SUMMER TRANING REPORT

ON

DEVELOPING AND EXPANDING THE

CHANNEL OF DISTRIBUTION FOR ICICI PRUDENTIAL LIFE INSURANCE COMPANY

IN ICICI PRUDENTIAL LIFE INSURANCE COMPANY

DELHI
In partial fulfillment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION (session 2010-2012)
ii

SUBMITTED TO:KURUKSHETRA UNIVERSITY KURUKSHETRA SUBMITTED BY:SUDHIR KUMAR ROLL NO. 3002 M.B.A (2nd) YEAR

DEPARTMENT OF BUSINESS MANAGEMENT SARDAR KEWAL SINGH INSTITUTE OF MANAGEMENT & TECHNOLOGY KIRMACH (KURUKSHETRA)

iii

iv

CERTIFICATE
This is to certify that Mr./MsSUDHIR KUMAR.. a student of theM.B.A from SARDAR KEWAL SINGH INSTITUTE OF MANAGEMENT & TECHNOLOGY Has successfully undergone and completed the college Intern Programme with ICICI PRUDENTIAL Life Insurance Company Limited for a period From 28/06/2011 to 07/08/2011

We wish his/her all the best for all the future endeavors.

Regards,

dated:

ACKNOWLEDGEMENT
This project is teamwork; it would not have been possible without the guidance and cooperation of a number of people. I wish to extend my gratitude to all those who facilitated the completion of my project. At the outset, I would like to give my sincere thanks to Mr. Vijay Singh UM. Through the period of my project I was given valuable guidance, a sense of direction, methodology and approach to be followed by my faculties Prof. Subash Chander Paul. I am highly indebted to him Last but not least I would like to thank the whole team of ICICI Prudential Life Insurance Company for providing me a comfortable environment for working. iii SUDHIR KUMAR MBA 2nd year Roll No. 3002

EXECUTIVE SUMMARY
After completing 1st year of MBA from SKS, I joined ICICI Prudential Life Insurance Company for my summer internship project where I was expected to report to Mr. Vijay Singh UM ( VIDEOCON TOWER, New Delhi) who was my project guide from the company. The task in hand was channel development and expanding it. In this, I had to recruit insurance advisors for the company. The target was set at least five insurance advisors. The project also required us to conduct a market research, in which I have to talk to the people and ask them that are they aware of what is insurance advisor, if they say yes then we ask them are they interested to become an insurance advisor and if they say no, then we tell them about what is insurance advisor. ivinterested and in spite of The findings of the research is that some people are being busy they want to become insurance advisor, but apart of this many are not interested either because they do not have time or the job does not suit them. Recruiting agents of different profiles for the company was a real marketing experience that I got in the field.

LITERATURE REVIEW
I collected a lot of material on insurance through various sources and used the following literature survey for the purpose of the report: The BOP (Business Opportunity Plan) Handbook of ICICI Prudential Life Insurance Co. gives the basic idea about the companys policy about the advisor recruitment and code of conduct. It discusses the various aspects of this profession. It discusses the Dos and Dont for advisor and it discusses the commission structure as well. The IRDAs official website http://www.irdaindia.org gives the detail of rules, regulation and recruitment process of an Insurance Advisor. It also discusses the eligibility criteria to become an Insurance Advisor. ICICI Prudential Life Insurance Co.s official website http://www.iciciprulife.com gives the details about the company, culture, and requirement and eligibility criteria. The Resource book of Insurance department of SKS has defined advisor and his nature. The IC 02 of Insurance Institute of India has given the basic functions, eligibility and recruitment of an advisor. v

TABLE OF CONTENTS
Chapter Contents Acknowledgement Executive summary Literature Review Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 27 Chapter 9 Chapter 10 Chapter 11 Objective Introduction to company Introduction to channels of distribution for insurance Being an Advisor at ICICI Prudential Principles of ICICI Prudential Reasons to become an advisor of ICICI Prudential Supports and Benefits Qualities in people to become an vi advisor Page No. iii iv v 1 3 11 15 17 20 23

Selection Process Career Progression and future opportunities Restrictions for a life insurance advisor IRDA Rules and Regulations Research Methodology Problems while recruiting advisor for the company Solutions to these problems Learning from the project Findings of the study Conclusion and recommendations Bibliography

30 34 38

Chapter 12 Chapter 13

46 48

Chapter 14 Chapter 15 Chapter 16

50 52 56 58

Appendix

59

vii

CHAPTER 1
1

OBJECTIVES
To find whether life insurance is still synonymous with L.I.C. To know how many people take insurance as what it is meant for and not as tax saving financial instrument. To know whether people know fully about the benefits an insurance advisor has To know how many people are interested in becoming an insurance advisor? To search for prospects who can become advisors and recruit and select the best.

CHAPTER 2

A BRIEF INTRODUCTION OF THE COMPANY

HISTORY OF ICICI LTD
ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.

ICICI BANK
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. 4 The bank offers a broad spectrum of financial services to individuals and companies including deposit accounts, commercial banking, mortgages, car loans, personal loans, corporate and trade finances, credit and debit cards and other banking services. ICICI Bank is India's second-largest bank with total assets of about Rs. 2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05 bn (US$ 449 mn) for the year ended March 31, 2005). ICICI Bank has a network of about 614 branches and extension counters and over 2,200 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Center and representative offices in the United States, United Arab Emirates, China, South Africa and Bangladesh. Our UK subsidiary has established a branch in Belgium. ICICI Bank is the most valuable bank in India in terms of market capitalization. ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

At June 5, 2006, ICICI Bank, with free float market capitalization of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all the companies listed on the Indian stock exchanges.

AT A GLANCE
1955 ICICI formed 1980 Focus on project finance and long term funding 1988 Venture capital funding 1993 Asset management company 1993 Investment banking (ICICI securities) 1994 Commercial Banking ICICI Bank 1996 Merger with Shipping Corporation of India to create operational efficiencies 1997 Acquisition of ITC classic finance to set up the retail deposit business 1998 Acquisition of Anangram Finance to set up the retail asset business ( ICICI Personal Finance Services Limited) 1999 ICICI Infitech Company set up for transaction processing and technology solutions 2000 Foray into the e-commerce area and insurance sector. 2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank, and had acquired Chettinad Mercantile Bank (est. 1933) and 5 Illanji Bank (established 1904) in the 1960s. 2002 The Boards of Directors of ICICI and ICICI Bank approve the merger of ICICI, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. After receiving all necessary regulatory approvals, ICICI integrates the group's financing and banking operations, both wholesale and retail, into a single.

