A project report on recruitment and channel developmentat icici prudential

RECRUITMENT AND CHANNEL DEVELOPMENTAT ICICI-PRUDENTIAL

"A study on Recruitment and Channel Development at ICICI-Prudential"

The information given by you will be used only for the academic purpose, will be of
immense value and would assist me in this endeavor. Thus kindly co-operate.

1. Name :

2. Age :

3. Gender : Male Female

4. Marital Status : Married Unmarried

5. Address :

6. Telephone/Mobile :

7. E-mail :

8. Qualification :

9. Occupation :

10. How did the company approach you for recruitment?

Telecalling Advertisements Personal Contact & Reference

Self-Interest Others

11. What made you join the company as a Financial Advisor?

Money Career Rewards & Recognition Brand Culture Profile Others

12. How is the market for Life Insurance?

Excellent Good Fair Average Poor

13. Approximate Monthly income?

Less than 5000 5000-10000 10000-15000 15000 and above

BABASAB PATIL PROJECT REPORT ON HUMAN RESOUCE Page 1


14. Are you satisfied with the recruitment process followed by the Company?

Highly satisfied Satisfied Some what Satisfied Not Satisfied

Not at all satisfied

15. Are you satisfied with the work environment of the company?

Highly satisfied Satisfied Some what Satisfied Not Satisfied

Not at all satisfied

16. Do you feel proud to be an advisor of ICICI-Prudential?

Yes No

17. Is there any time constraint regarding the working hours?

Yes No

18. What is your opinion about the rules & regulations of the company?

Good Neutral Bad

19. Have you been rewarded anytime?

Yes No

20. Is there any growth opportunity in the company?

Yes No

21. Your opinion about the company



BIBLIOGRAPHY



BIBLIOGRAPHY

1. Personnel Management : Mamoria

2. Human Resource Management : Subba Rao

3. Managing Human Resources : Wayne .F. Cascio

4. Web-Site : iciciprulife.com , google.com

5. Journals : Company journals and magazines.



TABLE OF CONTENTS

1. Executive Summary

2. Introduction

3. Need for Insurance

4. Company Profile

5. Products

6. Recruitment and Channel Development



FINDINGS

Summary of Findings

The findings of the project:

• It is been found that most of the people in ICICI Pru are being recruited through the personal
contacts or reference.

• Most of the advisors have chosen this profession to make money and carrer.



• Most of the advisors feel that there is a good market for the life insurance.

• Most of the advisors have monthly income more than 10000.

• Most of the advisors are satisfied with the recruitment process in the company as it a very
simple and understandable process.

• Most of the advisors are satisfied with the friendly work environment at ICICI Pru.

• Most of the advisors feel proud to be an advisor at ICICI Pru

• Most of the advisors are happy because there is no time constraint being imposed on them.

• By the above analysis it is found that the advisors feel that the rules and regulations should be
maintained and are very much happy with the present rules of the company.

• The top advisors are being rewarded for their excellent performance.

• By the analysis it is found that there is definitely a growth opportunity for the advisors
through the programs like

Pinnacle
Mobile Tiger
Agency Champion



SUGGESTIONS

Summary of Suggestions

• As most of the advisors are being recruited through personal contacts or reference, the
company should also concentrate on advertisements and telecalling in order to attract people.

• Most of the Market for Life Insurance is Untapped in India. So the company should penetrate
these areas and make people aware of it.



• Some people are not satisfied with the recruitment process because a fee of Rs 1200 is being
collected from them in order to enroll their name. So the can try reducing the amount so that
more no of people can afford for it. There is also a training period of 21 days in order to
become an advisor. Some people who have taken up this job as a part time may not be having
sufficient time for it. So the company can come up with alternate solution.

• As most of the advisors are proud be associated with ICICI Pru the company should
materialize this feeling and keep continuing a great job. And thus, motivate the people.

• Since there is no time constraint for the advisors on the working hours the company should
impose time constraint so that the advisors can keep themselves abreast and it will also not
hinder the company's performance

• Since there is a growth opportunity at ICICI Pru the advisors should grab the opportunity and
make career and money to lead a happy life.



CONCLUSION

Conclusion

As ICICI Prudential is a leader in the private Life Insurance sector, the recruitment
process in the company is well outlined and systematically followed. My study at ICICI
Prudential indicates that most of the recruitment is done through personal contacts and telecalling
by the Unit managers.



As far as the advisors feeling is concerned, they are very much satisfied with the
recruitment process, commission earned, rewards and recognition programs in the company.

To conclude, I would like to say that working with ICICI Prudential for 2 months was a
great experience. And I feel proud be an advisor of an esteemed company as ICICI Prudential is
known for its leadership in the private life insurance sector.

EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Insurance is the pooling of fortuitous losses by transfer of such risk to insurers, who
agreed to provide the pecuniary benefit on their occurance, or to render service connected with
risk. It is the transfer of financial responsibility for the risk at the point of occurance and
conventionally involves the insurer in a commitment to pay. The insurance service lead to
efficient and productive allocation of capital resources, facilitate growth of trade and commerce.
Globalization will certainly increase insurance penetration and all professionals shall equip
themselves to exploit opportunities offered by this sector.

