S UMMER TRAINING PROJECT REPORT Undertaken at
ICICI Prudential Life Insurance Co. Ltd. On
“comparative analysis of ULIPs of ICICI Prudential” Submitted in Partial Fulfillment Of the Requirement for the Award of the Degree of
Master of Business Administration By Adil Bashir Sheikh MBA-G (A) Roll No. 07
Under the Supervision of
Mr. H.G Abhyankar
BHARATI VIDYAPEETH UNIVERSITY INSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT PUNE
1
Certificate This is to certify that Mr. Adil Bashir Sheikh has completed his Summer Training Project under my direct supervision. He underwent the Summer Training on and from 12th of May 2010 to 2nd of July 2010, during which he was assigned the task of “Unit linked Insurance plans offered by ICICI Prudential and its comparison with its competitors” which he has successfully completed and the same is presented in the form of the present Project Report. It is further certified that the project report submitted by Adil Bashir Sheikh reflects his original work and on the work assigned to him for the Summer Training and that the present project report has not been submitted elsewhere for award of any degree, diploma or fellowship.
Mr. Yasir Ahmad Agency Manager
2
DECLARATION I, Adil Bashir Sheikh, a bonafide student of MBA (Full Time) Programme at the IMED, Pune, hereby declare that I have undergone the Summer Training at ICICI Prudential Life Insurance Co. Ltd. under the supervision of Mr. H.G Abhyankar on and from 12-May to 02-July. I also declare that the present project report is based on the above summer training and is my original work. The content of this project report has not been submitted to any other university or institute either in part or in full for the award of any degree, diploma or fellowship. Further, I assign the right to the university, subject to the permission from the organisation concerned, use the information and contents of this project to develop cases, case lets, case leads, and papers for publication and/or for use in teaching.
Place: Pune
Adil Bashir Sheikh
Date: 21-07-2010
Roll no.: 07-MBA(G)-A
2
ACKNOWLEDGEMENT
It is with immense satisfaction that, I am completing my Summer Project Report, I therefore, would like to wait for few moments and thank IMED, BVU, for encouraging me to take up my Summer Project in Marketing Sector. I am also very thankful to all my faculty members for their extensive support by imparting in us the practical approach of corporate sector, and their valuable backing of getting ourselves involved with the functioning of the company rather than just involve us in our projects. I would also wish to acknowledge my profound gratitude to ICICI Prudential Life Insurance Co. Ltd. who allowed me to do Summer Training and helped me in the completion of this project. I am extremely grateful to all the concerned employees for their full support and guidance despite their tight and busy schedules. I would like to express my special and sincere thanks to Mr. Yasir Ahmad (Agency Manager) who happened to be my industry guide for rendering valuable guidance and necessary suggestions in bringing out this project report. Last but not the least; I shall fail in my duty, if I don’t thank all those concerned people who have directly or indirectly contributed in the completion of this entire Summer Internship Project.
Adil Sheikh 1
S.NO
CONTENTS
1
PAGE NO.
SYNOPSIS 1.1
Introduction
9
1.2
Statement of problem
9
1.3
Objective of study
10
1.4
Research methodology 1.41 Type of research
10
1.41
10
Sampling design
1.43 Sampling size
10
1.44 Sampling description
11
1.45 Actual data collection
11
1.46 Other software used for analyzing the data
11
1.47 Limitations of the study
11
INTRODUCTION, AN OVERVIEW OF INSURANCE SECTOR IN INDIA
2 2.1
What is insurance
13
2.2
Need for insurance
13
2.3
History of insurance
14
2.4
Life insurance in India
3
2.41 Introduction
15
2.42 Brief History
16
COMPANY PROFILE 3.1
Entry of private players
3.2
The Company
18
3.21 Distribution
20
3.22 Our presence
20
3.23 About Promoters
20
1
Competitors of ICICI
3.3
3.31 BAJAJ ALLIANZ an Overview
21
3.32 LIFE INSURANCE CONPANY an Overview
22
3. 33 3.4
RELIANCE LIFE INSURANCE an Overview
22
Policies 3.41 ICICI Prudential
22
3.42 BAJAZ ALLIANZ
23
3.43 LIFE INSURANCE COMPANY
24
3.44 RELAINCE LIFE INSURANCE
24
UNIT LINK INSURANCE PLAN
4 4.1 4.2
Unit Link Insurance Plans Meaning & Definition Working of ULIPS
4.3
ULIPS of ICICI Prudential & its Competitors
27 27
4.31 ULIPS of ICICI Prudential
27
4.32 ULIPS of BAJAJ ALLIANZ
28
4.33 ULIPS of Life Insurance Company
28
4.34 ULIPS of Reliance Life Insurance
29
RESEARCH METHODOLOGY
5 5.1
Type of Research
31
5.2
Sampling Design
31
5.3
Sampling Size
31
5.4
Sampling Distribution
31
5.5
Actual Data Collection
31
5.6
Other Software used for data Analysis
32
6 6(a) 6(b) 6(c)
DATA PRESENTATION, ANALYSIS AND INTERPRETATION comparative analysis of ULIPs of ICICI Prudential
Details of Minimum and Maximum Entry Age Details of the minimum premium 2
34 35 36
37
6(f)
Table showing the details of the single premium Table showing the details of the switching facility in single premium Table shows the Respondents Age
6(g)
Profession of the Respondents
40
6(h)
Respondents monthly income
41
6(i)
Life Coverage of the Respondents
42
6(j)
Respondent Insurer
43
6(k)
Awareness about Policy Function
44
6(l)
Type of Insurance Policy Holding
45
6(m)
46
6(n)
ULIP features provided by existing companies to the respondents Type of investment preferred in ULIP
6(o)
Traditional Plan Respondent
48
6(p)
Factors influencing to invest in insurance plan Factors influencing the respondents to continue the services offered by their existing insurer Satisfaction level of insurance customers
49
6(d) 6(e)
6(q) 6(r)
6(s) 6(t) 6(u) 6(v) 6(w)
38 39
47
50
A Satisfaction level on high returns
51
B Satisfaction level on tax benefit
52
C Satisfaction level on insurance cover
53
D Satisfaction level on partial & full withdrawal
54
Respondent to insure their life those who are not insured Respondents to insure in ICICI prudential life insurance Respondents to invest in the ULIPS of ICICI prudential Respondents ready to take an invest option
55
Respondents to invest in ULIPS roviding companies
59
3
56 57 58
FINDINGS AND SUGGESTIONS
7 7.1
Findings
61
7.2
Conclusion
62
7.3
Suggestions
63
BIBLIOGRAPHY QUESTIONNAIRE
64
4
65-68
Chapter 1
SYNOPSIS
1
TITLE OF THE STUDY: “comparative analysis of ULIPs of ICICI Prudential” 1.1 INTRODUCTION Insurance is legal contract that protects people from the financial costs that result from loss of life, loss of health, lawsuits, or property damage. Insurance provides a means for individuals and societies to cope with some of the risks faced in everyday life. People purchase contracts of insurance, called policies, from a variety of insurance organizations. Almost everyone living in modern, industrialized countries buys insurance. For instance, laws in most states require people who own a car to buy insurance before driving it on public roads. Lenders require anyone who finances the purchase of a home or car with borrowed money to insure that property. Business partners take out life insurance on each other to make sure the business will succeed even if one of the partners dies.
