SGPC’s

GNIMS Business School

(Management Institute of GN Khalsa College)
Matunga (E), Mumbai – 400 019

Project Report
Titled
“ICICI Prudential Life Insurance Company
Limited In CUSTOMER-BUYING BEHAVIOR
IN LIFE INSURANCE INDUSTRY”

In the partial fulfillment of the Degree of

PGDM (Banking & Financial Services)

By

Ms. Kedari Aditi Dilip.

[PGDM (B&F) Roll No: 20]

Term - VI
Batch: 2021 - 23
Under the Guidance of
Faculty Guide

Prof. Samidha Angne

(Project Guide)
2022-23
 SGPC’s
GNIMS Business School
(Management Institute of GN Khalsa College)
Matunga (E), Mumbai – 400 019

CERTIFICATE

This is to certify that Ms. ADITI DILIP KEDARI

A student of Class: PGDM(B&F) Term: VI bearing Roll No. 20 has
successfully completed the project titled, “ICICI Prudential Life Insurance Company Limited In
CUSTOMER-BUYING BEHAVIOR IN LIFE INSURANCE INDUSTRY”, in the partial
fulfillment of the Degree of PGDM (B&FS).

Place:

Date:

Name of the Project Guide: Prof. Samidha Angne .

Signature of the Project Guide:

Institutes Seal:

---------------------------------------
Dr. Jasbir Kaur
Director In Charge - PGDM
 STUDENT DECLARATION

I hereby declare that the project titled “ICICI Prudential Life Insurance Company
Limited In CUSTOMER-BUYING BEHAVIOR IN LIFE INSURANCE
INDUSTRY”
is my own work conducted under the supervision of Prof. Samidha Angne .

I further declare that no part in this project work has been plagiarized without proper
citations and has not formed the basis for the award of any degree, diploma,
associateship, fellowship previously.

Name of Student:

Signature of the Student:

 TABLE OF CONTENTS

Sr. Page No.

Topic
No
1
1. EXECUTIVE SUMMARY
2
2 INTRODUCTION TO THE
TOPIC

3. INDUSTRY OVERVIEW 6

4.. COMPANY OVERVIEW 11

17
5. PROJECT DETAILS
21
6. DATA ANALYSIS AND
INTERPRETATION

7. FINDINGS 48

49
8. KEY LEARNINGS (Specific &
General)

9. CONCLUSION 50

10. BIBLIOGRAPHY 51
EXECUTIVE SUMMARY
 In today’s corporate and competitive world, I find that insurance sector has the maximum growth and
potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80% while as
FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector
and ICICI Prudential Life Insurance Company Limited has given me the opportunity to work and get
experience in highly competitive and enhancing sector.
The success story of good market share of different market organizations depends upon the
availability of the product and services near to the customer, which can be distributed through a distribution
channel. However understanding the market, consumer preference and introducing new products to suit
different tastes and at the same time offering a value product would be the key steps to fight competition.
Marketing is an important activity in any organization’s sales strategy.
Marketing helps in promoting the products in the targeted market and create a recall value and
branding to the products. Marketing department perform the initial market study for the suitability of the
product launches; study the market requirements in the existing markets to further strengthen the market
capitalization identity the feature needed for a longevity of a product. Agents are the only way for a
company of Insurance sector through which policies and benefits of the company can be explained to the
Customer.
INTRODUCTION TO THE TOPIC
 Attitudes are generally considered as judgements and these are results of either direct experience of
the social environment or through observations. So attitude can be considered as a hypothetical construct,
which represents degree of liking or disliking of an individual towards a particular object. Winning and
losing are twp opposite sides of a same coin and that coin is attitude. Attitude is composed of beliefs about
the consequences of performing the behaviour and an evaluation of how the consumer will feel about those
consequences. Attitude may be defined as an enduring organization of motivational, emotional, perceptual,
and cognitive process with respect to some aspect of our environment (Best et.al, 2003). Whereas in the
context of consumer behaviour, attitude is a learned predisposition to behave in a consistently favourable or
unfavourable way with respect to a given object (Kanuk and Schiffman, 2000). As learned predispositions,
attitudes have a motivational quality; that is they might propel a consumer toward a particular behaviour or
repel the consumer away from a particular behaviour.
Various attributes and benefits of the product brands affect the attitudes of the consumers towards
these product brands. On this basis it can be argued that what are the benefits, which can be perceived by the
consumers from the insurance services for themselves, and also they can enquire about the way to get those
benefits from insurance services. These types of queries want attention as consumers are very less aware
about the benefits of insurance services in their lives. Reason for this type of problem may be poor
information provided by the insurance companies. The problem occurs when the consumers face
authentication about quality of the insurance services. Therefore it is very well understood that those
consumers who do not have knowledge of these types of insurance services will fall into troubles in the
course of evaluation of relative offerings by different competitive insurance companies.
Various demographical factors play vital role in the development of relationships among different
insurance service providers and consumers. Consumers come from different cultural backgrounds. They may
have different needs and demands according to their social and cultural life. As India is a vast diverse
country in terms of cultural and other aspects, so various insurance service providers need different
strategies to cater the needs of different consumers in the insurance market. Insurance penetration in
developing country like India, where social and cultural diversity exists varies from rural to urban areas. In
case of poor people who are living below poverty line, there insurance penetration is supposed to be low.
The foregoing therefore suggests that there will be difference between the common behaviour response to
insurance services and strategies and what obtains in Indian business environment. So, by taking into
consideration basic demographical variables, the present study will investigate the attitudes of Indian
consumers towards insurance services.
 Customer is the king and it is the customer who decides what a business is and therefore a sound
marketing programme starts with a careful analysis of habits, attitudes, motives and needs of the customers.

Definition of Buying Behavior:

Buying Behavior is the decision processes and acts of people involved in buying and using products.

According to Engel, Blackwell, and Mansard, ‘consumer behavior is the actions and decision
processes of people who purchase goods and services for personal consumption’.

Customer Buying Behavior:

Customer buying behavior refers to the buying behavior of the ultimate end user i.e. the customer. A
firm needs to analyse the buying behavior for:

o Buyers reactions to a firms marketing strategy has a great impact on the firms success. ¾
o The marketing concept stresses that a firm should create a marketing mix that satisfies a
customer and therefore need to analyze the what, where, when and how the customers buy.
o Marketers can better predict how customers will respond to marketing strategies.
o Customer buying behavior refers to the action taken by consumer before buying a product or
service. This process may include consulting search engines, engaging with social media
posts, or a variety of other actions. It is valuable for business to understand this process
because marketers can predict how customers will respond to marketing strategies.
o Customer buying behavior refers to the buying behavior of the ultimate end user customer.
Customers are the main pillar of life insurance business. Every company tries to attract and
retain existing customers to keep their profits high. The proper understanding of customers,
their needs and expectations help insurance providers to bring improvement in product as
well as services offered. When compared with the developed foreign countries, the Indian life
insurance industry has achieved only a little because of low consumer awareness, poor
affordability, delayed customer services, lack of suitable products.
o Customer is the king and it is the customer who decides what a business is and therefore a
sound marketing program starts with a careful analysis of habits, attitudes, motives and needs
of the customers. Consumer buying behavior is the study of when, why, how, and where
people do or do not buy a product. Behavior of consumer differs between a purchase of a
physical product and a service-related product.

How Consumer Buy:

1. Need/Want/Desire is recognized:
In the first step the customer has determined that for some reason he/she is not satisfied(i.e.
customer’s perceived actual condition) and wants to improve his/her situation. External factors can
also trigger the customer’s needs. Marketers are particularly good at this through advertising, in-store
displays etc.

2. Search for information:

Assuming that customers are motivated to satisfy his/her need they will undertake a search for
information on possible solutions. The sources may be simple like the past experience or the
customer may expend considerable effort to locate information from outside sources (internet, etc.).
How much effort the customer directs towards searching depends on factors such as:
o The importance of satisfying the need.
o Familiarity with available sources.
o The amount of time available for search.

3. Evaluate options:
Customers search efforts may result in set of options from which a choice can be made. It should be
noted that there may be two levels to this stage. At level one the customer may create a set of
possible solutions to their solution while at level two the customer may be evaluating particular
products within each solution.

4. Purchase:
In many cases the solution chose by the customer is the same as the product whose evaluation is
highest. The intended purchase may be altered at the time of purchase for many reasons such as the
product is out of stock, a competitor offering incentive at the time of purchase, the customer lacking
in necessary of funds.

