‘CUSTOMER VALUE MANAGEMENT’ AT

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

BANGALORE

Submitted in partial fulfillment of the requirements for the award of

Masters of Business Administration Degree of Bangalore University

Submitted By:
Ms. Divya Ramesh
( Reg. No. 02XQCM6019 )

Under the guidance of

Dr. K.V.PRABHAKAR
(Adjunct Professor)

M.P.BIRLA INSTITUTE OF MANAGEMENT

( Associate BHARATIYA VIDYA BHAVAN )
RACE COURSE ROAD, BANGALORE – 560 001

OCTOBER – 2004
 DECLARATION

The research work embodied in the dissertation entitled ‘Customer

Value Management’ at ICICI Prudential Life Insurance Company Ltd.,
is an original work carried out by me under the guidance and
supervision of Dr.K.V.Prabhakar, Adjunct Professor, M.P.Birla
Institute of Management, Bangalore (Internal Guide) and
Mr.Raghavendra Bhat, Unit Manager, ICICI Prudential Life Insurance
Company Ltd., Bangalore (External Guide) and has been submitted in
partial fulfillment of the requirements for the award of MBA degree of
Bangalore University.

The findings of this study are based on the data collected by me and
have not formed the basis for the award of any other Degree/Diploma
of any other University or Institution.

Place : Bangalore (Ms.Divya Ramesh)

Date : 13 September 2004

 COMPANY CERTIFICATE

September 13, 2004

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Ms. Divya Ramesh, bearing register no. 02XQCM6019, a student
of M.P.Birla Institute of Management, Bangalore has succesfuly completed the Project
Work titled ‘Customer Value Management’ at ICICI Prudential Life Insurance Company
Ltd., Bangalore as a partial fulfilment of MBA program, during the months of May to
August 2004.

We wish her all success in her future endeavors.

Mr.Raghavendra Bhat, Mr.Sivaram,

Unit Manager Sales Manager
 CERTIFICATE

I hereby certify that the research work embodied in this dissertation entitled,
“Customer Value Management” at ICICI Prudential Life Insurance Company Ltd.,
Bangalore has been undertaken and completed by Ms.Divya Ramesh, bearing
Register Number 02XQCM6019 under my guidance and supervision.

I also certify that she has fulfilled all the requirements under the covenant
governing the submission of dissertation to the Bangalore University for the award
of MBA Degree.

Place : Bangalore Dr.K.V.Prabhakar

Adjunct Professor
Date : 13 September 2004 (Internal Guide)
 CERTIFICATE
This is to certify that this dissertation entitled, “Customer Value Management” at
ICICI Prudential Life Insurance Company Ltd., Bangalore is an offshoot of the
research work undertaken and completed by Ms.Divya Ramesh under the guidance
of Dr.K.V.Prabhakar, Adjunct Professor, MPBIM, Bangalore (Internal Guide) and
Mr.Raghavendra Bhat, Unit Manager, ICICI Prudential Life Insurance Company
Ltd., Bangalore (External Guide)

Place : Bangalore (Dr.N.S.Malavalli)

Date : 13 September 2004 Principal
 ACKNOWLEDGEMENT

I express my immense gratitude to Dr.K.V.Prabhakar, Adjunct Professor, M.P.Birla

Institute of Management, Bangalore. He has been my mentor and guide and his
continuos encouragement and valuable suggestions helped me at every stage of this
project.

I am grateful to Principal, Directors and the staff of M.P.Birla Institute of Management

for their comments and encouragement at various phases of this project.

I thank Mr.Raghavendra Bhat, Unit Manager, ICICI Prudential Life Insurance

Company Ltd., Bangalore for giving me this opportunity to successfully complete this
project. His ideas, continuous support and comments have been quite useful for the
completion of this study.
I also thank Mr.Sivaram, Sales Manager at ICICI Prudential Life Insurance Company
Ltd., Bangalore for giving me permission to carry out this project in the Company.

I extend my gratitude to the staff of the Sales Department at ICICI Prudential Life
Insurance Company Ltd., Bangalore for their co-operation while carrying out this
project.

My grateful thanks are also due to Ms.Veena, Insurance Advisor with ICICI Prudential
Life Insurance Company Ltd., Bangalore and my parents for their incredible support.

Place : Bangalore

Date : 13 Sept. 2004 (Ms. DIVYA RAMESH)

 CONTENTS

Sl. No. CHAPTERS Page No.

Executive Summary 1-2

PART ‘A’ – THEORITICAL SETTING

I Introduction
1. Conceptual Framework of CVM 3 –4
2. Problem Statement 5
3. Need & Significance of the Study 6 –7
4. Objectives of the Research 8

II Review of Literature
1. Purpose 9 –14
2. Conclusion 15
3. Methodology 16
4. Benefits from the Literature Review 16
III Research Methodology 17 -18
1. Scope of the Study
2. Type of Research
3. Data Collection
4. Sampling Technique
5. Sample Size
6. Sample Description
7. Instrumentation Technique
8. Tools used for Hypotheses testing
9. Limitations of the Study
IV Company Profile 19 - 26
 CONTENTS

Sl. No. CHAPTERS Page No.

PART ‘B’ – SURVEY FINDINGS

V Data Analysis & Interpretation

1. Statement of Hypotheses 27
2. Hypotheses Testing 28 – 36
3. Inferences from the analysis 37 - 50
PART ‘C’ – CONCLUSION & RECOMMENDATIONS

VI Summary, Conclusion & A scheme of Recommendation

1. Major Research Findings 51 – 52
2. A scheme of Recommendation 53 – 54
3. Directions for further research 55

Annexure
1. Select Bibliography 56 - 57
2. Questionnaire 58 – 61
3. Research instrument used 62
4. Data incidental to research
• IEPA Attribute Model 63 – 65
• Product Comparison 66 – 71
• Task assigned by the company - Survey 72 - 79
EXECUTIVE SUMMARY
 EXECUTIVE SUMMARY

This project is done for ICICI Prudential Life Insurance Company Ltd. In today’s
environment the customers have become sovereign authorities. They constitute the focal
point for any business. The effectiveness of Customer Value Management helps a
business enterprise to create and sustain differentiating value, which has been focussed in
this study.

Customer Value Management represents the best practices used today by companies
worldwide to attain their visions of finding out what customers want and giving it to
them. Customer Value Management provides a rational set of technology; methods and
strategies to weave needs and wants of customers into key process designs and
management activities of a company.

Customer Value Management is a vehicle to understand what the customers want from
the Company and how it can go about aligning its business to deliver the same
consistently. Every Company has perspectives about Finance, Customers, Internal
Business & Growth. Customer Value Management deals with the ‘Customer
Perspective’ which along with the other perspectives are aligned with the strategic intent
and posture of the company.

The Customer Value Map will be designed to assess where the company’s service stands
against competitors on the relative quality versus price matrix.

This Study is based on certain objectives and the research on Customer Value
Management has been developed based on these objectives. The objectives are as
follows :
• To identify the route to provide superior delivered value to customers
• To unzip the direct link between customer value and the market share
• To determine whether the ‘Customer Value Map’ can assess the position of the
company’s service against its competitors on the relative quality – price matrix

1
The important findings of this study are :
The most important reasons for buying a Life Insurance Policy from ICICI Prudential
are brand name, wide varieties of policies to choose from and good servicing of
policies


The most important value added features in ICICI Prudential’s policies are wide
range of options within the same policy, multiple benefits packed in a single policy,
flexibility and good returns


The manifestations of value of ICICI Prudential in order of ranking are – maximum
risk cover, profitable mode of investment, tax rebate, multiple benefits, pre-
sales/during-sales/after-sales service and premium.

Some of the prominent recommendations are :

The positive features already existing in policies should be highlighted. Thus the
customers will find extra value in their policies


The settlement of policy amount should be expedited and never unduly delayed so
that the customer is not aggrieved. This will also help the company to avoid
migration of its customers


The value of ICICI Prudential can be enhanced by being customer centric, increasing
awareness about the company among customers, introduce new policies according to
changing needs of customers, to provide switching between various options more
than once a year, give guaranteed returns, handle complaints effectively and provide
value for money for the customers


Companies must be ‘customer creating’ and ‘customer satisfying’ organisations i.e.
they must do the things that induce customers to do business with them. We
recommend this strategy to ICICI Prudential.
The Company can use this information to reengineer their business capabilities with a
focus on customer envisioned value.