ICICI PRUDENTIAL has maintained its lead amongst the private players of life
insurance with a market share of about 39%. The biggest achievement is in pension segment,
where company introduced a slew of products and captured around 23% of the total pension
market. ICICI Prudential have a customer centric growth strategy and has taken a number of
strategies against this.

The consumers are the largest economic group in any country and the present day
business activities are because of consumers only. Thus, consumers are the pillars of the
economy. The consumers are not only the heart of marketing system, but also the controller of
marketing functions. But if the modern marketing system consumers sovereignty has become a
myth on account of the variety of problems in the process of merchandising. The study of
consumer behavior enables marketers to understand and predict consumer behavior in the
market place; It also promotes understanding of the role that consumption plays in the lives of
the individual.

This gives me an opportunity to work on with this endeavor focusing on the study of
'consumer behavior towards the insurance products' with special reference to ICICI
PRUDENTIAL. The primary objective of the study is to understand the attitude and perception
of the respondents towards insurance products.

The study gives an insight to the insurance industry. It briefly explains about the history
of life insurance sector. It also contains the organizational profile of ICICI PRUDENTIAL,
stating about its mile stones, vision, products, protection, solutions, advertising effectiveness and
finally about its marketing strategies and challenges. The study ends up with the suggestions in
order to modify the current system for a higher growth and progress.



INTRODUCTION



INTRODUCTION

LIFE INSURANCE

Life insurance is a contract providing for a payment of a sum of money to the
person assured or failing him to the person entitled to receive the same on the happening of
certain event. Uncertainty of death is inherent in human life. Ii is this risk, which gives rise to the
necessity for some form of protection against the financial loss arising from death. Insurance
substitutes this uncertainty by certainty. The objective of insurance is normally to provide:

A Family Protection.
B Provision for old age.

INSURANCE INDUSTRY

ORIGIN OF INSURANCE
The origin of insurance dates back to the 12 th century, the origin of insurance appeared first in
marine and land fields. The ideas of insurance were made in Babylonia and India at quite an
early period; the courts of Hammurabi and Mano recognized the provision for sharing the future
losses. However there is no evidence that insurance in its present form was practiced prior to 12 th
century. Tracing the history of insurance to the present day, one can easily gauge the
performance of industry both collectively as an industry as well as individually by the
companies.

In earlier times, travelers by sea and land were very much exposed to risk of losing their vessels
and merchandise because piracy on the open seas and highway robbery of caravan were common.
References to similar practices are also found in 'Manab Dharma Shastra' which contained rules
for sea from contracts which was observed by traders. Insurance conceived as method of sharing
of the losses embodying the principal of co-operation existed in the early civilization.
Many may not be aware that the life insurance industry of India is as old as it is in any other part
of the world. The first Indian life insurance company was the Oriental Life Insurance Company,
which was started in India in 1818 at Kolkata1. A number of players (over 250 in life and about
100 in non-life) mainly with regional focus flourished all across the country. However, the
Government of India, concerned by the unethical standards adopted by some players against the
consumers, nationalized the industry in two phases in 1956 (life) and in 1972 (non-life). The
insurance business of the country was then brought under two public sector companies, Life
Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).
Reforms were initiated with the passage of Insurance Regulatory and Development Authority
(IRDA) Bill in 1999. IRDA was set up as an independent regulatory authority, which has put in
place regulations in line with global norms. So far in the private sector, 12 life insurance
companies and 9 general insurance companies have been registered.



INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT - 1999.
(I.R.D.A)

The object of this act is to provide for the establishment of an authority to protect the interest of
holders of insurance policies, to regulate, to promote and ensure orderly growth of insurance
industries. Insurance Regulatory and Development Authority (IRDA) has sought the comments of
industry participants to finalize the guidelines for online agents' training institutes.

These proposed guidelines are in addition to its standard instructions and guidelines applicable
for approval/renewal of agents' training institutes. The guidelines would be applicable to all the
online training institutes including in-house training institutes of the insurers.

As per the draft guidelines, the applicant should undergo at least 120 hours practical training in
life or general insurance business. The composite training should be for at least 180 hours, where
the applicant is seeking license for the first time to act as an insurance agent.

The duration should be minimum of 24 days for 120 hours training and 36 days for 180 hours
training with a maximum five hours per day. Stating that no product training/market survey
should be included into this 120/180 hours training, the regulator said revision examination could
form part of the training.



Duties, Powers and functions of Authority:

• The powers and functions of the authority include registration of insurers, intermediaries and
agents regulations of terms and conditions of contract of insurance, promoting and regulating
professional organizations connected with the insurance, monitoring investment of funds and
solvency margin of insurance companies.

• The authority is to be advised by a committee to be known as the insurance advisory
committee, which shall consists of not more than 25 members including ex-officio members
in the insurance sector. The insurance advisory committee is expected to advice the authority
on matters relating to making of the regulations

• An Indian insurance company has been defined as a company incorporated under the
Companies Act - 1956 and the paid capital of General Insurance business will have to be not
less than Rs 100/- Crores and in case of companies wanting to transact reinsurance business
the paid capital will have to not less than Rs 200/- Crores.