1.2 STATEMENT OF THE PROBLEM: The title of the present research is
“comparative analysis of ULIPs of ICICI Prudential”.
ICICI Prudential is a leading insurance conglomerate globally and the largest asset manager in the world, managing assets more than worth Rs 9300 crores. ICICI Prudential Life Insurance, is the first in India to receive a National Insurer Financial Strength rating of AAA (Ind) by Fitch Ratings
2
Private insurance companies are in the infancy stage. The impact on the insurance market is tangible. The marketing strategies of these private operators have forced LIC to change its gears. The market is more aware and realistic about investment and returns from insurance products. Insurance business is more transparent as compared to the past. In this background this study tries to analyze the investor’s behavior towards insurance products in general and ICICI Prudential in particular.
1.3 OBJECTIVE OF THE STUDY The study was carried with the following objectives: ➢ To obtain general awareness about the insurance sector. ➢ To compare ULIP of ICICI with its competitors. ➢ To gain an insight of ICICI Prudential and other various Insurance Companies. ➢ To do a study on customer perception about the various Insurance Companies. ➢ To identify the improvement opportunities and make appropriate suggestion. ➢ To do the market awareness about the Unit Link Insurance Plan
1.4 RESEARCH AND METHODOLOGY 1.41 Type of Research Descriptive Research is used for the study as it helps fact finding through surveys and enquiries. The data is collected through the primary source, which include questionnaires personal interview and telephonic interview. Secondary data has been collected from internet web page, magazines, insurance related books, journals newspapers etc.
1.42 Sampling Design Stratified random sampling method is used for sampling design in which customers are randomly selected.
2
1.43 Sampling Size The sampling size in this research is restricted to 100 and samples were collected in different areas of Sopore.
1.44 Sample Description The sample consists of all income groups which include employees, students , unemployed people and self-employed people. 1.45 Actual Collection of Data The sources of data are primary and secondary data. 1.45a Primary Data: The primary data was collected through the questionnaire. 1.45b Secondary Data: Secondary data was collected by: Browsing different website Referring various articles, reports, journals, magazines on insurance. Referring different books and previous project reports in college library.
1.46 Other Software Used For Analyzing the Data Microsoft Word, Microsoft Excel for showing the graphs and pie charts for the purpose of analyzing the data.
1.47 Limitation of the study •
An underlying assumption for the entire project is that the details and the feedback received from the population is true.
•
Sample of only 100 respondents is selected from the population.
1
•
Some of the respondents were not ready to fill the questionnaires and some of them were not ready to come out openly.
1
Chapter 2 INTRODUCTION, AN OVERVIEW OF INSURANCE SECTOR IN INDIA.
2
2.1 WHAT IS INSURANCE? •
Insurance is the method of spreading and transfer of risks.
•
The fortunate a many who are exposed to same or similar risk shares loss of the unfortunate few.
•
Loss of assets deprives the owner of the expected benefit.
•
Insurance in this context is a mechanism that helps to reduce the adverse consequences due to loss of assets.
2.2 NEED FOR INSURANCE: •
The possibility of damage to assets caused by any peril is the risk that the asset is exposed to.
•
Risk means the possibility of loss or damage that may or may not happen.
•
It is because of the uncertainty about the risk that insurance becomes important.
•
No uncertainty implies no insurance.
•
Human life is an income generating asset that can be lost in case of early death or disability caused by an accident.
•
Insurance does not protect the assets but only compensates the economic or financial loss.
•
Basically, insurance covers tangible assets but the concept can be extended to intangibles also.
•
People are exposed to risks the consequences of which are difficult to be borne by an individual. The purpose of insurance is to protect the income of individual and provide financial security to his family dependent on his income in the event of his premature death.
•
The individual himself also needs financial security for the old age or on his becoming permanently disabled when his income will stop. 1
•
No person should be in a position to make the risk happen or occur and take unfair advantage.
•
Insurance covers the risk of dying too early or living too long.
2.3 HISTORY OF INSURANCE The origin of insurance is very old. The time when we were not even born; man has sought some of protection from the nature. The basic urge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. Historians believe insurance first developed in summer and Babylonia (both in what is now Iraq) beginning in about 3000BC. The merchants and traders of these societies transferred and pooled their money to protect themselves from losses of cargo to thieves and pirates. In the 18th century BC, Babylonian king Hammurabi developed a code of law, known as the code of Hammurabi, which codified many specific rules governing the practices of early risk-sharing activities. For instance, the code dictated that traders had to repay merchants who financed trading voyages unless thieves stole goods in transit, in which case debts would we cancelled. Seagoing merchants from Phoenicia (in and around present-day Lebanon) began using a system of insurance known as bottom about 1200 BC. In this system. Backer’s loaned money to merchants to finance voyages. Merchants offered their ships (the hull was known as the ship’s ‘bottom’) as collateral for such loans. When a trip succeeded, the merchant would pay the trip’s backer the original loan plus interest, the equivalent of a premium. If a shop went down on its voyage, the trip’s backer would cancel the merchant’s loan. Forms of insurance resembling bottomry had spread to other parts of Asia and the Mediterranean by 400 BC.
1
In the last several centuries BC the societies of Greece and Rome developed some of the earliest systems of life insurance. Greek and roman citizens formed benevolent societies; organizations in which members paid dues that went toward paying for the burial of members who died. Sometimes these societies also paid for the living expenses of deceased members’ families. During the Middle Ages (5th to 15th centuries AD), workers joined together in craft. Many guilds, particularly in England and Italy, provided benefits to workers and their families in the events of illness or death.
2.4 LIFE INSURANCE IN INDIA: 2.41 INTRODUCTION: With such a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 percent to the country’s GDP. In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India, It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation the government in 1993 to examine the various aspects of the industry constituted “Malhotra Committee”. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes. The competition LIC started facing from these companies were threatening to the existence of LIC. Since the liberalization of the industry the insurance industry has never looked back 2
and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run. 2.42 BRIEF HISTORY: The insurance came to India from UK; with the establishment of the Oriental Life insurance Corporation in 1818. The Indian life insurance company act 1912 was the first statutory body that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been established in Indian. Then the central government took over these companies and as a result the LIC was formed. Since then LIC has worked towards spreading life insurance and building a wide network across the length and the breath of the country. After the liberalization the entrance of foreign players has added to the competition in market. 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. In 1972The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. It was after this that 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the new India Assurance Company Ltd. GIC incorporated as a company.