2
 INTRODUCTION

1) Conceptual Framework of CVM

2) Problem Statement
3) Need and Significance of the study
4) Objectives of the research
CONCEPTUAL FRAMEWORK OF CVM

The concept of Customer Value Management was developed by Dr.John Henderson of

Boston University together with an IBM consultant to enable management teams to get
an actionable customer view and take actions resulting in increased customer
satisfaction, loyalty and market share.

Customer Value Management (CVM) represents the very best practices used by
companies worldwide to attain their visions of finding out what customers want and
giving it to them. It has become a leading approach to attract market share. It is a means,
by which a company can balance the demand for service and products with an
infrastructure that is customer centric, delivers increased productivity & benefits the
customer’s product line.

Customer Value Management is a way to build customer loyalty and improve value for
the company. It provides a way to understand customers’ values and then leverage that
knowledge to prevent customer dissatisfaction or to influence buyer behavior. It creates
an alignment between customer’s dyn amic vision of ideal value delivery and business
capability to deliver that value. The company should focus on specific capabilities and
infrastructure to deliver value and also reengineer business capabilities with a focus on
customer envisioned value.

Customer Value Management is a very powerful tool to make the company truly
customer oriented, attain top of the line growth and bottom line results. It is a formal,
systematic approach to compete and grow, based on delivering customer value. CVM is
also fast emerging as the ‘Ruling Currency’ to the growth of the company.

In implementing CVM, how a customer perceives the company and obtains value should
be identified and managed. If employed correctly it can help a business enterprise create
and sustain differentiating value. CVM helps a company in the following ways :
a) Develop and implement a business vision to become customer centered i.e. be
number one in the eyes of their customers
b) Implement strategy to differentiate and compete on service and value to customers,
not merely on products and price
c) Understand what drives customers’ loyalty and give it to them 3
The implementation of CVM begins with the company identifying the needs/wants of
their customers and building on specific capabilities and business practices to fulfill
these needs/wants. CVM is thus a top down approach.

Customer Value Management is a methodical approach that enables a company to fulfill

its vision of becoming a premier service provider to its target customers. This can be
applied at the level of an individual service or on an organisation wide basis. CVM is an
ongoing process that includes :
a) Monitor changing needs of target segment
b) Monitor changing customer perceptions of company’s performance
c) Input business improvements
d) Monitor and measure results.
Customer Value management is a way of thinking and running an organisation. It helps
the company to provide high value experience to customers and thus forms a winning
strategy for customer loyalty and growth.

4
PROBLEM STATEMENT

To meet the challenges faced in the Life Insurance Industry, ICICI Prudential Life
Insurance Company Ltd. has to gear up itself. Customer Value Management is a leading
approach to attract market share. It can emerge as the ‘ruling currency’ to the growth of
the company.
The emphasis is on how ICICI Prudential Life Insurance Company Ltd. can arrest the
value migration of their customers and capture new value of the customers by modifying
their business design.
Specifically, the problem statement is – “How can ICICI Prudential ensure customer
equity through an effective Customer Value Management Program?”. The study will
focus on the three aspects of Customer Value Management i.e.
a) Being customer centric
b) Delivering increased productivity
c) Benefits provided to the consumer’s product line

5
NEED AND SIGNIFICANCE OF STUDY

Customer Value Management is a relatively new concept. It is now as an emerging art

and science that is proving its worth in increased market share and shareholder value for
the companies that practice it.

Virtually every company has a vision and a strategy to achieve it. But missing element
from all of these companies is the very presence of the word ‘Customer’. Incorporating
the word customer into the vision statement has been a fairly recent phenomenon. In
today’s environment the customers have become monarchs. They have taken on new
importance as the focal point for business. Today’s management philosophy is to find
out what the customers want and give it to them. This helps company to stay head of
competition.

There are key issues for major companies that need to be addressed. These can be
summarised as follows :

• Just having a clear vision and strategy to achieve that vision is not enough. Even
when a strategic vision is in place it might have little impact on the goals of the
company. Hence this strategic vision has to be tied to the customer’s expectations
from the company.

• To remain successful today, the theme for a business’s vision and strategy must
change from, “Where do we want to be in five years?” to “Where do our customers
want us to be, and how do we get there?”

• Another thing shared by many companies is a marked absence of an approach to put

a customer-focused vision into real action. The company’s ability to develop a vision
has often exceeded its grasp in terms of being able to implement the realities of the
required changes down to their organisational level.

• For every given customer desired outcome, the full value chain relating to how a
customer perceives and obtains value from the company must be identified and
managed having the customer as the focal point.

Customer Value Management helps address all the above issues. It helps to leverage
customer value to drive business performance. Organizations can successfully employ
customer value management system to know their customers precisely. They can also
know their competitors’ customers. Effective customer value management allows
organizations to assess which products and services meet customer’ needs and
appropriately define their value proposition relative to their competitors.

According to a research conducted by Dr.John Henderson of Boston University and an

IBM consultant, it was concluded that “Companies th at fully lever the potential of
Customer Value Management will become ideally customer centered and attain its vision
to become the superior provider to its customers.

Customer Value Management acts as a source of sustainable competitive advantage and

a driver of customer value creation.

The need for the study stems from the fact that the Management at ICICI Prudential Life
Insurance Company Ltd. has to observe the effectiveness of Customer Value
Management. This study will help the company to understand as to how it can arrest
value migration, protect existing value of customers and capture new value by modifying
their business design.

The significance of the study is that the company would benefit by knowing how
effective the perspective of Customer Value Management presently is. The policyholders
and the employees of the company have been involved in this study to give the company
an in depth picture of the views of both of these two categories of people. The areas of
improvement (recommendations) will be highlighted in the study, which will immensely
benefit the company.

7
OBJECTIVES OF THE RESEARCH

The Life Insurance industry currently is characterized by speed, quality, customer

satisfaction, innovativeness etc. Also all the Life Insurance companies are vying with
each other to increase their market share and profitability. This highlights the
significance for Life Insurance companies to develop new ways of keeping their
customers satisfied and hence minimise the risk of losing customers.
The most relevant objective is to develop and examine the market perceived quality
profile and also customer value.

Specifically the following objectives have been set for our research investigation :
• To identify the route to provide superior delivered value to customers
• To unzip the direct link between customer value and the market share
• To determine whether the ‘Customer Value Map’ can assess the position of the
company’s service against its competitors on the relative quality – price matrix

8
REVIEW OF LITERATURE

1) Purpose
2) Methodology of review
3) Conclusion
4) Benefits
Purpose of the Review of Literature
• To identify the problem statement
• To understand the secondary data that has been gathered in the field of the study
• To attempt to make new findings on the problem statement without reinventing
what has already been done in this field of study

If CRM is the "pipes" of a system for two-way communication with customers, then
CVM is the human factor. Businesses that know what customers value, know how to
deliver this value better than the competition, and know when it's important to
communicate with customers so that they perceive the true value delivered achieve
competitive advantage, better business results and shareholder value. The challenge for
business is to turn this understanding into practical action that delivers measurable
results. The idea that business success comes from focusing on customers is not new, and
vision and mission statements are full of aspirational language about creating value for
customers. Yet some of the most metrics-driven companies would be hard pressed to
explain how they are measuring and managing customer value. There is now an
emerging art and science of customer value management that is proving its worth in
increased market share and shareholder value for the companies that practice it.
Companies that capture and use customer data with the same kind of discipline, passion
and understanding they give to operational and financial data are learning that this
business practice is well worth the time and money invested. By focusing on winning in
the customer market, they also win in attracting and retaining talented people and in the
financial market. Customer value management is about:
Choosing value: Asking customers in the target market what they value, finding out how
they rate the value that is delivered compared to the competition, and using this
understanding to focus priorities and then decide what value proposition to take to
market.

Delivering value: Making sure that the business processes are aligned with the value
proposition, and determining what business improvements will deliver the greatest value
to customers.

Communicating value: Educating the market on the value proposition and how the
company is focusing investment to deliver greater value than the competition.

