Spreading awareness about the insurance products and

generating leads

Exexutive Summary India Infoline is the biggest corporate

agent for ICICI Prudential Life Insurance Insurance Selling is not like selling any

other product. While selling this intangible product we are actually selling death benefit, which makes it less attractive because customers are less interested in a product whose benefit will be received after their death

This project deals with spreading awareness about the insurance products and generating leads in Ahemdabad city.

The steps followed by me were:Cold calling Lead generation Visiting the leadsPitching the product

Introduction

India Infoline is a one-stop financial services shop, most respected for quality of its advice, personalised service and cutting-edge technology.

India Infoline Group

The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds,Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com

The company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000 customers.

INDIA INFOLINE GROUP

India Infoline Media and Research Services Limited.The content services represent a strong

support that drives the broking, commodities, mutual fund and portfolio management services businesses. Revenue generation is through the sale of content to financial and media houses, Indian as well as global

India Infoline Commodities Limited.India Infoline Commodities Ltd. enjoys

memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX.

India Infoline Marketing & ServicesIndia Infoline Marketing and Services

Limited is the holding company of India Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited

India Infoline Marketing & ServicesIt is the largest Corporate Agent for ICICI

Prudential Life Insurance Co Limited, which is India's largest private Life Insurance Company. India Infoline was the first corporate agent to get licensed by IRDA in early 2001.

India Infoline Insurance Brokers Limited India Infoline Insurance Brokers Limited is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking licence and the clearance for the same is awaited. Post the grant of license, we propose to also commence the general insurance distribution business.

India Infoline Investment Services Limited India Infoline Investment Services Private

Limited consists of the following step-down subsidiaries. (a) India Infoline Distribution Company

Limited (distribution of retail loan products) (b) Moneyline Credit Limited (consumer

finance) (c) India Infoline Housing Finance Limited

(housing finance)

IIFL (Asia) Pte Limited

IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets.

Management - India Infoline  Name DesignationNirmal Jain Chairman and

Managing director Sat Pal Khattar Non Executive

DirectorKranti Sinha Independent Director R Venkataraman Executive Director Nilesh Vikamsey Independent Director A K Purwar Independent Director 

Indian Insurance IndustryInsurance constitutes one of the major segments of the

financial market. Insurance services play predominant role in the process of financial intermediary. Today insurance industry is one of the most growing sectors in India. There is lot of potential in the Indian Insurance Industry.

Recently there has been a hike in FDI (Foreign Direct Investment) limit from 26% to 49% in the insurance sector. Government may in near future allow 49% FDI in Insurance. This would lead to more capital inflow by foreign partner

Right now the insurance industry has great opportunities in a country like India or China which huge population. Also the penetration of insurance in India is very low in both life and non-life segment so there is lot potential to be tapped.

Competitor Analysis of ICICI Prudential

In the Insurance Sector, LIC is the largest player. But its share has been consistently reducing since liberalization and privatization of this sector

INDUSTRY GROWTH RATE IS 36%

 2001-02

2002-03

2003-04

2004-05

2005-06

LIC 98% 94% 87% 78% 72%

Private Players

2% 6% 13% 22% 28%

COMPANY INDIAN PROMOTER FOREIGN INSURANCE SHARE BY PREMIUM

ICICI PRUDENTIAL ICICI BANK PRUDENTIAL,UK 7.11

AVIVA LIFE DABUR AVIVA, UK 1.12

BAJAJ ALLIANZ BAJAJ AUTO ALLIANZ,GERMANY 6.12

BIRLA SUN LIFE ADITYA BIRLA GROUP

SUN LIFE, CANADA 1.84

HDFC STANDARD HDFC STANDARD LIFE, UK 2.96

ING VYSYA VYSYA BANK ING INSURANCE,NETHERLANDS .63

KOTAK MAHINDRA ,OLD MUTUAL

KOTAK MAHINDRA BANK

OLD MUTUAL, SOUTH AFRICA .71

MAX NEWYORK MAX INDIA NEW YORK LIFE, US .40

SAHARA LIFE SAHARA INDIA NONE .80

SBI LIFE SBI CARDIFF,FRANCE 1.52

TATA AIG TATA AIG,US 1.78

SWOT analysis of I.C.I.C.I Prudential Insurance Products

StrenghtsThe biggest strength of the

organisation is the: Money power which makes them ignorant

about the gestation period.Brand image , brand experience and

innovative products.