INTERNATIONAL EXPANSION
2002 ICICI establishes representative offices in NY and London. 2003 ICICI opens subsidiaries in Canada and the United Kingdom (UK), and in the UK it establishes alliance with Lloyds TSB. It also opens an Offshore Banking Unit (OBU) in Singapore and representative offices in http:\\Lupinworld.com and Shanghai. 2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between that country, India and South Africa. 2005 ICICI acquires Investitsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI Bank offers a high-interest (5.4% gross) internet savings account to UK customers.

ICICI has managed this transformation by continually tuning its strategies with the evolving competitive environment, shifting its strategy from a product focus to customer focus and capitalizing on every available market opportunity to ensure greater share of the customers wallet.

PRUDENTIAL Plc
THE COMPANY
Established as the Prudential Mutual Assurance and Loan Association in 1848, today it is an international financial services company with a product range that extends from personal banking insurance, pensions and retail investments, to institutional fund management and property investments. Their portfolio of well-known and respected brands, includes Prudential, M&G Investments, Jackson National Life, Prudential Corporation Asia and Egg, has attracted more than 19 million customers (and policy holders and unit holders) worldwide. Across the Group it has 234 billion of funds under management (at 31 December 2005). It has significant operations in the UK, the US and Asia, contributing to a diversity of earnings. Worldwide it employs more than 20,000 people and their shareholders number stands at 60,942 (at 31 December 2005). The company is 6listed on the London and New York stock exchanges.

The company aim is to enhance and protect our customers and their dependents financial well being, by offering a superior range of savings, protection and other retail financial services products. In the UK, via the Prudential brand, it offers annuities, corporate pensions, with-profits and unit-linked bonds, savings and investments products, protection policies, equity release products and health insurance plans.

M&G Investments, its UK and European fund manager, has a leading position in retail fund management, institutional fixed income, pooled life and pension funds, property and private finance. Egg is an innovative financial services company providing a range of banking and financial services through its Internet site, www.egg.com. Jackson National Life (JNL), its US business, is a leading life insurance company with more than 3 million policies and contracts in force. JNL offers fixed, fixed-index and variable annuities, term and permanent life insurance and institutional products. In Asia, Prudential Corporation Asia has 23 operations in 12 countries. These include strategic partnerships with some of the regions leading players, including CITIC Group (for life business in China), ICICI Bank (for life and mutual fund business in India) and Bank of China International (for Mandatory Provident Fund business in Hong Kong). Prudential Corporation Asia offers a wide range of savings, protection and investment products tailored to the needs of our customers in each of the 12 markets in which it operate. In addition to its life insurance operations Prudential has asset management businesses in India, Hong Kong, Japan, Taiwan, Malaysia, Singapore, Korea, Vietnam and China managing over 26 billion (as of 30 June 2005).

PRUDENTIAL CORPORATION ASIA

Prudential Corporation Asia has 24 operations in 12 countries, namely: China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. 7region's leading players, These include strategic partnerships with some of the including: Bank of China International for Mandatory Provident Fund business in Hong Kong; CITIC Group for life business in China; ICICI Bank for life and mutual funds business in India. Prudential Corporation Asia is Europe's leading life insurer in Asia in terms of market coverage and number of top five market positions. Prudential Corporation Asia's distribution is predominantly through its 130,000 tied agents but also through other distribution channels such as banc assurance agreements (including Standard Chartered Bank in Hong Kong, Malaysia, Singapore, Taiwan and Thailand). In 1912, prudential promptly paid out claims to the families of 324 individuals insured with it who lost their lives in the Titanic disaster. With over 150 years of experience, it has brought to market an integrated range of financial services products that now includes life insurance, pensions, banking, investment management, mutual funds and general insurance.

ICICI PRU THE WINNING COMBINATION

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 Life Insurance Company was established in 2000 with a commitment to expand and reshape the life insurance industry in India. The company was amongst the first private sector companies to begin operations after receiving approval from Insurance Regulatory and Development Authority (IRDA) and in the time since, has taken several steps towards realizing its goal. The companys wide range of products, distribution strengths and powerful brand has driven its growth across a cross-section of people and cities. On March 31, 2002 the company crossed the 1,00,000 policies milestone with a premium income of around Rs. 122 crore and a total sum assured of 2700 crore to establish itself as the No. 1 Private life insurer in the country. ICICI Prudential equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 60,000 advisors, as well as 7-banc assurance (which now has increased to 13) and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. 8 ICICI prudential life insurance company limited is the no. 1 player among the Indian private insurance companies. The ICICI prudential brand name has the highest recall among all private companies. "The task for the ICICI prudential is to build a relevant brand that customer should trust" says Shikha Sharma MD and CEO of ICICI Prudential life. When the insurance industry was first opened up and private players entered the field in 2000, there was a host of challenges that lay before them. Consumer attitude towards insurance were largely indifferent, and insurance was regarded as an inflexible, taxsaving product that offered low returns. Rarely was it recognized for its multidimensional protection instrument. Service levels were low and products were not transparent and typically sold as the "one size-fits-all "kind with very little relevance to a consumer's actual need. The most broad based challenges for all companies was to spread awareness about life insurance - how it works, its benefits and most of all, its absolute necessity for anyone who has dependents. At a more company specific level, the task for ICICI prudential (ICICI prudential life insurance company) was to build a relevant brand that customers could trust. Being a front - runner in the life insurance industry, ICICI Prudential has always performed both the task as well as the brand with the help of advertising and PR. The Company's addressed various myths and misconceptions about life insurance, seeking to

change customer attitudes. For instance, life insurance had long been regarded as expensive, rigid, difficult to understand and good only for tax saving. As a result of ICICI Prudential's advertising, life insurance is now increasingly seen as 1 complete solution to meet one's myriad needs- health, Health, life, child protection and retirement. It's a financial product that provides a stable return on investment, protects life at affordable cost, secures a child's future, does retirement planning in the most effective way and provides additional health protection. It is now becoming an integral part of the consumer's wealth management basket. The other major communication task at the time of launching operations was to present the visiting card of the company to the public at large and build credibility and stature so as to giver the consumer the confidence that" here was company that could be trusted to invest funds with." This required a corporate campaign, which started with advertising to establish the brand, build awareness and give the brand a larger than life image. The aim was to position ICICI prudential as the new and modern face of life insurance provider in India and change perceptions of the target audience to view insurance not as a compulsory tax saving instrument but as a means to lead worry free and secured life. Amongst ICICI Prudential's innovative steps were the introduction of life stage and needbased solutions selling, thereby unshackling the category and meeting specific customer needs. The brand proposition for all the ad campaigns were reflected in the lute" we cover you. At every step in life", i.e. that ICICI prudential is the only private life insurance company that provides the consumer insurance solutions which are relevant to the unique needs at every stage of life. The campaign also provide several lines of support serving to inculcate trust and belief in the company such as the competitive advantage or product performance, a showcase of products 9available for different segments the flexibility and value addition in products and the sound financial backing and credentials of ICICI & prudential. According to recent syndicated ORG-MARG studies, the ICICI prudential brand name and advertising had the highest recall amongst all private players and was only marginally behind LIC. Six year since the liberalization of the life insurance industry, we see consumers becoming increasingly aware of and actively managing their financial affairs. They are looking at insurance companies to offer them a complete solution and, one of the biggest Challenges facing insurer is to continuously re- evaluate customer needs and develop products to fulfill this need. ICICI Prudential's strategy is to remain customer-centric in all that it does. Thereby constantly evaluating and meetings customer needs. Regular focus group individual meetings with customers listening to the voice of the customers etc are all methods that the company implements to ensure that the customers remains central to the ICICI Prudential's being.