Source : ‘Playing a People Tune on the CRM Pipes’ 9

1. Customer Value Management

Customer Value Management (CVM) helps leverage customer value to drive the
company’s business performance. Organizations successfully employing a customer
value management system know their customers. They also know their competitors’
customers. Effective customer value management allows organizations to assess which
products and services their customer’s demand and need, and appropriately define their
value proposition relative to their competitors. Focus Areas are :

• Internal/External CVM Assessments

• Competitive Analysis
• Strategic CVM Business Plans
• Customer Relationship Management System
• Implementation Plans/Staff Training

CVM integrates a range of strategies that allow your organization to be more valuable to
your current and future customers:

• Implement innovative methodologies to manage customer transactions and

engagements and improve the efficiency of customer service delivery.
• Develop systematic ways to teach, encourage, and support your staff with
consultative customer solution skills and techniques.
• Add value to customers through a disciplined approach to listening to the
marketplace and understanding their business better than the competition.
• Improve your capability to strategically assemble enterprise-wide expertise and
experience to empower each staff member to become more valuable and
responsive to customers.
• Maximize the future value of products and services by strategically directing
research and development investment dollars to those areas generating the
optimal value to the customers.
The process of developing and implementing effective CVM strategies can be done by
tools and techniques like :

• Internal CVM Review

• Map of customer acquisition, service and delivery processes
• Employee perceptions of where and how they add customer value
Review Consolidated Findings

10
 • Identify major business processes and products/services valued highest by
customers.
• Present gaps between employee and customer value perceptions.
• Identify strategic market segments and competitive positioning of your
products/services.
CVM Plan Implementation
• Phase-in required organizational alignment changes.
• Conduct Customer Relationship Management (CRM) and CVM employee
training.
• Implement customer business process and product/service improvements.
• Launch customer marketing and communication program advancements.
• Implement CRM and CVM performance tracking systems.
Benefits of Customer Value Management are
• Know and understand your customers needs
• Increase customer loyalty
• Assess product and service lines to align with client needs
Source : John Renner, Vice President, Sabre’s Customer Value Management
solutions (25/6/2004)

2. Leveraging Customer Value Management

How companies in the insurance industry can improve financial performance?
The life insurance industry, long considered a rock of stability, is now facing major
challenges brought about by several factors like increased competition, new
technologies, pricing pressures, declining industry profitability & increased customer
demand for better service, timely claim settlement, and dispute resolution. How
insurance firms respond to these challenges affects not only short-term profitability, but
also long-term survival. Many companies will be forced out of specific market segments
or whole markets because of poorly defined customer management & customer service
strategies. The need has never been greater for solutions based on an improved
understanding of customer behavior and customer lifetime value. An integrated view of
behavioral data contributes to an improved understanding of customer potential value.
The benefits of proactive view of customer value :
Life insurance companies have made significant IT investments and are increasing their
adoption rate of CRM technologies. The industry lags others in leveraging this
information to improve customer profitability and gain competitive advantage in the
market. Customer Value Management (CVM) views data as a strategic resource that
enables the organization to make better and more informed decisions. Its focus is
prediction and explanation - the identification, quantification, and prioritization of
factors having an impact on the value chain and customers' current and potential value.
Being able to accurately identify and rank order customer characteristics and behaviors
having the highest impact on risk, premium and servicing costs can yield immediate,
bottom-line benefits to insurance companies. With this insurance companies can more
quickly identify which factors are significant to improve pricing and refocus sales and
marketing programs.
The result of this proactive CVM approach to insurance is:
Risk segments: Groups of customers and policy claims having similar risk profiles and
identification of key risk factors and value differentiators across segments.
Propensity-to-claim scores: Predictive models that quantify the likelihood of submitting
claims, size of claim, fraud propensities.
Loss elasticities: Quantification of the potential revenue loss due to unit changes among
the risk factors.
Prioritized Market Test pilots: Recommended list of potential pilots to test in the market.
The CVM approach expands the scope of information by supplementing it with external
relationship-based customer data. This relationship view of customer lifetime value is
what we call the next evolution in management. It helps insurance companies realize the
many benefits from positioning their products and services to meet customers evolving
security and financial needs. CVM enables insurance companies to achieve significant
improvements in its profitability and increase the effectiveness of their customer
management, product design and sales management strategies.
Source : Edgar Ortiz and Jay Norman – Nov 2003

3. The Second Deadly Sin of CVM - Ignoring the Customer Life Cycle
Customers rarely stand still – their preferences, behavior, lifestyle and buying habits
invariably change over time. And while marketing executives recognize the dynamic
nature of customer behavior and customer relationships, many miss the opportunity to
create new value because of organizational inertia that prevents many enterprises from
keeping pace with customers’ changing needs. Companies aren’t clear about what, when
and how of meeting customers evolving needs and preferences. This uncertainty and lack
of knowledge translates into lost revenues and missed opportunities to cement profitable,
long-term customer relationships. A customer-centric life insurance company should
deeply understand the needs of its highly focused segments and services them
accordingly. It doesn’t take a major effort to a chieve impressive results – adding two
columns to a customer file the first identifies the value of a customer, second identifies
the appropriate offer to present to that customer. This simple redesign makes it possible
to provide customer service reps with important details about a customer’s value and
preferences. Companies can garner 20 to 30 percent increases in terms of the percentage
of customers adding at least one additional product to their portfolios. They can increase
sales yield 10 to 20 percent by improving their ability to match product
recommendations to customers’ profiles. And by carefully targeting product
recommendations in response to incoming customer calls, sales rate improvements of 10
to 25 percent are not uncommon. The net profits from CVM can be reinvested into
additional incremental improvements, creating a cascade of successful results that ripple
throughout the organization.

Source : Kevin Grieve & Edgar Ortiz, DM Direct Newsletter, Sep 2003

4. Customer Value Management: Turning Customer Insight into More Profitable

Relationships

CVM helps to understand how line of business, marketing, sales managers and
executives in the insurance business can:
• Improve customer retention
• Increase revenue
• Drive down cost in their businesses
Customer Value Management approach can be used for more accurate cost projection,
and to better measure actual value contribution by customers.

Customer Service - Products and prices in an Insurance industry can be easily duplicated.
Thus service becomes the only differentiator which will provide the competitive
advantage in the long run. Insurance companies should have a cell for customer
management, which caters to the customer needs and complaints. The Insurance agents

are the interface between the customer and the Insurance company. The agents should be
able to accomplish the following to improve service. 13

• Assessing and analyzing the client’s risk profile

 • Finding the best product or products available in the market
• Negotiating the best deal available
• Continuity of service throughout the period of Insurance
• Claims advisory service
Source : Sherwin Loudermilk, Kenking – IBM, SAS, Nov. 2003

5. CRM: Moving Toward Customer Value Management

Changes in technologies, business processes, organization models and customers
themselves have fundamentally affected the marketing, sales and service continuum.
CRM’s evolution is temporarily slowed, but a new round of more dramatic change is on
its way and new customer strategies will be built on a platform of new technology
capabilities.
Looking into the future, CRM will be more about consistently managing and exceeding
customer expectations. Improved measurement and greater financial rigor will move
customer management from CRM’s relationship -focused approach to a more financially
driven value-based approach, which we call customer value management. The focus on
the customer will remain, but businesses will simultaneously step up their efforts to gain
value for themselves.

Companies that aspire to serve their customers both well and profitably need to be aware
of five major trends that will play a role in the evolution of CRM into CVM - rising
customer expectations, viewing customers as assets, improving customer intelligence
quotients, developing new organization models and increasing financial rigor. It is
important to have a customer value measurement system, which often succeeds the
customer satisfaction measurement system. The customer value measurement systems
need to cater to many dimensions of the relationship including those of competitor
analysis. Sharing the customer value measures with the customer forms an integral part
of a metrics based customer relationship management system.

Source : Michael Gorsage & Robert Haas

14
CONCLUSIONS

All the above articles are related to Customer Value Management and also implications
of adopting CVM in the Life Insurance industry. It therefore, becomes important for us
to understand as to how a Life Insurance company can increase value for its customers,
protect the existing customers, avoid migration of customers and also to add new value
to customers by way of modifying the business design.

A research on Customer Value Management in a Life Insurance company would help us

to bring out the following concepts :

It will help to understand the intricate details of CVM in a Life Insurance industry

The role and importance of CVM in the services sector can also be understood

The implications of adopting CVM on the business, the expected value of customers and
the capability of the company to deliver the same can be examined

15
METHODOLOGY OF THE REVIEW OF LITERATURE

Review of the literature has been done with the help of the following sources :

Company Literature

Brochures

The Internet

ICICI Prudential – Quarterly Report

Publications

Articles on CVM

A text book on Customer Value Management

BENEFITS OF REVIEW OF LITERATURE

The review of literature has been very informative, as it has thrown light on the research
and articles that have been written on Customer Value Management.
Moreover it has helped in identifying the degree of research that has been done already
on this topic. It has helped our study, as it constituted the basis of secondary data for our
study.

16
 RESEARCH METHODOLOGY

• Scope of the study

• Type of research
• Data Collection
• Sampling Technique
METHODOLOGY

Scope of the Study

This study is restricted to the Personal Life Insurance sector. Research is conducted at
Bangalore Metropolitan Area only.

