INTRODUCTION

1.1 LIFE INSURANCE IN INDIA

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 per cent to
the country’s GDP .In spite of all this growth the statistics of the penetration of he 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 “Malhotra Committee” was constituted by the government
in 1993 to examine the various aspects of the industry. 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 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.

1.2 A BRIEF HISTORY

The origin of insurance is very old .The time when we were not even born; man
has sought some sort of protection from the unpredictable calamities of the nature. The basic
urge in man to secure himself against any form of risk and uncertainty led to the origin of
insurance. 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 India. 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 the 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 1957 General Insurance Council, a wing of the
Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business
practices. In 1972 The 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., the Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.

1.3 INSURANCE SECTOR REFORMS

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor was
formed to evaluate the Indian insurance industry and give its recommendations. The committee came up
with the following major provisions

 Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the
industry.
 Foreign companies may be allowed to enter the industry in collaboration with the domestic
companies.
 Only one State Level Life Insurance Company should be allowed to operate in each state It was
after this committee came into affect the regulatory body for insurance sector was formed with
the name of IRDA.

IRDA: The IRDA since its incorporation as a statutory body has been framing regulations
and registering the private sector insurance companies. IRDA being an independent statutory body has
put a framework of globally compatible regulations.
1.4 IMPACT OF LIBERALIZATION
The introduction of private players in the industry has added to the colors in the dull
industry. The initiatives taken by the private players are very competitive and have given immense
competition to the on time monopoly of the market LIC. Since the advent of the private players in the
market the industry has seen new and innovative steps taken by the players in this sector. The new players
have improved the service quality of the insurance. As a result LIC down the years have seen the
declining phase in its carrer.The market share was distributed among the private players. Though LIC still
holds the 75% of the insurance sector but the upcoming natures of these private players are enough to
give more competition to LIC in the near future. LIC market share has decreased from 95% (2004-05) to
81 %( 2009-10).The following companies has the rest of the market share of the insurance industry.
 A Brief Perspective on Advertisement

In this chapter, we shall focus on advertisement research, which involves developing and
evaluating advertisement. To do so efficiently, it is just not enough to know they evaluation techniques. It
is critical to understand advertisement first. This is briefly attempted and then the research methods are
touched upon in this chapter. The most famous question in the context of advertisement and very
pertinent to advertisement research is-how does advertisement work? It is only when we know how it
works that we can use research to develop and evaluate it. In this context, it is apt to recall John
Manamaker's viewpoint-"Half of advertisement was wasted, but one did not know which half". This
statement is now decade’s oid, but the mystery still continues.

No-one knows and most probably no-one shall ever know. The thus for unanswered questions-
Who knows? And will anyone ever knows? - Still daunts the sincere and down-to-earth advertisement
professionals and marketers. Not having any answer to these questions is not "modesty" in this context,
but sings of true professionalism and integrity. It is believed that success or failure in advertisement is
often dependent on what is being measured and how it is being measured.

These opinion statements are not meant to portray a defeatist posture, but a bold postulation.
There do exist some relevant thoughts based on theoretical constructs and empirical observations that can
help in understanding advertisement. Some of these are briefly touched upon here, to provide an
appropriate perspective to the reader.

Advertising is meant for its audience. There have been two eras pertaining two the audience of
advertisement-the passive and active eras. In the first era, it was believed that the hierarchical process
starting with "attention" and ending with "action" was the order. What it meant was (what process does
advertisement do to the viewer?) that advertisement did everything, and that the viewer did nothing. Some
constructs in this era were as below
 Starch: Seen, Read, Believed, Remembered, and Acted upon.
 DAGMAR : Awareness, Comprehension, Conviction, and Action’s
 AIDA: Attention, Interest, Desire, and Action.
 AIETA: Attention, Interest, Evaluation, Trial, and Adoption.
In this era, advertisement goals were set accordingly, and then measured to understand how
advertisement was working.

Successful Advertisement as Per Research International

In a creative workshop conducted by research International, the following factors
were highlighted with reference to "what makes a successful advertisement". The points are stated very
briefly.

1. Branding
 Clear, string branding.
 Help in mountainous branding.
2. Consistency
 Advertising should have consistency in music, sounds, symbols, styles, over time, and campaigns.
3. Uniqueness
 An advertisement should have a unique, distinctive communication, which should not be
interchangeable with other brands.
4. Involvement
 This is about generating identification/empathy-the target audience should be able to identify with
the advertisement. They should see people who look real, not models.
 It should trigger positive emotion-the advertisement should facilitate positive emotions like praise,
admiration, coziness, etc. It should inspire curiosity and then satisfy it.
 Avoid causing fear-the advertisement should not evoke negative feeling, like fear.
Current trends-these should be used with caution. It should be used only if appropriate for the target
group and not be short lived.
5. Likeability
 The story/main massage-the advertisement should dramatize the story and the main
message to make it a memorable experience.
 The value of experience-the advertisement should have attractive picture, pleasant music,
perhaps be erotic, dreamy, with surprise and humor, etc. It should provide memorable
experience for the target group.
 Developing and Managing an Advertisement Programe