• It has also been notified that every insurance company will have to appoint an Actuary to be
approved by I.R.D.A. The duty of the Actuary is to insure that

The assets are valued in appropriate manner
The liabilities are evaluated as required
The prescribed margin for maintaining solvency is complied with.

• The I.R.D.A also issued regulations with regards to advertisement so as to include
almost any public communication for a sale of insurance policy.



THE FUNDAMENTAL / PRINCIPALS OF LAW OF INSURANCE.

UTMOST GOOD FAITH: The parties to the commercial contract, according to the law are
required to observe good faith. The seller cannot mislead the buyer in respect of transactions, but
he has no subject of the contract, it is the buyer’s duty to be careful while entering into a contract.
'LET THE BUYER BE AWARE' is a legal rule.

INSURABLE INTEREST: The owner of the property has a right under law to effect insurance
on the property if he is likely to suffer financially when property is lost or damaged. This legal
right to insure is called insurable interest, without insurable interest the contract of insurance will
be void. Because of this legal requirement of insurable interest the insurance contracts are not
gambling transactions.

INDEMNITY: The principal of indemnity arises under common law and requires that an
insurance control should be a contract of indemnity only and nothing more. The object of
principal is to place the insured after a loss in the same financial position as far as possible, as he
is occupied immediately before the loss. The effect of this principal is to prevent the insured from
making the profit out of his loss or gaining any advantage or benefit. The object of a contract of
insurance is to protect the financial interest of the insured in the subject matter of insurance.

SUBROGATION: The principal of subrogation arises from the principal of indemnity.
Subrogation may be defined as transfer of rights and remedies of the insured to the insurer who
has indemnified the insured in respect of the loss. If the insured has any rights of action to be
recovered the loss from any third party, who is primary responsible for the loss, the insurer
having paid the loss is entitled to avail himself of these rights to recover the loss from the third
party. The effect is that the insured does not receive more than actual amount of his loss and any
recovery affected from the third party goes to the benefit of the insurer to reduce the amount of
his loss

Insurance market in India

By any yardstick, India, with about 200 million middle class households, presents a huge
untapped potential for players in the insurance industry. Saturation of markets in many developed
economies has made the Indian market even more attractive for global insurance majors. Life
insurance is mainly considered as a saving instrument rather than an investment avenue as it
promotes compulsory savings besides reducing tax burden on the policyholder and protect the
family of the policyholder in the event of unforeseen happening. It is the only saving instrument,
which covers the life risk besides giving tax concession both at entry (premium paid) and at exit

HISTORY AND PRESENT STATUS OF INSURANCE MARKET IN INDIA



The insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the developments in the
Indian insurance sector reviles the 360-degree turn witnessed over a period of almost two
centuries.

A brief history of the insurance sector

The business of life insurance in India in its existing form started in India in the 1818
with the establishment of Oriental Life Insurance Company in Calcutta. Some of the important
milestones in the Life Insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statue to regulate
the life insurance business.

1928: The Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-insurance business.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interest of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC found by an Act of Parliament, viz. LIC Act 1956,
with a capital contribution of rupees Five Crores from the Government of India.

Insurance sector reforms

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor
R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future
direction. The Malhotra committee setup with the objective of complimenting the reforms
initiated in the financial sector. The reforms where aimed at "creating a more efficient and
competitive financial system suitable for the requirements of the economy keeping in mind the
structural changes currently underway and recognizing that insurance is an important part of the
overall financial system where it was necessary to address the need for similar reforms.."

In 1994, the Committee submitted the report and some of the key recommendations included:

Structure

a. Government stake in the insurance companies to be brought down to 50%.
b. Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
c. All the insurance company should be given greater freedom to operate.

Competition

a. Private companies with a minimum paid up capital of Rs. 1bn should be allowed to



enter the industry.
b. No company should deal both the life insurance and general insurance through a
single entity.
c. Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
c. Postal Life Insurance should be allowed to operate in the rural market.
d. Only one state level Life Insurance Company should be allowed to operated in
each state.

Regulatory body

a. The Insurance Act should be changed.
b. An Insurance regulatory body should be setup.

Reforms in the insurance sector were initiated with the passage of the IRDA Bill in
the Parliament in December 1999. The IRDA since its incorporation as statutory body in April
2000 has fastidiously stuck to its schedule of framing regulations and registering the private
sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the IRDA's
online service for issue and renewal of license to agents.
The approval of institutions for imparting training to agents has also ensured that
the insurance companies would have trained work force of insurance agents in place to sell their
products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life insurance and 6
general insurance companies have been registered.

Insurance is an Rs 400 billion business in India, and together with banking services adds about
7% to India's GDP. Gross premium collection is about 2% of GDP and has been growing by 15
to 20% per annum. India also has the highest number of life insurance policies in force in the
world, and total investable funds with the LIC are almost 8% of GDP. Yet more than three
fourth of India's insurable population has no life insurance or pension cover. Health insurance of
any kind is negligible and other forms of non life insurance are much below international
standards.