Type of Research
Our research is a formal study with some elements of exploration involved. This research
is also aimed at recognising the areas of improvement for ICICI Prudential Life
Insurance Company Ltd. in terms of their relationship with customers.

Data Collection
Data sources consisted of primary and secondary. Sources of primary data included the
policyholders of ICICI Prudential Life Insurance Company Ltd. and also its employees.
Sources of secondary data included the information provided by the organisation and
various text books, magazines, internet and company broucheres.
A structured questionnaire was developed and administered to generate the primary data.

Sampling Technique
Random Sampling
It is also called probability sampling or chance sampling. Under this sampling design
every item of the universe has an equal chance of inclusion in the sample. All choices are
independent of one another. It gives each possible sample combination an equal
probability of being chosen. We, therefore, adopted this technique in our study.

Sample Size
The composition of our sample consisted of policyholders of ICICI Prudential Life
Insurance Company Ltd., the employees and insurance advisors. The respondents whom
we have approached are 50 in number.

17
Sample Description
Age 20 – 30 30 - 40 40 - 50 50 - 60 Total

No. 25 9 3 13 50

The respondents are concentrated in the age groups between 20 – 30 years. There are
also respondents in the age groups of 50 – 60 years.

Gender Male Female Total

No. 35 15 50

Majority of the respondents are male (70%) and the remaining 30% of them are females.

Instrumentation Techniques
Structured Questionnaire : The primary data has been collected through structured
questionnaires, which were administered to the respondents.

Tools used for testing Hypotheses

The Chi-Square and z-test were used for testing the Hypotheses. Three hypotheses were
stated and the statistical testing of hypotheses was conducted by these tests. These
statistical tools were used keeping in mind the distribution of the population.

Limitations of the Study

Research investigation is beset with time and resource constraints. Research is limited to
Bangalore Metropolitan Area and hence the limitation of generalisation becomes
obvious.

18
COMPANY PROFILE
THE ICICI GROUP
The Industrial Credit and Investment Corporation of India Limited (ICICI) was
incorporated at the initiative of the World Bank in 1955, the Government of India and
representatives of Indian industry with the objective of creating a development financial
institution for providing project and corporate finance to Indian industry. It started off its
operations by providing finance for industrial development, and it has diversified into
housing finance, consumer finance, mutual funds and its latest venture Life Insurance.
Following the market oriented economic policy reform in the 1990s, ICICI moved away
from its traditional role into a new era of liberalized regulation and intense competition.
A series of initiatives were championed to keep up with keen competition in India’s
financial service sector, and access to international capital markets was crucial to the
success of the new mandate. Since inception, ICICI has grown from a development bank
to a financial conglomerate and has become one of the largest public financial
institutions in India. ICICI has thus far financed all the major sectors of the economy.

GROUP COMPANIES OF ICICI

THE ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

ICICI Prudential Life Insurance was established in the year 2000 with a commitment to
expand and reshape the life insurance industry in India. The company was amongst the
first private sector insurance companies to begin operations after receiving approval from
Insurance Regulatory Development Authority (IRDA) and in the time since, has taken
several steps towards its realizing its goal. ICICI Prudential understands that different

19
people have their own sets of needs at various stages of their lives. That's why they offer
a choice of solutions depending on whether you are a young individual planning for the
years ahead or an established professional planning for your retirement. The Company is
now operational in ten cities throughout the country.

ABOUT ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

ICICI Prudential Life Insurance company is a joint venture between ICICI, a premier
financial powerhouse and Prudential, a leading international financial services group
headquartered in the United Kingdom. ICICI and Prudential came together in 1993 to
form Prudential ICICI Asset Management Company, which has today emerged as one of
the largest private sector mutual fund company in India. The two companies bring
together the strongest financial service brands in Asia, known for their professionalism,
excellent quality of service and long - term commitment to consumers. Riding on the
success of this relationship, the two companies joined hands once more in 2000, to form
ICICI Prudential Life Insurance Company, with a commitment to provide leading-edge
life insurance solutions. This venture plans to take care of the insurance needs at various
stages of life. ICICI Prudential has been adjudged the Best Life Insurer by Outlook
Money. This is the only award that recognises the value delivered to customers in
addition to business performance.

ICICI Prudential's equity base stands at Rs. 6.75 billion with ICICI Bank having 74%
stake in the company and Prudential having 26%. The Company was granted Certificate
of Registration for carrying out Life Insurance business, by the IRDA on November 24,
2000. It commenced commercial operations on December 19, 2000, becoming one of the
first few private sector players to enter the liberalized arena. ICICI Prudential was
positioned as an enabler of protection relevant to the needs of the life stage. The
Company issued its first policy on December 12, 2000. In the year ended March 31,
2004, the company had issued over 430,000 policies. ICICI Prudential was amongst the
first to identify the emerging opportunity in the Pension segment and launched two
linked pension products- LifeTime Pension and LifeLink Pension, which have been well
received in the market. The company has a network of about 30,000 advisors as well as
12 bancassurance tie-ups. ICICI Prudential has one of the largest distribution networks
amongst private life insurers in India. Today the company is the #1 leading private life
insurer in the country. The company has a commitment to increase consumer knowledge
about Life Insurance. 20
HISTORY
ICICI Prudential was established in Dec 2000. Sine the brand ICICI is well known in the
country, they did not have to face that particular challenge. They wanted to build an
organisation with culture different from that of LIC. Life Insurance was positioned as a
high excitement and emotive product. The task at the time of set up was to establish the
ICICI brand, build awareness and give the brand a larger than life image by addressing
the issue of credibility and trust to invest funds with. Another big initiative that ICICI
Prudential launched was a quality initiative – Six Sigma. For promoting the company,
the theme was ‘cover every Indian with joy, hope, freedom, life’. Further, they chose
children from municipal schools who received endowment policies. These programs
were to deliver the brand promise. Today the company has set themselves metrics that is
best in class for various categories of players. In terms of service the company’s
benchmarks are the best retail financial services player in the world. The company is
hopeful of playing a major role in the expanding the life insurance market in this
country.

MILESTONES OF THE COMPANY

Dec 12th 2000 : ICICI Prudential issues its first policies to underprivileged children
Dec 20th 2001 : Launched Market-linked insurance schemes.
Feb 19th 2002 : Launched innovative child product
Feb 25th 2003 : Company grabs 73% of private sector pensions market.
April 7th 2003 : ICICI Prudential crosses Rs. 500 crore premium milestone.
July 15th 2003 : ICICI Prudential became the first Life Insurance company to cross Rs.
500 crore capital base.
Sept 25th 2003 : ICICI Prudential launched Smartkid unit – linked child plans
April 2004 : ICICI Prudential tops the premium income chart among private players for
the third time in a row.
ICICI Prudential Life Insurance has increased its market share among private life
insurers to nearly 40%
Best Life Insurer award by Outlook Money

ABOUT THE PARTNERS – ICICI BANK

ICICI Bank is India’s second largest bank. ICICI Bank provides a broad spectrum of
financial solutions for corporate and retail customers. It has about 450 branches and
extension counters, 1675 ATMs, call centers and Internet banking. ICICI Bank is the
only Indian company to be rated above the sovereign rating by the international rating
agency Moody’s and the only Indian company to be awarded an investment grade
international credit rating. The Bank enjoys the highest AAA (or equivalent) rating from
all leading Indian rating agencies. This is one of the largest financial institutions in India
and trusted by millions of Indians over the years.

FOREIGN PARTNER – PRUDENTIAL PLC.

Prudential is a leading international financial services company in the UK. Prudential has
brought to market an integrated range of financial services products that now includes
life assurance, pensions, mutual funds, personal banking, investment management and
general insurance. Prudential is one of the largest life insurance companies in the world.
It also has its presence throughout Asia. Since 1923, Prudential has championed
customer – centric products and services. Solid reputation built over 150 years. Already
established as one of the biggest mutual fund companies in India (Prudential ICICI
AMC). It is truly a global brand.

PRUDENTIAL ASIA

Prudential is the largest life insurance company in the United Kingdom. Asia has always
been an important region for Prudential and it has had a presence in Asia for over 75
years. It has over 45,000 staff agents and over 1 million customers. It has its operations
in 12 countries throughout Asia.

SERVICE

ICICI Prudential has recruited and trained over 18,000 insurance advisors to interface
with and advise customers and has the highest number amongst private life insurers on
the renowned Million-Dollar Round Table (MDRT). Further, it leverages its state-of-the-
art IT infrastructure to provide superior quality of service to customers. It has a
‘Customer First’ philosophy.