5. After purchase evaluation:

Once the customer has made the purchase they are faced with the evaluation of the decision. If the
product performs below the customer’s expectation then he/she will re-evaluate the satisfaction with
the decision, which at its extreme might result in the customer returning the product while in less
extreme situations the customer will retain the product but may take a negative view of the product.
Such evaluations might occur in expensive or highly important purchases. Customer service centre
and follow-up market research are useful tools in helping to address the purchaser’s concern.
Research Motivation

The extant literature on life insurance in India is mostly descriptive in nature, with a few empirical
studies that have looked at demographic and socioeconomic drivers of insurance demand. Consumer
behavior in life insurance market has remained largely unexplored. Given the low levels of insurance
penetration and its critical role in increasing financial wellbeing, it is important to understand the life
insurance purchase behaviors of Indians.
There are several issues that are of interest, the level of financial literacy and awareness, the level of
social influence in the purchase decision, understanding the motivations behind the purchase and
understanding whether the existing insurance providers are meeting the needs of the consumer. This is the
primary motivation for this study. We discuss below some of the main theoretical and empirical aspects of
insurance literature that motivates this study.
MARKETING OF INSURANCE IN INDIA
Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a sector, which
leads to benefits across the full spectrum, from the individual who now have wider choices, to the economy,
which see increased savings, to the infrastructure sector, which can look forward to long term funding being
available. In an under-insured economy, newer channels of distribution have to be utilized to intensify the
reach of insurance both in urban and rural markets. This will create huge employment opportunities not only
within insurance companies but also as agents and consultants of insurance companies.
Marketing Mix Policies
Different companies can choose to position themselves differently and hence the Marketing Mix is different.
However, there are certain common characteristics that one can cull out from the possible strategies that
companies adopt.
o Product:
The development of flexible products to suit individual requirements is what will differentiate the winners
from the also-rans. The key to success is in providing insurance solutions, not standardized insurance
products. The concept of riders/optional benefits has already been a huge innovation brought about by the
new players, which has led to customization of products for individual needs. However, companies may
differentiate themselves on the basis of product segments that they choose to focus on and excel in.
o Place:
24 Different companies may however choose different channels and different geographies to focus on. The
channel options are - tied agency force, corporate agents and brokers and this is an area where different
companies will make different choices. Many companies like HDFC Standard Life are focusing on all
channels whereas companies like Max New York Life are focusing on the tied agency force only. Customer
interface will be a key challenge for life insurance companies and includes every that interaction that the
customer has with the company, such as sales, new business underwriting, policy servicing, premium
payments, claim processing and so on. Technology can play a crucial role in delivering the highest standards
of service set by the company and it will be imperative for any serious player to excel in all of these.
o Price:
Price is a relevant differentiator only in two segments - pure term insurance and in pure annuities. Here too,
service delivery and financial strength will need to be present at a minimum acceptable level for price to be a
relevant differentiator. In case of savings oriented products, long-term returns generated are more relevant
than just the price of the product. A focus on generating good investment performance and keeping a tight
control on costs help in generating good long-term maturity value for customers. Norms have been laid
down on all of these by IRDA and adhering to these while delivering good returns will be a challenge.
o Promotion and Advertising:
The level of demand is latent and will have to be activated considerably. The market needs to be developed.
Greater awareness of insurance and the need to have it as a protection tool rather than as a tax planning
measure needs to be appreciated by the Indian people. Various communication tools including advertising,
direct marketing and road shows contribute to all this and different companies take different approaches on
these.

Rational and Behavioral Theories in Insurance Economics

Traditional economic theory assumes that individuals act as rational agents. They evaluate their
choices based on the expected utility of the outcomes of these choices and make decisions to maximize their
overall expected utility. Behavioral economics on the other hand posits that actual human behavior differs
from the rational model of utility maximization (Simon 1982, Thaler and Benartzi, 2002, Kahnemann and
Tversky, 1979). The observed departure from rational behavior is attributed to limits to cognitive ability as
well as common cognitive biases that are deeply embedded in the human psyche. Madrian (2014) mentions
three ways in which these biases work: (i) imperfect optimization; (ii) bounded self-control and (iii)
nonstandard preferences. Imperfect optimization (or bounded rationality proposed by Simon, 1957) indicates
that human beings have limited ability to process the information available to them.
This may be due to lack of time, knowledge, cognitive ability and presence of distractions. Bounded
self-control refers to the fact that even if one understands what they need to do, emotional or psychological
barriers may cause behavioral intentions not leading to actual behavior4 . Nonstandard preferences refer to
the fact that people have different preferences that are influenced by their beliefs and values, as well as
social norms and cultural factors. Their preferences also change with time and depend on their circumstances
at a given point of time and the frame of reference of their decision making. These three factors are
particularly relevant in understanding how decisions related to personal financial management may not
follow rationality. The first factor, "bounded rationality" is relevant because financial concepts are
considered to be difficult to comprehend. Levels of financial literacy is low even among educated
individuals (Lusardi and Mitchell, 2009; Hung et al., 2009; Huston, 2010).
 Insurance is a sophisticated instrument for risk reduction and requires a high level of financial
aptitude and knowledge for the consumer to be able to make intelligent choices. Much of the knowledge
about insurance is based on word of mouth or advice given by insurance agents. 4For example, obese people
may not be able to stop themselves from eating, smokers may not be able to quit smoking and individuals
may not study before an exam or save for the future. 4 The second factor, "bounded self-control" affects
financial decisions in the following way. The level of prudence in the overall population is low,
procrastination is high and self-control is limited when it comes to financial planning (Thaler and Shiffrin,
1981; Akerlof, 1991; Charupat and Deaves, 2004; Lusardi, 2008). Since insurance is related to planning for
the future and not enjoying in the present, many consumers think of it as a "necessary evil" and do not
engage with it actively. The final factor that affects rational choices is "nonstandard preferences" and
differing value systems. These result in an individual’s behavior departing from so called "rational"
behavior. Individuals may differ in their beliefs and values. They may behave in a way that may not be best
for them individually but adheres to social norms and expectations. This would maximize the groups’
wellbeing but may not maximize an individual’s utility.
Given the low levels of financial literacy in India, the monopolistic nature of the insurance industry
till recently, collectivistic culture and the newly found affluence of the young Indian adults, insurance
purchase behavior may differ from other countries. Further, given the widely reported mis-selling of
insurance in the Indian context and elsewhere, it is necessary to understand whether individual decisions
reflect such mis-selling. This is the focus of this study.

Evolution of the Life Insurance Sector in India

The insurance sector in India was under public ownership until late 1990s. With the liberalization of
the insurance sector, the Insurance Regulatory and Development Authority Act (IRDA) was passed in the
year 1999 to regulate and promote the insurance industry in India. Insurance Regulatory and Development
Authority of India (IRDAI) was set up as a statutory body to regulate Indian insurance and re-insurance
market and to protect the interest of its stakeholders. The Indian insurance sector was further liberalized in
the year 2015 with Insurance Law (Amendment) Bill 2015 and Foreign Direct Investment (FDI) limit was
increased from 26% to 49%. Today, the life insurance market in India is one of largest in the 5 world both in
terms of total premium expenditure as well as number of policies sold. In insurance business India is ranked
10th among 88 countries.

The Indian life insurance market has been a monopoly with the Life Insurance Corporation of India
(LIC) being the only provider of insurance till the year 2000. After 2000, the market was liberalized and
private player were allowed to enter the market. At present there are 24 life insurance companies6 registered
in India. Among these, Life Insurance Corporation of India (LIC) is the only public-sector company. Even
though there are larger number of private players in the market, Life Insurance Corporation of India (LIC)is
the single largest insurance provider with about 71.8% of the market share. LIC operates through a large
network of sales agents. By the end of the year 2016-17 LIC had 1.13 million agents, the corresponding
number for private sector insurers was 0.96 million. LIC has a unique position in Indian market as it is
considered as the most trustworthy life insurance provider in the country. As per the IRDA, the insurance
market in India was about Rs. 328,000 crores (or about $48 billion) in terms of the premiums collected.
ICICI Prudential, SBI Life Insurance and HDFC Standard Life are the largest private sector players catering
to about 15% of the market together.

SIGNIFICANCE OF THE STUDY

Consumer is the most important part in society, the impact of consumer behaviour on society is relevance.
consumer behaviour involves the use and disposal as well as the study of how they are purchased. The study
of customers helps firms and organizations improve their marketing strategies by understanding issues as the
psychology of how consumers think feel, reason and different societal factors. The market task is to
understand what in the buyers consciousness between the arrival of outside stimuli and the buyers purchase
decisions. consumer buying behaviour leads to the buying behaviour of the ultimate consumer. The study of
the theme shows understanding consumers needs and paying attention to security of life for things and
consumer behaviour responses are important to marketing aspects.It is very much significant because it
brings out the differences in parameters like awareness, service quality ,problems faced and rationale behind
investment between products.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:

o To determine reasons behind opting for an insurance.

o To determine customers buying behaviour towards private insurance companies and their expectation
form private insurance companies.
o To determine the feedback on services provided by any other insurance agent.
o To study the types of benefits provided by insurance services.