DISTRIBUTION
The company has a network of about 60,000 advisors; as well as 13 banc-assurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. ICICI, Indias

leading financial services provider with excellent network and reach into the local Indian Financial market and a proven track record of more than four decades. Prudential is one of the finest life insurance companies in the world with a 150-year old heritage in the Life Insurance Industry. ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. The company has distribution agreements with several corporate agents as well as banks such as ICICI Bank, Federal Bank and Bank of India. It has also tied up with BASIX, Dhan, CASPOR, Shepherd and World Vision for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society. Further it leverages its state-of-the-art IT infrastructure to provide superior quality of service to the customers. Two dynamic companies, one dynamic joint venture ICICI Prudential Life Insurance Company Limited. This partnership brings to clients: The latest technology A complete and diversified product portfolio Fast and accurate service for the customer Widespread and effective penetration is ensured through a multi channel distribution system A highly trained and professional sales force ensures high quality pre and post sales service. With ICICI Prudential not only offers the best to the clients 10but also gives the best to the clients.

CHAPTER 3
11

INTRODUCTION TO CHANNELS OF DISTRIBUTION

STEPPING INTO CHANNEL DEVELOPMENT
Channels Of Distribution

Agents

Brokers

Bank assurance

Others

Most financial services managers would readily acknowledge that their most important asset is their customer data and yet only a few have unlocked the value of this great asset. Fewer still have integrated this data across disparate technology applications. But unlocking and integrating is key to improving, the customer experience and achieving reduced channel costs. Multi-channel distribution should be part of an overall strategic design to create sustainable competitive advantage by efficiently delivering value across all internal and eternal touch points. A major prerequisite is a seamless and real-time interaction between the customer and the provider who need to solve the 12interaction of requests from customer-facing applications. Independent agents and brokers have long played central roles in serving policyholders. Traditionally, the value proposition has been personalized service through local presence. Many insurers rely on them exclusively to sell and service policies. Cognizant solutions make the relationship, both with partners and end customers, frictionless. This is accomplished through a mix of applications and tools ranging from partner relationship management, customer relationship management and improved reporting and analysis. We also build e-business solutions such as on-line market places and self-service customer and partner information portals. The benefits include: Reduced administrative costs Faster-quote processing Improved customer service To transform the agent/broker network Cognizant designs and builds portals that offer complete information on product offerings and a 360 of the customer. By seeing the "bill picture." including access to the complete range of products and services, along with in-depth background on the customer's history and preferences. agents and brokers can more effectively cross-sell and up sell their existing customer bases.

1.

AGENT/ ADVISOR

Section 182 of the Indian contract act defines the words "agent" and "principal" an agent is a person employed to do any act for another or to represent another in dealing with a third person. The person for whom such act is done or who is so represented is called the principal". In insurance industry the term "Agent" .is ordinarily applied to a person engaged by the insurer to procure new business. The rule as to agency is expressed in maxim "Qui facit alium, facit perse" i.e. one who acts through others acts for himself. Therefore contracts entered into through an agent, and obligation arising from acts done by an agent may be enforced in the same manner and will have the same legal consequences, as if the contracts have been entered into and the acts done by the principal himself. Under- section 183 of the act any person who is so the age of majority according to the law to which he is subject and who is of sound mind can employ an agent. Section 184 provides that as between the principal and third person, any person may become an agent. Thus though a minor may be employed as an agent and the principal would be bound by his act the minor himself will not be liable to his principal. No consideration is necessary to create an agency.

LIFE INSURANCE AGENT

An insurance agent has been defined by the insurance act, 1938 as one who is licensed under that act and is paid in consideration of his 13soliciting or procuring insurance business Including business relating to the continuance renewal or revival of policies of insurance. The L.I.C. does not authorize its agent to collect premia (except first premium along with the proposal) or other amount from policyholders. But if the agent collects such amounts Remits to the insurers, gets receipts to be handed over back to the policy holders implied authority can be inferred or constructed. The LIC stand that LICS agents cannot collect renewal premiums has been upheld by court judgment. Other insurance companies in India may not follow L.I.C. practice. They may grant more or less authority.

AUTHORITY OF AN AGENT
An agent can act only to the extent of authority may be expressed or implied. An authority is said to be expressed when it is given by words spoken or written. It is implied when it is to be inferred from the circumstances of the case.

2.

BROKERS
Brokers are playing an effective role in distributing the life insurance products. As brokers represent the customer and sell the products of more than one company. They seek to determine the best fit for the client and can effectively address the mind-block faced by the public about the various companies.

3.

BANK ASSURANCE

It is a part of distribution channel through banks i.e., selling insurance in banks. ICICI PRUDENTIAL has banc assurance tie ups with more than 13 banks. Advantages: High credibility (as trustworthy care takers of money) with the public. A ready customer base. Extensive reach including the rural pockets.

4.
4.1.

OTHERS
INTERNET
At present most of the insurance companies have product information on the web. In the Indian market, where insurance is sold after considerable persuasions even after face to face selling, the selling over the net, which must be initiated by client, would take some more time. 14 BENEFITS Benefit to proposer. Benefit to policyholder(E.C.S.) E.C.S - ELECTRONIC CLEARING SYSTEM

4.2.

TELE-MARKETING
As mobile phones and telephones have become necessities of life now-a-days. So insurance companies are tapping this to reach people. Mobile services have been used to spread out the information about the new product. This is one of the convenient way through which insurance companies can reach directly to the target customer without any delay in time.

There can be many other similar channels of distribution for insurance.