COMPETITORS
ICICI Prudential faces tough competition from Life Insurance Corporation of India
which is one of the oldest insurance company and also from other private insurers like
Birla Sunlife, Tata AIG, MetLife etc, HDFC Standard Life Insurance, ING Vysya etc.
22
LIFE INSURANCE SCORE CARD - (First year & single premium in 2003 – 04)

Insurance Income (in Rs. % Growth (over

Company Crore) the previous year)

Allianz Bajaj 179.70 183.50

ING Vysya 72.60 311.15

AMP Sanmar 27.88 341.50

SBI Life 195.90 172.54

Tata AIG 180.15 245.07

HDFC Standard 209.33 61.88

ICICI Prudential 750.91 106.23

Birla Sunlife 449.86 247.20

Aviva 77.13 472.83

OM Kotak 127.10 260.99

Max Newyork 131.48 95.34

MetLife 23.38 203.70

Private Total 2425.46 153.15

LIC 16284.68 1.93

Source : IRDA Website

VARIOUS DEPARTMENTS
Sales & Distribution Department Operations Department
Bancassurance Risk Management
Group Assurance Department Front Desk
HR & Administration Department Training Department
The organisation structure is given on Page 26.

23
YEAR OF REVIEW 2003 – 2004
Life Insurance Market share Market share as Market share as %
company as % of % of no. of of lives under group
premium policies/schemes scheme

Allianz Bajaj 0.96 0.65 1.63

ING Vysya 0.39 0.32 0.11

AMP Sanmar 0.15 0.16 0.97

SBI Life 1.05 0.30 12.38

Tata AIG 0.96 0.57 3.04

HDFC Standard 1.12 0.71 0.93

ICICI 4.01 1.52 0.74

Prudential
Birla Sunlife 2.40 0.54 3.18

Aviva 0.41 0.25 1.42

Om Kotak 0.68 0.18 0.85

Max New York 0.70 0.51 1.89

Met Life 0.12 0.09 0.66

Private Total 12.96 5.79 27.78

LIC 87.04 94.21 72.22

Grand Total 100.00 100.00 100.00

Source : IRDA Website

No. of Policies Issued by Pvt. Life

Insurance Com panies No. of Policies
Issued
500000
450000
No. of policies

400000
350000
300000
250000
200000
150000
100000
50000
0
G

rk
a
l
ar
j

ia
ja

iv
AI

yo
nm

nt
Ba

Av

ew
de
ta
Sa
nz

Ta

ru

N
lia

IP

ax
AM
Al

IC

M
IC

Pv t. Life Insurance Com panies

 Premium collection of all Pvt. Life Insurance
Companies
Allianz Bajaj
ING Vysya
AMP Sanmar
SBI Life
Tata AIG
HDFC Standard
ICICI Prudential
Birla Sunlife
Aviva
OM Kotak
Max Newyork
MetLife
Source : IRDA Journal

PRODUCTS
ICICI Prudential Life Insurance offers a range of innovative, customer-centric products
that meet the needs of customers at every life stage. There are 13 policies to cater to
individuals, which can be enhanced with six riders so as to create a number of
combinations. Given the demographic and social conditions of India - like an aging
population, absence of a social security system and inflation - ICICI Prudential Life sees
immense potential in the growth of retirement products.

Solutions for individuals
Savings Solutions : SecurePlus, CashPlus, Save ‘n’ Protect, CashBak
Protection Solutions : LifeGuard
Child Solutions : SmartKid Child Plans, SmartKid
Market-Linked Solutions : LifeLink, LifeTime
Retirement Solutions : ForeverLife, SecurePlus Pension
Market-linked Retirement Products : LifeTime Pension, Lifelink Pension

Group Solutions
ICICI Prudential also offers group insurance solutions for companies seeking to enhance
benefits to their employees. The group plans are : Group Gratuity Plan, Group
Superannuation Plan, Group Term Plan

Products for the rural market
A basket of policies have been designed specifically for the rural market like Mitr,
Suraksha & Salaam Zindagi

Flexible Rider Options – Six different rider options to choose from 25
 CEO & MD

Page 26

Chief S&D Chief O&U Chief HR Chief Mktg Chief

Mgr. Mgr. Mgr. Mgr. Finance

Regional Regional Regional Regional Actuarial

Sales Mgr. Operation Mgr. HR Mgr. Mktg Mgr.

Chief IT
Zonal Mgr.
Zonal Operation Zonal HR Zonal
Mgr. Mgr. Mktg Mgr.

Branch /
Territory Mgr. Branch HR Branch
Branch O&U
Mgr. Mktg Mgr.
Mgr.
SM/ Assistant
SM HR Marketing
Team
Executives Executive
Leader

Unit Mgr. FSC(Banca)

Underwriter

Advisors
 DATA ANALYSIS AND INTERPRETATION

• Statement of Hypotheses
• Testing of Hypotheses
• Inferences from the analysis
STATEMENT OF HYPOTHESES

The following three hypotheses which are appropriate to our study have been tested
1. Ho = There is not more than one route to provide superior delivered value to
customers
H1 = There is more than one route to provide superior delivered value to customers
2. Ho = There is no direct link between Customer Value and Market Share
H1 = There is a direct link between Customer Value and Market Share
3. Ho = Customer Value Mapping cannot assess where the company’s services stand
against competitors on the relative quality versus price matrix
H1 = Customer Value Mapping can assess where the company’s services stand
against competitors on the relative quality versus price matrix

27
I (a) Ideas/Meanings associated with the Life Insurance Policy of ICICI Prudential

Meanings No. Percentage

Max Risk Cover 21 42%
Profitable Mode of Investment 26 52%
Tax Rebate 21 42%
Multiple Benefits 21 42%
Premium 4 8%
Pre/During/After Sales Service 12 24%
Total 105 -
Note : The respondents have more than one meaning associated with ICICI Prudential
Source : Field Investigation

Meanings/Ideas associated with Life

Insurance policy of ICICI Prudential
120
100
Percentage

80 No.
60
Percentage
40
20
0
Max Risk Cover

Tax Rebate

Total
Premium

Meanings/Ideas

Source : Field Investigation

Interpretation : The most important association of idea with Life Insurance policy of
ICICI Prudential is as a profitable mode of investment (52%). The other associations
with the company are in terms of the maximum risk cover, tax rebate and multiple
benefits provided by the policies. Presales, during-sales and after-sales service is also
another idea association given by the respondents.

I (b) Ranking the above manifestations of value as associated with the Life
Insurance policy of ICICI Prudential

Manifestations of Value Rank (No. of respondents)

Max Risk Cover 38
Profitable Mode of Investment 34
Tax Rebate 29
Multiple Benefits 28
Premium 5
Pre/During/After Sales Service 7
Source (Ib) : Field Investigation 28
 Rank (No. of respondents)

40
35
Weighted 30
25
Average 20
Rank 15 10
5
0

Premium
Max

Tax
Rank (No. of
respondents)
Manifestations
of Value

Source : Field Investigation

Interpretation : We need to identify the most important value associated with Life
Insurance policy of ICICI Prudential. The most important values according to the
customers are providing maximum risk cover, profitable mode of investment, tax rebate
enjoyed by them, multiple benefits provided, pre-sales:during-sales:after-sales service
provided. Premium comes last in the order of ranking.

29
Hypothesis Testing I

Ho = There is not more than one route to provide superior delivered value to customers
H1 = There is more than one route to provide superior delivered value to customers
The statistical tool used to test this hypothesis is Chi-square test. This non-parametric
test is used keeping in mind the sample size. Chi-square = (Oij-Eij)²/Eij

Meanings associated with ICICI Prudential

Maximum Profitable Tax Multiple Premium Pre/During/ Total
Risk Cover Investment Rebate Benefits After Sales
Service
No. (O) 21 26 21 21 4 12 105

Rank 38 34 29 28 7 5 141

Total 59 60 50 49 11 17 246

Chi- 
     -Eij)²/Eij where Oij is the observed frequency in the i,jth cell and Eij
is the expected frequency in the i,jth cell.
We calculate chi-square as : Expected (E) is calculated as (21+26+21+21+4+12)/6
E = 17.5
Degrees of freedom is (c-1)(r-1) = (2-1)(6-1) = 5

E O (O-E)2/E
17.5 21 0.70
17.5 26 4.12
17.5 21 0.70
17.5 21 0.70
17.5 4 10.41
17.5 12 1.72
Chi-Square 18.37

Inference : At 5% level of significance and 5 degrees of freedom the table value of chi-
square is 11.07 and calculated value is 18.37 which is higher than the table value. Hence
we reject the null hypothesis and conclude that there is more than one route to deliver
superior delivered value to customers, the most important route being to provide
maximum risk cover to customers.
30
II (a) Preference of companies to buy a Life Insurance Policy

Preference No. Percentage

ICICI Prudential 45 90%
Other Pvt. Companies 5 10%
Total 50 100%
Source : Field Investigation

Preference of companies to buy a Life

Insurance policy

50
45
40
35
30
Percentage 25
20
15
10
5
0
ICICI Other Pvt. Total
Prudential Companies Series1
Series2
Life Insurance companies

Source : Field Investigation

Interpretation : We need to identify the preference of customers towards a particular

company to buy a Life Insurance policy. It is inferred from the table and graph that 90%
of the respondents prefer policies of ICICI Prudential and only 10% of them prefer
buying it from other Pvt. Life Insurance companies. Hence it is inferred that ICICI
Prudential forms the most preferred Life Insurance company among the private players
and hence can gain a large market share.