To tap the vast insurance potential and to mobilize long term savings we need reforms which
include revitalizing and restructuring of the public sector companies, and opening up the sector
to private players. A statutory body needs to be made to regulate the market and to promote a

healthy market structure. Insurance Regulatory Authority (IRA) is one such body, which checks
on these tendencies. IRA role comprises of following three functions:

a. Protection of consumer's interest
b. To ensure financial soundness and solvency of the insurance industry,
c. To ensure healthy growth of insurance market.



An insurance policy protects the buyer at some cost against the financial loss arising from a
specified risk. Different situations and different people require a different mix of risk-cost
combinations. Insurance companies provide these by offering schemes of different kinds.

Unfortunately, the concept of insurance is not possible in our country. As per the latest estimates,
the total premium income generated by life and general insurance in India is estimated at around
1.95% of GDP. How ever India's share of world insurance market has shown an increase of 10%
from 0.31% in 1996-97 to 0.34% in 1997-98. India's market share in the life insurance business
showed a real growth of 11% there by outperforming global average of 7.7%. Non life insurance
business grew by 3.1% against global average of 0.20%. In India insurance pending per capita
was among the last in the world at $7.6 compared to $7 in the previous year . Amongst the
emerging economies, India is one of the least insured countries but the potential for growth is
phenomenal, as a significant portion of its population is in services and the life expectancy also
increased over the years.

The nationalized insurance industry has not offered consumers a variety of products. Opening of
the sector to private firms will foster competition, innovation and variety of products. It would
also generate greater awareness on the need for buying insurance as a service and not merely for
tax exemption, which is currently done on the demand side, a strong correlation between demand
for insurance and per capita income level suggests that high economic growth can spur growth in
demand for insurance. Also there exists a strong correlation between insurance density and social
indicators such as literacy. With social development, insurance demand will grow.

LIFE INSURANCE MARKET IN INDIA

Life Insurance Statistics
Indian Population I bn
GDP as on 2000 ( Rs bn) 50000 bn
Gross Domestic Saving as a % of GDP 32%



NCAER estimate is Insurance 240 mn
Population
Estimated market 2010 950 mn

India has an enormous middle class that can afford to buy life, health, and disability and pension
plan products. The low level of penetration of life insurance in India compared to other developed
nations can be judged by a comparison of per capita life premium.

Country Life Premium per capita US $ in 1994
Japan 3817
UK 1280
USA 964
India 4

Clearly, there is considerable scope to raise per capita life premium in the market is effectively
tapped. India has traditionally been a high savings oriented country often described as being on
par with thrifty Japan. Insurance sector in the US is a big in the size as the banking industry there.
This gives us an idea of how important is the sector is. Insurance sector canalizes the saving of
the people to long-term investments. In India where infrastructure is said to be critical
importance, this sector will bring the nations own money for the nation.

In the three years time we would expect 10% of the population to be under some sort of an
insurance cover. Thus assuming a premium of Rs 5000 on an average, 100 million Rs 5000 = Rs
500 billion.

This has made the sector the hottest one in India after IT. With social security and security to
public at large being the agenda for opening the sector, the role of the regulator becomes all the
more serious and one would be carefully watched at every step.

The Insurance Regulator and Development bill is now an Act. With this India is now the
cynosure of all the global insurance players. Numerous player, both Indian and foreign have
announced their intention to start their insurance shops in India. IRDA, under chairman ship of
Mr. RANGACHARI, opened the window for applying license in India.

One of the main difference between the developed economies and the emerging economies is that
insurance products are bought in the former while these are sold in later. Focus if insurance
industry is changing towards providing a mix of both protection/risk cover and long-term
investment opportunities.



WHY LIFE INSURANCE?

WHY LIFE INSURANCE?

Life insurance cover is essential for it provides the following benefits:
a. A lump sum payment to the nominees at the time of the death of the policyholder;
b. A regular payment to the nominees in the event of the death of the policyholder;
c. Tax benefits, as premium paid to reduce the liability of tax;
d. Relieves economic hardships in the family on the uneventful death of the sole income holder;
e. Inculcates the habit of saving.

NEED FOR INSURANCE



The need for life insurance comes from the need to safeguard our family. If you care for
your family's needs you will definitely consider insurance.

Today insurance has become even more important due to the disintegration of the prevalent
joint family system, a system in which a number of generations co-existed in harmony, a system
in which a sense of financial security was always there as there were more earning members.

Times have changed and the nuclear family has emerged. Apart from the other pitfalls of a
nuclear family, a high sense of insecurity is observed in it today besides, the family has shrunk.
Needs are increasing with time and fulfillment of these need is a big question mark.

How will you be able to satisfy all those needs? Better lifestyle, good education, and your
long desired house. But again you just cannot fritter away all your earnings. You need to save a
part of it for the future too a wise decision. This is where insurance helps you.

Factors such as fewer numbers of earnings members, stress, pollution increased
competition, higher ambitions etc are some of the reasons why insurance has gained importance
and where insurance plays a successful role.