2
Chapter 3
COMPANY PROFILE
CORPORATE INTRODUCTION ICICI PRUDENTIAL LIFE INSURANCE 2
3.1 Entry of Private Players 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.. The following companies are present in the Life Insurance Industry in India.
Name of the Player Bajaj Allianz Life Insurance Company Limited. Birla Sun Life Insurance Co. Ltd HDFC Standard Life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd ING Vysya Life Insurance Company Pvt. Ltd. Life Insurance Corporation Of India Max New York Life Insurance Co. Ltd. Met Life India Insurance Company Pvt. Ltd Kotak Mahindra Old Mutual Life Insurance Limited SBI Life Insurance Co. Ltd Tata AIG Life Insurance Company Limited Reliance Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Life Insurance Co. Ltd. Shriram Life Insurance Co. Ltd. Bharti AXA Life Insurance Company Ltd.
3.2 The Company ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, A premier financial powerhouse, and prudential pica 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’s equity base stands at Rs 1185 crore with ICICI Bank and Prudential and Prudential plc holding 74% and 26% stake respectively. For the past five years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a 1
wide range of flexible products that meet the needs of the Indian customer at every step in life. In the first quartet of financial year 2006-07, we have crossed a new milestone of insuring the lives of more than 2.5 million policy holders. ICICI Prudential Life Insurance is the first in India to receive a National Insurer Financial Strength rating of AAA (Ind) by Fitch Ratings. This rating is determined after a thorough evaluation of the company’s financial processes, risk management framework, product mix, market share etc. After a thorough evaluation, Fitch has assigned us rating reflecting the highest creditworthiness. Over the past five years, we have paid over 2,100 claims amounting to more than Rs 26 crore and taken several steps to assure customers of a quick and smooth claims process. We have a record of settling 92% of claims received within eight working days from the date of receiving the last requirement. The AAA rating also reflects the ongoing operational and capital support that ICICI Prudential receives from its shareholders. ICICI Prudential Assets under management crosses 9300 crores mark: Again we are the no. 1 among the private Life Insurers to achieve this milestone. We have once again maintained our leadership position with a 32% market share amongst the private Life Insurance Companies.
3.21 Distribution
ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 95 cities and towns, with 113 branches and 20 spoke branches. We have seven bancas surance tie-ups, having agreements with ICICI Bank, Federal Bank, south Indian Bank, Bank of India, Lord Krishna Bank and some Cooperative banks, as well as over 150 corporate agents and brokers. We have also tied up with NGOs, MFIs and corporate for the distribution of rural policies as well as organizations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society.
3.22 Our Presence ICICI Prudential has recruited and trained over 60,000 + insurance advisors to interface and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality service to customers.
3.23 About the Promoters ICICI Bank (NYSE:IBN) is India’s second largest bank and largest private sector bank with over 50 years of financial experience and with assets of Rs 1892.18 billion as on 30
th
September ,2005. ICICI Bank offers a wide range of banking and financial services to
corporate and retail customers. This is done through a variety of delivery channels, through its specialized subsidiaries and affiliates in the areas of investment banking, life and nonlife insurance, venture capital and asset management. ICICI bank is a leading player in the retail banking market and has over 13 million retail customer accounts. The Bank has a network of over 583 branches and extension counters, and 2,000+ ATMs. Established in London in 1848 , Prudential plc , through its business in the UK and Asia, provides retail financial services products and services to more than 16 million customers , policyholder and unit holders worldwide. As of September 30, 2005, the company had over 2
$ 180 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life insurance ,pensions , mutual funds , banking , investment management and general insurance . In Asia , Prudential is the leading European Life insurance company with a vast network of 24 life and mutual fund operations in twelve countries – China , Hong Kong , India , Indonesia Japan , Korea , Malaysia , the Philippines , Singapore , Taiwan , Thailand , and Vietnam.
3.3 COMPETITORS OF ICICI 3.31 BAJAJ ALLIANZ AN OVERVIEW Bajaj Allianz insurance company limited is a union between Allianz AG, one of the world’s largest insurance companies and Bajaj Auto one of the biggest 2-& 3-wheeler manufactures in the world. Allianz AG is a leading insurance conglomerate globally and the largest asset manager in the world, managing assets worth over 996 billion Euros (Rs.53, 64,456 Crores). Allianz AG has 115 years of financial experience in over 70 countries. Bajaj Auto is the most trusted name in the Indian marker for over 55years.The Bajaj Allianz Life Insurance Co. Ltd. has been from 4 years since this company has established its roots in India. This company was incorporated on 12th March, 2001 and the company received IRDA certification on 3rd August, 2001. The Bajaj Allianz Life Insurance Co. Ltd., customer delight is there guiding principle. Ensuring world-class solutions by offering customized products with transparent benefits, supported by the best technology is there business philosophy. And the punch line of the company is “JAISI ZAROORATH WAISA INSURANCE – PRODUCTS TO SUIT YOUR NEEDS”.
3.32 LIFE INSURANCE COMPANY AN INTRODUCTION Life Insurance Corporation of India is the largest life Insurance company in India and also the country’s largest investor. It is fully owned by the government of India. It also funds 2
close to 24.6% of the Indian government’s expenses. It has assets estimated of 8 trillion rupees. It was found in 1956. Headquartered in Mumbai, which is considered the financial capital of India . The life insurance corporation of India currently has 8 zonal offices and 101 divisional offices located in different parts of India, at least 2048 branches located in different cities and a town of India along with satellite offices attached to about some 50 branches and has a network of around 1.2 million agents for soliciting life insurance business from the public.
3.33 RELIANCE LIFE INSURANCE AN OVERVIEW Reliance life Insurance company limited, a part of Reliance – Anil Dhirubhai Ambani Group, Reliance capital is one of India’s leading private sector financial services companies, which ranks among the top 3 private sector financial services and banking companies. Reliance Life Insurance is not only one of India’s fastest growing life Insurance companies, but also counts among the top 4 private sector insurance. In just 2 years, the company has crossed the mark of 1.7 million policies. Reliance Life Insurance Company launched around 600 branches in 10 months taking the overall branch network above to 740.