CHAPTER 4
15

CHANNEL DEVELOPMENT PRINCIPLES OF ICICI PRUDENTIAL

1. Have The Best People As Advisors
Adept at spotting the best talent and development ICICI Prudential recruit people who have the intellect, passion, drive and energy to make things happen. They treat people like winners and believe in custom hiring essentially to ensure the right fit is hired for the right role having relevant domain expertise and competencies.

2.

Taking A Personal Interest In Developing Our Advisors

They provide significant learning and development conduits to employees to enhance their domain expertise and leadership capabilities. To retain high potential, they offer a challenging and fast paced work environment with accelerated career prospects.

3.

Build An Empowered Team

They strive to create an organization where in each employee is a stakeholder in building and defining the success of the organization and has the opportunity and flexibility to define their canvas of roles and 16responsibilities. They never stop communicating with their people and continue to seek feedback on and encourage participation in critical business and people areas.

4.

Appropriate Performance Appraisal

To build a meritocratic environment, they have implemented a robust competency based performance management process wherein they recognize significant contributions made by their employees in an objective and transparent manner and on demonstrated competence levels. Further they also recognize people who walk the extra mile in living the ICICI Prudential values.

5.

Having A Common Vision And Purpose

They continually endeavor to align their diverse workforce to a shared purpose and vision, thereby creating a common organization culture and fabric. This is primarily done through large-scale interactive processes at the organization and group level, which primarily focuses on securing employee buy-in on all critical interventions.

CHAPTER 5

17

BEING AN ADVISOR AT ICICI PRUDENTIAL

CHANNEL DEVELOPMENT Recruit best profiles as an advisor to spread insurance business.
WHY ADVISOR: REASON BEHIND THE SUCCESS
Being an ICICI Prudential Insurance advisor can be one of the most rewarding careers you will find. It is also hard as an advisor; you contribute in bringing in new business for the company, offer world-class pre and post sales services to the clients with the support of the organization. But an advisor to us means much more than a salesman or a saleswoman, at ICICI Prudential recognize our advisors as the ambassadors of our organization in the marketplace and we consider the advisor force would be our biggest differentiating factor in the coming years. That is why, we take a lot of care in recruiting and developing our advisors force, so that we can maintain our standards of quality in service and salesmanship. The competition and the customer awareness have forced the times to be a knowledgeoriented marketplace. Appreciating the same we strive to get people with reasonably 18acknowledge and good graduation background as our advisors. We also recognize prior sales experience of the persons, at the time of recruitment. At ICICI Prudential Life, your hard work pays off in the form of compensation and recognition. At ICICI Prudential Life, guiders will provide scientific, methodical and world-class training in all aspects of insurance sales, product information as well as selling skills programs. After the initial 100 hours of pre licensing training there will be regular and structured training at all level across the sales force. The success that ICICI Prudential Life celebrates with pride in the organization and a culture that grooms as well as it demands. It is a culture that: Gives you room to achieve, to grow and to seek new opportunities. Believes opportunities will come from client needs. All we need to do is be alert as people first and professional later. One good man says, The people make the company. The company is the people. All we are delivering is a piece of paper and a promise. It is the people who have to believe in it deeply. Seeks to be the most innovative, the most tenacious in the opening new markets and the most creative in developing new products and offering state-of-the-art services to clients, brokers and agents around the world. In the new millennium, takes on e-commerce and technology as high priority, with intensified resources devoted to the new economy and internet-based technology.

An insurance advisor is someone who can provide valuable services to the community by helping people to attain financial security and build funds for their future needs; thereby helping them on their way to financial freedom. You could work at your own pace and pattern exploit your skills and efforts and can achieve unlimited growth; in addition to achieving personal satisfaction thats pretty hard to find in a 9-to-5 job, nowadays. If you are looking for a profession that allows you to value your independence, turn to ICICI Prudential Life Insurance. Being a life advisor with us allows you to stay independent, financially as well as in terms of working hours. It gives you a unique opportunity to positively change peoples lives by ensuring that they secure their own as well as their familys future.

JOB PROFILE OF A LIFE INSURANCE ADVISOR

As a life insurance advisor your role would go beyond selling policies. Your role would be to explain life insurance and its benefits to potential customers and help them decide which plan suits them best after analyzing their financial needs. Hence, life insurance offers you with an opportunity for: An exiting / challenging career. Flexible working hours. Unlimited income. Regular incomes for years till the policies sold by 19 you are in force. Work from your own office or residence. No start-up capital. Be your own boss. Be a part of world-class team.

CHAPTER 6
20

TEN REASONS WHY YOU SHOULD BECOME INSURANCE ADVISOR OF ICICI PRUDENTIAL
1. Rewarding Career
As an ICICI Prudential Advisor you will help people realize their dreams by fulfilling their financial goals. The difference you make to their lives is more rewarding and satisfying than you could ever imagine.

2.

A Successful Team
By joining us, you will be a part of the countrys finest team of life insurance advisors. ICICI Prudential is on 1st rank amongst the private life insurance players.

3.

Attractive Remuneration
They offer one of the best remuneration systems in the industry that not only takes care of your current earnings, but also guarantees an earning for the future. Whats more, you can set your own income targets with a potential to earn as much as you want for the rest of your life.

4.

21 As an insurance advisor, you will be a true entrepreneur. You have the freedom to be your own boss, work for yourself, choose your own clients and make your own money. All of this, without making any initial capital investment.

Independence

5.

World-Class Training
ICICI Prudential provides you with the best-in-class training systems, since that is what differentiates ICICI Prudential advisors from the rest. Even if you dont have previous experience in selling, their multi dimensional training program conducted by their qualified in house training personnel, will make you a specialist in Life Insurance sales. Their training program is conducted by RNIS College.

6.

Commitment To Career Agency System

Their commitment to the Career Agency System means that, they support you and your efforts not just today, but at every stage of your business. They believe in encouraging their advisors to strive towards the highest level of success, throughout their careers. In fact, depending on your performance, they offer a management career option with the company.

7.

Infrastructure Support
They have invested in creating a state-of-the-art infrastructure at each of their offices. You will have access to the necessary tools, technology and people support that will enable you to build a profitable long-term business.

8.

Complete And Diversified Product Portfolio

You can offer your customers over 400 product combinations of our unique products and riders, to help them meet all their financial goals. In order to give you a great competitive edge, they are also continuously working on newer and more innovative products.

9.

Sales And Marketing Support

They support their Insurance advisors with innovative sales and marketing tools. The sales, promotion and marketing collaterals that they provide will help you take your business to new heights.

10.

