A

PROJECT REPORT

ON

“A study report on ICICI Prudential Life Insurance”

Submitted To

Rashtrasant Tukadoji Maharaj Nagpur University,

Nagpur.

For the award of degree of

Bachelor of Business Administration.

Submitted by

Gladys S. Thomas

Under the guidance of

Prof. Kamlesh Thote

G. S College of Commerce and Economics, Nagpur.

Academic year 2021-2022

1
 G. S College of Commerce and Economics, Nagpur.

Academic year 2021-2022

CERTIFICATE

This is to certify that Ms. Gladys S Thomas has submitted the project
report titled “A Study report on ICICI prudential life insurance”,
towards partial fulfillment of BACHELOR OF BUSINESS
ADMINISTRATION degree examination. This has not been
submitted for any other examination and does not form part of any
other course undergone as prescribed by Rashtrasant Tukadoji Maharaj
Nagpur University. It is further certified that she has ingeniously
completed her project.

PROF. KAMLESH THOTE DR. SONALI GADEKAR

(Project Guide) ( Co - ordinator)

Place: Nagpur
Date:

2
 G. S College of Commerce and Economics, Nagpur.

Academic year 2021-2022

DECLARATION

I here-by declare that the project with title “A Study report on ICICI
prudential life insurance”, has been completed by me in partial
fulfillment of BACHELOR OF BUSINESS ADMINISTRATION
degree examination as prescribed by Rashtrasant Tukadoji Maharaj
Nagpur University, Nagpur and this has not submitted for any other
examination and does not form the part of any other course undertaken
by me.

Place: Nagpur Ms. Gladys S. Thomas

Date:

3
 G. S College of Commerce and Economics, Nagpur.

Academic year 2021-2022

ACKNOWLEDGEMENT

With immense pride and sense of gratitude, I take this golden

opportunity to express my sincere regards to Dr. N. Y. Khandait,
Principal, G. S. College of Commerce and Economics, Nagpur.

I am extremely thankful to my project guide Prof. Kamlesh Thote for

the guideline throughout the project. I tender my sincere regards to
coordinator, Dr. Sonali Gadekar, for giving me outstanding guidance,
enthusiastic suggestion and invaluable encouragement which helped
me in the completion of the project.

I will fail in my duty if I do not thank the non-teaching staff of the

college for their co-operation.

I would like to thank all those who helped me in making this project
complete and successful.

Place: Nagpur. Mrs. Gladys S. Thomas

Date:

4
 INDEX

Sr no. Particulars Page no.

1. Introduction 7-10
 What is Life Insurance?
 Why Life Insurance

2. Company Profile 11-15

3. Industry & Financial overview 16-24

4. Product Profile 25-27

5. Research Methodology 28-32

 Objectives
 Vision & Values
 Need
 Reasons
 Hypothesis

6. SWOT Analysis 33-35

7. Data Analysis
36-44

8. Findings & Suggestions 46

9. Conclusion 47 – 48

10. Bibliography 49 - 50

11. Questionnaire 51 – 54

5
INTRODUCTION

6
 ICICI Prudential Life Insurance Company (ICICI Prudential Life)
is a joint venture between ICICI Bank Ltd. India’s largest private
sector bank and prudential. ICICI Prudential Life was amongest
the first private sector life insurance companies to begin
operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority of India (IRDAI)

ICICI Prudential Life Insurance is one of the largest Insurance

networks in the country, and 2nd Life Insurance Company in India.
The ICICI group has been in existence since 1995 when ICICI
Ltd., was created. ICICI started in 2002 as subsidairy of ICICI
Ltd.., Today ICICI Life Insurance has a customer base of 4 million
with total assests exceeding Rs. 1,00,000 Cr. Making it the 2 nd
largest life insurance company in the country, next only to LIC.

The insurance sector, after the opening up, provides greater

opportunites. Serveral global players have emerged and the
market has changed significantly. In the changed senario the
expectation is that the low Insurance premium as a precentage
of GDP prevailing in India will improve and will offer better
opportunites to the insurance players.

Life Insurance sector is one of the key areas where economics

business potential exists. In india currenty the life insurance
premium as a percentage of GDP is 1.3 percent against 5.2
percent in the US, but in the liberalized senario, the life insurance
premiums were projectd to grow at around 18% to 20% from Rs
215 billion in 1998-99 to Rs 592 billion in 2004-05 and to Rs 1450
billion by 2009-10. Corporate non-life premium was projected to
grow from Rs 84 billion in 1998-99 to Rs 386 billion in 2009-10
and personal line non life from Rs 4 billion to Rs 51 billion.

In the life insurance segment the Life Insurance Corporation of

India (LIC) is the major player. The LIC has 2050 branches. It is
considered in to seven zones. Currently there are 5,60,000 LIC
agents in india. General Insurance is another segment, which has
been growing at a faster pace.

7
Marketing is an assessment, ascertainment, and fullfillment of
consumer needs and desire into products and services through
planning and creating demand for companies products, serving
the consumer demand through planned physical distribution with
the help of marketing channels expanding the marketing even in
the face of keen competition.