An Overview
Insurance business is divided into four classes:
1) Life Insurance business
2) Fire
3) Marine
4) Miscellaneous Insurance.

Life Insurers transact life insurance business; the rest is transacted by General Insurers. No
composites are permitted as per law. The business of Insurance essentially means defraying risks
attached to any activity over time (including life) and sharing the risks between various entities,
both persons and organizations. Insurance companies (ICs) are important players in financial
markets as they collect and invest large amounts of premium. Insurance products are multi
purpose and offer the following benefits:

1. Protection to the investors
2. Accumulate savings
3. Canalize savings into sectors needing huge long term investments.

ICs receive, without much default, a steady cash stream of premium or contributions to pension
plans. Various actuary studies and models enable them to predict, relatively accurately, their
expected cash outflows. Liabilities of ICs being long-term or contingent in nature, liquidity is
excellent and their investments are also long-term in nature. Since they offer more than the return
on savings in the shape of life-cover to the investors, the rate of return guaranteed in their
insurance policies is relatively low. Consequently, the need to seek high rates of returns on their
investments is also low. The risk-return trade off is heavily tilted in favour of risk. As a combined
result of all this, investments of insurance companies have been largely in bonds floated by GOI,
PSUs, state governments, local bodies, corporate bodies and mortgages of long term nature. The
last place where Insurance companies are expected to be over-active is bourses.

Lately ICs have ventured into pension schemes and mutual funds also. However, life insurance,
constitutes the major share of insurance business. Life Insurance depends upon the laws of



mortality and there lies the difference between life and general insurance businesses. Life has to
extinguish sooner or later and the claim in respect of life is certain. In case of general insurance,
however, there may never be a claim and the amount can never be ascertained in advance. Hence,
Life Insurance includes, besides covering the risk of early happening of an event, an element of
savings also for the beneficiaries. Pension business also derives from life insurance in as much as
the pension outgo again depends upon the laws of mortality. The forays made by insurance
companies in this area are, therefore, natural corollary of their business.

TYPES OF INSURANCE POLICIES

Broadly there are 3 types of life insurance policies:

a. Term Insurance Plans
b. Whole Life Insurance
c. Endowment Insurance Plans

Term Insurance Plans:
Pure life covers where you pay for risk cover and do not expect to receive anything
else in return is now available in India. Opting for such policy will improve the efficiency of
policy premium and enable you for a bigger risk cover for the same cost. These are term
insurance plans with maturity benefits; some term plans give your premium amounts back with
interest. This is a marketing policy to suit the general psychology and should normally involve
higher premium cost.



Whole life insurance plans:
Whole life policies require you to pay premium through out your life and cover risk for
whole life. The policies without profit are cheaper.

Endowment Insurance plans (with or without money back):
Endowment policies are costliest and among this group, money back policies involve
paying highest premium. They give you maturity benefits (normally sum assured) and additional
profit by way of bonus, guaranteed additions; loyalty bonus etc. money policies also provide
partial payment back to you at pre-set time periods.

DEFINITION OF SOME TYPES OF POLICIES

1. ANNUITY

An annuity is a steady stream of equal payments that one receives every year, or every month
either for life or a fixed number of years, as return after making an investment either as a lump
sum or through installments paid over a certain number of years, a specific sum. Upon the death
of the annuitant, or at the expiry of the period fixed for annuity payments, the invested annuity
fund is refunded usually along with a small bonus. Annuities differ from all other forms of life
insurance in one fundamental way-they do not provide any insurance cover but offer a guaranteed
income for a certain period or for life.

Typically annuities are bought to generate income during one's retired life, which is why they are
also called pension plans. An annuity provides a solution to the biggest financial insecurity of old
age retires and the income from salary ceases.

2. ENDOWMENT

Endowment policies cover the risk for a specified period at the end of which the sum assured is
paid back to the policyholder along with the entire bonus accumulated during the term of the
policy. It is this feature the payment of the endowment to the policyholder upon the completion of
the policy's term, which rightly accounts for the popularity of endowment policies.

Typically, one's responsibility for the financial protection of the family reduces significantly
once the children are grown up and independently settled. The focus then shifts to managing a
smaller family perhaps only oneself and one's spouse after retirement/ this is where the
endowment the original sum assured and the accumulated bonus received back comes handy. You
can either use the endowment amount for buying an annuity policy to generate a monthly pension
for the whole life, or put it in any other suitable investment of your choice. This is the major
benefit of an endowment policy over a whole life.

3. MONEY BACK



Unlike endowment plans, in money back policies the policyholder gets periodic "survivance
payments" during the term of the policy and a lump sum amount on surviving its term. In the
event of the death during the term of the policy, the beneficiary gets full sum assured without any
deductions for the amount paid till date, and no further premiums are required to be paid. These
types of policies are very popular, since they can be tailored to get large amount at a specific
periods as per the needs of the policyholder.