3.4 POLICIES 3.41 ICICI PRUDENTIAL 3.41a Traditional Insurance Plans This plan helps the customers to save tax and earn more interest the various options are… ➢ ICICI Pru Pure Protect - Most cost effective Life Insurance Policy and is as affordable as your daily newspaper. ➢ ICICI Pru Life Guard SP - Single premium term plan. ➢ ICICI Pru Save n Protect
- Endowment plan
➢ ICICI Pru Cash Bak - An anticipatory endowment plan ➢ Smart Kid
- An anticipatory education plan for children. 3
3.41b Pension Plans This option is helpful for retired persons – this plan helps the retired person to live worryfree life. ➢ ICICI Pru Life Time Super Pension – regular Premium, unit-linked pension policy ➢ ICICI Pru LifeLink Super Pension – Single premium, unit-linked pension policy. ➢ ICICI Pru PremiumLife Pension – Limited premium paying unit linked pension Policy. ➢ ICICI Pru LifeStage Pension – No premium allocation charge for regular premiums which means 100% of the money is invested. ➢ Elite Pension -
Limited, six year term and three year premium payment term pension
plan.
3.42 BAJAJ ALLIANZ 3.42a TRADITIONAL PLANS Endowment ➢ Life Time Care –A whole life plan , which provides survival benefits at the age of 80, thereby making sure you are financially secure at the time when you need it the most. ➢ Invest Gain ➢ Save Care 3.42b MONEY BACK ➢ Cash Gain – A money back plan which guarantees 125% payout and bonuses. 5 easy payouts which give upto 125 % + bonuses. 3.42c PENSION PLANS Annuity ➢ Pension Guarantee RETIREMENT ➢ New Unit Gain Easy ➢ Pension Plus RP ➢ Future Income Generator 2
3.43 Life Insurance Company Insurance Plans: Insurance plans are policies that talk to you individually and give you the most suitable options that can fit your requirements. 3.43a CHILDREN PLANS ➢ Jeevan Anurag- It is with profits plan specifically designed to take care of the educational needs of children. The plan can be taken by a parent on his or her own life. ➢ Jeevan Kishore ➢ Child career Plan ➢ Child Fortune Plus 3.43b PENSION PLANS ➢ Jeevan Nidhi ➢ New Jeevan Dhara-1
3.44 RELIANCE LIFE INSURANCE 3.44a PROTECTION PLANS In today’s uncertain world, there could be calamity at every step of the life. It is up to you to ensure that your family stays protected always. Reliance Protection Plans helps you do exactly the same. You have a wide range of options to choose a plan from. Right from limited period plans to lifetime protection plans, you can opt for the one that suits your lifestyle. Various plans are : ➢ Reliance Term Plan _ Reliance Term Plan is a pure life insurance plan that offers you comprehensive and affordable coverage for a limited period of time to suit your needs. ➢ Reliance Simple Term Plan ➢ Reliance Special Term Plan ➢ Reliance Endowment plan
3.44b RETIREMENT PLANS ➢ Total Investment Plan 11-Pension ➢ Reliance Super Golden Years Plan ➢ Reliance Wealth + Health Plan
2
Chapter 4 2
Unit Link Insurance Plans
4.1 Unit Link Insurance Plans ULIPS are a category of goal based financial solutions that combine the safety of insurance protection with wealth creation opportunities. In ULIPS, a part of investment goes towards providing you life cover. The residual portion of the ULIP is invested in a fund which in turn invests in stocks or bonds; the value of investments alters with the performance of underlying fund opted by you. 2
4.2 WORKING OF ULIPS When you decide the amount of premium to be paid and the amount of life cover you want from ULIP, the insurer deducts some portion of ULIP premium upfront. This portion is known as Premium allocation change, and varies from product to product. The rest of premium is invested in fund or mixture of funds chosen by you.
4.3 Unit Linked Insurance Plans of ICICI Prudential and its Competitors 4.31 ICICI PRUDENTIAL Offering insurance plans with flexibility and tax benefits. The various options for the customers to invest in ULIP. ➢ ICICI Pru Life Stage RP : Offers a wide range opf benefits to policyholders , many of them are still not market savvy ➢ ICICI Pru Lifestage Assure: Offers a clear advantage by providing guaranteed
returns
(maturity additions) on the 1st year premiums. ➢ ICICI Pru LifeLink Super: “Single premium “unit linked investment cum Insurance plan.
➢ ICICI Pru LifeTime Gold :Regular premium unit linked plan & offers attractive additional allocation units at regular intervals ➢ ICICI Pru PremierLife Gold:Offers short term premium payment terms and
provides
policyholder with flexible investment options.
4.32 ULIPS OF BAJAJ ALLIANZ Market linked insurance plans invest the premium in to the equity, debt and cash markets by the way of allocating units, which like any other mutual fund have a NAV and the customer is free to switch between one fund class to another depending on the risk factor he wishes to be in. Bajaj Allianz Life Insurance has developed a number of ULIP products which range from single premium to a regular premium. Various plans are : 2
4.32a Regular Premium
UNIT GAIN PLUS GOLD A Unique plan with the combination of protection and prospects of earning attractive returns with investments in various mix of securities that makes a perfect plan to last you a lifetime of prosperity and happiness. High Allocation upto 85%.Guaranteed Life Cover with a choice of 7 Investment Funds. ➢ New Unit Gain Super ➢ New Unit Gain Plus ➢ New Unit Gain
4.32b Single Premium ➢ New Unit Gain Premier Sp ➢ New Unit Gain Plus SP 4.33 ULIPS OF LIC Unit plans are investment plans for those who realize the worth of hard-earned money. These plans help you see your savings yield rich benefits and help you save tax even if you don’t have consistent income .Various plans are: ➢ Market Plus 1: This is a unit linked pension plan wherein the pension is payable after a specified period. Though primarily a pension product, the plan has many attractive features and options which make it an ideal retirement solution for the future. ➢ Profit Plus ➢ Fortune Plus ➢ Money Plus 4.34ULIPS OF RELIANCE LIFE INSURANCE The plan allows you to experience the joys of life and provide for your family’s needs. Various plans are: ➢ Reliance Premier Life Under this plan the investment risk in the investment portfolio is borne by the policyholder. 2
This is a regular premium, unit linked savings plan. The plan offers the twin benefit of insurance cover along with savings, by investing in market linked securities. ➢ Reliance Super Invest assure Plan ➢ Reliance Wealth + Health Plan ➢ Reliance Cash Flow Plan
1
Chapter 5
RESEARCH METHODOLOGY
1
5.1 Type of Research Descriptive Research is used for the study as it helps fact finding through surveys and enquiries. The data is collected through the primary source, which include questionnaires personal interview and telephonic interview. Secondary data has been collected from internet web page, magazines, insurance related books, journals newspapers etc.
5.2 Sampling Design Stratified random sampling method is used for sampling design in which customers are randomly selected.
5.3 Sampling Size The sampling size in this research is restricted to 100 and samples were collected in different areas of Sopore.
5.4 Sample Description The sample consists of all income groups which include employees, students, unemployed people and self-employed people.
