age.29% of the respondents are more than 45 years of age.
GRAPH NO: 1
AGE OF THE RESPONDENTS
TABLE NO: 2
QUALIFICATION OF THE RESPONDENTS:
PARTICUALR NO.OF.RESPONDENT PERCENTAGE
Graduate 52 52%
Post Graduate 29 29%
Diploma 8 8%
Other discipline 11 11%
TOTAL 100 100%
ANALYSIS:
From the survey it was found that amongst 100 respondents
52% of the respondents were graduate29% of the respondents were postgraduate8% of the respondents were diploma11% of the respondents were other discipline
GRAPH NO: 2
QUALIFICATION OF THE RESPONDENTS:
TABLE NO: 3
BENEFITS OF CHOOSING THE PARTICULAR PRODUCTS
PARTICULARS NO.OF.RESPONDENT PERCENTAGE
Risk coverage 60 60%
Additional benefit 20 20%
Maturity date 12 12%
Sum Assured 8 8%
TOTAL 100 100%
ANALYSIS60% of the respondents are choosing for risk coverage.20%of the respondents are choosing for additional benefits.12%of the respondents are choosing for maturity date.8%of the respondents are choosing for sum assured.
GRAPH NO: 3
BENEFITS OF CHOOSING PARTICULAR PRODUCTS:
TABLE NO: 4
DISADVANTAGES IN INSURANCE PLANS
PARTICUALRS NO.OF.RESPONDENT PERCENTAGELiquidity 35 35%
Lapsation 20 20%Unable to decide premium
19 19%
High risk coverage 14 14%Fixed Term 12 12%
TOTAL 100 100%
ANALYSIS:From the survey it was found that amongst 100 respondents
35% of the respondents say that disadvantages in insurance plan are liquidity.
20% of the respondents say that disadvantages in insurance plan are lapsation.
19% of the respondents say that disadvantages in insurance plan is unable decide premium.
14% of the respondents say that disadvantages in insurance plan are high-risk coverage at high premium.
12% of the respondents say that disadvantages in insurance plan is fixed term
GRAPH NO: 4
DISADVANTAGES IN INSURANCE PLANS
TABLE NO: 5
INVESTMENT AVENUES PARTICUALRS NO.OF.RESPONDENT PERCENTAGE
Recurring Deposit 40 40%
Equity Fund 25 25%
Balanced Fund 10 10%
Mutual Fund 11 11%Debt Fund 5 5%Cash Fund 9 9%TOTAL 100 100%
ANALYSIS: From the survey it was found amongst 100 respondents
40% of respondents say that they want to invest in R.D25% of respondents say that they want to invest in equity 10% of respondents say that they want to invest in balanced fund11% of respondents say that they want to invest in mutual fund5% of respondents say that they want to invest in debt market9% of respondents say that they want to invest in cash
GRAPH NO: 5
INVESTMENT AVENUES:
CHI-SQUARE TEST
Aim:
This test aims to find out whether there is any difference between occupation and income of respondents for using life insurance.
Sample:
Sample size = 100
Hypothesis:
Ho: There is no significance difference between occupation and income of respondents for using life insurance. H1: There is a significance difference between occupation and income of respondents for using life insurance.
TABLEOCCUPATION/ INCOME
Up to1 lakh
1 lakh -3 lakh
3 lakhs -5 lakhs
5 lakhs &above
TOTAL
Business man 11 13 8 2 34
Professionals 6 8 3 1 18
Job holders 11 19 7 0 37
Others 5 3 2 1 11
TOTAL 33 43 20 4 100
CONTENGENCY TABLE:
Observed frequency
Expected frequency
(O-E)2 (O-E)2/E
10 11.2 1.44 0.128513 14.7 2.89 0.19658 6.8 1.44 0.21172 1.4 0.36 0.25716 5.94 3.60 0.60608 7.74 0.0676 8.73383 3.6 0.36 0.11 0.72 0.0784 0.108811 12.21 1.4641 0.1199
19 15.91 9.5481 0.60017 7.4 0.16 0.02160 1.48 2.1904 1.485 3.63 1.8769 0.51703 4.73 2.9929 0.63272 2.2 0.04 0.01811 0.44 0.3136 0.7127
TOTAL 14.4445
CALCULATION:Degree of freedom 5% level of significant (c-1)(r-1) =(4-1)(4-1)Degree of freedom = 9Calculated value = 14.4445Table value = 16.919
INTERPRETATION:
Since calculated is greater than table.
Hence null hypothesis rejected so there is significance difference between occupation and income of respondents.