II (b) Reasons for preferring ICICI Prudential

Reasons
Wide varieties of policies
Satisfaction with policy features
Most popular brand
Customer Loyalty
Returns- Good & Consistent
Good servicing of policies
Highly Professional
Products of this company are better known to me 4
Policies are affordable & highly flexible
Simple process to obtain a policy
Total
No. Percentage
8 18%
3 7%
24 53%
4 9%
4 9%
7 15%
2 4%
9%
1 2%
1 2%
58 -

31
Note : The respondents have more than one reason for preferring a policy from ICICI
Prudential. Hence the total is not additive.

Reasons for preferring ICICI Prudential

25

20

15
Percentage
10

Policies are
Most popular

Highly
Wide

Returns-
Series1
Series2
Reasons for preference

Source : Field Investigation

Interpretation : This helps to know the reasons for preferring policies of ICICI
Prudential. The most important reasons are the company’s well known brand name, wide
varieties of policies to choose from, good service provided to customers, good returns
and also highly affordable and flexible policies. Hence it can be inferred that this
company’s polici es are preferred due to its brand name and other value additions
provided by the company.

II (c) Reasons for preferring other Private Players

Reasons No. Percentage

Depends on whether a suitable LI policy product is on 5 100%
offer
Total 5 100%
Source : Field Investigation
Note : The total represents only those respondents preferring policies from other private
Life Insurance Companies.

Interpretation : The respondents who prefer a Life Insurance policy from other private
Life Insurance companies do so depending on whether a suitable Life Insurance policy
product is offered by them and not because of the value provide by those companies.

32
Hypothesis Testing II

Ho = There is no direct link between Customer Value and Market Share

H1 = There is a direct link between Customer Value and Market Share
The statistical tool used to test this hypothesis is z - test.
The formula is given as
Z = p1 – p2
 "!$#%'&("!$#*),+.-/,010

P = n1p1 +n2p2 and Q = 1 - P

n1 +n2

(a) Market share of ICICI Prudential = 90%

(b) Reasons for preferring ICICI Prudential
Reasons No. Percentage
Wide varieties of policies 8 18%
Satisfaction with policy features 3 7%
Most popular brand 24 53%
Customer Loyalty 4 9%
Returns- Good & Consistent 4 9%
Good servicing of policies 7 15%
Highly Professional 2 4%
Better known products 4 9%
Policies are affordable 1 2%
Simple process to obtain a policy 1 2%
Total 58 -

Considering the first two reasons with the highest percentage , we use the z-test as
follows :
p1 = 0.53 and p2 = 0.18 (sample proportions)
n1 = 58 and n2 = 58 (sample size)
P = n1p1 +n2p2 = 58 (0.53) +58 (0.18) = 0.355
n1 +n2 58 + 58

Q = 1 – P = 1-0.355 = 0.645

Z = 0.53 – 0.18 = 3.93

24365798,:;<365=7 >@?@;A3 B"C:,DFE(BGC:,DH;

Inference : Critical value of Z at 5% level of significance is 1.96. As the calculated value

of Z is greater than the critical value, we reject the null hypothesis and conclude that
there is a direct link between customer value and market share.

33
III (a) Quality of ICICI Prudential in terms of its value

Quality No. Percent

High 35 70%
Medium 15 30%
Low 0 0%
Total 50 100%
Source : Field Investigation

Quality of ICICI Prudential in terms of

its value

Total

Low
Quality

Series2
Series1
Medium

High

0 20 40 60
No. of responses

Source : Field Investigation

Interpretation: This is to find out the quality of ICICI Prudential in terms of its value.
The quality of the company is found to be high with majority of the respondents i.e. 70%
and only 30% of them feel that the quality of the company in terms of its value is
medium. This shows that the quality of ICICI Prudential in terms of the value provided
to customers is high. This is also evident from the graph.

III (b) Price of premium policy of ICICI Prudential

Price No. Percent

High 5 13%
Low 1 3%
Affordable 31 84%
Total 37 100%
Source : Field Investigation

34
 Price of policy of ICICI Pru

40
35

No. of responses
30
25
20 Series1
15 Series2
10
5
0

le

l
h

ta
ig

ab
Lo

To
H

rd
fo
Af
Price of policy

Source : Field Investigation

Interpretation : We need to identify the customer’s opinion about the price of premium
policies of ICICI Prudential. It is evident from the graph and the table that 84% of the
respondents stated that the policy is affordable while only a small percentage of them –
13% stated that the price is high. The price of the policy of ICICI Prudential seems to be
affordable.

35
 Hypothesis Testing III

Ho = Customer Value Mapping cannot assess where the company’s services stand
against competitors on the relative quality versus price matrix
H1 = Customer Value Mapping can assess where the company’s services stand against
competitors on the relative quality versus price matrix
Customer Value Map

Higher 1.25
25

Fair Value Line

1.0
0

Lower 0.84

0.75
0.40 0.60 0.70 0.80
Lower Higher
X – axis : Relative Quality (in %)
Y – axis : Relative Price (in %)
Inference : This map helps us to assess where the company’s service stands against
competitors. The position of the ICICI Prudential is to the right and below the fair value
line. This is indicated by the black dot as shown above. Hence ICICI Prudential is in a
gain sharing position. Hence we reject the null hypothesis and conclude that Customer
Value Mapping can assess where the company’s services stands against competitors on
the relative quality versus price matrix.

36
INFERENCES
Table-1 Gender
Gender No. Percentage
Male 35 70%
Female 15 30%
Total 50 100%

It is inferred from the table that 70% of the respondents are male and 30% of them are
females.

Table-2 Age
Age No. Percentage
From 20 to 30 25 50%
From 30 to 40 9 18%
From 40 to 50 3 6%
From 50 to 60 13 26%
Total 50 100%

It is seen from the table that majority of the respondents 56% are from potential insurable
age bracket of 20 to 30 years.

Table –3 Do you have a Life Insurance Policy?

Policy No Percentage
Yes 46 92%
No 4 8%
Total 50 100%

This project is based on certain objectives and seeks to find out as to how many
respondents have a Life Insurance Policy at present. It is noted that 92% of them have a
policy and the rest of them indicate potential customers for the company.

Table-4 Name of Life Insurance company from which the policy is bought
Life Insurance Company No Percentage
ICICI Prudential 37 80%
LIC 9 20%
Total 46 100%

The data indicates that majority of the respondents who have a life insurance policy have
purchased it from ICICI Prudential –80%. A small percentage of them have purchased
the policy from Life Insurance Corporation of India.

Table-4a Specify the policy type

Policy Type No. Percentage
ICICI LifeTime 18 39%
ICICI Retirement Solutions 14 30%
LIC Endowment 4 8%
LIC Jeevan Shree 3 7%
ICICI Smart Kid 3 7%
ICICI Save n' Protect 1 2%
ICICI Secure Plus 1 2%
LIC Jeevan Chaya 1 2%
LIC Jeevan Surabhi 1 2%
Total 46 100%

The table indicates that ICICI Prudential’s ‘LifeTime’ and ‘Retirement Solutions’ are
most preferred among all types of policies followed by ‘SmartKid’ policy. Among
policies of Life Insurance Corporation of India ‘Endowment’ seems to be the most
preferred policy.

Table-4b Level of satisfaction for the policy service

Level of satisfaction No Percentage
High 29 63%
Medium 17 37%
Low Nil
Total 46 100%

This indicates the satisfaction level of policyholders in terms of service provided by the
company. It is inferred that a high percentage of respondents – 63% have a high level of
satisfaction and 37% of them stated that the level of satisfaction for policy service is
medium.