Financial Strength
ICICI Prudential offers you and your customer unmatched financial strength and solidity. Their paid up capital of Rs ____ crores is higher than the norms stipulated by the regulatory authority for insurance in India. 22

CHAPTER 7

23

SUPPORT AND BENEFITS PROVIDED BY US

As a Life Advisor with ICICI Prudential Life you would enjoy the following benefits:

1. Enriching Training Program

Intensive training programs before you commence your new career. This would equip you with all the information and knowledge about life insurance, its benefits and our products. This would help you perform your job better and meet your goals. You would also enjoy the benefits of continuous training and mentoring programs that are designed to update you, apart from enhancing your selling skills.

2. Mentoring
Training and support from the Company to meet your goals. Opportunity to learn from industry professionals.

3. Flexibility
Decide you own working hours and earning goals.

4. Satisfaction

You will help people manage their assets and plan 24their financial security, arid experience deep satisfaction from making a positive difference in others lives. You act as a strategist in annuities, business insurance, estate planning and personal investment, providing both short and long term solutions to financial risks.

5. Freedom
Continue with your present job occupation if you so desire and treat this as a parallel source of income. This allows you time to decide if you want to take the job of a Life Advisor as a full time activity.

6. Earnings
Entitlement to a percentage of the premium as commission till the time the policies sold by you are in force.

7. Attractive Additional Benefits For High-Performers

Palmtops, Planners, Leather portfolio bags, Offsite conferences, Foreign trips and Sales promotional schemes.

8. Free Bank Account

On becoming Advisor with ICICI Prudential you get a zero balance account in ICICI Bank.

9. Job Offer
If as an Advisor you are able to get 30 policies within 6 months of joining, the Advisor is called for a job interview for the post of Unit Manager.

10.Other Benefits
These are like A free e-mail id. Free 100 visiting cards

CHANNEL MARKETING SUPPORT TO TIED AGENTS

1. Certificates
These are awarded to top performing advisor for their contribution to sales of Pension Plans, Unit linked plans and sales to High Net worth individuals.

2.

Banners
The corporate banner was designed for the launch of the CHURCHGATE branch. It can be used to provide corporate brand visibility for similar occasions.

3.

Backdrop for Exhibition stalls

25

The backdrop was designed to provide corporate brand visibility for the exhibition stalls at sakal in Pune. It can be used for forthcoming personal finance exhibitions that we participate in.

THE SUPPORT PACKAGE TO MAKE A SUCCESSFUL ADVISOR

26

27

CHAPTER 8

THE KIND OF PEOPLE WE ARE LOOKING FOR

Our successful associates come from a diverse spectrum of disciplines and academic institutions. Different though they are, however, they have certain qualities in common.

1.

Personal Integrity
We seek people with strong principles of honesty and integrity. They must be able to live up to the ICICI Prudential India's tradition of fairness and honorable dealings with our people, our customers and the suppliers.

2.

A Clear Ability To Lead

We want people who can direct and motivate others and influence their way of thinking. They must show their empathy and sensitivity in helping other and develop their abilities and skills.

3.

A Strong Drive To Achieve

We want people who set demanding, long-term personal goals and 28in overcoming obstacles consistently achieve them. They must be persistent and getting the best results in a competitive environment.

4.

The Ability To Work Well With Others

We want people who can establish effective relationships with different types of people and can excite and spur them to action.

5.

The Ability To Communicate Effectively With Others

We want people who can organize and express their thoughts clearly concisely and confidently and are able to sell their ideas persuasively while at the same time remaining receptive to others

6.

A Person With High Reliability

We want people who are trustworthy and are accurate besides being consistent in doing their work.

Besides these we want people who have following qualities: The person should be confident and have faith in what he/she is doing. They should have a habit of perseverance or be patient. They should not have any egos. They must be enthusiastic in learning and have up to date information about: The companys policies. Companys product and as well as that of competition. Knowledge about customers. Knowledge about yourself

FUNCTIONS OF AN ADVISOR
The major function of the Advisor is to solicit and procure business for the insurer, which has appointed him as an advisor. While proposing a person for insurance, the advisor has to assess his needs and his paying capacity, make all reasonable enquiries about the health and habits of the life to be insured and get proof of his age. 29 After the proposal becomes a policy, the agent has to ensure continuance of the policy through regular payment of renewal premiums, get nomination or assignment effected and helps in prompt settlement of claims.

NEED OF ADVISORS FOR SELLING LIFE INSURANCE

Insurance is an idea that has to be explained and its usefulness clarified personally Each prospective buyer has special needs and requires specialized solutions Personalized Guidance can be given only when there is a live interaction with the agent The insurer has to assess the risk involved in every proposal for insurance, for which the necessary information would include details on personal life styles, habits, family etc. The advisors who gets to meet the proposer closely, is in a position to provide some of this valuable information. During the sales an advisor can follow the famous AIDAS approach: A Attention I Interest D Desire A Action S Satisfaction

30

CHAPTER 9

SELECTION PROCESS
The goal of selection process is to produce a thorough, objective, total assessment of each candidate's abilities in key areas important for success at ICICI Prudential. Each applicant is evaluated using these defined criteria and given the same opportunity to show his or her capabilities.

HOW TO BECOME AN ICICI PRUDENTIAL LIFE INSURANCE ADVISOR?

Appear for an interview Filled up the Insurance Advisor Application form with a Demand Draft of 1000/in the favoring ICICI Prudential Life Insurance Company Ltd" payable at MUMBAI. Get selected and go in for the 100-hour mandatory training either in classroom or on Internet. Pass the IRDA licensing examination and company specific training 31

WHAT ARE THE DOCUMENTS THAT ARE REQUIRED?

Acceptable Education Proof Acceptable Age Proof Acceptable Address Proof You are ready to become a part of the ICICI Prudential Advisory Family. Their people are self-driven and passionate about what they are building. They celebrate hard on their successes and face adversity with resolve and maturity. Their leaders and HR teams work closely to evolve careers, and tailor-make opportunities for you.

ELIGIBILITY CRITERIA
ICICI Prudential has certain parameters on which advisors get selected: Preferably age is 25 years but candidates between 21 and 25 can also be selected depending on their qualification and experience. He/she should be a graduate (preferably MBAs, CAs, CSs are selected as they have good circles and can bring good business). Preference is given to a married person, as they are more responsible and stable. He/she should be living in local area for more than 5 years.

 His/her income should be above 2 lacs. Out of these factors a person should complete 3 factors to be selected as Advisor.

SO WHAT THEY ARE LOOKING FOR IS

A constantly learning mind, confident in your ability to contribute and deliver. The ability to be part of a performing team. Focus on competence and leadership as cores.
And of course - un-wavering integrity.

WHAT IS THE PROFILE OF AN ADVISOR?