SECONDARY OBJECTIVES:

o To know whether the service offered by the company has satisfied the needs of all groups of people.
o To find out the benefits preferred by the customers.
o To know about their views about the company and to assess to their views.
INDUSTRY OVERVIEW
INTRODUCTION TO INSURANCE SECTOR

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 190 years. 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 business in India are:

1912– The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance
business.
1928 – The Indian Insurance Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurance businesses.
1938 – Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting
the interests of the insuring public.
1956 – 245 Indian and foreign insurers and provident societies taken over by the central government and
nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5
crores from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance
Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

REFORMS OF INSURANCE SECTOR:

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was
formed to evaluate the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the
financial sector. The reforms were aimed at "creating a more efficient and competitive financial system
suitable for the requirements of the economy keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of the overall financial system where it was necessary to
address the need for similar reform.

In 1994, the committee submitted the report and some of the key recommendations included:

1. STRUCTURE :

Government stake in the insurance Companies to be brought down to 50% Government should take over the
holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the
insurance companies should be given greater freedom to operate
2.COMPETITION:

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry No
Company should deal in both Life and General Insurance through a single entity. Foreign companies may be
allowed to enter the industry in collaboration with the domestic companies Postal Life Insurance should be
allowed to operate in the rural market. Only One State Level Life Insurance Company should be allowed to
operate in each state.

3.REGULATORY BODY:

The Insurance Act should be changed An Insurance Regulatory body should be set up Controller of
Insurance (Currently a part from the Finance Ministry) should be made independent

4.INVESTMENTS :

Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and
its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to
this level over a period of time)

5.CUSTOMER SERVICE:

LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to
set up unit linked pension plans. Computerization of operations and updating of technology to be carried out
in the insurance industry The committee emphasized that in order to improve the customer services and
increase the coverage of the insurance industry should be opened up to competition.

But at the same time, the committee felt the need to exercise caution as any failure on the part of new players
could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way
by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide
greater autonomy to insurance companies in order to improve their performance and enable them to act as
independent companies with economic motives. For this purpose, it had proposed setting up an independent
regulatory body.

WHAT IS INSURANCE?

Insurance is a contract that provides compensation for specific losses in exchange for a periodic payment.
An individual contract is known as an insurance policy and the periodic payment is known as the insurance
premium. Insurance provides a mechanism for shifting risk from a person, business, or organization to an
insurance company in exchange for the payment of the insurance premium.

There are many types of insurance and our guide provides information about the most common types. The
most important ones for most individuals are health insurance, life insurance, and auto insurance. Health
insurance provides protection against sickness and bodily injury. Auto insurance provides can pay for
injuries or damage resulting from an auto accident or when an auto is vandalized or stolen. Life insurance
makes a payment to your beneficiaries in the event of your death.
Life insurance pays a specified sum to the beneficiaries upon the death of the insured. It is generally used to
provide cash to your family in the event of your death. There are several types of life insurance policies. The
most common types are whole life insurance and term life insurance. Whole life insurance provides a
lifetime of protection as long as you pay the premiums to keep the policy active.

They also accrue a cash value and thus offer a savings component. Term life insurance provides protection
only during the term of the policy and the policies are usually renewable at the end of the term.

Introduction

The insurance industry of India has 57 insurance companies - 24 are in the life insurance business, while 33
are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector
company. There are six public sector insurers in the non-life insurance segment. In addition to these, there is
a sole national re-insurer, namely General Insurance Corporation of India (GIC Re). Other stakeholders in
the Indian Insurance market include agents (individual and corporate), brokers, surveyors and third-party
administrators servicing health insurance claims.

Market Size

Government's policy of insuring the uninsured has gradually pushed insurance penetration in the country and
proliferation of insurance schemes. Gross premium collected by life insurance companies in India increased
from Rs 2.56 trillion (US$ 39.7 billion) in FY12 to Rs 7.31 trillion (US$ 94.7 billion) in FY20. During
FY12–FY20, premium from new business of life insurance companies in India increased at a CAGR of 15
per cent to reach Rs 2.13 trillion (US$ 37 billion) in FY20.

Overall insurance penetration (premiums as per cent of GDP) in India reached 3.69 per cent in 2017 from
2.71 per cent in 2001.

The market share of private sector companies in the non-life insurance market rose from 15 per cent in FY04
to 56 per cent in FY21 (till April 2020). In life insurance segment, private players had a market share of 31.3
per cent in new business in FY20.

Investments and Recent Developments

The following are some of the major investments and developments in the Indian insurance sector.

o Enrolments under the Pradhan Mantri Suraksha Bima Yojana (PMSBY) reached 154.7 million till
December 2019 since its launch.
o Over 53.8 million famers were benefitted by the Pradhan Mantri Fasal Bima Yojana (PMFBY) in
FY20.
o In April 2020, Axis Bank acquired an additional 29 per cent stake in Max Life Insurance.
o In November 2019, Airtel partnered with Bharti AXA Life to launch prepaid bundle with insurance
cover.
 o In September 2019, Competition Commission of India (CCI) approved acquisition of shares in SBI
General Insurance by Napean Opportunities LLP and Honey Wheat.

Government Initiatives

o The Government of India has taken number of initiatives to boost the insurance industry. Some of
them are as follows:
o As per Union Budget 2019-20, 100 per cent foreign direct investment (FDI) was permitted for
insurance intermediaries.
o In September 2018, National Health Protection Scheme was launched under Ayushman Bharat to
provide coverage of up to Rs 500,000 (US$ 7,723) to more than 100 million vulnerable families. The
scheme is expected to increase penetration of health insurance in India from 34 per cent to 50 per
cent.
o The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue redesigned
initial public offering (IPO) guidelines for insurance companies in India, which are to looking to
divest equity through the IPO route.
o IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds that are
issued by banks to augment their tier 1 capital, in order to expand the pool of eligible investors for
the banks.
Road Ahead

The future looks promising for the life insurance industry with several changes in regulatory framework
which will lead to further change in the way the industry conducts its business and engages with its
customers.

The overall insurance industry is expected to reach US$ 280 billion by 2020. Life insurance industry in the
country is expected to increase by 14-15 per cent annually for the next three to five years.

Demographic factors such as growing middle class, young insurable population and growing awareness of
the need for protection and retirement planning will support the growth of Indian life insurance.
HISTORY OF INSURANCE

Insurance has been around since ancient times. The Babylonians and Phoenicians had ocean marine
insurance to protect a merchant against losses incurred when a ship did not reach its intended destination
with its load of goods or did not return with payment. This form of insurance, called Respondentia, evolved
because the goods on board often were used as collateral for a loan. The lender charged the borrower interest
on the loan and levied an additional sum, the premium, to cover the cost of the respondentia contract. If the
ship reached its destination and returned, the merchant received payment for the goods and in turn paid the
moneylender. If the ship failed to return, the debt was cancelled. This system was profitable to lenders
because many respondentia contracts were sold, and debts were paid more often than cancelled. In ancient
Rome, associations had a form of insurance for their members. Each member made regular payments to the
association in return for coverage of funeral expenses or for assistance to family members who were injured
or ill.

Insurance also existed in 17th-century England, which was then one of the world's principal maritime
powers. Those seeking marine insurance would post a list of their cargo and voyages in a London coffee
house owned by Edward Lloyd. Private investors would examine the list and sign their name by the entries
they were willing to guarantee for a fee. These private investors were the first insurance underwriters, and
the coffee house became the world center of marine insurance. Today the organization is known as Lloyds of
London, and it brings together individuals, most often working in syndicates, who write all types of
insurance.

Insurance in the modern form originated in the Mediterranean during 14th century. The earliest references to
insurance have been found in Babylonia, the Greeks and the Romans. The use of insurance appeared in the
account of North Italian merchant banks who then dominated the international trade in Europe at that time.
Marine insurance is the oldest form of insurance followed by life insurance and fire insurance. The patterns
that have been used in England followed in other countries also in these kinds of insurance.

The oldest and the earliest records of marine policy relates to a Mediterranean voyage in 1347. In the year
1400, a book written by a merchant of Florence, indicates premium rates charged for the shipments by sea
from London to Pisa. Marine Insurance spread from Italy to trading routes in other countries of Europe.

Fire insurance has its origin in Germany where it was introduced in municipalities for providing
compensation to owners of the property, in return for an annual contribution, based on the rent of those
premises. The fire insurance in its present form started after the most disastrous fire in human history known
as the 'Great Fire' in London, which had destroyed several buildings. It drew the attention of the public and
the first fire insurance commercially transacted in 1667. The Industrial Revolution (1720-1850) gave much
impetus to fire insurance. The Nineteenth century marked the development of fire insurance.