Table-5 If you don’t have a Life Insurance policy, give reasons

Reasons No. Percentage
Do not feel the need for it 2 50%
Can't afford to buy one at this 2 50%
stage
Total 4 100%
Note : This total includes only those respondents without a policy
The data potrayed in this table helps us to know the reasons for not having a life
insurance policy. From the table it is seen that an equal percentage of respondents (50%)
felt no need for a life insurance policy at present and another 50% of them cannot afford
to buy a life insurance policy at this stage.

Table-6 Satisfaction with the existing features of life insurance policy

Satisfied No. Percentage
Yes 46 100%
No Nil
Total 46 100%
Note : This total includes only those respondents having a life insurance policy
The data indicates that all respondents who have a life insurance policy are satisfied with
their policy features. This infers that existing policies are properly designed.

Table-7 Benefits expected from the life insurance policy

Benefits Expected No. Percentage
Income Tax rebate 37 74%
Mainly Life risk cover 35 76%
Loan Facility against the policy 7 14%
Appreciation of capital invested 32 64%
Note : The respondents expect more than one benefit
The table shows life risk cover is the main criterion with the majority of respondents-
76%. At the same time the same respondents look for additional financial benefits by
way of income tax rebates. Also 64% of them buy a life insurance policy to appreciate
the capital invested. A very small percentage of the respondents think of availing
themselves of loans against their policies.

Table-8 Are private life insurance companies more trustworthy?

Particulars No. Percentage
Yes 38 76%
No 12 24%
Total 50 100%

The data shows that majority of the respondents – 76% stated that private life insurance
companies are more trustworthy. A small percentage of them did not agree with this.
This infers that a majority of the respondents have faith in private life insurance
companies and hence have purchased policies from them.

39
Table-9 Why private life insurance companies are not trustworthy?
Reasons No. Percentage
Relatively new in India compared to LIC 5 42%
Liable for a shakeup 3 25%
Risk involved - Govt. policies could 1 8%
change
Fear of closure 1 8%
Exit norms are not widely 1 8%
known
Very complicated procedures 1 8%
Total 12 100%

This table indicates the reasons for the customers not having faith in private life
insurance companies. 42% of the respondents stated that private life insurance
companies are relatively new in India compared to Life Insurance Corporation of India
and 25% of them felt that private companies do not have a strong financial foundation.
The other reasons are fear of closure, risk involved and complicated procedures followed
by them.

Table-10 Prices of policies of private life insurance companies

Price No. Percentage
High 4 8%
Low 1 2%
Affordable 45 90%
Total 50 100%

This table shows the customer’s view about the prices of policies of private life
insurance companies. 90% of the respondents stated that the price is affordable. Only a
small percentage of them felt that the price is high.

Table-11 Guidance/Service expected from a life insurance advisor

Guidance No. Percentage
Policy features to be explained properly 18 36%
Guidance regarding the best policy to suit my needs 16 32%
Policy features to be put forth honestly without supressing the facts 12 24%
Reminders regarding premium payment falling due to be conveyed 8 16%
on time
Whether switch over facility between policies is available 2 4%
Tax planning to obtain max IT benefits under sec 88 & 80ccc(1) 1 2%
Help & guidance needed to file the proposal form 1 2%
Regarding policy which will give me highest returns 1 2%
Note : The respondents expect more than one kind of guidance/service 40
Most of the respondents desire an insurance advisor to thoroughly explain policy
features. 32% of them need advisors’ guidance regarding the policy best suited for their
needs. The other services expected are honest explanation of policy without supressing
facts and also to remind about the payment of premium when it is due.

Table-12 Are you aware of ICICI Prudential?

Awareness No. Percentage
Yes 50 100%
No Nil -
Total 50 100%

This table shows the awareness level of ICICI Prudential among respondents. Data
shows that all respondents –100% are aware of ICICI Prudential.

Table-13 Source of awareness of ICICI Prudential

Source of awareness No. Percentage
Advertisement 27 54%
Life Insurance Agent 24 48%
Friends 10 20%
Other- Employee 9 18%
Colleagues 4 8%
Other - Advisor 2 4%
Neighbor 1 2%
Other - Internet 1 2%
Total 78 -
Note : The respondents have more than one source of awareness
The table indicates that advertisements followed by life insurance agents form the main
source of awareness for ICICI Prudential. 20% of the respondents came to know about
ICICI Prudential through their friends, 18% of them are aware of ICICI Prudential as
they are employed there. A small number of respondents stated the personal internet as
their source of awareness.

Table-14 If you are aware of the policies of ICICI Prudential and other private
companies, your preference would be :
Preference No. Percentage
ICICI Prudential 45 90%
Other Private Companies 5 10%
Total 50 100%
This table shows the preference of customers to buy a life insurance policy of a particular
company. It is inferred that 90% of the respondents prefer policies of ICICI Prudential
and only 10% of them prefer other private companies. This shows that ICICI Prudential
forms the most preferred company among the private players.

Table-15(a) Reasons for preferring ICICI Prudential

Reasons No. Percentage
Wide varieties of policies to choose 8 18%
from
Satisfied with the existing features of the policy 3 7%
Customer loyalty 4 9%
The returns provided are consistent and good 4 9%
Good servicing of policies 7 15%
Professionalism is exhibited in all their working & 2 4%
operations
Products of this company are known better than the others 4 9%
Policies are affordable and are highly flexible 1 2%
Process to obtain the policy is very simple 1 2%
Total 58
Note : The respondents have more than one reason for preferring ICICI Prudential
This shows the reasons for preferring policies of ICICI Prudential. The most important
reasons for this seem to be well-known brand and most popular company among private
players, wide varieties of policies to choose from and also good service provided along
with a host of other reasons.

Table-15 (b) Reasons for preferring other private companies

Reasons No Percentage
Depends on whether a suitable insurance policy 5 100%
product is on offer
Total 5 100%
Note : This total represents only those respondents who prefer policies from other
private players
All the respondents who prefer policies from other private life insurance companies do
so as their choice depends on whether a suitable insurance policy is offered.

42
Table-16 Extra value added features in ICICI Prudential’s policies
Extra Features No. Percentage
Wide range of options within the same policy 14 28%
Multiple benefits packed in a single policy 13 26%
Don't Know 12 24%
Good returns provided 10 20%
Flexibility 10 20%
Liquidity 4 8%
Different riders/top ups are provided 3 6%
Low lock in period 2 4%
Switching between options allowed free once 2 4%
every year
Policy details - easy to understand in the brochure 1 2%
Total 71 -
Note : Each respondent finds more than one value added feature in the policy
This shows the value-added features in policies of ICICI Prudential. Wide range of
options –28%, multiple benefits-26% and flexibility and good returns (20% each) seem
to be the most important value-added features. About 24% of the respondents are unable
to identify extra value-added features provided by ICICI Prudential.

Table-17 Ideas associated with the Life Insurance policy of ICICI Prudential
Meanings No. Percentage
Profitable mode of investment 26 52%
Max risk cover 21 42%
Multiple benefits 21 42%
Tax rebate 21 42%
Pre/during/after sale services 12 24%
Premium 4 8%
Total 105 -
Note : Respondents have more than one meaning associated with ICICI Prudential
The most important idea associated with insurance policy of ICICI Prudential is
profitable mode of investment (52%). Maximum risk cover and tax rebate are the other
meanings associated. 24% of the respondents have the sales service as a meaning
associated with ICICI Prudential.

43
Table-18 Rank the above manifestations of value in the order of merit
Manifestations of Value Rank (No. of respondents)
Max Risk Cover 38
Profitable Mode of Investment 34
Tax Rebate 29
Multiple Benefits 28
Premium 5
Pre/During/After Sales Service 7
The table shows that the most important value associated with the life insurance policy
of ICICI Prudential is maximum risk cover. The other values in the order of merit are
profitable mode of investment, tax rebate, multiple benefits, pre/during/after sales service
and premium.
Note : The total is not additive as the respondents have more than one value associated
with ICICI Prudential

Table-19 What do you feel about the premium policy of ICICI Prudential?
Particulars No. Percentage
High 5 13%
Low 1 3%
Affordable 31 84%
Total 37 100%
Note : The total represents respondents who have an ICICI Prudential policy
This shows the customer’s opinion about the premium policy of ICICI Prudential. It
indicates that 84% of the respondents felt that the policy is affordable. Only 13% of them
felt that the premium rate of policy is high.