5.5 Actual Collection of Data The sources of data are primary and secondary data.
5.51 Primary Data: The primary data was collected through the questionnaire.
5.52 Secondary Data: Secondary data was collected by: Browsing different website Referring various articles, reports, journals, magazines on insurance. 1
Referring different books and previous project reports in college library.
5.6 Other Software Used For Analyzing the Data Microsoft Word , Microsoft Excel for showing the graphs and pie charts for the purpose of analyzing the data.
1
Chapter 6 DATA PRESENTATION, ANALYSIS AND INTERPRETATION
1
“comparative analysis of ULIPs of ICICI Prudential” UNITLINK PRODUCTS 6(a) Table showing the Unit Link Products of ICICI Prudential Life Insurance and it’s comparison with its competitors.
Features Name Of The Policy Entry Age Min Age (Years) Max Age (Years) Maximum Policy Term Premium
ICICI Prudential Life Insurance LifeTime Gold
LIC
Bajaj Allianz Life Insurance company
Bimaplus
Capital Unit gain
Reliance Life Insurance Market Return Plan
0
12
0
30 days
65
55
60
65
75
10years
60
40years
Min single premium Sum Assured
20,000
5,000
10,000
10,000
25,000
50,000
25,000
25,000
Min
1,00,000
50,000
1,00,000
50,000
10,00,000
unlimited
unlimited
5,000
5,000
2,500
Max
Unlimited
Top-ups
2,500
Switches
4times
2times
3times
1time
No
No
No
No
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
No
No
Yes
No
80%
74%
95%
76%
Loan Riders Accident Benefit Critical illness Benefit Hospital cash Allocation Table No. 1:
1
6(b) Table
showing the details of Minimum and Maximum Entry Age.
Chart no.1
Bajaj Allianz Particular Min Age Max Age
ICICI 0 65
LIC 12 55
0 60
Reliance Life Insurance 30 Days 65
E n tr y A g e fo r th e P o lic y 80
Age in Years
60 M in A g e M ax Age
40 20 0 1
2
3
4
C om pany N am es
Analysis: ➢ From the above data it is observed that a person with an age of 0 years can take this policy in ICICI Prudential and Bajaj Allianz, in LIC it is 12 years and Reliance Life Insurance entry age is 30 days. ➢ In ICICI Prudential and Reliance Life Insurance a person can take policy up to the age of 65 years while in Bajaj Allianz 60 years and LIC 55 years. Inference: ➢ From the above data it’s clear the LIC Bimaplus policy is better than the other insurance companies on the basis of entry age. 2
➢ Reliance Life insurance is better than all the insurance companies on the basis of maximum entry age in order to hold the policy for 65 years.
6(c) Table showing the details of the minimum premium Particular Min Premium
ICICI Prudential 20,000
LIC 5,000
Bajaj Allianz
Reliance Life Insurance
10,000
10,000
Chart no.2
Analysis: From the above table it is clear that the lowest premium is paid by LIC customers, maximum premium paid in ICICI Prudential. So most of the customers are ready to pay High premium, but the Sopore market prefer a policy with low premium. Inference: From the above data it is clear that the LIC policy is better than the policies of other insurance companies in comparison with the minimum premium. 1
2
6(d) Table showing the details of the single premium. Particula r
ICICI Prudential
LIC
Bajaj Allianz
Single Premium
25,000
50,000
25,000
Reliance Life Insurance 25,000
Chart no.3
Analysis: The above data shows that the policy holder can take the single premium of Rs.25, 000 in ICICI Prudential, Bajaj Allianz and Reliance Life Insurance but in LIC it is Rs. 50,000. Inference: From the above data it is clear that the ICICI Prudential, Bajaj Allianz and Reliance Life Insurance policy is better than LIC when comparing the entry age.
1
6(e) Table showing the details of the switching facility in single premium. Particular Switches
ICICI Prudential
LIC
4times
2times
Bajaj Allianz 3times
Reliance Life Insurance 1time
Chart no.4
Analysis: From the above table it is clear that maximum switching facilities provided by the company is ICICI. If any policyholders want to switch more times as mentioned above than they have to pay some charges as per the company rules and regulations. Inference: From the above data it’s clear that ICICI Prudential policy good in comparison to other insurance sector on the basis of switching facilities.
6(f) Table shows the Respondents Age 2
Age (Years) 12 – 23 24 – 34 35 – 44 45 – 54 Total
No. Of Respondents 08 76 04 12 100
% Of Respondents 08% 76% 04% 12% 100%
Chart no.5 % of Respondents
Respondents Age 80% 60% 40%
76%
20% 0%
8% 12 – 23
4% 24 – 34 35 – 44 Respondents Age
12% 45 – 54
Analysis: The above table reveals that from the sample size 100, 76% of respondents are 24 – 34 Years, 12% of respondents are 45 – 54 Years, 8% of respondents are 12 – 23 Years, and remaining 4% respondents are 35 – 44 Years. So the 76% of respondents will affect the total survey. Inference: From the above table it is clear that the respondents who are between the ages of 24 to 34 insure their life.
2
6(g) PROFESSION
OF THE RESPONDENTS
Profession No. Of Respondents Self Employed 12 Salaried 84 Other 04 Total 100
% Of Respondents 12% 84% 04% 100%
Chart no.6
% of Respondents
Professio of the Respondents 100%
84%
80% 60% 40% 20%
12%
4%
0% Self Employed
Salaried
Other
Profession
Analysis: From the above table it is clear that among 100% of the sample population, 84% are from salaried class, 12% from self employed and 4% me time only 4% include other categories such as Financial Advisors, Housewives, etc .So the opinion of the salaried people will affect the total survey. Inference: The above table shows that most of the salaried employed have insured in various insurance companies.
1
6(h) RESPONDENTS MONTHLY INCOME Income (Rs.) 10,000 – 15,000 15,001 – 20,000 20,001 – 25,000 25,001 – Above Total
No. Of Respondents 16 40 04 40 100
% Of Respondents 16% 40% 04% 40% 100%
% of Respondents
Chart no.7 Respondents Monthly Income 50% 40% 30% 20% 10% 0%
40%
40%
16% 4% 10,000 – 15,000
15,001 – 20,000
20,001 – 25,000
25,001 – Above
Income
Analysis: 1
The above table shows that 40% of the respondents who are earning Rs.15001 – 20,000 & Rs.25001 & Above invest in insurance companies, 16% in the income group of Rs.10000 – 15,000 and only 4% in the income group of Rs.20001 – 25000 . Inference: The above table shows that respondents who are earning Rs.15, 001 to 20,000 and 25, 0001 and above insure their life in various insurance companies.