Due to the increasing demands of the time, different forms of insurance have been developed. Industrial
Revolution of 19th century had facilitated the development of accidental insurance, theft and dacoits, fidelity
insurance, etc. In 20th century, many types of social insurance started operating, viz., unemployment
insurance, crop insurance, cattle insurance, etc. This way the business of insurance developed
simultaneously with human and social development. Today, the use of computers in the field of insurance is
frequently increasing. Insurance becomes an inseparable part of human development.

The early developments of life insurance were closely linked with that of marine insurance. The first insurers
of life were the marine insurance underwriters who started issuing life insurance policies on the life of
master and crew of the ship, and the merchants. The early insurance contracts took the nature of policies for
a short period only. The underwriters issued annuities and pension for a fixed period or for life to provide
relief to widows on the death of their husbands. The first life insurance policy was issued on 18th June 1583,
on the life of William Gibbons for a period of 12 months.

The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for
English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-
Indian lives as Indian lives were considered more riskier for coverage. The Bombay Mutual Life Insurance
Society started its business in 1870. It was the first company to charge same premium for both Indian and
non-Indian lives. The Oriental Assurance Company was established in 1880. The first general insurance
company-Tital Insurance Company Limited was established in 1850. Till the end of nineteenth century
insurance business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912
and the Provident Fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India.
By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the
Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business
grew at a faster pace after independence. Indian companies strengthened their hold on this business but
despite the growth that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and provident societies
under one nationalized monopoly corporation and LIC was born. Nationalization was justified on the
grounds that it would create much needed funds for rapid industrialization. This was in conformity with the
Government's chosen path of State-led planning and development.

THE HISTORY OF INDIAN LIFE INSURANCE

In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance
Company. First attempts at regulation of the industry were made with the introduction of the Indian Life
Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act
was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect
statistical information about the insured and the high level of protection the Act gave to the public through
regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry.
The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on
share holdings in such companies to prevent dominant control (to protect the public from any adversarial
policies from one single party), stricter control on investments and, generally, much tighter control. In 1956,
the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated
in urban areas and targeted the higher echelons of society. “Unethical practices adopted by some of the
players against the interests of the consumers” then led the Indian government to nationalize the industry. In
September 1956, nationalization was completed, merging all these companies into the so called Life
Insurance Corporation (LIC). It was felt that “nationalization has lent the industry fairness, solidity, growth
and reach.”

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance
business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting
the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance companies.

GLOBAL SCENARIO:

Globally, the insurance industry experienced strong premium growth in 2015, at 5.6 percent, whereas growth
in 2016 is expected to be noticeably slower, at 4.4 percent. Total premiums are expected to reach €4.6
trillion, up from €4.4 trillion in 2015. What factors help explain the industry’s performance? The global
insurance industry is undergoing turbulent times with the continuing low interest rate environment, a
challenging equity market, and tightening regulatory changes, such as the US Department of Labor (DOL)
rule and new US tax guidelines. Meanwhile, consumers’ shift to hybrid online and offline research and
purchasing has largely concluded in developed markets and is accelerating in developing markets with the
spread of mobile phones. These changes, along with the impact of price-comparison websites and other
technology developments, plus the race to implement digital processes, are tectonic shifts forcing insurers to
adjust their business models. Mature markets in North America and Western Europe required the
deployment of considerable strength to address these trends. With life eroding and P&C flattening, the
mature markets have exhibited slower growth rates than insurance in emerging markets, and the figures in
our report are beginning to reflect these major fault lines by business segment and geography. Specifically,
preliminary reports at the segment level globally suggest that health had the highest growth rate from 2015
to 2016, at 6 percent followed by P&C at 4.2 percent, while life saw a slowdown in growth of gross written
premiums (GWP) from 4.8 percent in 2015 to 3.8 percent in 2016. At the regional level, EMEA recorded
moderate growth in the P&C and health insurance segments, while life is expected to decline. Growth in the
Americas region has been characterized by strong progress in health and moderate growth in the P&C
segment. Life is expected to be a bit volatile, owing to changes in US regulations, and is projected to end
2016 with a slight decline in the Americas overall. In APAC, on the other hand, the insurance industry grew
in all three segments, with health generating double-digit growth.

INDIAN SCENARIO :

Life Insurance in its existing form came to India from the United Kingdom with the establishment of a
British firm Oriental Life Insurance Company in Calcutta in 1818 followed by Bombay Life Assurance
Company in 1823.

The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life insurance
business. Later in 1928 the Indian Insurance Companies Act was enacted to enable the Government to
collect statistical information about both life and non-life insurance business transacted in India by Indian
and foreign insurers including provident insurance societies. In 1938 with a view to protecting the interest of
insuring public earlier legislation was consolidated and amended by the Insurance Act 1938 with
comprehensive provisions detailed and effective control over the activities of insurers.

The Act was amended in 1950 resulting in far reaching changes in the insurance sector. These included a
statutory requirement of equity capital for companies carrying on life insurance business, ceiling on share
holdings in such companies, stricter control on investments, submission of periodical returns relating to
investments and such other information to the controller. The controller could also call for appointment of
administrators and put a ceiling on expenses of management and agency commission for mismanaged
companies.

By 1956, 154 Indian insurers, 16 foreign insurers and 75 provident societies were carrying on life insurance
business in India. Life insurance business was concentrated in urban areas and confined to the higher strata
of the society. On January 19, 1956, the management of life insurance business of 245 Indian and foreign
insurers and provident societies then operating in India was taken over by the Central Government. ‘Life
Insurance Corporation’ was formed in September 1956 by an Act of Parliament, viz. LIC Act 1956 with a
capital contribution of Rs.50 mn.

The then Finance Minister Mr. C. D. Deshmukh while piloting the bill for nationalization outlined the
objectives of LIC thus:

"To conduct the business with utmost economy with the spirit of trusteeship; to charge premium no higher
than warranted by strict actuarial considerations; to invest the funds for obtaining maximum yield for the
policy holders consistent with safety of capital; to render prompt and efficient service to policy holders
thereby making Insurance widely popular."

Since 1956, with the nationalization of insurance industry, the state-run Life Insurance Corporation of India
(LIC) has held the monopoly in that country's life insurance sector. General Insurance Corporation of India
(GIC), with its four subsidiaries, was its counterpart in the casualty sector. Over time, taking advantage of its
monopoly and virtual prerogative in establishing premiums, LIC has evolved into a monolith. With around
600,000 agents in every nook and corner of the vast country, it has created an enviable brand name,
particularly among the rural population of the country. It has around $40 billion as its life fund and is a
strong player in the financial sector. With a huge unionized, rigid workforce mostly in the clerical category,
LIC runs the risk of high fixed cost, which will be the deciding factor in productivity in the competitive
scenario. The new players, with the state-of-the-art technology under their belt, will be in an advantageous
position. 80% of LIC's business is procured by 20% of its ill-trained agent force.

The well-publicized failures of world famous consumer goods companies like Electrolux, Whirlpool,
Reebok, Nike etc. to gauge the Indian psyche and sentiments demonstrate the concept. They failed in the
areas of realistic pricing, product promotion and reaching to the consumer. The foreign companies need to
know the "ground realities" to the details. Today the Life Insurance Corporation of India has 2046 branches.
It is made up of 100 divisions, which are divided, into 7 zones. There are 558,000 LIC agents in the country.

CURRENT STATUS:

The IRDA bill had been introduced in the Lok Sabha during the Vajpayee government’s last tenure with the
expected mixed reactions. Surprisingly, the Congress chose to keep mum on the issue. The left parties staged
a walkout registering strong protest. While the eager international and domestic players have to continue
waiting in the wings for the curtains to rise, the government has made another landmark announcement. It is
expected to be introduced again during the ongoing winter session of the parliament The Banking Regulation
Act is to be modified to allow banks to become active players in the insurance sector. This comes as a major
move and a precursor to the sweeping insurance reforms that have been opposed by the swadeshi
bandwagon and the various labour unions operating in the insurance sector.

The takeout of the amendment made to Section 6 (0) of the Banking Regulation Act, 1949 is this: The
current act does not permit banks to handle insurance products. The proposed change will permit banks to
either distribute or to market insurance products. In addition to this, banks will also be allowed entry to the
insurance sector through the joint venture route and bank assurance. It is understood that only strong banks
with three-year track records will be allowed to enter the business -entry is a strict no-no to the weaker
banks. The Insurance Regulatory and Development Authority (IRDA) Bill provides for three levels of
players -An Insurance Company, Insurance Broker and an Agent. Banks will work as agents and brokers in
this proposed structure.