Age 25-60 years old. Minimum qualification 12th. Good and convincing communication skills. Capacity to build an impressive network Engaged in gainful business or occupation Willing to undergo extensive training and development programs Pleasing personality 32

WHAT WILL BE THE COMMISSION STRUCTURE?

Different products have different commission structures. For ex. Single premium products will have a commission of 2% Simply the commission rate is 7.5% to 35% on premium amount depending upon the type of product. Renewal commission is paid at the following rates: 2nd year: 7.5%, 3rd year: 7.5%, 4th year 5%, 5th year: 5% onwards till the maturity of the policy.

FORMALITIES IN JOINING LIFE INSURANCE ADVISORSHIP

This is next step in recruitment procedure. These formalities are mandatory under IRDA rules and regulations. These are.

1. 2.

Fill life Insurance Advisor Form Documents Required

7 Passport size Photograph Acceptable Age proof Acceptable Education Proof Acceptable Residence Proof

3.

Demand Draft
Deposit a DD of Rs.1000 in the favor of ICICI Prudential Life Insurance Company Ltd. payable at Mumbai. 33

4.

Training
Training is the most important part of recruitment. 100 hrs training is compulsory as per IRDA Regulation. There are 3 modes of training Full time Part time On line After successful Completion of training an exam is being conducted and result will be declared on the same day after giving examination. These are the formalities that are required to be Insurance advisor.

5.

Reporting The Form With DOPS

This is the last step in recruitment procedure, after completing the formalities i.e. life insurance recruitment form with completed documents, will be reported to the DOPS.

This is the entire process of recruiting Life Insurance Advisor.

34

CHAPTER 10

CAREER PROGRESSION AND FUTURE OPPORTUNITIES

IS ADVISOR'S FUTURE SECURED WITH THIS COMPANY?
A few words that attempt to capture the essence of tremendous effort of our Life Advisor. An effort we recognize and appreciate as the driving force behind our growth. Among-this motivated force there are those who identified themselves as being the best. They have shown a level of motivation and performance that sets standard for others and is the source of immense pride for the company.

The ICICI PRUDENTIAL felicitates these shining stars for their stellar performance

RECOGNITION PROGRAMS
Foreign trips and seminars Select club memberships President's club Achiever's club ICICI Prudential Star clubs MDRT Membership

35

ICICI PRU STAR CLUB BENEFITS

Benefits Business cards Personalized stationary Personal Accident Policy Certificate of Excellence Memento Sates Promotional Items Business Allowances Office/Technology Support Platinum club 1000 pcs 1000 pcs Rs 1.5 lacs Once a year Worth Rs. 500 Worth Rs. 4000 Rs. 10,000 pa Rs 15,000 pa Gold club 800 pcs 800 pcs Rs 1 lacs Once a year Worth Rs. 300 Worth RS. 3,000 Rs. 7,500 pa Rs 12,500 pa Silver club 500 pcs 500 pcs Rs 75,000 Once a year Worth Rs. 150 Worth Rs. 2000 Rs. 4,000 pa Rs. 10,000 pa

Lunch with CEO/EVP

Once every 6 months

Once every 6 months

Once a year

TIGER TEAM
It includes: Exclusive program for high potential achievers Hand picked Advisors A fast track career path Recognition as "Tiger" Continue doing your Business Selection Criteria 1. Age 25-40 years 2. At least 1 year in system 3. Case count 2 per month

MOBILE TIGER
It includes Part time career as a Trainer Conduct foundation programs Share best field practices Replicate your business Continue doing your business. Performance Criteria: 1. Age between 25-45 years 2. At least 6 months in system 3. 2 case count per month

36

PINNACLE PROGRAM
It includes: A full time career as a Unit Manager Growth within ICICI Prudential Greater earning potential Personal development Performance criteria: 1. Age between 25-45 years 2. At least 1 year in system 3. Average 2 case count per month

FAST TRACK PINNACLE PROGRAM

It includes: A full time career as a Unit Manager Growth within ICICI Prudential Greater earning potential Personal development Performance criteria: 1. Age between 25-45 years 2. At least 6 months in system 3. 30 issuances of advisors within 6 months

AGENCY CHAMPION
It includes: Take your business to the next level Entrepreneurs, develop your own business Recruit new Advisors and make your team Increased reach and earning potential 37 Performance Criteria 1. At least 1 year in system 2. Minimum 36 policies and 3.6 lacs premium 3. Selection process (assessment center)

UM Trainer Role 12-18 Month Advisor

ASM Trainer Role 12-18 Months Advisor

BSM Trainer Role 12-18 Months Advisor

CHAPTER 11

38

WHAT ARE THE RESTRICTIONS FOR A LIFE INSURANCE ADVISOR?

Any Life Advisor found violating the restrictions listed below is liable to be terminated from the services of the company.

1.

Prohibition Of Rebates
All Life Advisors have to strictly comply with Section 41 of the Insurance Act 1938 as regards prohibition of rebates to clients. The following are the extracts from Section 41 of the Insurance Act 1938 "No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebates as may be allowed in accordance with the published prospectuses of the insurer" 39

2.

Restrictions On Advertisements
A Life Advisor is strictly prohibited from issuing an "insurance advertisement" which publicizes ICICI Prudential Life Insurance Company Limited or its products unless, there is an authorization in writing from the Chief Marketing Officer of ICICI Prudential Life Insurance Company Limited. An insurance advertisement means and includes any communication directly or indirectly related to a policy and intended to result in the eventual sale or solicitation of a policy from the members of the public, and shall include all forms of printed and published materials or any material using the print and or electronic medium for public communication such as: Newspapers, magazines and sales talks; Billboards, hoardings, panels; Radio, television, website, e-mail, portals; Representations by intermediaries; Leaflets; Descriptive literature/ circulars; Sales aids flyers; Illustrations form letters; Telephone solicitations; Business cards;

Videos; Faxes; or Any other communication with a prospect or a policyholder that urges him to purchase, renew, increase, retain, or modify a policy of insurance.

3.

Payment Of Premiums
Life Advisors are strictly prohibited from advancing premiums on behalf of proposers or policyholders.

4.

Other Restrictions
No Insurance Agent shall: Solicit or procure business without holding a valid license. Induce the prospect to omit any material information in the proposal form. Induce the prospect to submit wrong information in the proposal forms or documents submitted to insurer for acceptance of the proposal. Behave in a discourteous manner with the prospect. Interfere with any proposal introduced by any other insurance agent. Offer different rates, advantages, terms and conditions other than those offered by his insurer. Demand or receive a share of proceeds from the beneficiary under insurance contract. Force a policyholder to terminate the existing policy and to affect a new proposal for him 40 within three years from the date of such termination. Become or remain a director of any insurance company. Apply for fresh license to act as an insurance agent, if the designated person. Earlier canceled his license, and a period of five years have not elapsed from the date of such cancellation.