Advertising is a any paid form of non personal presentation and promotion of ideas, goods, or
service by an identified sponsor. Advertisers include business firm, but also museums, charitable
organization, and government agencies that direct message to target public. Ads are a cost-effective way
to disseminate messages whether to build brand preference for Coca-Cola or to educate people to avoid
hard drugs.
Organization handles advertising in different ways. In small companies, advertising in
handled by some one in the sales or marketing department, who works with an advertising agency. A
large company will often set up its own department, whose manager reports to the vice president of
marketing. The advertising department job is to propose the budget; develop the advertising strategy;
approve ads and company, and handle the direct mail advertising, dealer display, and other forms of
advertising. Most companies use an out side agency to help create advertising companies and to select
and purchase media.

Global companies that use a large numbers of ads agencies located in different countries and
service different divisions have suffered from uncoordinated advertising and image diffusion. Some large
companies, such as IBM and Hewlett-Packard, now use only a few agencies or even one that can supply
global advertising, public relations, sales promotions, and Web consulting. The result is integrated and
more effective marketing communications and much lower total communications costs.

Advertising agencies need to redefine themselves as communication companies and assist client in
improving their overall communication effectiveness. Yet many agencies have reduce the size of their
research departments and therefore are less able to build a research based brand strategy. Another
criticism is that ad agencies or to oriented toward large budget mass-advertising and less skilled in PR,
and direct and database marketing. Procter & Gambel recent required that all its marketing programs be
jointly planned with the various communication group sitting
 together, instead of letting its advertising, agency dominate the decisions making. It changed
ad agency compunction from a standard media commission to a percentage of how well its global sales
perform.

In developing a program, marketing managers must always start by identifying the target
market and buyer motives. Then they can make the five major decisions in developing an advertising
program, know ad " the five Ms " Mission : What are the advertising objectives ? Money : How much
can be spent ? Message : What message should be sent? Media: What media should be used ?
Measurement : How should the result be evaluated ? These decisions are summarized in Figure 20.1 and
described in the following section.
Involvement
Involvement is a necessary condition for effective advertisements, although it will not wholly
suffice. It is about the advertisement involving the viewer with not the advertisement itself, but the brand
in the advertisement. This is because it has been experienced that brand - linked involvement is the key.
In order to ensure success, an advertisement must involve viewer with the brand . Many
Highly noticeable and attractive advertisement fail because, although they remain strongly in the memory
it is not in a way which links that memory clearly with the brand . This brand -linked involvement
remains dormant until recalled into active memory by a relevant even, such as seeing the brand in the
outlet when one is about to make a purchase/could consider a purchase .But the question that arises is ; '
how is the desired involvement achieved ? ‘Some ways are.
 Providing an immediate challenge.
It involves something new and interesting being suggested in the advertisement, which
captures the attention. This is difficult to achieve very often, but capable of having dramatic sales effects.
( e.g. , Godrej refrigerator's Puf campaign).
 Providing interest statues.
It is believed that interests keeps and idea alive through a combination of curiosity and an

enjoyment of the familiar and loved status. This ensures that a brand is safe, approved and fashionable

(e.g., Ayurvedic Concepts).

 Generate enhancement.
 Advertisement claims and images are converted, during the experience of the product, into
beliefs about the brand.
A vivid advertisement memory may enhance perception, Enhancement japans, not when the
advertisement is seen, but when the brand is looked at or used. The difficult thing to conceptualize is not
how to make a brand familiar for the first time, but how to deal with it when it is already familiar - How
to stop it becoming stale. Familiar stimuli are not arousing simply because they have already been
learned. Advertisement has to work afresh when the stimulus has lost excitement or when the response
has returned/reached' some sort of plateau'. Advertisement should refresh by presenting the familiar
theme in new and interesting ways (e.g. Santoor and Lux) or by presenting a newly- interesting
compatible theme (e.g. ONIDA KY Thunder.)

ICICI Prudential presents Life Link Super – a unique, single premium market-linked investment-cum-
insurance solution that enables you to extract the maximum from your investment.
Life Link Super offers attractive premium allocation along with flexible investment options to give you
the opportunity to enjoy potentially high returns on your investments, without compromising on the
protection of your family.

Income Replacement
Happiness and security for our family is what all of us want. However, the uncertainties of life often
worry us. The thought of unfortunate events befalling us may cause anxiety about our ability to provide
for our loved ones. This is especially the case if we are no longer there to provide for them.
A Term plan (i.e. pure Protection plan) like Lifeguards ensures that your loved ones are adequately
provided for and that their lives are not affected, even if you are not around.
Life Insurance
Now, ICICI Bank gives you the added convenience of buying an ICICI Prudential life insurance policy
online.