6(i) LIFE COVERAGE OF THE RESPONDENT Insured Yes No Total
No. Of Respondents 96 04 100
% Of Respondents 96% 04% 100%
Chart no.8 Life Coverage Of The Respondents
4%
Yes No
96%
Analysis: It is quite evident that around 96% of the total population insure their life and only 4% are yet to insure. But by research it has proved that “Only 20% of the Indian population
1
has been insured”, so there is good opportunity for the insurance companies to exploit the market.
Inference: The above table shows that 96% of sample populations insure their life with various insurance companies.
2
6(j) RESPONDENT INSURER Insurer Name ICICI LIC Bajaj Allianz Other Total
No. of Respondents 29 42 8 21 100
% of Respondents 29% 42% 8% 21% 100%
Chart no.9
Analysis: The above table reveals that 42% of population insure in Government Sector and 58% of population with Private Sector. We can easily infer that majority of the population trusts private sector as there is maximum growth for the Private Sector in comparison with Govt. Sector. In private sector 29% of population is covered by ICICI Prudential Life Insurance , 8% by Bajaj Allianz, and 21% is covered by other insurance companies (i.e. Reliance Life Insurance, MetLife Insurance etc.). Inference: From the above table it is clear that from the sample population maximum people are holding LIC policy.
6(k) AWARENESS ABOUT POLICY FUNCTIONING
Awareness Yes No Total
No. of Respondents 88 12 100
Chart no.10 1
% of Respondents 88% 12% 100%
N Y A e o w ,s a , 1 r 8 2 e 8 % n %
e s s
a b o u t P o l i c y F u n c t i o n i n g 2
Analysis: The above table shows that 88% of population know the policy functioning and 12% have no knowledge about the policy functioning. Inference: From the above table it is clear that most of the policy holders know the policy functioning.
3
6(l) TYPE OF INSURANCE POLICY HOLDING Policy No. of Respondents Traditional 48 ULIP 52 Total 100
% of Respondents 48% 52% 100%
Chart no.11
T y p e O f In s u r a n c e P o lic y H o ld in g
% of Respondents
53% 52% 51% 50% 49% 48% 47% 46%
52%
48%
T ra d itio n a l
U L IP
T y p e o f P o lic y
Analysis: The above table reveals that after the launching of ULIP like an investment cum insurance product 52% of the sample population have opted for the policy .Thus, ULIP is better than any insurance product in present market. So the company can exploit it in a better way. 1
Inference: The above table shows that most of the sample population know about the ULIP and are holding ULIP plan in comparison with Traditional plan.
6(m) ULIP FEATURES PROVIDED BY EXISTING COMPANIES TO THE RESPONDENTS. ULIP Features High Returns Insurance Cover Tax benefit Partial & Full Withdrawals Other Total
No. of Respondents 29 25 18 23 5 100
Chart no.12
2
% of Respondents 29% 25% 18% 23% 5% 100%
O 1 2 5 H IT P W R B 9 5 8 3 % n tia e y % trsxg h s tu h e Ip iB rd R e ra o n e ln a n s t ce w d u fu e & a re lir n e tn C sF sr o u t lvs le r
U L I P F e a t u r e s
O f f e r e d
Analysis: The above table shows that 29% of sample population are getting the High Returns from their existing insurer, 25% are getting Insurance Cover from their existing insurer, 23% are getting Partial & full Withdrawals Facilities from their insurer , 18% are getting Tax Benefit , and only 5% are getting other benefits like Flexibility, Liquidity, Savings etc., Inference: The above table shows that most of them are holding a policy or opted to insure because of High Return on their investment.
2
6(n) TYPE OF INVESTMENT PREFERRED IN ULIP Type of Investment R.I.C.H. Flexi Growth Flexi Balanced Balancer Protector Preserver Total
No. of Respondents 73 18 0 0 0 9 100
% of Respondents 73% 18% 0 0 0 9% 100%
Chart no.13 Investment preferred in ULIP
0%
9% R.I.C.H.
18%
Flexi Growth Flexi Balanced Balancer Protector 73%
Preserver
Analysis: It is quite clear that around 73% of the sample population like to invest in R.I.C.H. which is an Equity Fund Investment option. So ULIP like Equity Fund Investment has a good opportunity in the future. 18 % of sample population invests in Flexi Growth, and only 9% invest in Preserver. Inference: The above table shows that most of the sample population like to opt for R.I.C.H. which is an Equity Fund invest option.
6(o) TRADITIONAL PLAN RESPONDENT. 1
Policy Name Life Guard SP Cash Bak Save n Protect Life Guard ROP Smart Kid Total
No. of Respondents 5 40 5 5 45 100
% of Respondents 5% 40% 5% 5% 45% 100%
Chart no.14 Traditional Plan Respondents
5% Life Guard SP Cash Bak
45%
40%
Save n Protect Life Guard ROP Smart Kid
5%
5%
Analysis: The above table of traditional plan reflects 45% of sample population invest in Smart Kid and 40% invest in Cash Bak policy. Inference: The above table shows that most of the respondents who have taken traditional policy opted for Smart Kid .
6(p) FACTORS INFLUENCING TO INVEST IN INSURANCE PLAN 2
Investment Option Premium Payment Mode Partial & Full Withdrawals Tax Benefit Life Risk Cover High Return Total
No. of Respondents 6 10 24 33 27 100
% of Respondents 6% 10% 24% 33% 27% 100%
Chart no.15
H 6 1 3 2 P W T L % 0 4 3 r7 ia % fxtrye g tm e h ie d B u n ra e R ltm a in e w tse M & kfa u rilo d tsF C n e u o vl l e r
Motivational Factors for Investment
Analysis: The above table reveals that around 33% of sample population are motivated to invest because of Life Risk Coverage , 27% invest because of High Returns , 24% because of Tax Benefit , 10% because of Partial and Full Withdrawal facility , and only 6% of sample population are motivated because of Premium Payment Mode Inference: The above table shows that the main factor for the sample population to invest on the insurance plan is Life Risk Coverage to secure their family in future if any untoward happen.
2
6(q) FACTORS INFLUENCING THE RESPONDENTS TO CONTINUE THE SERVICES OFFERED BY THEIR EXISTING INSURER. Factors Brand Image Customized Products High Returns Comprehensive Coverage Customer Care Insurance Cover All the Above Factors Total
No. of Respondents 13 8 25 6 8 23 17 100
% of Respondents 13% 8% 25% 6% 8% 23% 17% 100%
Chart no.16 Customers Influencing Factors Brand Image Customized Products
13%
17%
High Returns
8%
Comprehensive Coverage 23%
Customer Care 25% Insurance Cover 8%
6%
All the Above Factors
Analysis: We can infer that 25% of sample population are continuing their service because of High Returns , 23% because of Insurance Cover , 17 % because of All the factors like Brand Image, Customized Products , High Returns , Comprehensive coverage, Customer Care, Insurance Cover, 13% because of Brand Image, 8% because of customized Products & Customer Care, and only 6% because of comprehensive Coverage. Inference: The above table shows that the main factor for the sample population to continue their service offered by various insurance companies is High Returns on their investment.