As a corporate state of mind which insists integration and co-

ordination of all marketing functions in welded with all co-
operative functions, with a basic objectives of maximizing long
range corporate profits and satisfy the customer needs and wants.

“Insurance is a contract between two parties whereby one

party called insurer undertakes in exchange for a fixed
sum called premiums, to pay the other party called insured
a fixed amount of money on the happening of a certain
event.”

It’s hard to think about those you leave behind if somethings

happens to you. Your family counts on you every day for financial
support: Food, Shelter, Transportation, Education, and much
more. You and your spouse have plans or your future and dreams
for your family : a bigger home, a new business, college
education, travel, retirement etc.

Life insurance is all about making sure your family has

adequate financial resources to make those plans and
dreams come true, if you were to die prematurely.

It provides financial protection to help your family to manage

after your death. Insurance companies collect premiums to
provide for this protection. A loss is paid out of the premiums
collected from the insuring public and the insurance companies
act as trustees to the amount collected.

Many companies are coming with various plans Ulip plan is one
of them which provides huge benefit to the public. It provides
insurance as well as investment.

What is Life Insurance

Life insurance is a form of insurance that pays monetary proceeds
upon the death of the insured covered in the policy. Especially, a
life insurance policy is a contract between the named insured and
the insurance company wherein the insurance company agrees
to pay an agreed upon sum of

8
money to the insured’s named beneficiary so long as the insured’s
premiums are current.

With 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% annually. Together with banking services, it adds about 7
percent to the countries is a 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. The insurance industry has
gone through many changes. The liberalization of the industry
the insurance industry has never looked back and today stand as
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 IT tools has increased the scope of the industry
in the longer run.
Insurance is the business of providing protection against financial
aspects of risk, such as those to property, life health and legal
liability. It is one method of a greater concept known as risk
management- which is the need to manage uncertainly on
account of exposure to loss, injury, disadvantages or destruction.
Insurance is the method of spending and transfer of risk shares
loss of the unfortunate. Insurance does not protect the assets but
only compensates the economic or financial loss.
In insurance the insured makes payment called “Premiums” to an
insurer, and in return is able to claim a payment from the insurer
if the insured suffers a defined type of loss. This relationship is
usually drawn up in a formal legal contract. Insurance companies
also earn investment profits, because they have the use of the
premium money from the time they receive it until the time they
need it to pay claims. This money is called the float. When the
investments of float are successful they may earn large profits,
even if the insurance company pays out in claims every penny
received as premiums. In fact, most insurance companies pay out
more money than they receive in premiums. The excess amount
that they pay to policyholders is the cost of float. An insurance
company will profits if they invest the money at a greater return
than their cost of float.

9
Why Life Insurance?
You think twice before taking the plunge into buying insurance.
Is buying insurance a necessity now? Spending an ‘extra’ amount
as premium at regular intervals where you do not see immediate
benefits does not seem a necessity at the moment.
Well you could be wrong. Buying Insurance cannot be compared
with any other form of investment. Insurance gives you a life long
benefit and the returns will definitely come but only when you
need it the most i.e. at the right time. Besides buying insurance
early in life is one of the wise decisions you could take. Because
the premium you would be paying would be comparatively lower.
Insurance is not about how much more it can offer you when the
stock market is at its peak. It may not be an attractive investment
option. But weigh the pros and cons and consider how much more
it offers at a small price.
Most important of all it provide you with that unique sense of
security that no other form of investment provides. It gives you
a sense of financial support especially during that time of crisis
irrespective of the fluctuations in the stock market. Insurance
provides for your career goals right from your childhood years.

If the earning member of the family is no more your child’s

educational needs will not suffer. In fact his higher education too
will be provided for. You need not spend sleepless nights thinking
about how to save for your child’s marriages.

An accident or a diability may be devastating but an insurance

policy can be utmost support for the family during such times too.
Besides it provides for additional benefits such as bonuses. You
need not worry about your retirement years. The rising prices,
taxes, and your lifestyle will be taken care of easily. And you can
relax and spend your old age in comfort and peace.

10
COMPANY PROFILE

11
ICICI Prudential Life Insurance Company is a joint venture
between ICICI bank – one of India’s foremost services companies
and potential plc – a leading international financial services group
headquartered in the United Kingdom. Total capital infusion
stands at Rs. 37.72 billion, with ICICI bank holding a stack of
74% and prudential plc holding 26%. We began our operations
in December 2000 after receiving approval from insurance
regulatory development authority (IRDA). Today, our nation-wide
team comprises of over 954 braches in addition to 1,015 micro-
offices, over 296000 advisors; and 12 banc assurance partners.

ICICI Prudential was the first life insurer in india to receive a

National Insurer Financial Strength rating of AAA (Ind) from Fitch
rating. For three years in a row, ICICI Prudential has been voted
as India’s Most Trusted private. Life insurer, by The Economics
Times – AC Nielsen ORG Marg survey of ‘Most Trusted Brands’.
As we grow our distribution, products range and customer base,
we continue to tireless uphold our commitment to deliver world-
class financial solutions to customers all over India.