This is an attempt to make the insurance sector more dynamic -this is likely to happen as banks will use their
formidable branch network to market and distribute the insurance products. This amendment could also
forge alliances in the banking sector. Initial reports indicate that the State Bank of India and Bank of Baroda
have expressed interest in entering into joint ventures. ING Barings, who already has a 20%, stake in Vysya
Bank, plans to broad base its alliance to add on insurance-based activities.

This could be a timely move -one that will allow the domestic players to prepare for the competition ahead.
It would also bring them on par with international players who are accustomed to operate in a liberalized
environment. This is also a sensible move by the government to allay the fears of its more conservative and
swadeshi-oriented allies and cement cracks, if any have appeared, given the BJP's new pro-liberalization
avataar.

A closer look at the amendment indicates that it is tantamount to creating stronger public sector monopolies
with behemoths like SBI and BOB entering the fray. It is unlikely that the private sector banks would
contemplate entering the business, as they may not have the requisite capital to meet the prescribed capital
adequacy for the insurance sector. The government may have made a move that could be counter-productive
in that the protests against entry of foreign players will only get more vociferous and strong with many more
strong arms entering the rally.

The manner and style of operations of the public sector banks leaves a lot to be desired. In an industry where
service quality at the moment of truth or the moment of service delivery is non-existent for the public sector
players, one wonders what vibrancy these players will impart to the insurance business. The insurance agent
as stereotyped currently is but the personification of a nationalized bank. Any marketing professional and
every consumer will describe such a person as a semi-retired, balding, sloppy individual who drags his feet
as he walks.

One shudders to even conjure up images of insurance marketing in a nationalized bank branch. One has to
search for a semblance of marketing in the existing set-up for student loans and housing finance. Business
school aspirants and young couples will bear witness to this fact. I have recently been both and have strained
my eyes searching for the proverbial needle in a haystack.

MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA MAJOR PLAYERS IN THE

INSURANCE INDUSTRY IN INDIA

1.LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread the message of
life insurance in the country and mobilise people’s savings for nation building activities. LIC with its central
office in Mumbai and seven zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and
Bhopal, operates through 100 divisional offices in important cities and 2,048 branch offices. LIC has 5.59
lakh active agents spread over the country. The Corporation also transacts business abroad and has offices in
Fiji, Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of insurance,
namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited,
Kuala Lumpur; and Life Insurance Corporation (International), E.C. Bahrain. It has also entered into an
agreement with the Sun Life (UK) for marketing unit linked life insurance and pension policies in U.K. In
1995-96, LIC had a total income from premium and investments of $ 5 Billion while GIC recorded a net
premium of $ 1.3 Billion. During the last 15 years, LIC's income grew at a healthy average of 10 per cent as
against the industry's 6.7 per cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the poverty line, with 50 per cent
subsidy in the premium rates. LIC's claims settlement ratio at 95 per cent and GIC's at 74 per cent are higher
than that of global average of 40 per cent. Compounded annual growth rate for Life insurance business has
been 19.22 per cent per annum.

2. General Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government company known as General
Insurance Corporation of India (GIC) was formed by the Central Government in November 1972. With
effect from 1 January 1973 the erstwhile 107 Indian and foreign insurers which were operating in the
country prior to nationalization, were grouped into four operating companies, namely, (i) National Insurance
Company Limited; (ii) New India Assurance Company Limited; (iii) Oriental Insurance Company Limited;
and (iv) United India Insurance Company Limited. (However, with effect from Dec'2000, these subsidiaries
have been de-linked from the parent company and made as independent insurance companies). All the above
four subsidiaries of GIC operate all over the country competing with one another and underwriting various
classes of general insurance business except for aviation insurance of national airlines and crop insurance
which is handled by the GIC. Besides the domestic market, the industry is presently operating in 17
countries directly through branches or agencies and in 14 countries through subsidiary and associate
companies.

IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING HAVE BEEN PERMITTED

TO ENTER INTO INSURANCE BUSINESS:

The introduction of private players in the industry has added to the colors in the dull industry. The initiatives
taken by the private players are very competitive and have given immense competition to the on time
monopoly of the market LIC. Since the advent of the private players in the market the industry has seen new
and innovative steps taken by the players in this sector. The new players have improved the service quality
of the insurance. As a result LIC down the years have seen the declining phase in its career. The market
share was distributed among the private players. Though LIC still holds the 75% of the insurance sector but
the upcoming natures of these private players are enough to give more competition to LIC in the near future.
LIC market share has decreased from 95% (2002-03) to 82 %( 2004-05).

1. HDFC Standard Life Insurance Company Ltd.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life insurance companies,
which offers a range of individual and group insurance solutions. It is a joint venture between Housing
Development Finance Corporation Limited (HDFC Ltd.), India’s leading housing finance institution and The
Standard Life Assurance Company, a leading provider of financial services from the United Kingdom. Their
cumulative premium income, including the first year premiums and renewal premiums is Rs. 672.3 for the
financial year, Apr-Nov 2005. They have managed to cover over 11,00,000 individuals out of which over
3,40,000 lives have been covered through our group business tie-ups.
 2 .Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Limited is a joint venture that brings together two large forces -
Max India Limited, a multi-business corporate, together with New York Life International, a global expert in
life insurance. With their various Products and Riders, there are more than 400 product combinations to
choose from. They have a national presence with a network of 57 offices in 37 cities across India.

3.Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd.
(KMBL), and Old Mutual plc.

4.Birla Sun Life Insurance Company Ltd.

Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun Life financial
Services of Canada.

o Tata AIG Life Insurance Company Ltd.

o SBI Life Insurance Company Limited
o ING Vysya Life Insurance Company Private Limited
o Bajaj Allianz Life Insurance Company Ltd.
o MetLife India Insurance Company Pvt. Ltd.
o AMP SANMAR Assurance Company Ltd.
o Dabur CGU Life Insurance Company Pvt. Ltd.

5.Royal Sundaram Alliance Insurance Company Limited

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram Finance Limited started
its operations from March 2001. The company is Head Quartered at Chennai, and has two Regional Offices,
on at Mumbai and another one at New Delhi.

6. Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and
Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General
Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration
(R3) on May 2nd, 2001 to conduct General Insurance business (including Health Insurance business) in
India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and
Allianz, AG, holds the remaining 26% Germany.

7. ICICI Lombard General Insurance Company Limited

ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank Limited and the
US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while
Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance, reinsurance,
insurance claims management and investment management. Lombard Canada Ltd, a group company of
Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty insurers. ICICI Lombard
General Insurance Company received regulatory approvals to commence general insurance business in
August 2001.

8. Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint venture of the Murugappa
Group & Mitsui Sumitomo. Chola-MS commenced operations in October 2002 and has issued more than 1.4
lakh policies in its first calendar year of operations. The company has a pan-Indian presence with offices in
Chennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai, Pune, Indore, Ahmedabad, Delhi,
Chandigarh, and Kolkata.

9. TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the Tata Group and
American International Group, Inc. (AIG). Tata AIG combines the strength and integrity of the Tata Group
with AIG's international expertise and financial strength. The Tata Group holds 74 per cent stake in the two
insurance ventures while AIG holds the balance 26 per cent stake. Tata AIG General Insurance Company,
which started its operations in India on January 22, 2001, offers the complete range of insurance for
automobile, home, personal accident, travel, energy, marine, property and casualty, as well as several
specialized financial lines.

11. Reliance General Insurance Company Limited.

12. IFFCO Tokio General Insurance Co. Ltd

13. Export Credit Guarantee Corporation Ltd.

14. HDFC-Chubb General Insurance Co. Ltd.

 INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

The Insurance Regulatory and Development Authority (IRDA) is a national agency of the
Government of India, based in Hyderabad. In 1999, the Insurance Regulatory and Development Authority
(IRDA) was constituted as an autonomous body to regulate and develop the insurance industry.
The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA
include promotion of competition so as to enhance customersatisfaction through increased consumer choice
and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the
market in August 2000 with the invitation for application for registrations. Foreign companies were allowed
ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the
Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of
companies for carrying on insurance business to protection of policyholders’ interests.

Role of IRDA:
o Protecting the interests of policyholders.
o Establishing guidelines for the operations of insurers, and brokers.
o Specifying the code of conduct, qualifications, and training for insurance intermediaries and
agents. Promoting efficiency in the conduct of insurance business.
o Regulating the investment of funds by insurance companies.
o Specifying the percentage of business to be written by insurers in rural sectors.
o Handling disputes between insurers and insurance intermediaries
o
COMPANY OVERVIEW
 ICICI Prudential Life Insurance Company Limited

ICICI Prudential is a joint venture between ICICI Bank and Prudential plc engaged in the business of
life insurance in India. ICICI Prudential is the largest private insurance company and second largest
insurance in India after LIC. 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. 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).