6(r) SATISFACTION LEVEL OF INSURANCE CUSTOMERS 2
A. SATISFACTION LEVEL ON HIGH RETURNS Factors
Extremely Good
Good
Average
Below Average
Inadequate
Higher Returns
35%
5%
15%
20%
25%
Chart no.17 I S 3 5 1 2 E G A B a % 0 5 x o v e n t% o le a ri o d s a w e f m g q a e A u lc v a y te ri e o G a n o g o e L d e v e l o n H i g h e r R e t u r n s
Analysis: The above table shows the satisfaction level on High Return . Here 35% of sample population are rated in the scaling of Extremely Good , 5% Good , 15% Average , 20% Below Average , 1
and remaining 25% as inadequate . So from the above interpretation we can conclude that most of the sample population are satisfied with their High Returns in the rating scale of Extremely Good. Inference The above table shows that 35% of sample population responded satisfaction level as Extremely Good on the factor of High Return.
2
B. SATISFACTION LEVEL ON TAX BENEFIT.
Factors
Extremely Good
Good
Average
Below Average
Inadequate
Tax Benefit
35%
6%
6%
24%
29%
Chart no.18
I T 3 6 2 E G A B a 5 % 4 9 x o v e n x t% o le a r o d B a w e e m g q n e A u le v a f y te ri e t G a s o g o e d
Analysis: The above table shows the satisfaction level on Tax Benefit .Here 35% of sample population respond in the scaling of Extremely Good , 6% Good , 6% Average , 24% below average , and 29% inadequate . Inference: The above table shows that 35% of sample population responded satisfaction level as Extremely Good on the factor of Tax Benefit.
1
C. SATISFACTION LEVEL ON INSURANCE COVER Factors Insurance Cover
Extremely Good 28%
Good 11%
Average 11%
Below Average 11%
Inadequate 39%
Chart no.19
I 2 1 3 E G A B 8 1 9 x o v e n s t% o le a ru o d r a w e a m g q n e A u lc v a y te r e C G a o g v o e e d r Analysis: The above table shows the satisfaction level on Insurance Cover. Here 28%of sample population responded in the scaling of Extremely Good, 11% Good , 11% Average , 11% Below Average, and for remaining 39% inadequate . So from the above interpretation we can conclude that most of the sample population are not satisfied with Insurance Cover.
Inference: The table shows that 39% of sample population are not satisfied on the factor of their Insurance Coverage.
1
D. SATISFACTION LEVEL ON PARTIAL & FULL WITHDRAWAL Factors Partial & Full Withdrawal
Extremely Good 25%
Good
Average
6%
25%
Below Average 31%
Inadequate
Total
13%
100%
Chart no.20
I P 6 2 3 1 E G A B a % 5 1 3 x o v e n r t% o le a rt o d i a w e a m g q l e A u l v a & y te r e F G a u o g l o e l d W i t h d r a w a l
Analysis: The above table shows the satisfaction level on Partial & Full Withdrawal . Here 25% of sample population responded in the scaling of Extremely Good 6% Good, 25% average , 31% below average , only 13% as inadequate . The interpretation shows that most of sample population have satisfaction level below average on the factor of Partial & Full Withdrawal. 1
Inference: The table shows 31%of sample population responded satisfaction level as Below Average on the factor of their Partial and Full withdrawal facility.
6(s) RESPONDENT WANT TO INSURE THEIR LIFE THOSE WHO ARE NOT INSURED. Want to Insure Yes No Total
No. of Respondents 60 40 100
Chart no.21
1
% of Respondents 60% 40% 100%
4 Y 6 N R e o 0 e s %
s p o n d e n t s
P r o m i s e d t o I n s u r e
Analysis: The above table shows that 60% of sample population insure their life with different insurance companies and 40% have not insured their life . So it clearly shows that their is a demand for insurance products to exploit in the market. 1
Inference: It is clear that 40% of sample population still have to insure their life and there is a huge market for insurance companies to explore .
6(t) RESPONDENTS READY TO INSURE IN ICICI Prudential Life Insurance.
Want to Insure with ICICI Prudential Yes No Total
No. of Respondents
% of Respondents
42 58 100
42% 58% 100%
Chart no.22
Analysis: The above interpretation shows that 42% of sample population promised to insure their life with ICICI Prudential and remaining 58% are not interested to invest with ICICI 0Prudential. Thus, the company has to create the awareness among the masses in the market in order to increase the sales.
1
Inference: It is clear that 42% of sample population is interested to insure the life with ICICI Prudential Life Insurance.
6(u) RESPONDENTS READY TO INVEST IN THE ULIP OF ICICI Prudential Ready to Invest in the ULIP of ICICI Prudential Yes No Total
No. of Respondents
% of Respondents
40 60 100
40% 60% 100%
Chart no.23 Respondents Ready To Invest In The ULIP Of ICICI Prudential
40%
Yes No
60%
Analysis: The above interpretation shows that 40% of sample population is ready to insure their life with ULIP of ICICI Prudential and remaining 60% are not ready to invest with ULIP of ICICI Prudential. It is clear that the company has to create the awareness about the ULIP in the market in order to increase the sales.
Inference: 1
The table shows that 40% of sample population is ready to invest on ULIP of ICICI Prudential.
6(v) RESPONDENTS READY TO TAKE AN INVEST OPTION Type of Investment R.I.C.H. Flexi Growth Flexi Balancer Total
No. of Respondents 25 50 25 100
% of Respondents 25% 50% 25% 100%
Chart no.24 Analysis: The above table of the sample population who are ready to invest in ULIP of ICICI Prudential .The preferred option of 50% of sample population is ready to invest in the Flexi Growth, 25% in R.I.C.H., and 25% in Flexi Balancer in the future. So it is clear that most of the sample population want to invest in Flexi growth. Inference: The table shows that 50% sample population is interested to invest in Flexi Growth.
6(w) RESPONDENTS READY TO INVEST IN ULIP PROVIDING COMPANIES Insure Yes No Total
No. of Respondents 45 55 100 1
% of Respondents 45% 55% 100%
Chart No.25
5 Y 4 N W e o 5 sa %
n t I n s u r e
Analysis: The above analysis reveals the fact that 45% of sample population is ready to invest in the ULIPs of different companies . So there is a huge market which ICICI Prudential can easily capture.
Inference: The table shows that 45% of sample population is ready to invest in ULIP providing companies.