Weakness High targets for the financial advisors and

sales deptt.Many competitors in the market sell the

same product with a slight difference in premium and offerings The reach in semi-urban areas and rural

markets is still very less

OpportunityHuge market is still untapped, out of 320

million insurable markets only 20 % is insured.

Health insurance and pension schemes have an estimated market potential of 15 billion

ThreatsPlayers like Bajaj and Birla Sun life have

low premium for similar plans.Entry of many other private companies with

equally strong experience and financial strength of foreign partners is making the competition difficult and saturating the urban markets.

LIC has woken up from sleep and is following competetive strategies. Its huge surplus in Life fund gives a capability to lodge a price war.

Various products of ICICI prudential

Observations

LACK OF AWARENESS AMONG THE PEOPLE: This is the biggest limitation found in this sector that

people are not aware of the necessity and importance of the insurance in their life.They are not aware how useful life insurance can be for their family members if something happens to them.

 Perception of the people towards insurance

sector:People still consider insurance as a tax saving device.

So today there is always a rush to buy Insurance policy only at the end of the financial year making the other 9 months dry for this business

Insurance does not give good returns:Still people think that insurance does not give good returns.

They are not aware of the modern UNIT LINKED INSURANCE PLANS which are offered by most private players these days.They still carry the perception that if they take insurance they will get 5-6%returns which is not true nowadays.Nowadays most of the modern ULIPs give returns which are much more than the returns from Fixed deposits,National saving certificate,Post office deposits and Public Provident fund.

Lack of awareness about the earning opportunity in the insurance sector-

People still today are not aware about the earning opportunity that the insurance sector gives. After the privatization of the insurance sector many private giants have entered the insurance sector. These private companies in order to beat the competition and to increase their Insurance Advisors to increase their reach to the customers are giving very high commission rates but people are not aware of that.

Increased competitionToday the competition in the insurance sector has

become very stiff. Currently there are 14 Life Insurance companies working in India including the LIC(life insurance corporation of india). Today each and evey company is trying to increase their Insurance Advisors so that they can increase their rech in the market. This situation has created a scenario in which to recruit life insurance advisors and to sell life insurance policy has become very very difficult.

 

RecommendationsThe insurance products should not be pitched as

pure insurance products but as investment instruments

A ULIP offers a wide choice of funds, ranging through equity, debt, cash, or a combination of the three. The customer is also offered the option of choosing fund mix based on his desired asset allocation.

Customer can choose from various fund options i.e. R.I.C.H., Multiplier, Flexi Growth, Flexi Balanced, Balancer, Protector,Preserver. These have varying equity and debt mix and accordingly they give returns. Higher investment in equity , higher returns but risk will be also higher .

If the premium is paid for three years and after that if the customer wishes to stop paying premium he has an option to continue the risk cover and his premiums will not be forfeited.

Taking undue advantage of that what insurance salespeople do they pitch the product saying to the customer that you need to pay premium only for 3 years and you can enjoy the risk cover for the rest of the term of the policy.

This helps make acquisition of the customer easy and fast, because customer thinks that he is getting the risk cover for only three years of premium so he gets easily acquired

Regional language is very important in giving personal touch

So ICICI prudential should print product details in regional language.

ICICI prudential should look forward for more interactions with customers through arranging the annual meeting.

Various needs can beThe insurance products should be pitched

according to the life stage need.25-30 Seeking job, trying to save,

house /car loans.30-35 Marriage expenses,35-50 Chidren’s education.50-55 Spending on parent’s

medical expenses.60 onwards Own retired life

RidersA rider is a clause or condition that is added on

to a basic policy providing an additional benefit.Insurers find it easier and covenient to have a

small number of basic plans , with riders being offered as options, effectively the prospect has a number of options to choose from. Such options enable customisation of the product.

Various riders are:Increased death benefit , being twice or even

more than the survival benefit.Accident benefit allowing double the Sum

Assured if death happens due to accident.

Permanent disability benefits , covering loss of limbs, eyesight, hearing , speech etc.

Dreaded disease cover, providing additional payments( in lumpsome or in intallments), if the life insured requires medical attention because of specified conditions like cancer, cardiac or stroke , kidney failure etc.

Cover to continue beyond maturity age for same Sum assured

or higher Sum Assured. Option to increase cover within specified limits

or dates

Managerial Learning Intermediary plays a very impportant role

because of the following reasons : It’s a personalised type of marketing. Moral hazard of the insured is to be judged. Layman does not know insurance He has to be guided for the best cover He has to be given service in terms of

proposal form, claim form, getting refunds, giving policies, receipts , cover notes.

He has to be told about requirements and documentation.