ICICI Bank:
ICICI Bank Limited is India’s largest private sector bank and the
second largest bank in the country, with consolidated total assets
of $121 billion. ICICI Bank’s subsidiaries include India;s leading
private sector insurance companies and among its largest
securities brokerage firms, mutual funds and private equity firms.
ICICI Bank’s presence currently spans 19 countries including
India.

Prudential Plc:

Established in London in 1848, Prudential plc, through its

businesses in the UK, Europe, US, Asia and the Middle East,
provides retail financial services to more than 20 million
customers, policyholder and unit holders and manages over 267
billion of funds worldwide (as of December 31, 2007). In Asia,
Prudential is the leading European life insurance company with
life operations in China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand
etc., its fund management business has expanded into ten
markets, comprising of China, Hong Kong, India, Japan, Korea,
Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

12
ICICI Prudential Life Company History

ICICI Prudential Life Insurance Company Limited was

incorporated on 20th July 2000 as a public limited company. The
Company obtained the Certificate of Commencement of Business
on October 16 2000. The holding company is registered with the
Insurance Regulatory and Development Authority of India
(IRDAI) for carrying out the business of life insurance pursuant
to the registration certificate dated November 24 2000. ICICI
Prudential is a joint venture between ICICI Bank Limited and
Prudential Corporation Holdings Limited. It is one of the first
private sector life insurance companies in India and commenced
operations in fiscal 2001. The holding company carries on
business of providing life insurance pensions and health insurance
to individuals and groups. Riders providing additional benefits are
offered under some of these products. The business is conducted
in participating non-participating non-participating variable and
unit linked lines of businesses. These products are distributed
through individual agents corporate agents banks brokers and the
holding company's proprietary.In 2001-02 ICICI Prudential Life
Insurance crossed the mark of 1- lakh policies. During the year
2004-05 the company crossed the mark of 1 million policies.
During the year 2007-08 the company crossed the mark of 5
million policies. Also during the year its total premium crossed Rs
10000 crore mark and the assets under management crossed Rs
25000 crore mark.

During the year 2009-10 the company established a wholly

owned subsidiary ICICI Prudential Pension Funds Management
Company Limited which is registered as a fund manager with the
Pensions Fund Regulatory and Development Authority of India for
the purposes of undertaking pension funds related business.
During the year ICICI Prudential Life Insurance turned profitable
and registered profit of Rs 258 crore. During the year the
company's assets under management crossed Rs 50000 crores
mark.

During the year 2011-12 the company announced maiden

dividend to the shareholders. During the year 2014-15 ICICI
Prudential Life became the first private life insurer to attain assets
under management of Rs 1 lakh crore.ICICI Prudential Life
Insurance Company's initial public offer (IPO) opened for
subscription on 19 September 2016 and closed on 21 September
2016. One its promoters ICICI Bank offered 18.13 crore shares
in the price band from Rs 300 to Rs 334 per share

in the IPO. There was no fresh issue of shares from ICICI

Prudential Life Insurance Company. On 29 September 2016 ICICI
Prudential Life was listed on the bourses and it became the first

13
pure play life insurance company in India to be listed on the
Indian stock exchanges.

On 27 March 2017 ICICI Prudential Life announced that the

Insurance Regulatory and Development Authority of India
(IRDAI) has levied a penalty of Rs 20 lakh on the company. Earlier
the IRDAI had conducted an onsite inspection of the company in
December 2013 and subsequently the insurance sector regulator
raised certain observations which were followed by a show-cause
notice to the company. On 28 July 2017 ICICI Prudential Life
announced that it has received an order from Insurance
Regulatory and Development Authority of India (IRDAI) directing
it to take over the assets and policyholders' liabilities of Sahara
Life Insurance. This is not a merger between the two companies
but purely a transfer of customers of Sahara Life Insurance to
ICICI Prudential Life.

On 27 November 2017 ICICI Prudential Life Insurance Company

Limited (ICICI Pru Life) announced that it has implemented the
Electronic - National Automated Clearing House (e-NACH) service
of the National Payment Corporation of India. ICICI Pru Life is the
first life insurance company in India to offer this service to its
customers. The e-NACH mandate service is a digital registration
process wherein a customer issues a mandate to the bank for
his/her account to be debited at pre-determined frequencies. e-
NACH service is the most modern and paperless form for making
regular payments.

The total gross premium collected by the Company grew by

21.1% from Rs 223.54 billion in FY2017 to Rs 270.69 billion in
FY2018. The Company's assets under management at 31 March
2018 was Rs 1395.32 billion as against Rs 1229.19 billion in the
previous year.The Value of New Business grew from Rs 6.66
billion in FY2017 to Rs 12.86 billion in FY2018 representing an
increase of 93.1%.ICICI Prudential Life Insurance was recognised
and awarded the 'Best Term Insurance Provider of the Year' by
Money Today Financial Awards 2017-18.The total premium
collected by the Company grew by 14.3% from Rs 270.69 billion
in FY2018 to Rs 309.30 billion in FY2019. The Company's assets
under management at 31 March 2019 were Rs 1604.10
billion.The Value of new business grew from Rs 12.86 billion in
FY2018 to Rs 13.28 billion in FY2019 representing an increase of
3.3%.The Company reaches its customers through 508 offices in
446 locations as at 31 March 2019.The new business received
premium grew by 20.4% from Rs 102.52 billion in FY2019 to Rs
123.48 billion in FY2020.The

retail renewal premium increased by 2.2% from Rs 202.25 billion

in FY2019 to Rs 206.64 billion in FY2020. The Company's assets
under management at 31 March 2020 were Rs 1529.68 billion.