Chi-square table 2:
PARTICULARS Upto 1 lakh
1lakh-3lakh
3lakh-5lakh
5lakh&above TOTAL
Graduates 17 24 9 2 52Post-Graduate 10 12 7 0 29Diploma 2 4 2 0 8Other disciplines 4 3 2 2 11TOTAL 33 43 20 4 100
Contingency table:
O E (O-E)2 (O-E)2/E17 17.16 0.0256 1.491824 22.36 2.6896 0.12029 10.40 1.9600 0.18842 2.08 6.4000 3.076910 9.57 0.1849 0.019312 12.47 0.2209 0.01837 5.80 1.4400 0.24820 1.16 1.3456 1.16002 2.64 0.4096 0.15514 3.44 0.3136 0.09112 1.60 0.1600 0.10000 0.32 0.1024 0.32004 3.63 0.1369 0.03773 4.73 2.9929 0.63272 2.2 0.0400 0.01812 0.44 2.4336 5.5309TOTAL 13.2085
CALCULATION: Level of Significance 5%=0.05
Degree of Freedom= (c-1) (r-1) = (4-1) (4-1) = 9
Calculated Value = 13.2085
Table Value = 16.919
INTREPRETATION:
Since calculated value is lesser than the table value, Null hypothesis is accepted. Therefore there is no significant relationship between qualification and salary.
FINDINGS
FINDINGS:
1. On an analyse and evaluation of the data collected from the respondents the following findings were found.
2. Total 100 respondents have been approached out of which 40% of the respondents are between 25 to 35 years.
3. About 52% of the respondents are graduates.4. About 37% of the respondents are jobholders.5. About 43% of the respondents have an average annual income
RECOMMENDATIONS TO COMPANY:
Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI
invested, in terms of work force, in terms of market share, in terms of no. Of
customers. All these positive stand of the company place at the number one
position. On second aspect whatever amount of money ICICI Prudential
save, can be used to increase the no. Of policies, which will helpful to
increase the market share of the company. Since the customers think about
the companies in the industry, when they invest money in the life insurance
industry. So it’s necessary to increase the market share of the company.
There are some recommendations.
Open some more branches in semi urban and rural area.
ICICI Prudential has almost its branches in urban area or metros. So
in order to increase the no. Of customer, ICICI Prudential should
increase the approach towards potential customers. For that it has to
increase the branches in the semi urban cities like C, D grade cities.
And the rural marketing is the best option for ICICI Prudential to
increase its base in the market
Improve customer services.
In order to take the advantage of being industry leader in private
sector, ICICI Prudential has to improve its customer services.
According to my experience in the company, a good number of
customers forget to pay their premium at time so it causes a big loss to
the company. ICICI Prudential has already collaborated with the
ICICI bank for its Banc assurance facility and then can include
another feature in it. ICICI bank can offer a bank account with the life
insurance policy in which an ATM card will be provided. This card
will have all the information regarding the policy as like future
premium payment dates, payment made, money value of the policy at
that date, value of the unit linked plan and all other information what
the customer want. This will help the customer to pay premium on
time and save their losses. This will be mutually helpful for both sister
companies, ICICI bank will get new account and ICICI prudential will
be able to more efficient services to their customers
BIBLIOGRAPHY
PHILIP KOTLER,
Marketing management. Published by prentice, Hall of Indian
private Ltd., Tenth edition-2002.
KOTHARI. C.R
Research methodology, Published by V.S.Lobri for Whishwa prakash
Eighth Edition -2004.
GUPTA.S.C. and INDIRU GUPTA,
Business statistics, publishing house, sixth Edition - 2006.
Marketing Management by Philip Kotler, Pearson Education 2nd Ed
Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th Ed.
IRDA Journal
ICICI Prudential Company magazines
Newspaper and Business magazines
WEBSITES
www.iciciprulife.com
www.google.co.in/indian insurance industry
www.irdaindia.org
________________________________________________
“A study on consumer behaviour and customer satisfaction at icici
prudential life insurance service in Tiruvarur District.”
QUESTIONNAIRE
1. Name _________________________________2. Address _________________________________ _________________________________ _________________________________3. Age a. Less than 25 c. 35-45 b. 25 – 35 d. 45 and above
4. Qualification
a. Graduate c. Diploma b. Postgraduate d. Other discipline
5.occupation
a. Business c. Jobholder b. Professional d. Other
6. What is your average annual income?
a. Up to 1 lakh c. 3 lakhs to 5 lakhs b. 1 lakh to 3 lakhs d. 5 lakhs and more
7. Your family size
a. Below 5 members b. 5 – 10 members c. Above 10 members
8. According to you life insurance is,
a. A taxes saving plan d. Risk coverage b. A saving scheme with good return e. All the above c. A financial security for the family
________________________________________________
9.Have you taken any life insurance product of ICICI Prudential Life insurance?
YES NO If yes
Which are in these? a. Unit gains plan d. Children plan b. Invest gain plans e. Pension plan c. Whole life plan f. Others __________________ 10. Are you aware of the benefits in your policy? Yes No If yes what are they? a. Sum assured c. Additional benefits b. Maturity date d. Risk coverage 11. According to you what are the disadvantages in an insurance plan? a. Lapsation b. Liquidity c. Fixed term d. Unable to decide your premium e. Unable to decide the sum assured f. High risk coverage at high premiums g. Other disadvantages 12. In which of the following would you like to invest? a. Equity fund b. Debt fund c. Balanced fund d. Cash fund e. Mutual fund f. Recurring deposits
13. Any suggestion for ICICI Prudential Life Insurance ______________________________________________________ ______________________________________________________
Thank you for sparing your valuable time