Table-20 Quality of ICICI Prudential in terms of its value

Particulars No. Percentage
High 35 70%
Medium 15 30%
Low Nil -
Total 50 100%

The table indicates the quality of ICICI Prudential in terms of its value. 70% of the
respondents have rated the quality of ICICI Prudential as ‘High’ in terms of its value.
30% of them have rated the company’s quality as ‘Medium’. However no respondent felt
that the quality of the company is ‘Low’.

44
Table-21 Satisfaction with ICICI Prudential in policy servicing
Satisfaction No. Percentage
Yes 37 100%
No Nil -
Total 37 100%
Note :The total represents respondents who have a policy from ICICI Prudential
This table shows the satisfaction of customers with ICICI Prudential in servicing of
policies. All respondents (100%) who have policies from ICICI Prudential have
expressed satisfaction with respect to servicing of their policies.

Table-22 Comment on the promotional policy of ICICI Prudential

Comment No. Percentage
Quite good in all aspects 39 78%
Frequency of ads could be increased 9 18%
Contents of the ads can be made 6 12%
simpler
Reach is to a limited sector/audience 2 4%
Should reach rural areas also 2 4%
Quite impressive 1 2%
Excellent 1 2%
Change of logo to reflect objectives of 1 2%
company
Total 61 -
Note : The respondents have more than one opinion
Data indicates that 78% of the respondents felt that the promotional policy of ICICI
Prudential is quite good in terms of its theme, logo and frequency. 18% of them stated
that advertisement frequency could be increased. 12% of them are of the view that the
contents of advertisement could be made simpler. A very small percentage of
respondents felt that the reach is to a limited audience.

Table-23 Is ICICI Prudential becoming popular day by day?

Popular No. Percentage
Yes 49 98%
No 1 2%
Total 50 100%

This shows the popularity of ICICI Prudential growing day after day. 98% of the
respondents agreed about the growing popularity of ICICI Prudential while only 2% of
them disagreed.
45
Table-24 Reasons for its popularity
Reasons No. Percentage
Marketing strategy/Sales tactics 14 28%
adopted
Aggressive promotion 11 22%
Wide network of agents 10 20%
Established brand name 10 20%
Service level is good 6 12%
Superior product features 5 10%
Policies provides various benefits 4 8%
Good returns on policies 2 4%
Understand customers better 1 2%
Total 63 -
Note : The respondents have more than one reason for its popularity
The reasons that are most important for the popularity of ICICI Prudential are – the
marketing strategies adopted, aggressive promotion, its wide network of advisors,
established brand name in the order of merit. The other reasons are quality of service,
superior product features and various other benefits provided by policies.

Table-25 Do you recommend heavy dose of personnel selling for ICICI Prudential?
Recommend No. Percentage
Yes 20 40%
No 30 60%
Total 50 100%

It is seen from the table that 60% of the respondents do not recommend a heavy dose of
personnel selling for ICICI Prudential while only 40% of them seem to be in favor of a
heavy dose of personnel selling.

Table-26 Reasons for recommending personnel selling for ICICI Prudential

Reasons No. Percentage
For max sales and profitability 10 50%
Penetrate deeper in the private life 3 15%
insurance market
To give customers a more personal touch 3 15%
To stay ahead of competition 2 10%
To increase awareness about company's 1 5%
products
Develop need for insurance among 1 5%
customers
Total 20 -
Note : The respondents have more than one reason for its popularity 46
A majority of the respondents (50%) recommend personnel selling for ICICI Prudential
so as to increase its sales and profitability. 10% of them stated that personnel selling
helps to stay ahead of competition. 15% of them each recommend personnel selling to
give customers a more personal touch and to penetrate deeper into the life insurance
market.

Table-27 Have you visited ICICI Prudential anytime for transactions?

Visited No. Percentage
Yes 12 40%
No 25 60%
Total 37 100%
Note : The total represents respondents who have a policy from ICICI Prudential
The data indicates that a majority of the respondents-68% who have a policy from ICICI
Prudential have not approached the company anytime for transactions. Only 32% of
them have approached the company for transactions.

Table-28 If you have visited ICICI Prudential, comment on the behaviour of

frontline employees
Comment No. Percentage
Good 8 67%
Helpful 4 33%
Friendly & co-operative 2 17%
Very patient 1 8%
Customer focussed 1 8%
Total 16 -
Note : The respondents have more than one view about the behaviour
This exhibits the behaviour of frontline employees of ICICI Prudential. The behaviour
pattern according to 67% of the respondents is ‘good’, 33% of them stated that the
frontline employees are very ‘helpful’, 17% of them felt that key personnel are very
‘friendly’ and ‘co -operative’.

Table-29 Do you have any complaints against ICICI Prudential

Complaint No. Percentage
Yes 1 3%
No 36 97%
Total 37 100%
Note : The total represents respondents who have a policy from ICICI Prudential
This shows the number of respondents having complaints against ICICI Prudential. A
vast majority (97%) of the respondents have no complaints and only one respondent
(3%) among the total number of respondents have a complaint against the company. This
infers that a majority of the policyholders are happy and satisfied with ICICI Prudential.

Table-30 Please specify the complaint, if any

- The settlement of the policy amount was delayed

Table-31 Please suggest remedial measures

- ICICI Prudential should speed up the process regarding the settlement amount

Table-32 Image of ICICI Prudential

Image No. Percentage
Good 50 100%
Bad Nil -
Ugly Nil -
Total 50 100%

The opinion of all the respondents (100%) about the image of ICICI Prudential is
positive. None of the respondents felt that the company’s image is negative.

Table-33 Do you recommend a ‘Policy Holder’s Club’ for ICICI Prudential?

Recommend No. Percentage
Yes 12 32%
No 25 68%
Total 37 100%

A majority of the policyholders (68%) do not recommend a policyholders club for ICICI
Prudential. Only 32% of them feel the need for it. The current policyholders may favor a
club in the future.

Table-34 Role prescriptions for the club

Roles No. Percentage
Status of policy to be provided to customers 4 33%
Left to the company to decide 3 25%
Function as grievance redressal cell 3 25%
Listen to suggestions/feedback from customers 2 17%
Address changing needs of customers 1 8%
Regular follow up of policies 1 8%
Regular information about company's performance 1 8%
New customers can be obtained through the club 1 8%
members
members
Total 16 -
Note : The respondents have more than one role prescription
The table shows the role prescriptions for ‘policy holder’s club’. 33% of the respondents
felt that the status of their policy could be provided to them through the club. The other
roles prescribed are the club should function as a grievance redressal cell so as to make
suggestions for the company, to address the changing needs of customers, regular
follow-up of policies and to provide regular information about the company’s
performance.

Table-35 Recommendations to enhance the value of ICICI Prudential

Recommendations No. Percentage
Be customer centric 10 27%
Introduce new policies according to changing needs 5 14%
of customer
Switch between various options more than once a year to 5 14%
be allowed
Give guaranteed returns 4 9%
Reduce the premium amount of certain policies 4 9%
Increase awareness among customers 3 8%
Handle complaints effectively 2 5%
Facts related to policy can be put across to customer in 2 5%
simpler way
Introduce an exclusive health policy 1 3%
Provide ECS facility 1 3%
Introduce a policy that covers the whole family 1 3%
Reduce the price of policies 1 3%
Policies to be made more common man oriented 1 3%
Maintain good service throughout the term of policy 1 3%
Total 41 -
Note : The respondents have more than one recommendation
This shows the ways and means of enhancing the value of life insurance policy of ICICI
Prudential. It is seen from the table that 27% of the respondents want the company to be
customer centric, 14% of them each felt that the company should introduce new policies
in accordance with the changing needs of customers and also allow to switch between
various options more than once a year. Other recommendations are to give guaranteed
returns to the customers and to reduce the premium amount of certain policies.

49
Table-36 Future outlook visualised for ICICI Prudential
Future Outlook No. Percentage
Increase in growth & profitability 50 4%
Good future ahead 20 40%
Quite bright 16 32%
Will remain as the No. 1 Pvt. Life 6 12%
Insurance company
Fabulous 4 8%
Will emerge as a powerful brand 1 2%
Future is challenging 1 2%
Total 98 -
Note : The respondents have more than one opinion about the future outlook
40% of the respondents state that ICICI Prudential has a good future ahead. 32% of them
stated that the future of the company is quite bright, 12% of them hope that ICICI
Prudential will remain as the leading private life insurance company. The remaining
respondents opined that ICICI Prudential would emerge as a powerful brand. 2% of them
stated that the future is challenging.

50