14
The Value of New Business (VNB) grew from Rs 13.28 billion in
FY2019 to Rs 16.05 billion in FY2020 representing an increase of
20.9%.The company Adjudged 'Customer Service Company of
the year' by India Insurance Summit & Awards 2020.Also
Adjudged 'best

Alternative or Digital Payments Programme of the year' by the

Customer Fest Leadership Awards 2020.The new business
received premium grew by 5.5% from Rs 123.48 billion in FY2020
to Rs 130.32 billion in FY2021.The retail renewal premium
increased by 6.3% from Rs 206.64 billion in FY2020 to Rs 219.58
billion in FY2021.

During the year 2020-21 the Company's assets under

management crossed Rs 2 trillion and stood at Rs 2.14 trillion at
31 March 2021. The Value of New Business grew from Rs 16.05
billion in FY2020 to Rs 16.21 billion in FY2021 representing an
increase of 1.0%.The Company reaches its customers through
517 offices in 449 locations as of 31 March 2021.The new
business premium was Rs 25.59 billion for the quarter ended 30
June 2021 a growth of 70.6% as compared to Rs 14.99 billion as
at 30 June 2020.The Value of New Business (VNB) for was Rs
3.58 billion for the quarter ended 30 June 2021 a significant
growth of 78.1% over the first quarter of FY2021.The total assets
under management of the Company was Rs 2231.71 billion at 30
June 2021 which makes it one of the largest fund managers in
India. The Company had a debt-equity mix of 53%:47% at 30
June 2021.The new business premium was Rs 64.61 billion at the
end of first half of FY2022 a growth of 45.0% as compared to Rs
44.56 billion at the end of first half of FY2021.The total assets
under management of the Company was Rs 2370.87 billion at 30
September 2021 which makes it one of the largest fund managers
in India.

The Company had a debt-equity mix of 52%:48% at 30

September 2021 and 97% of the debt investments are in AAA
rated and government bonds. The total assets under
management of the Company was Rs 2375.60 billion at 31
December 2021 which makes it one of the largest fund managers
in India. The Company had a debt-equity mix of 52:48% at 31
December 2021. 97.8% of the debt investments are in AAA rated
and government bonds.

15
INDUSTRY OVERVIEW

16
Insurance industry structure

The size of the Indian life insurance sector was Rs 5.1 trillion on
a total premium basis in FY2019, making it the tenth-largest life
insurance market in the world and the fifth-largest in Asia. The
total premium in the Indian life insurance sector grew at a CAGR
of approximately 15% between FY2002 and FY2019 outpacing
the GDP CAGR of 13% during the same period. Based on retail
weighted received premium (RWRP), new business premium of
the industry has grown at a CAGR of 11% during FY2002 to
FY2020. 2
The Indian Life Insurance industry has 24 companies including
Life Insurance Corporation of India (LIC). The top 5 private sector
companies contribute to 39.7%9 of the market.
Agency channel continues to be the predominant channel for the
industry, mainly driven by LIC. There has been no significant
change in the channel mix of the industry as well as the private
sector from FY2019 to 9MFY2020. Increasingly, direct sales
through

Life Insurance Industry

Within Indian financial services, the life insurance industry is

uniquely positioned to cover a range of customer needs. The
industry can offer a variety of savings products across fixed
income and equity platforms. It can also offer annuity, term plans
and defined benefit health plans. The life insurance industry acts
as a risk manager by providing cover against mortality and
morbidity risks. Life insurance products ensure that the financial
goals of an individual are met, irrespective of the occurrence of
mortality or morbidity events. At December 2019, the industry
had covered 253 million lives through Individual policies and 428
million through group policies.
The Indian life insurance industry plays a key role in channelising
household savings to the financial markets. The industry has
been able to leverage its extensive distribution network
throughout the country to provide long - term funds to both debt
and equity markets. The life insurance industry also provides
long-term capital needed for infrastructure projects.

Insurance under-penetration
India continues to be an underpenetrated insurance market with
a life insurance penetration11 (premium as % of GDP) of 2.7%
in FY2019 as compared to a global average of 3.3%. At USD 54
in FY2019, the insurance density11 (premium per capita) in India
also remains very low as compared to other developed and
emerging market economies. The macroeconomic factors such as
growth in GDP and rise in per capita income, coupled with India’s

17
young and working population, higher financial savings as a
percentage of GDP, increasing urbanisation and increase in
digitalisation would continue to aid the growth of the Indian life
insurance sector.

Favourable demographics
According to United Nations estimates, the working population is
expected to increase by 26% by the year 2030. With a median
age of 28 years, India has a very young population, especially
compared to countries such as Japan, USA and China. These
factors are likely to increase demand for life insurance products.