ICICI Prudential Life's capital stands at Rs. 37.72 billion (as on March, 2008) with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the year ended March 31, 2008, the company
garnered Retail New Business Weighted premium of Rs. 6,684 crores, registering a growth of 68% over the
last year and has underwritten nearly 3 million retail policies during the period. The company has assets held
over Rs. 30,000 crore as on April 30, 2008.ICICI Prudential Life is also the only private life insurer in India
to 9 receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind)
rating is the highest 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 seven years, ICICI Prudential Life has retained its
leadership position in the life insurance industry with a wide range of flexible products that meet the needs
of the Indian customer at every step in life. Since the liberalization of Indian Insurance sector, ICICI
Prudential Life Insurance has been one of the earliest private players. Since the time, ICICI Pru Life has
been the leader in terms of market share as indicated by the IRDA (Insurance Regulatory and Development
Authority, the regulator for Indian Insurance Industry) at its website. Arguably the most innovative Indian
Life insurer in terms of customer services and products, ICICI Prudential has one of the largest distribution
and servicing network with over 2,000 proprietary offices & customer touch points across India. The 30,000
employee strong organization has one of the largest agency distribution in the industry. With a growing
product range to match the complex needs of the demanding customers in a growing economy, the
organization also has a history of successful. During 2007-08, the organization's focus on rural business has
proved its complex project execution capability and strong partnerships for customer servicing. In June,
2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK Healthcare to settle insurance
claims of its user.

The company offers a range of life insurance products such as term plans, savings plans, child plans,
retirement plans, and health plans. It has a network of over 480 branches and over 2 lakh advisors across the
country, which enables it to reach customers in both urban and rural areas.ICICI Prudential Life Insurance
has consistently been rated as one of the top life insurance companies in India, with a focus on customer-
centricity and innovation. It has won several awards for its products, services, and customer satisfaction,
including the 'Best Life Insurance Company' award at the 2020 Outlook Money Awards.

As of March 31, 2021, ICICI Prudential Life Insurance had total assets under management of over
Rs. 2.07 lakh crore and a market share of 12.3% in the Indian life insurance market.

History of ICICI Prudential Life Insurance Company Limited

ICICI Prudential Life Insurance Company Limited was established in the year 2001 as a joint venture
between ICICI Bank Limited and Prudential Corporation Holdings Limited. ICICI Bank Limited is one of
India's largest private sector banks, while Prudential Corporation Holdings Limited is a leading international
financial services group headquartered in the United Kingdom.

The company started its operations in December 2000, and within a year, it became the first private sector
life insurer to cross the Rs. 100 billion mark in assets under management. In 2003, it launched its first unit-
linked insurance plan (ULIP), which offered customers both life insurance and investment opportunities.

Over the years, ICICI Prudential Life Insurance has focused on expanding its product portfolio and
distribution network. In 2008, it became the first life insurance company in India to list on the stock
exchanges, which helped it raise capital and strengthen its financial position. In 2016, it launched its online
term plan, which enabled customers to buy life insurance policies online, without the need for physical
documentation.

Today, ICICI Prudential Life Insurance is one of the leading life insurance companies in India, with a strong
focus on customer-centricity and innovation. It has won several awards and accolades for its products,
services, and customer satisfaction, and continues to be a trusted name in the Indian insurance industry.
Our vision:
To make ICICI
prudential the dominant Life
and
pensions player built on trust
by world – class people and
service.
This we hope to achieve by:
Under the needs of customers
and offering them
superior products and services.
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 policy holder.
Providing an enabling
environment to foster growth
and
learning for our employees.
And above all, building
transparency in all our
dealings.
The success of the
company will be founded in its
unflinching commitment to 5
core values – Integrity,
customer
first, Boundary less,
Ownership and passion. Each
of the values
describe what the company
stands for, the qualities of our
people
and the way we work.
We do believe that we
are on the threshold of an
exciting
new opportunity, where we
can play a significant role in
redefining and reshaping the
sector. Given the quality of
our
parentage and the commitment
of our team, there are no limits
Our vision:
To make ICICI
prudential the dominant Life
and
pensions player built on trust
by world – class people and
service.
This we hope to achieve by:
Under the needs of customers
and offering them
superior products and services.
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 policy holder.
Providing an enabling
environment to foster growth
and
learning for our employees.
And above all, building
transparency in all our
dealings.
The success of the
company will be founded in its
unflinching commitment to 5
core values – Integrity,
customer
first, Boundary less,
Ownership and passion. Each
of the values
describe what the company
stands for, the qualities of our
people
and the way we work.
We do believe that we
are on the threshold of an
exciting
new opportunity, where we
can play a significant role in
redefining and reshaping the
sector. Given the quality of
our
parentage and the commitment
of our team, there are no limits
VISION
Our vision:
To make ICICI prudential the dominant Life and pensions player built on trust by world – class people and
service.
This we hope to achieve by:
o Under the needs of customers and offering them superior products and services.
o Leveraging technology to service customers quickly, efficiently and conveniently.
o Developing and implementing superior risk management and investment strategies to offer
sustainable and stable returns to our policy holder.
o Providing an enabling environment to foster growth and learning for our employees.
o And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5 core values –
Integrity, customer first, Boundary less, Ownership and passion. Each of the values describe what the
company stands for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can play a
significant role in redefining and reshaping the sector. Given the quality of our parentage and the
commitment of our team, there are no limits to our growth.
ICICI prudential has the distinction of achieving its highest ever Q2 revenues in Q2FY22, since its
inception. Historically in a given financial year, Q4 is the highest revenue contributor for any insurance
company, with large numbers of policies purchased for income tax benefits before closure of the financial
year. ICICI Pru Life’s Q2FY22 revenues surpassed Q4FY21 revenues, setting the expectation of exceeding
these numbers in Q4FY22.Quoting the management on the results, “Significantly, we posted our best-ever
September on monthly sales for any year since inception. Our new business sum assured grew by 35 per cent
year-on-year to Rs 3.37 trillion in H1FY22, and we continued to be the private sector leader with an overall
market share of 13.2 per cent.”Sales was led by the bancassurance channel, which contributed 39% with the
channel having a total of 23 banca partnerships. This is followed by the agency channel at 24%, where
another 12,000 agents were during H1FY22.

Insurance Plans

ICICI Prudential has a wide array of insurance plans that have been designed with the philosophy
that different individuals are bound to have differing insurance needs.
The ideal insurance plan is one that addresses the exact insurance needs of the individual that will
depend on the age and life stage of the individual apart from a host of other factors.

Type of Plans ICICI Prudential Life Insurance Plans

Term Plans  ICICI Pru iProtect Smart Term Plan
 ICICI Prudential SARAL JEEVAN BIMA Plan
 ICICI Prudential iCare II Plan
 ICICI Prudential PRECIOUS LIFE Plan
 ICICI Prudential Life Raksha Plan
 ICICI Prudential POS iProtect Smart Plan
 ICICI Prudential POS Life Raksha Plan
 ICICI Prudential Loan Protect Plan
 ICICI Prudential Loan Protect Plus Plan
ULIP Plans  ICICI Prudential Signature Online Plan
 ICICI Prudential Signature Plan
 ICICI Pru1wealth Plan
 ICICI Prudential life Time Classic Plan
 ICICI Pru Guaranteed Wealth Protector Plan
 ICICI Prudential Smart Life Plan
 ICICI Prudential Smart Kid Plan
 ICICI Prudential Smart Couple Plan

Savings Plans  ICICI Prudential Guaranteed Income For Tomorrow Plan

 ICICI Prudential Cash Advantage Plan
 ICICI Pru Savings Suraksha Plan
 ICICI Prudential Assured Savings Insurance Plan
 ICICI Pru Future Perfect Plan
 ICICI Prudential LAKSHYA Plan
 ICICI Prudential LAKSHYA Lifelong Income Plan

Retirement Plans  ICICI Pru Easy Retirement Plan

 ICICI Prudential Guaranteed pension Plan – Deferred Annuity
 ICICI Prudential Guaranteed pension Plan – Immediate Annuity
Plan
 ICICI Prudential Easy Retirement SP Plan
 ICICI Prudential Saral Pension Plan

Health Plans  ICICI Prudential Heart/Cancer Protect Health Plan

Group Plans  ICICI Pru Group Term Plus Plan

 ICICI Prudential Group Loan Secure Plan
 ICICI Prudential Group Insurance Scheme for Pradhan Mantri
Jeevan Jyoti Bima Yojana Plan
 ICICI Prudential Shubh Raksha Credit Plan
 ICICI Prudential Super Protect – Credit Plan
 ICICI Prudential Group Suraksha Plan
 ICICI Prudential Group Suraksha Plus Superannuation Plan

Rural Plans  ICICI Prudential Sarv Jana Suraksha Micro Insurance Plan
  ICICI Prudential Anmol Bachat Plan

Rider Plans  ICICI Prudential Corona Protect Rider Plan

 ICICI Prudential Corona Protect plus Rider Plan

Key Features of ICICI Prudential Life Insurance

o ICICI prudential life insurance provides life insurance at low premium rates.

o The customer support claims are settled within 24 hours and get a hassle-free experience.

o Coverage of life cover till 99 years at affordable premiums when your family is not around will
cover up the financial security to you.

o ICICI Prudential Life Insurance covers 35 critical illnesses like cancer, heart attack, kidney
failure, etc. In case policyholder spot with a terminal illness can get 100% coverage amount.