IRDA RULES AND REGULATIONS

1. Short Title And Commencement
a) These regulations may be called Insurance Regulatory and Development Authority (licensing of insurance agents) regulations, 2000. b) They shall come into force on the date of their publication in the official gazette.

2.

Definitions
(i) In these regulations, unless the context otherwise requires, (a) Act: means the Insurance Act, 1938 (b) Approved Institution: means an institution engaged in education and/or training particularly in the area of insurance sales. Marketing etc. (c) Authority: means the insurance regulatory and development authority established under the provisions of section 3 of the IRDA act, 1999. 41 (d) Composite Insurance Agent: means an insurance agent who holds a license to act as an insurance agent for a life insurer and general insurer. (e) Corporate Agent: means a person other than an individual. (f) Designated Person: means an officer normally in charge of marketing operations, as specified by insurer, and authorized by the authority to issue or renew licenses under these regulations. (g) Examination Body: means an institution, which conducts prerecruitment tests for insurance agents and which is duly recognized by the authority. (h) License: means a certificate of license to act as an insurance agent issued under these regulations. (i) Person: means an individual, a firm or a company formed under the companies act 1956. (j) Practical Training: includes orientation particularly in the areas of insurance sales, service and marketing through training modules as

approved by the authority and has pass the 10th standard or equivalent examination from recognized board/institution.

(k) Proposal Form: means an application for purchase of an insurance product that shall be the basis of insurance contract. (l) Prospect: means a potential purchaser of an insurance product. (m) Recognized Board or Institution: means such board or institution as may be recognized by any state government or the central government. (ii) All the words and expressions used here in and not defined but defined in the Insurance act, 1938 or in the IRDA act, 1999,shall have the meanings respectively assigned to them in those acts.

3.

Issue Or Renewal Of License

a) A person desiring to obtain or renew a license to act as an insurance agent or a composite insurance agent shall proceed as follows: The applicant shall make an application to the designated person, provided that the applicant, who desires to be a composite 42 insurance agent, shall make two separate applications. Some fees has to be payable by the applicant to the authority. b) The designated person may, on receipt of the application along with the evidence of payment of fees to the authority, and on being satisfied that the applicant: Possesses the qualifications as specified. Has passed the examination as specified. Is capable of providing the necessary service to the policyholders. Provided further, a license issued in accordance with this regulation shall entitle the applicant to act as insurance agent for one life insure or one general insurer or both, as the case may be. c) If the designated person refuses to grant or renew a license under this regulation, he shall give the reasons therefore to the applicant. d) The designated person shall grant or renew the licence within a period of 3 months from the date of application. e) The designated person shall, if the consideration of the application is likely to get delayed within 60 days of the receipt of the application, inform the applicant the reasons for such a delay, and the likely time it would take to do so.

4.

Qualifications Of The Applicant

The applicant shall possess the minimum qualification of pass in 12th standard or equivalent examination conducted by any recognized board/institution, where the applicant resides in a place with a population of 5 thousand or more as per the last census.

5.

Practical Training
i) The applicant shall have completed from an approved institution, at least, 10 hours practical training in life or general insurance business, as the case may be, which may be spread over 3-4 weeks where such applicant is seeking license for the first time to act as an insurance agent.

ii) Provided that the applicant shall have completed from an approved institution at least, 50 hours practical training in life or general insurance business;.-which may be spread over 6-8 weeks where such applicant is seeking license for the first time to act as a composite insurance agent. iii) An applicant who has been granted a license after the commencement of these regulations, before seeking renewal of license to act as an insurance agent, shall have completed, at Ieast25 hours practical training in life or general insurance business as the case maybe from an approved institution. iv) Provided that such applicant before seeking renewal of license to act as a composite insurance agent shall have completed 43from an approved institution at least 50 hours practical training in life or general insurance business.

6.

Examination
The applicant shall have passed the pre-recruitment examination in life or general insurance business or both as the case may be, conducted by the insurance institute of India, Mumbai or any other examination body.

7.

Fees Payable
i) The fees payable to the authority for issue of license to act as an insurance agent or a composite insurance agent shall be rupees 250. ii) The additional fees payable to the authority, under the circumstances mentioned in the act, shall be rupees 100.

8.

Code Of Conduct
Every person holding a license shall adhere to the code of conduct specified below: i) Every insurer agent shall: (a) Identify him and the insurance company of whom he is an insurance agent. (b) Disclose his license to the prospect on the demand.

(c) Disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect. (d) Indicate the premium to be charged by the insurer for the insurance product offered for sale.

(e) Inform promptly the prospect about the acceptance or rejection of the proposal by the insurer. (f) Disseminate the requisite information in respect of insurance products offered for sale by his insurer and take into account the needs of the prospect while recommending a specific insurance plan. (g) Ex-plain to the prospect the nature of information required in the proposal form by the insurer, and also the importance of disclosure of material information in the purchase of an insurance contract. (h) Bring to the notice of the insurer any adverse habits or income inconsistency of the prospect, in the form of a report (called Insurance Agents Confidential Report) along with every proposal submitted to the insurer, and any material fact that may adversely affect the underwriting decision of the insurer as regards acceptance of the proposal, by making all reasonable enquiries about the prospect. (i) Obtain the requisite documents at the time of filing the proposal form with the insurer; and other documents subsequently asked for by the insurer for completion of the proposal. 44 (j) Render necessary assistance to the policyholders or claimants or beneficiaries in complying with the requirements for settlement of claims by the insurer. (k) Advise every individual policyholder to effect nomination or assignment or change of address or exercise of options, as the case may be, and offer necessary assistance in this behalf, wherever necessary. ii) Every insurance agent shall. With a view to conserve the insurance business already procured through him, make every attempt to ensure remittance of the premiums by the policyholders within the stipulated time, by giving notice to the policyholder orally and in writing.

9.

Cancellation Of License
The designated person may cancel a license of an insurance agent, if the insurance agent suffers at any time during the currency of the license from any of the disqualifications mentioned in the act, and recover from him the license and the identity card issued earlier.

10.

Issue Of Duplicate License

The authority may issue a duplicate license or replace the license that is lost, destroyed, or mutilated on payment of a fee of rupees 50.

11.

Non-Application To Existing Insurance Agents

Nothing contained in regulations 4-6 of these regulations shall apply to the existing agents before the commencement of these regulations.

PROGRAM FLOW
This describes how the training of advisors starts and works. They have to complete 100 hours training which is mandatory by IRDA.