FUTURE OF LIFE INSURANCE MARKET

Even at modest estimates the size of life insurance market in India could be
around Rs. 40000 billion covering just 250 mn people…

LIC had enjoyed the monopoly of the big life insurance market since 1956. LIC
was in for a surprise now an then when it found that, among air crash casualties or rail accident
victims, only very few had life insurance cover. In fact LIC did attempt to evaluate the size of the
market and look at broad homogeneous segments of the market based on the data provided by
Decennial Census Report relating to worker population categorized into groups based on
occupations. However LIC's major segmentations were the urban, rural, male, female, medical
and non-medical segments. The census of occupation data was used more as a framework for
formulating the business plans. But, now with the entry of new player, very conscious of their
market shares, the evaluation of the size of the market for life insurance assumes importance. The
market size with its viable segments is to be identified and suitable products to meet the needs of
these segments developed.

Life insurance market covers the entire age range of the population of 1000 mn in
India. However taking into account their economic conditions and their ability to pay the
premium for some sort life insurance cover or an annuity, the number of eligible prospects for life
insurance may be put around 30% of the total population viz, 300 mn. LIC has on its books as on
date 125 mn policies. Research had shown, that each of these holders of the policies have on an
average, 1.6 (as many policy holders have more than one policy). Thus the no of persons holding
life insurance policies with LIC good work out to 75 mn. This means only 25% of the

potential market has so far covered, leaving the remaining 75%- a vast market of 225 mn persons-
to be covered.

Market size ever expanding…
This market size is dynamic and ever expanding. The growth is dictated by several factors such
as:

1. An addition of around 20 mn of new population each year.
2. More and more persons due to improvements in economic conditions move
continuously into the zone of people with ability to pay premium for a life insurance
policy.
3. Many among the existing policyholders are grossly under insured. They need and can
afford additional insurance. These can be made to join the market as potential prospects
for additional insurance. These form the creamy layers market capable of being very
good source of high volume of business.

Taking all these factors into account it can be seen that the size of the market for life insurance in
India is enormous. Assuming the number of persons who can be sold an insurance policy to be
250 mn, in terms of number of policies, this works out to 400 mn policies. In financial terms,



taking the average size of the policy as Rs 1 lakh, the sum assured works out to Rs 40000 bn or $
800 bn. The first year's premium income can be assume as Rs 6250 per annum per policy. The
figures would keep increasing year by year due to the improvement in the economic conditions
leading to increase in the number of potential prospects .



COMPANY PROFILE

COMPANY PROFILE

ICICI GROUP



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OVERVIEW OF ICICI BANK
ICICI Bank is India's second-largest bank with total assets of about Rs.146,214 crore at
December 31, 2004 and profit after tax of Rs. 1,391 crore in the nine months ended December 31,
2004 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about 530 branches and
extension counters and over 1,880 ATMs. ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-
life insurance, venture capital and asset management. ICICI Bank set up its international banking
group in fiscal 2002 to cater to the cross-border needs of clients and leverage on its domestic
banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the
United Kingdom and Canada, branches in Singapore and Bahrain and representative offices in the
United States, China, United Arab Emirates, Bangladesh and South Africa

ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the
New York Stock Exchange (NYSE).
As required by the stock exchanges, ICICI Bank has formulated a Code of Business Conduct and
Ethics for its directors and employees.
At April 4, 2005, ICICI Bank, with free float market capitalization* of about Rs. 308.00 billion
(US$ 7.00 billion) ranked third amongst all the companies listed on the Indian stock exchanges.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs
listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-
stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors
in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal objective was to create
a development financial institution for providing medium-term and long-term project financing to
Indian businesses. In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group offering a wide



variety of products and services, both directly and through a number of subsidiaries and affiliates
like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NY After consideration of various corporate
structuring alternatives in the context of the emerging competitive scenario in the Indian banking
industry, and the move towards universal banking, the managements of ICICI and ICICI Bank
formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic
alternative for both entities, and would create the optimal legal structure for the ICICI group's
universal banking strategy. The merger would enhance value for ICICI shareholders through the
merged entity's access to low-cost deposits, greater opportunities for earning fee-based income
and the ability to participate in the payments system and provide transaction-banking services.
The merger would enhance value for ICICI Bank shareholders through a large capital base and
scale of operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In
October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI
and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve
Bank of India in April 2002.

ICICI Bank is India's second largest bank wit an asset base of Rs. 106812 crores. ICICI bank
provides a broad spectrum of financial services to individuals and companies. This includes
mortgages, car and personal loans, credit and debit cards and corporate and agricultural finance.
The bank services a growing customer base of more than 7 mn customer accounts and five mn
bondholders accounts through a multi channel access network. The includes about 450 branches
and extension counters, 1675 ATMs, call centers and Internet banking. ICICI bank posted a net
profit of Rs 1206 Crore for the year ended March 31, 2003. ICICI bank is the only Indian
company to be rated above the country rating by the international rating agency Moody's and only
the Indian company to be awarded an investment grade international credit rating. The enjoys the
highest rating from all Indian leading rating agencies.