2
Chapter 7 FINDINGS AND SUGGESTIONS
1
7.1 Survey Findings 1. There is a common opinion that ULIP has a good future as it will satisfy all the wants of an investor including return. 2. Around 29% of sample population is ready to invest if they get High Returns, apart from Tax Benefit & Partial & Full Withdrawal Facilities. 3. 42% of the sample population is ready to invest in ULIP. 4. Around 58% like to invest in private life insurance companies. 5. Even though majority of the people have a good awareness but still they have a negative attitude towards investing in insurance and related securities. 6. 25% of sample populations are not satisfied with their High Returns from the Existing Insurer. 7. 35% of sample population is satisfied with Tax Benefits provided by the existing insurance companies. 8. About 39% of sample population is not satisfied with the insurer regarding Insurance Coverage. 9.
31% of sample population is Below Average in their satisfaction level regarding Partial and Full Withdrawal facilities provided by the existing insurer.
10. Investments in insurance related options are given the least priority than ever before. 11. 45% of sample population is ready to invest in the ULIP of ICICI Prudential and the remaining 55% are ready to invest in other ULIP providing insurance companies. 12. 40% of sample population are ready to insure the life with ULIP of ICICI Prudential Insurance Company 13. 60% of sample population are not ready to invest with ULIP of ICICI Prudential Insurance Company 14. 60% of sample population insure their life with different insurance companies 15. 40% of sample population still has not insured their life. So there is a huge demand for insurance products to exploit the market
1
CONCLUSION The size of the market has grown and the size of the insurable population in India is really huge and the existing player has managed to cover about one-fourth of it. The opportunities before the players are, therefore, huge in terms of target audience. The falling interest rates, the collapse of many small-time financial institutions, the scope for entering related areas like banking and pensions in a bid for synergy and the promise of E-Commerce provide opportunities for the new products like ULIP’s in the insurance market as it gives high returns and insurance coverage to the customers. As it provides benefits of mutual funds and endowment plans most of the people like to take a policy. Life insurance has today become a core of market economy since it offers plenty of scope for generating large sum of money with the time by offering its customers perfect products to satisfy their financial need. It is, therefore, essential to invest in insurance sector if we want to have a worry-free future.
1
SUGGESTIONS After analyzing the customer feedback it is clear that at present at ICICI Prudential is having an edge over other various life insurance companies. There are a few areas where ICICI Prudential could rework on its strategies to outperform its competitors in the future.
➢
ICICI Prudential could introduce more customer friendly feature on its policies like unlimited free switches, lower administration charges, more allocation to the units in the first year etc.
➢ ICICI Prudential can unquestionably make good use of more advertisement to promote its products and to improve its brand awareness and brand image.
➢ ➢
Company can give more importance to the new age insurance solutions. Company should introduce more innovative pension and child ULIP plans as they have more demand.
➢
From the customer’s point of view, ICICI Prudential is just another private insurer trying to sell whatever they have. Instead the company must modify its product range in such a way that the company could clearly distinguish its products from that of its competitors.
➢
ICICI Prudential must exploit its reputation as successful banking and insurance company. Even today many people don’t know that ICICI and Prudential plc is the same company they trust as banking and insurance company.
2
➢ ICICI must clearly introduce ULIP products with low premium because the low profile customers who want to invest in ICICI Prudential have no option other than going to other private players. If all these factors are addressed properly, there is a very high probability for the company to be the best and the biggest private life insurance company in Indian life insurance industry in future.
1
BIBLIOGRAPHY BOOKS: Marketing Research -------------by Prof: Kotler Research Methodology (Methods & Techniques) -------------by C.R Kothari, Second Edition MAGAZINES: Business Journals India Today Outlook Money
NEWS PAPERS: Times of India Hindu The Indian Express Economic Times Greater Kashmir The Kashmir Times
WEBSITES: www.allianzbajaj.co.in www.lic.com www.iciciprulife.com www.irda.com www.goolge.com www.relianceinsurance.co.in
OTHERS: Companies Broachers and other product detail books
1
QUESTIONNAIRE Dear Sir / Madam, I Adil Bashir Sheikh student of ‘INSTITUTE OF MANAGEMENT AND ENTERPRENEURSHIP DEVELOPMENT PUNE’ pursuing my 3rd SEM MBA- FM from
BVP University has to submit a project on “comparative analysis of ULIPs of ICICI Prudential.” I will be very thankful if you spare few moments of your precious time to give your valuable answer for the following questions, which will be of a great help to me. Name Mr. / Ms
:
Address
:
Age
:
Email ID
:
Contact No
:
1. Your Profession: Self Employed
Salaried
Others ______________
2. Specify your Family Income? Rs. 2,500 – 5,000
Rs. 5001 – 10,000
Rs. 10,001 – 15,000
Rs. 15,001 – 20,000
Rs. 20,001 – 25,000
Rs. 25,001 – Above
3. Have you ever insured for yourself or your Family members? Yes
No
4. If yes please specify your Insurer? ICICI Bajaj Allianz
LIC MetLife Insurance
Other _________________ 5. Are you aware about policy functioning? Yes
No 1
6. Which type of insurance policy you are having? Traditional
Unit Link Insurance Plan (ULIP)
7. If ULIP, What are the features of the ULIP that existing company is providing from the following features? Higher Return
Tax benefits
Insurance Cover
Partial and Full Withdrawals
Other _____________ 8. Which Investment Option you opted for? R.I.C.H.
Flexi Growth
Flexi Balanced
Balancer
Protector
Preserver
9. If Traditional, in which plan from the following have you invested in? ICICI Pru Pure Protect
ICICI Pru Life Guard SP
ICICI Pru Save n Protect
ICICI Pru Cash Bak
ICICI Pru Life Guard ROP
Smart Kid
10. What made you to Invest? Premium Payment Mode
Partial and Full Withdrawals
Tax Benefit
Withdrawal Option
Life Risk Cover
Higher Return
11. What are the main factors that influence you to continue the services offered by your existing insurer? Factors
Tick
Factors 1
Tick
Brand Image
Customer Care Tax Benefits All of the above Other specific
Customized Products Higher Returns Comprehensive Coverage
12. Are you satisfied with the facilities provider by your existing insurer with respect to ULIP? Rate them on scale of 1 to 5. 1
Facilities
2
3
4
5
Higher Return Tax benefits Insurance Cover Partial and Full Withdrawals 13. Would you like to insure your life? Yes
No
14. If yes, would you insure yourself or your family member’s life with ICICI Prudential? Yes
No
15. If yes, would you like to invest in the ULIP of ICICI Prudential? Yes
No
16. If Yes, Which Investment Option you want to opt for? R.I.C.H.
Flexi Growth
Flexi Balanced
Balancer
Protector
Preserver
17. If not ICICI Prudential, would you like to invest in ULIP providing companies? 1
Yes
No
Thank you.
3