Increasing urbanization
According to United Nations Population division estimates, India’s
urban population is expected to increase by 42% by the year
2030. Increased urbanisation can lead to an improvement in the
standard of living and better access to financial products such as
life insurance.

Financial savings
India has a large pool of household savings and in FY2019, the
ratio of household savings to GDP was 18.2%. The share of gross
financial savings as a proportion of household savings was 57.9%
n FY2019. The share of life insurance as a proportion of financial
savings (excluding currency) in India reached its peak level at
29.0% in FY2010. However, with regulatory changes in the sector
and a downturn in the economic environment, the share of life
insurance declined sharply to the lowest share of 18.8% of
financial savings in FY2014. In FY2018, the share of life insurance
increased to 23.3%, aided by the improving customer value
proposition of insurance products.

High protection gap

According to Swiss Re, Mortality Protection Gap for India is at
USD 8.56 trillion which is high compared to the rest of the world.
Protection coverage ratio which is the ratio between protection
gap and protection needs is also very high for India. Sum assured
to GDP is also a measure of protection coverage in a country and
sum assured to GDP ratio is significantly lower in India compared
to the rest of the world. This provides significant opportunities for
Indian life insurance companies to expand their protection
business.
Retail credit has been growing at a CAGR of 16.3% from FY2013
to FY2019. This provides an additional opportunity for the
industry for the credit cover business. This product provides
mortality/morbidity cover to borrowers.

18
Industry in FY2020
New business premium (NBP) for the industry, based on retail
weighted received premium (RWRP), grew 6.2% from Rs 691.83
billion in FY2019 to Rs 734.88 billion in FY2020. The market share
of private players decreased from 58.0% in FY2019 to 57.2% in
FY2020.

19
Year Particulars
FY2001 Company started operations

FY2002 Crossed the mark of 100,000 policies

FY2005 Crossed the mark of 1 million policies

FY2008 Crossed the mark of 5 million policies

Crossed receipt of Rs 100 billion of the total premium

Crossed Rs 250 billion of assets under management

FY2010 Established subsidiary to undertake pension funds

related business

Our company turned profitable - a registered profit

of Rs 2.58 billion

Crossed Rs 500 billion of assets under management

FY2012 Started paying dividends

FY2015 Crossed Rs 1 trillion of assets under management

FY2017 First insurance company in India to list on NSE and

BSE

FY2021 Crossed Rs 2 trillion of assets under management

20
FINANCIAL OVERVIEW

21
Despite the challenges posed by the pandemic, ICICI Prudential
Life Insurance posted a strong growth in the quarter ended March
31, 2021. New business Annualised Premium Equivalent (APE)
grew 27% year-on-year in Q4-FY2021 to Rs 25.09 billion, on the
back of 108% year-on-year growth in March 2021 to Rs 11.01
billion. 3
New business sum assured grew by 22% year-on-year in Q4-
FY2021 along with an expansion in new business premium by
23% in the same period. Significantly, the Company was able to
strengthen its position as the private sector market leader in
terms of new business sum assured, with a market share of 13%
in 11M-FY2021, up from 11.8% for FY2020.
The Value of New Business (VNB) for the quarter grew by 26%
year-on-year to Rs 5.91 billion. VNB for FY2021 stood at Rs 16.21
billion with a margin of 25.1%, up from 21.7% for FY2020.
The focus on maintaining Balance Sheet resilience through a
robust risk management mechanism and investment policy has
helped ensure zero Non Performing Assets (NPAs) since inception
and across market cycles. The solvency ratio stood at 217% on
March 31, 2021, well above the regulatory requirement of 150%.
Assets under Management stood at Rs 2,142.18 billion at March
31, 2021, a growth of 40% over March 31, 2020. This is an
outcome of the growth in new business, strong persistency and
robust fund management.

Profitability

Value of New Business (VNB) for FY2021 was Rs 16.21 billion.

With an APE of Rs 64.62 billion, VNB margin was 25.1% for
FY2021 as compared to 21.7% for FY2020. The increase in VNB
margin is primarily on account of growth in non-linked business
and increase in protection mix.
The Company’s profit before tax was Rs 10.81 billion for FY2021,
a growth of 1.1% as compared to Rs 10.69 billion for FY2020.
Tax charge increased from Nil in FY2020 to Rs 1.21 billion in
FY2021 on account of withdrawal of dividend exemption and no
final dividend paid by Company for FY2020, resulting in a higher
taxable surplus. The Company’s profit after tax was Rs 9.60
billion for the year ended March 31, 2021 as compared to Rs
10.69 billion for the year ended March 31, 2020.

Embedded Value

22
The company's Embedded Value at March 31, 2021 was Rs
291.06 billion compared to Rs 230.30 billion at March 31, 2020,
a growth of 26.4%, led by 29.0% growth in the VIF.

New business growth

New business premium was Rs 51.33 billion for Q4-FY2021, a

growth of 22.9% as compared to Rs 41.76 billion for Q4-FY2020.
As a result, new business premium was Rs 130.32 billion for
FY2021 as compared to Rs 123.48 billion for FY2020. APE was Rs
64.62 billion for FY2021 as compared to Rs 73.81 billion for
FY2020.