OVERVIEW OF ICICI VENTURE WING



ICICI Venture, incorporated in 1988, is the most experienced and largest private equity and
venture fund management company in India with funds currently under management in excess of
Rs.20 billion (USD 400 million).
Over the last 15 years, ICICI Venture has been successful in identifying trends well ahead of the
curve; be it retail, media and entertainment, information technology, real estate or
pharmaceuticals and biotechnology. During this period ICICI Venture launched and managed 8
funds with a corpus exceeding Rs. 20billion (USD 400 million). Each fund had a distinct
investment theme and ICICI Venture today has some of the best known and managed companies
in India in its portfolio. Herein ICICI Venture has followed the philosophy of being a multi-sector
player ensuring an optimum balance of risk and return to its investors.

ICICI Venture has the distinction of managing a large number of exits in the country. With over
100 liquidity events, the organization has reaped rich experience and is well positioned to handle
IPOs, strategic sale and/or mergers.
ICICI Venture has a wide network of third party investors, which include domestic investors such
as public sector banks, financial institutions and insurance companies. A significant portion of the
fund's corpus is also from international development financial institutions and international funds.
The company has over 25 qualified professionals with experience across sectors and functions.
The capabilities of the team, structure of the organization, emphasis on value creation and
performance evaluation matrices enable ICICI Venture to extract superior returns from its
investments.

ICICI Venture has now launched the India Advantage Fund, with a corpus of Rs.10 Billion (USD
225 million). The Fund will invest in mid-sized growth companies for funding through
expansions, acquisitions and restructuring. The Fund will also focus on mezzanine funding and
buyouts.

ICICI PRUDENTIAL



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

THE COMPANY

ICICI PRUDENTIAL Life Insurance Company is a joint venture between ICIC,
a premier financial powerhouse and prudential plc; a leading international financial services
group headquarters in the United Kingdom. ICICI Prudential was amongst the first private sector
insurance company to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).

ICICI and PRUDENTIAL came together in 1993 to form prudential ICICI Asset
Management Company, which has today emerged as one of the leading mutual funds in India.
The two companies bring together two of the strongest financial service brands in Asia, known
for their professionalism, excellent quality of service and long term commitment to customers.
Riding on the success of this relationship, the two companies joined hands once more in 2000, to
form ICICI PRUDENTIAL LIFE INSURANCE, with a commitment to provide leading -edge life
insurance solutions. ICICI Bank has 74% stake in the company, and Prudential plc has 26%.

To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class
people and service.
This we hope to achieve by:
• Understanding the needs of customers and offering them superior products and service
• Leveraging technology to service customers quickly, efficiently and conveniently
• Developing and implementing superior risk management and investment strategies to
offer sustainable and stable returns to our policyholders
• Providing an enabling environment to foster growth and learning for our employees
• And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5 core values --
Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe
what the company stands for, the qualities of our people and the way we work
We do believe that we are on the threshold of an exciting new opportunity, where we can play a
significant role in redefining and reshaping the sector. Given the quality of our parentage and the
commitment of our team, there are no limits to our growth.

PRUDENTIAL PLC

Established in 1848, Prudential Plc is a leading international financial services company in UK
with around US $ 250 bn funds under management, and more than 16 million customers
worldwide. Prudential has brought to market an integrated range of financial services products
that now includes:

• life assurance



• pensions
• mutual funds
• banking
• investment management
• general insurance

In Asia Prudential is UK's largest life insurance company with a vast network of 22 life and
mutual fund operations in 12 countries: China, Hong Kong, India, Indonesia, Japan, Korea,
Malayasia, Philippines, Singapore, Taiwan, Thailand, Vietnam. Since 1923, prudential has
championed customer centric products and services, supported by over 60000 staff and agents
across the region.

DISTRIBUTION

ICICI PRUDENTIAL has one of the largest distribution networks amongst private life insurance
in India, having commenced operations in 28 cities and towns in India. These are: Ahmedabad,
Bangalore, Chandigarh, Chennai, Coimbatore, Gurgaon, Hyderabad, Indore, Jaipur, Jalandhar,
Kanpur, Cochin, Kolkotta, Kottaym, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Nagpore,
Nasik, Nodia, New Delhi, Pune, Thane, Vododara, Vashi.

The company has a largest number of banc assurance tie-ups, having
agreement with ICICI Bank, Citi Bank, Allahabad bank, Federal bank, South Indian Bank, Bank
of India, Lord Krishna Bank, Punjab and Maharashtra co-operative Bank, as well as some
corporate agents. It has also tied-up with organizations like Dahn for distribution of Salaam
Zindagi, a policy for the socially and economically under privilege sections of society.

SERVICE

ICICI PRUDENTIAL has recruited and trained over 18000 insurance agents to interface with
and advice 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.

MILESTONES

ICICI PRUDENTIAL life insurance has crossed Rs 500 crore premium income mark on March
31, 2003 having issued nearly 350000 policies for a sum assured of Rs 8700 crore since its
inception.

The last fiscal had been significant growth for ICICI PRUDENTIAL across all segments, with
246827 policies issued in the period April 2002-March 2003, and Rs 348 Crore premium from
new business in the same period, a 200 per cent growth over the previous fiscal (April 2001-
March 2002).