Week 1
IRDA prescribed syllabus Insurance basics

Week 2
Advisor support system Customer need analysis Our insurance solutions Your career progression Tele calling

Week 3
45 Revision Mock test

46

CHAPTER 12

RESEARCH METHODOLOGY
1. Prospecting
It includes: Random sampling (market skimming) Tele calling Existing database

2.

Suspecting
It includes: Judging people (point of view) Making appointments

3.

Sales Pitch
It includes: Business opportunity presentation (BOP) Personal interview/discussion 47

4.

Formalities
It includes: Form Filling, demand draft Documents (mark sheet, license etc) Training

5.

Depositing The Form

After fulfilling all the above requirements, deposit the form to the DOPS.

48

CHAPTER 13

PROBLEMS WHILE RECRUITING ADVISOR FOR THE COMPANY

The problems that basically arise while recruiting life insurance advisors are: Being a private player the company would run away, what about the security of people's money? LIC (life insurance corporation) gives better commission? People generally have no time for training that is mandatory by IRDA? How to find out time from their busy schedule to do training? Sometime people already have agency with some other company? These are the major problems associated with recruiting advisors. Solutions to these are the following:

Solution To First Problem

49

All life insurance companies are regulated and controlled by IRDA (INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY). Each and every insurance company needs to maintain a solvency fund. ICICI PRUDENTIAL being no. 1 in Pvt. Sector and therefore have the highest amount of solvency fund among private player.

Solution To Second Problem

No doubt LIC give more commission in 1st year but the cumulative commission is around 35%(including 5% bonus). In case of private companies commission paid is around 40%.

Solution To Third Problem

Training is essential for getting license for life insurance advisor-ship. 100 hours training is mandatory by IRDA otherwise license cannot be issued. In case person is interested but do not have time for regular training as full time or part time in that case he/she can go for online module. Otherwise person can take agency in the name of someone else in their family (for e.g. spouse, children or any other family member) that person can do training and after getting license anyone in family can do business.

Last But Not The Least, Solution For Fourth Problem

Person already having agency in that case he/she can take agency in name of immediate family members. In this way they can have agency of more than 1 company which will help to provide customers different products under one roof.

50

CHAPTER 14

LEARNINGS
Get the great exposure to the public at large. Learn a lot about insurance sector. Importance/necessity of insurance in our lives. Gain the convincing capabilities i.e., how to persuade people. Gain knowledge about various products of insurance and their benefits Know about the company and its work culture.

51

CHAPTER 15

52

FINDINGS
1. When you hear the word insurance, what comes to your mind first? L.I.C. Investment Tax Saver Dont Know 42% 18% 37% 3%
L.I.C. Investm ent Tax Saver Don't Know

2.

Insurance companies are now privatized? Yes No 70% 27%

Dont Know 3%

53

Yes No Don't Know

3.

Can you name a few insurance companies? PSUs Private Both 32% 28% 38%

Dont Know 2%
PSU's Private Both Don't Know

4.

Do you have an insurance policy? Yes No 82% 18%

Yes

No

5.

The main aim to buy insurance policies is to Save tax As investment 40% 25%

Both 35%
Save Tax Investment Both

6.

Do you plan to buy insurance policy in next 3-4 months? Yes No Cant say 43% 25% 32% 54

Yes No Can't say

7.

Would you be willing to buy insurance policy from a private company? Yes No Cant say 28% 42% 30%
Yes No Can't say

8.

Do you know which channel of distribution is most popular in selling insurance? Advisors Brokers Banc assurance All Dont Know 30% 17% 9% 43% 1%
Advisors Brokers Banc assurance All Don't Know

9.

How much is the earning of an advisor? Limited Unlimited 46% 22%

Dont Know 32%

55
Limited Unlimited Don't Know

10.

Do you have any idea about the benefits of an advisor? Career Progression No Growth Chance 33% 27%

No Idea 40%
Limited Unlimited Don't Know

11.

Do you currently have an agency for any insurance company? Yes No 37% 63%

Yes

No

12.

Would you like to join as an insurance advisor? Yes No Cant Say 15% 70% 15%
Yes No Can't say

56

CHAPTER 16

CONCLUSION
After the detailed Knowledge of each and every aspect of the project, I would like to 57 conclude the whole topic So I Conclude That: Most people in rural areas know that private companies are operating in insurance policies but life insurance is still synonymous with L.I.C. in urban areas. A lot of people are not yet clear about insurance as a financial instrument. They mostly take it as a tax saving instrument. Most of the people are aware about whom is an insurance advisor but having little knowledge about the benefits to the advisors and people in detail does also not know their earning. As a result of this and a few other problems not many people are interested in becoming an insurance advisor. BUT It is not difficult to find good profiles as Advisor, if Your Approach is correct. While recruiting these persons try to find out the problems, which they are facing, It is difficult to create interest in the people so try to find out their likings. Majority of people are not aware about the Privatization of Insurance so give them a detailed knowledge about the companies and their working environments.

At last I would like to conclude that the overall experience was good, giving good exposure and it was great doing this project because of full support by the ICIC1 Prudential team.

RECOMMENDATIONS
Private companies need to advertise more aggressively, especially in rural areas. More education about what insurance really is needs to be imparted. Legal formalities in becoming an advisor should be minimum. Companies should use and promote new channels of distribution.

58

BIBLIOGRAPHY
Reporrtt on Summerr Trraiiiniiing Report on Summer Tra n n g Repo on Summe T a n ng

BOP ICICI Prudential IC 02 www.icicibank.com www.prudential.co.uk www.irdaindia.org www.iciciprulife.com

59

APPENDIX
Questionnaire Advisor Form

60

QUESTIONNAIRE
1. 2. 3. Name: Telephone Number: When you hear the word insurance, what comes to your mind first? L.I.C. Investment Tax Saver Dont Know

4.

Insurance companies are now privatized? Yes No Can you name a few insurance companies? a. b. c. PSUs Private Do you have an insurance policy? Yes No The main aim to buy insurance policies is to Save tax As investment

Dont Know

5.

e. f. g. Both

Dont Know

6.

7.

Both

8.

Do you plan to buy insurance policy in next 3-4 months? Yes No Cant say Would you be willing to buy insurance policy from a private company? Yes No Cant say Do you know which channel of distribution is most popular in selling insurance? Advisors Brokers Banc assurance All Dont Know How much is the earning of an advisor? Limited Unlimited Dont

9.

10.

11.

61
Know

12.

Do you have any idea about the benefits of an advisor? Career progression No growth chance

No Idea

13.

Do you currently have an agency for any insurance company? If yes Company name: Would you like to join as an insurance advisor? Yes No Cant Say Would you like to give any reference?

14.

15.