Product mix

The Company offers a range of products across protection and

savings solutions to meet the specific needs of customers. During
FY2021, the protection APE was Rs 10.46 billion resulting in an
improvement in share of APE from 15.1% for FY2020 to 16.2%
in FY2021. Retail traditional savings APE grew by 61.2% from Rs
12.46 billion in FY2020 to Rs 20.08 billion in FY2021, resulting in
an improvement in share of APE from 16.9% in FY2020 to 31.1%
in FY2021.
As a result, new business sum assured was Rs 2,051.84 billion
for Q4-FY2021, a growth of 22.1% as compared to Rs 1,681.02
billion for Q4-FY2020. The new business sum assured was Rs
6,166.84 billion for FY2021, a growth of 8.0% as compared to Rs
5,711.84 billion for FY2020.

Persistency

The Company has strong focus on improving the quality of

business and customer retention which is reflected in 13th month
persistency ratios. The company's 13th month and 61st month
persistency at 11M-FY2021 stand at 84.8% and 58.3%
respectively.

Cost efficiency

The cost to Total weighted received premium (TWRP) ratio stood

at 14.8% in FY2021 compared to 15.9% in FY2020. The

cost to TWRP for the savings business stood at 9.6% in FY2021

compared to 10.4% in FY2020.

23
Assets under management

The total assets under management of the Company was Rs

2,142.18 billion at March 31, 2021, a growth of 40.0% over Rs
1,529.68 billion March 31, 2020. The Company had a debt-equity
mix of 55:45 at March 31, 2021. 96.8% of the debt investments
are in AAA rated securities and government bonds.

Net worth and capital position

The Company’s net worth was Rs 91.19 billion at March 31, 2021.
The solvency ratio was 216.8% against regulatory requirement
of 150%.

Mr. N S Kannan, MD & CEO, ICICI Prudential Life Insurance said;

“Despite the disruptions caused by Covid-19, the company were
able to demonstrate resilience in its operations. In this quarter,
APE grew by 27% year-on-year with the month of March posting
the best ever monthly sales for the Company in any year since
inception.
ICICI Prudential Life was able to capitalise on opportunities to
build a well diversified product portfolio, on the back of 114.1%
and 214.7% year-on-year growth in the traditional savings and
annuity product segments respectively in Q4-FY2021.

The strong performance was driven in equal measure by over 100

valuable partnerships forged this year, as part of its strategy to
deepen and widen distribution.
As a result, VNB grew by 26% year-on-year to Rs 5.91 billion for
Q4. The VNB margin for the year improved to 25.1%, while the
Embedded Value also grew 26.4% to Rs 291.06 billion during the
year.
Throughout the pandemic-affected year, the company focussed
on putting in place the building blocks for growth. The company's
resilient Balance Sheet with zero NPAs since inception, robust risk
management strategies and a strong solvency ratio of 217%
provide a solid foundation for future growth. Together with its
growth momentum in Q4 and its well diversified product and
distribution mix, the company believe ICICI Prudential Life is well
poised to achieve its stated objective to double its FY2019 VNB
by FY2023, i.e. in 4 years.”

24
PRODUCT PROFILE

25
Insurance Plans
Term Insurance Plan
 ICICI Pru iProtect Smart Term Plan
 ICICI Pru SARAL JEEVAN BIMA
 ICICI Pru iCare II
 ICICI Pru Precious Life
 ICICI Pru Life Raksha
 ICICI Pru POS - iProtect Smart
 ICICI Pru POS - Life Raksha
 Health Insurance Plans
 ICICI Pru Heart/Cancer Protect
 Unit Linked Insurance Plans
 ICICI Pru Signature (Online)
 ICICI Pru Signature
 ICICI Pru 1 Wealth
 ICICI Pru LifeTime Classic
 ICICI Pru Guaranteed Wealth Protector
 ICICI Pru Smart Life
 ICICI Pru Smart Kid Plan
 ICICI Pru Smart Couple Plan

Traditional Savings/Money Back Plans

 ICICI Pru Guaranteed Income For Tomorroow

 ICICI Pru Cash Advantage
 ICICI Pru Savings Suraksha Endowment Plan
 ICICI Pru Assured Savings Insurance Plan
 ICICI Pru Future Perfect Endowment Plan

26
  ICICI Pru Lakshya Wealth
 ICICI Pru Lakshya Lifelong Income

Retirement Plans

 ICICI Pru Easy Retirement

 ICICI Pru Guaranteed Pension Plan(Deferred Annuity)
 ICICI Pru Guaranteed Pension Plan(Immediate Annuity)
 ICICI Pru Easy Retirement Single Premium

Riders

 ICICI Pru Corona Protect Rider

27
 RESEARCH
METHODOLOGY

28
OBJECTIVES OF THE STUDY

 To know the marketing strategy in ICICI Prudential Life

Insurance

 To know the public interest towards the insurance.

 To find out which parameters is motivating insurance.

 To make suggestions and recommendations to improve upon

the working of the company.