Advantages and Disadvantages of ICICI Prudential Life Insurance

Advantages of ICICI Prudential Life Insurance:

o Quick Issuance: ICICI Prudential Life Insurance Company offers quick approval without any
medical examination or paperwork.
o Less Premium Rates: It provides competitive rates that are comparable with other companies for
similar products
o Customer Service: It has an online chat option for customers who need assistance with their
policy or want to know about their policy status.
o Variety of Products: ICICI Prudential Life Insurance Company offers a wide range of insurance
products to its customers.

Disadvantages of ICICI Prudential Life Insurance:

o The disadvantage of ICICI Prudential Life Insurance is that the premium can be expensive for
some people.
o ICICI Prudential Life Insurance Policy will get lapsed for non-payment of premium within the
grace period.

KEY PARAMETERS ICICI Prudential Life Insurance

Claim Settlement Ratio 97.09%

 Solvency Ratio 2.07

Online Availability Yes

Life Cover Up to 99 years

Number of Branches Available 947

Premium Payment Term

Regular Pay, Single Pay, Limited Pay

Premium Payment Mode Yearly/Half-yearly/ Quarterly/ Monthly

 Buying policy
 renewal
 update information
 premium payments
E-services  switch funds
 download options
 claim settlement

PROJECT DETAILS
Research topic:

ICICI Prudential Life Insurance Company Limited In CUSTOMER-BUYING BEHAVIOR IN LIFE

INSURANCE INDUSTRY.

Significance of study

A big boom has been witnessed in Insurance Industry in recent times. A large number of new players
have entered the market and are trying to gain market share in this rapidly improving market. The study
deals with HDFC Standard Life in focus and the various segments that it caters to. The study then goes
on to evaluate and analyze the findings so as to present a clear picture of trends in the Insurance sector.

Research problem
 Abraham Maslow’s need hierarchy theory lists safety and security as an important need. Buying
behaviour is influenced by wide range of factors such as need, love, affection, urgency, pride, envy etc.
these factors are emotions based and an important emotional and rational factors influencing buying
behaviour also are safety and security. To build a sense of safety and security for family, and to secure
their future financial needs, the life insurance policies have been designed.

Objective
o To test the awareness of customers on various aspects of life insurance policies offered by ICICI
Prudential Life Insurance Company
o To study the service quality offered by ICICI Prudential Life Insurance Company
o To analyze the various aspects of ICICI Prudential Life Insurance Company to identify the insurance
needs with respect to their emotional, physical and financial conditions.
o To determine reasons behind opting for an insurance.
o To determine customers buying behaviour towards private insurance companies and their expectation
form private insurance companies.
o To determine the feedback on services provided by any other insurance agent.
o To study the types of benefits provided by insurance services.
o To know whether the service offered by the company has satisfied the needs of all groups of people.
o To find out the benefits preferred by the customers.
o To know about their views about the company and to assess to their views.
o To explore the level of awareness and likability towards different life insurance policies
o To understand and evaluate investment behaviour and patterns in the buying decisions in life
insurance with reference to education.

LIMITATIONS OF THE STUDY:

o The research is confined to a certain parts of Coimbatore and does not necessarily show a
pattern applicable to all parts of the Country.
o Some respondents were reluctant to divulge personal information, which can affect the validity
of all responses.
o In a rapidly changing industry, analysis on one day or in one segment can change very quickly.
The environmental changes are vital to be considered in order to assimilate the findings.
o The data collected from the customers may be biased.

RESEARCH METHODOLOGY
A proper research methodology is adopted in order to achieve the set objectives and relevant
Information is collected.

Sampling Design: Convenience Sampling Technique was used.

Sample Size: Sample size of 50 respondents was taken.

Nature and Sources of Data: The data was collected by using the following Sources:

a) Primary data Primary data was collected through a structured questionnaire.

b) Secondary data Secondary data was collected through some relevant journals, newspaper articles,
books, magazines, governmental documents and internet etc.

Tools for Data Collection:

The data collection was by done using structured questionnaires. The researcher used structured
questionnaires filled by the respondents of Mumbai.
DATA ANALYSIS AND INTERPRETATION
 TABLE1: SEX OF RESPONDENTS

SEX NO. OF RESPONDENT PERCENTAGE

MALE 52 52%

FEMALE 48 48%

TOTAL 100 100%

FIG-1: SEX OF RESPONDENTS

53%

52%
52%

51%

50%

49%

48%
48%

47%

46%

45%
Male Female

Interpretation:
The above figure reveals that 48% respondent are Male and 52% are Female
 TABLE 2: AGE GROUP OF RESPONDENTS

Age Group No. of respondent Percentage

Below 25 34 74%

25 to 35 6 12%

35 to 45 2 4%

45 and above 5 10%

Total 50 100%
 FIG-2: AGE GROUP OF RESPONDENTS

80%
74%

70%

60%

50%

40%

30%

20%

12%
10%
10%
4%

0%
LESS THAN 25 YEARS 25 TO 35 YEARS 35 TO 45 YEARS ABOVE 45 YEARS

Interpretation:
The above figure reveals that 74% People have age less than 25 years, 12% people age are between 25 to 35
years , 4% people age is between 35 to 45 years and rest of 10% people age is above 45% .
 Table 3: OCCUPATION OF THE RESPONDENTS

Working sector No. of respondent Percentage

Education 7 14%

Government 7 14%

Finance 18 36%

Business 9 18%

IT 2 2%

Others 8 16%

Total 50 100%
 FIG - 3: OCCUPATION OF THE RESPONDENTS

40%

35%

30%

25%

20%

15%

10%

5%

0%
EDUCATION GOVERNMENT FINANCE BUSINESS IT OTHERS

Interpretation:

The above figure reveals that most of the people 36% are working in Finance and 18% are Business sector
14% are working in government, 14% are in education sector and 2% are in IT Sector and 16% working in
other various sector.
Table 4: RESPONDENTS AWARENESS OF INVESTMENT
OPTION

Awareness No. of respondent Percentage

Yes 24 48%

No 9 18%

Have some 17 34%

knowledge

Total 50 100%
 FIG - 4: RESPONDENTS AWARENESS OF
INVESTMENT OPTION

60%

50%
48%

40%

34%

30%

20%
18%

10%

0%
YES NO HAVE SOME KNOWLEDGE

Interpretation:

This graph shows that only 48% of people are aware of the investment option and 34% of people have some
knowledge about it. But 18% of people are not aware of the investment option available to them.
Table 5: RESPONDENTS HAVING AN INSURANCE
POLICY

Awareness No. of respondent Percentage

Yes 25 50%

No 25 50%

Total 50 100%
 FIG - 5: RESPONDENTS HAVING AN INSURANCE
POLICY

60%

50% 50%
50%

40%

30%

20%

10%

0%
YES NO

Interpretation:

This graph shows that 50% of people not having an insurance policy and 50% of people having an insurance
policy.
Table 6: RESPONDENT INTEREST OF INVESTING
OPTIONS

Need for investment No. of respondent Percentage

Retirement 12 24%

Earning 26 52%

Tax Saving 7 14%

Liquidity 5 10%

Total 50 100%
 FIG 6: RESPONDENT INTEREST OF INVESTING
OPTIONS

60%

52%

50%

40%

30%

24%

20%

14%

10%
10%

0%
RETIREMENT EARNING TAX SAVING LIQUIDITY

Interpretation:

The figure shows 52% of people have insurance for future earnings and 24% are investing for
Retirement. 14% of have insurance for tax saving and 10% people have insurance liquidity of money.
Table 7: TERM OF INVESTMENT PREFERRED

Investment Method No. of respondent Percentage

Short Term 14 28%

Medium Term 27 54%

Long Term 9 18%

Total 50 100%
FIG - 7: TERM OF INVESTMENT PREFERRED

60%

54%

50%

40%

30% 28%

20% 18%

10%

0%
SHORT TERM MEDIUM TERM LONG TERM

Interpretation:

The above figure shows 18% of respondents prefer long term investment where as 54% prefer medium
term and only 28% prefer short term.
 Table 8: PERCEPTION ABOUT INSURANCE

RESPONSE No. of respondent Share

A saving tool 16 32%

A tool to protect your 28 56%

family

A Tax saving device 6 12%

Total 50 100%
FIG - 8: PERCEPTION ABOUT INSURANCE

A tax saving device

12%

A saving tool
32%

A tool to protect your family

56%

A saving tool A tool to protect your family A tax saving device

Interpretation:

The above figure shows that 32% of the respondents have perception of Insurance being a saving tool and
6% of the respondents have perception of Insurance being a tax saving device. But 56% of the respondents
are with the view that Insurance is a tool to protect your family.
 Table 9: KIND OF BUYING PROCESS PREFERRED

BUYING No. of respondent Share

PROCESS

Customer
approached
24 48%
Insurance
company/Agent

Company/agent
26 52%
approached
customer

Total 50 100%
FIG - 9: KIND OF BUYING PROCESS PREFERRED

Company/agent approached customer

Customer approached Insurance
company/Agent

Customer approached Insurance company/Agent Company/agent approached customer

Interpretation:

1.48% of the respondents approached the Insurance Company / Agent.