29
VISION : The purpose of their existence

To build an enduring institution that serves the protection and

long-term saving needs of customers and sensitivity.

Values : The way they do things

Their core values are customer first, humility, passion, Integrity,

and boundarylessness. Values guide our actions and define the
way we work. We encourage all our colleagues to exemplify and
role model the values.

 Customer First: Keep customers at the center of everything

we do

 Humility : Be open to learn and change.

 Passion: Demonstrate infectious energy to win and excel.

 Integrity : Do the right thing.

 Boundarylessness : Treat organ

30
NEED OF LIFE INSURANCE

 Secure your family’s financial future

 Accomplish your financial goals

 Brings peace of mind

 Save tax

REASONS TO HAVE A LIFE INSURANCE PLAN

 Long term financial goal

 Protect the child’s future

 Loans and liabilities

 Child’s education planning

 Dependent spouse

 Leave a tax free legacy

 Retirement planning

31
HYPOTHESIS

Hypothesis 1

H0 – Understanding the need of the customer ICICI Prudential

offering superior products and services.

H1- Understanding the need of the customer ICICI Prudential

does not offer superior products and services.

Hypothesis 2

H0 - ICICI Prudential providing a good environment for foster

growth in insurance industry

H1- ICICI Prudential does not provide a good environment for

foster growth in insurance industry.

32
SWOT ANALYSIS

33
STRENGTH IN THE SWOT ANALYSIS OF ICICI
PRUDENTIAL LIFE INSURANCE

 ICICI Prudential Life Insurance has a customer-centric

approach.

 The organization has long term savings and protection

plans for different stages of life. The company has cost-
effective products, good customer support, consistent
growth in investments, and a fast claim settlement process.

 ICICI Prudential has multiple channels for selling its

policies.

 ICICI is selling its policies through its branches. Insurance

Advisors are also recruited by the company. Bancassurance
is also a channel for selling its policies. ICICI Prudential has
branches all over the country to market its products.
Marketing Executives are trained to explain the features
and benefits of ICICI Prudential Life Insurance. ICICI is also
selling its policies through Online Channel. ICICI Prudential
has a simple claim settlement process.

 Good Claim Settlement Ratio.

 ICICI Prudential is using every possible channel for selling

Policies.

 ICICI Prudential has also tie-ups with banks to sell its

policies.

34
Weaknesses in the SWOT Analysis of ICICI
Prudential Life Insurance

 Being A Private sector organization ICICI is not able to create its

brand image like LIC.

 No Control over Insurance Advisors. Some advisors are not

giving correct information about the policies before selling them.

Opportunities in the SWOT Analysis of ICICI

Prudential Life Insurance

 ICICI prudential can do tie-ups with new banks for selling

and marketing of its Life Insurance Policies.

 Due to Increasing demand of Insurance company can

formulate strategies to promote and formulate new policies
according to the need of customers.

Threats in the SWOT Analysis of ICICI Prudential

Life Insurance

 There is a touch competition between Insurance companies

in India. Insurance companies are offering competitive
premium to be paid for Insurance Policies. This can be a
major threat.

 Insurance is regulated by IRDA and ICICI Prudential has to

comply with the policies and regulations of IRDA.

35
DATA ANALYSIS

36
 1. Age of the respondents

PARTICULARS NO. OF RESPONDENT PERCENTAGE

Less than 25 11 11%

25-35 40 40%

35-45 20 20%

Above 45 29 29%

TOTAL 100 100

ANALYSIS:

a) 11% of the respondents are less than 25 years old.

b) 40% of the respondents are between 25 and 35 years of age.
c) 20% of the respondents are between 35 and 45 years of age.
d) 29% of the respondents are more than 45 years of age.

37
 2. Qualification of the respondents

PARTICULARS NO. OF PERCENTAGE

RESPONDENT

Graduate 52 52%

Post Graduate 29 29%

Diploma 8 8%

Other diploma 11 11%

TOTAL 100 100%

ANALYSIS:

a) 52% of the respondents were graduate

b) 29% of the respondents were post graduate

c) 8% of the employees were diploma

d) 10% of the respondents were other discipline

38
 3. Occupation of the respondents

PARTICULARS NO. OF PERCENTAGE

RESPONDENT

Business man 34 34%

Professional 18 18%

Job holders 37 37%

Others 11 11%

TOTAL 100 100%

ANALYSIS:
a)34% of the respondents are businessmen.
b)18% of the respondents are professionals.
c) 37% of the respondents are job holders.
d) 11% of the respondents are background.

39
 4. Average annual income of respondents

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
Up to 1 lakh 33 33%

1 lakh – 3 lakh 43 43%

3 lakh – 5 lakh 20 20%

5 lakh & above 4 4%

TOTAL 100 100%

ANALYSIS:

a) 33% of the respondents have an average annual income

up to 1 lakh
b) 43% of the respondents have an average annual income
from 1 lakh to 3 lakh
c) 20% of the respondents have an average annual income
from 3 lakh to 5 lakh
d) 4% of the respondents have an average annual income
above from 5 lakh

40
5. Family size of respondents

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
Below 5 members 50 50%

5-10 members 32 32%

Above 10 members 28 28%

TOTAL 100 100%

ANALYSIS

a) 50% of the respondents are below 5 members.

b) 32% of the respondents are between 5 to 10 members.
c) 28% of the respondents are above 10 members.

41
6. According to Life insurance is

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
Risk Coverage 10 10%

Tax Savings 3 3%

Good return 4 4%

Security 3 3%

All of the above 80 80%

TOTAL 100

ANALYSIS:

a) 10% of the respondents say risk coverage.

b) 3% of the respondents say tax savings.
c) 4% of the respondents say good return.
d) 3% of the respondents say financial security.
e) 80% of the respondents say all of the above.

42
7) Awareness of ICICI Prudential life insurance

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
Yes 17 17%

No 83 83%

TOTAL 100 100%

ANALYSIS:

a) 83% of the respondents say that they are aware of ICICI

Prudential Life Insurance co.
b) 17% of the respondents say that they are unaware of ICICI
Prudential Life Insurance co.

43
8) % of respondents who are under different plans of ICICI
Prudential life insurance co.

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
Invest gain plan 41 41%

Unit gain plan 36 36%

Child gain plan 8 8%

Whole life plan 15 15%

Pension plan No No

TOTAL 100 100

ANALYSIS:

a) 41% of the respondents are under invest gain plan.

b) 36% of the respondents are under unit gain plan.
c) 8% of the respondents are child gain plan.
d) 15% of the respondents are whole life plan.
e) Nobody under pension plan.

44
HYPOTHESIS TESTING:

Hypothesis 1:

H0- Understanding the need of the customer ICICI Prudential

offering superior products and services.
H1- Understanding the need of the customer ICICI Prudential
offering does not provide superior products and services.

Hypothesis 2:

H0- ICICI Prudential providing a good environment for foster

growth in insurance industry.

H1- ICICI Prudential does not provide a good environment for

foster growth in insurance industry.

Hypothesis 1 Testing:

From above study it is found that hypothesis number H0- “ICICI

Prudential providing superior products and services to the
customer” is found to be true and alternative hypothesis H1 is to
be rejected.

Hypothesis 2 Testing:

From the research study it is found that hypothesis number H0

from hypothesis 2 that is “ICICI prudential provides a good
environment for foster growth in insurance industry” is accepted
and alternative hypothesis H1 is to be rejected.

45
 Findings:

 Total 100 respondents have been approached out of which

75 are the potential respondents who have shown
interested for investment and finance plan

 Above 20% of respondents are shown interest for

investment and financial plan.

 Above 33.33% of respondents are not interested to give

their personal records.

 Above 12.67% of respondents have already been covered

by other insurance companies.

 Above 10% of respondents have given invalid records.

 Above 10% of respondents are newly employed or trainees.

 Above 10% of respondents are interested for investment

plan after knowing ICICI PRUDENTIAL LIFE INSURANCE
products.

Suggestions:

 Open some more branches in semi urban and rural urban

areas.

 Improve customer services.

 Bring some ULIP plans in the market.

 Trained the financial advisors more effectively.

46
CONCLUSION

47
ICICI Prudential Life Insurance has got an impressive range of
insurance products to offer to cater to the individual needs of
different customers. The track record of the company with
regards to service is one of the best in the industries.
With a healthy claim settlement ratio and simple claim process,
it is one of the best life insurers operating in the Indian life
insurance market today.

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BIBLIOGRAPHY

49
WEBSITE:

 www.iciciprulife.co

 https://www.scribd.com

 https://corporate.iciciprulife.com

MAGAZINE:
 Press Releases

 ICICI Prudential company magazines

BOOKS:
 Insurance – Published by IRDA

 Life Insurance, Indiana University Press, Belth M. Joseph

 Handbook of ICICI Prudential

50
QUESTIONNAIRE

51
Dear Sir/Madam,
I’m a student of G.S College of Nagpur, conducting a marketing
survey on “A study on life insurance sector in india with special
reference to ICICI Prudential life insurance.” I request you to fill
this questionnaire & I assure that this data will be used only for
study purpose & it will be kept confidential:

1. Age

a) Less than 25 b) 25 – 35
c) 35 - 45 d) 45 and above

2. Qualification

a) Graduate b) Postgraduate
c) Diploma d) Other discipline

3. Occupation

a) Business b) Professional
c) Job holder d) Other

4. What is your average income?

a) Up to 1 lakh
b) 1 lakh to 3 lakhs
c) 3 lakhs to 5 lakhs
d) 5 lakhs and more

52
5. Your family size

a) Below 5 members b) 5 – 10 members

c) Above 10 members

6. According to you life insurance is,

a) A tax saving plan

b) A saving scheme with a good return
c) A financial security for the family
d) Risk coverage
e) All of the above

7. Are you aware of ICICI prudential life insurance?

a) Yes b) No

8. What different plans of ICICI prudential life insurance you

have taken?

a) Unit gain plan

b) Invest gain plan
c) Whole life insurance plan
d) Child plan
e) Pension plan

53
9. Any suggestions for ICICI prudential life insurance?

Thank you for sparing your valuable time.

54