2.Whereas, 52% of the respondents were approached by the Company /Agent
Table 10: WHAT PEOPLE LOOK FOR IN INSURANCE
COMPANY?

RESPONSE No. of respondent Share

A trusted name 14 28%

Friendly service & 17 34%

responsiveness

Good plans 14 28%

Accessibility 10 5%

Total 50 100%
 FIG - 10: WHAT PEOPLE LOOK FOR IN INSURANCE
COMPANY?

Accessibility
10%
A trusted name
28%

Good plans
28% A trusted name
Friendly service & responsiveness
Good plans
Accessibility
Friendly service & respon-
siveness
34%

Interpretation:
 28% customers look for a Trusted name in a company for insurance.
 28% customers look for a good plan in a company for insurance.
 34% and 10% customers look for a Friendly service & responsiveness and Accessibility are also
important factors looked by customers in a company.
Table 11: FEATURES MADE YOU TO INVEST IN ICICI
PRUDENTIAL LIFE INSURANCE

Feature No. of respondent Shares%

Money Back
17 34%
Guarantee

Easy Access to
Agents 7 14%

Company’s
Reputation 17 34%

Larger Risk
Coverance 4 8%

Low Premium 5 10%

Total 50 100%
 FIG - 11: FEATURES MADE YOU TO INVEST IN ICICI
PRUDENTIAL LIFE INSURANCE

Money Back Guarantee Easy Access to Agent Company’s Reputation

Larger Risk Coverance Low Premium

Low Premium
10%

Larger Risk Coverance

8%
Money Back Guarantee
34%

Company’s Reputation
34%

Easy Access to Agent

14%

Interpretation:
Majority of the respondent 34% found Larger risk coverance and 34% found company’s Reputation as the
most attracted feature of the all.
Table 12: RESPONDENT PERCEPTION TOWARDS THE
ICICI PRUDENTIAL LIFE INSURANCE

Opinion No. of respondent Percentage

Average 18 36%

Excellent 18 36%

Aggressive 5 10%

Professional 9 10%

Total 50 100%
 FIG - 12: RESPONDENT PERCEPTION TOWARDS THE
ICICI PRUDENTIAL LIFE INSURANCE

40%

35% 36% 36%

30%

25%

20%

15%

10%
10% 10%

5%

0%
Av er age Ex c el l en t Aggressi ve P r o fessi o n aL

Interpretation:

The above graph shows that 36% of Respondents believes the operations of the company to be excellent and
36 % believe it is Average.
Table 13: SATISFACTION OF THE RESPONDENTS
WITH RESPECT TO POLICIES OFFERED.

RESPONSE No. of respondent Share

Satisfied 32 64%

6 12%
Not satisfied

12 24%
Not Responded

Total 50 100%
 FIG - 13: SATISFACTION OF THE RESPONDENTS
WITH RESPECT TO POLICIES OFFERED.

Not Responded 24%

Not satisfied 12%

Satisfied 64%

Interpretation:

 64% of the respondents are more or less satisfied with their existing policy.
 12% of the respondents are not satisfied with their existing policy.
 In this case all of those who have taken a policy have responded.
 Table 14- RESPONDENTS PREFERENCE FOR
CLARIFYING ANY QUERY

Services No. of respondent Percentage

Advisor 12 24%

Customer care 17 34%

Company website 8 16%

Branch manager 13 26%

Total 50 100%
 FIG - 14: RESPONDENTS PREFERENCE FOR
CLARIFYING ANY QUERY

40%

35% 34%

30%

26%
25% 24%

20%

16%
15%

10%

5%

0%
Advisor customer care company website branch manager

Interpretation:

The above graph shows that 24% people believes in Advisor, 34% of people believes Customer care while
company website and branch Manager People clarify any query first respectively 16% and 26%
Table 15: SATISFACTION OF CURRENT POLICY

RESPONSE No. of respondent Share

Yes 26 52%

10 20%
No

14 28%
May Be

Total 50 100%
 FIG - 4.15: SATISFACTION OF CURRENT POLICY

60%

52%

50%

40%

30%
28%

20%
20%

10%

0%
YES NO MAY BE

Interpretation:

The above figure shows that 52% of respondents are satisfied with their current policy and only 20% of
people are not happy with their policy.
 FINDINGS

o
o It reveals that 12% of respondents belong to 25 to 35 age group and 74% are belong to below
25 ages.

o The survey shows that maximum 36% of the respondents are in working Finance sector.

o Out of 50 respondents 82% of the respondents were well known about ICICI Prudential LIC
investment option.

o 50% of the people having a insurance policy.

o 52% of respondents are indented to invest on their earning only.

o 54% of respondents are preferred Medium term investment term in ICICI Prudential LIC.

o 48% of the respondents prefer the buying process of the company/agent approaching the
customer while 52% prefer vice-versa.

o 36% of the respondents perception about ICICI Prudential LIC is Excellent, and 10% has
told that it is being aggressive and 36% are average.

o 64% of the respondents are satisfied with the policies offered in ICICI Prudential LIC.

o 34% of the respondents using customer care service which the service offered by the ICICI
Prudential LIC.

o 55% of the respondents perceive the benefits of insurance as a cover for future uncertainity.

o 52% of respondents are satisfied with current policy offered by ICICI Prudential LIC.
SUGGESTIONS
In Coimbatore most of the people are working in Government and Business sector and they don’t have
much financial planning. Another important point is they have good compensation package. So the company
should bring more innovative and should carry out more promotional activities in government fields. Better
promotion of unit linked plans can generate more sales to the company.

ICICI Prudential Life Insurance Company unit linked insurance plans can effectively meet the requirements
of the customers, because unit linked plans are directly related to the market, so the customers can creates
more wealth through fund and they can enjoy the tax benefit, and also the insurance cover. The pressure on
the sales team would be lessoned by increasing the awareness among the people about the credibility of the
companies and need for capitalizing on the various insurance plans offered by the private life insurance
companies.

• As the awareness of insurance is less among the people, its awareness should be creating among the people
by conducting stage shows and explaining its need and importance.

• Insurance should not be considered only as a risk cover element but also as a long term investment

• It is also recommended to concentrate to on lower income group people.

• More efforts should be taken by the company’s financial consultants to convert the leads into policy holder
of ICICI Prudential LIC

• Follow up should be taken and customer relation should be maintained by the inviting the existing
customers to the seminars conducted when launching a new product or any changes are made to the products
or rules to retain them.

• Coming with new promotional activities like giving new advertisements, keeping stalls, conducting
seminars in companies, and giving ads through SMS can be done by ICICI Prudential Life Insurance Co. to
create awareness among customers.
CONCLUSION
 Our exhaustive research in the field of Life Insurance threw up some interesting trends which can be
seen in the above analysis. A general impression that we gathered during Data collection was the immense
awareness and knowledge among people about various companies and their insurance products. People are
beginning to look beyond LIC for their insurance needs and are willing to trust private players with their
hard earned money.
People in general have been impressed by the marketing and advertising campaigns of insurance
companies. A high penetration of print, radio and Television ad campaigns over the years is beginning to
have its impact now. Another heartening trend was in terms of people viewing insurance as a tax saving and
investment instrument as much as a protective one.
A very high number of respondents have opted for insurance for such purposes and it shows how
insurance companies have been successful to attract public money in recent times. The general satisfaction
levels among public with regards to policy and agents still requires improvement. But therein lies the
opportunity for a relative new comer like ICICI Prudential Life Insurance Company Ltd. LIC has never
been known for prompt service or customer oriented methods and ICICI Prudential Life can build on these
factors.