The company had also met all its rural and social sector obligations, said a press release. The
growth been driven by pensions and unit linked products. It has garnered 23% of pensions



premium amongst all players for the period April 2002-February 2003 and 34% in Feb alone.
Today the company has established itself the number one private life insurer in the country.

HISTORY:

Incorporated on July 20, 2000 it is a 74:26, joint venture between ICICI and Prudential
plc of U.K. in November 2000, ICICI Prudential Life Insurance was granted Certification of
Registration for carrying out Life Insurance business by the insurance Regulatory &
Development Authority of India. The company issued its first policy on December 12, 2000.

Year of review 2002-2003:

ICICI Prudential has consolidated its position as the leading private life insurer in India. ICICI
Prudential's annualized premium grew more than three fold over the previous year. Continuing
with its 'Customer First' philosophy, ICICI Prudential has significantly expanded its presence to
29 operational Branches (2001-2002: 16), with the Advisor Force growing to over 18000. It has
also strengthened its Alternate Distribution channels, i.e. Bancassurance, Corporate Agents and
Direct Marketing, making purchase of insurance more accessible. Bancassurance and
Direct Marketing channels have contributed to over 18% of the Annualized Premium.

ICICI Prudential was amongst the first to identify the emerging opportunity in the Pension
segment and launched two linked pension products Life time Pension and Life Link Pension,
which have been well received in the market.

MANAGEMENT

BOARD OF DIRECTORS

ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the
finance industry both from India and abroad.

Mr. K.V. Kamath, Chaiman
Mr. Mark Norbon
Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. Kevin Holmgren
Mr. M.P.Modi
Mr. R Naryanan



Ms Shikha Sharma

MANAGEMENT TEAM

Ms Shikha Sharma, Managing Director
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Shubhro J. Mitra, Chief - Human Resources
Mr. Puneet Nanda, Head - Investments
Ms. Anita Pai, Chief - Operations & Underwriting
Mr. V. Rajagopalan, Appointed Actuary
Mr. Shridhar Sethuram, Chief - Sales & Marketing
Mr. Anil Tikoo, Head - Information Technology.



VISION-MISSION

VISION

To make ICICI Prudential the dominant Life and Pensions player built on trust by world
class people and service.

This we hope to achieve by:

• Understanding the needs of customers and offering them superior products and service

• Leveraging technology to service customers quickly, efficiently and conveniently.

• Developing and implementing superior risk management and investment strategies to offer
sustainable and stable returns to our policyholders.



• Providing an enabling environment to foster growth and learning for our employees.

• And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 core values:

• Integrity

• Customer First

• Boundaryless

• Ownership

• Passion

Each of the values describe what the company stands for, the qualities of our people and the way
we work. We do believe that we are on the threshold of an existing new opportunity, where we
can play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.

VISION-MISSION

To be dominant life and pension players built on trust by world class people and
service.

INTEGRITY

• Stand up honestly and fearlessly for what they truly care about.

• Always act in a consistent and equitable manner.



• Don’t compromise the future to pay for the present.

CUSTOMER FIRST

• Own the customer: Deliver the promise.

• Listen actively, stretch continually to add value to customers and channel
partners

BOUNDARYLESS

• Never say "its not my job" go beyond the call of duty.

• Experiment- believe anything is possible

• Seek new ideas regardless of source

• Share ideas and thoughts freely across levels and functions

OWNERSHIP

• If it is to be, it is up to me

• Bias for action

• Own mistakes. Learn from failures

• Confront hard facts, pursue goals relentlessly

• Accountable for team performance



PASSION

• Winning instinct- transmit boundless energy and enthusiasm to drive results

• Stand up and make a difference - challenge status quo and drive change

• Demonstrate speed for competitive advantage

• Passionately nurture and reward excellence



PRODUCTS

PRODUCTS

Insurance Solutions For Individuals:

ICICI PRUDENTIAL Life Insurance offers a range of innovative, customer centric products that
meet the needs of customer at every life stage. Its 13 products can be enhanced with up to four
riders, to create a customized solution for each policyholder.

Saving Solutions

ICICI PRUDENTIAL Save and Protect is a traditional endowment savings plan that offers life
protection along with adequate returns.
ICICI PRUDENTIAl CashBank is an anticipated endowment policy ideal for meeting milestone
expenses like a child's marriage, expenses for child's education or purchase of an asset.

Protection Solutions



ICICI PRUDENTIAL Life Guard is a protection plan, which offers life covers at very low cost. It
is available in three options - level term assurance, level assurance with return of premium and
single premium.

Child Solutions

ICICI PRUDENTIAL Smart Kid provides guaranteed educational benefits to a child along with
life insurance cover for the parent who purchases the policy. The policy is designed to provide
money at important milestones in child's life.

Market Linked Solutions

ICICI PRUDENTIAL LifeLink is a single premium Market Linked Insurance Plan, which
combines life insurance cover with the opportunity to stay, invested in the stock market.

ICICI PRUDENTIAL LifeTime offers customers the flexibility and control to customize the
policy to meet the changing needs at different life stages. It offers three investment options

• Growth Plan
• Income Plan
• Balanced Plan

Retirement Solutions

• ICICI PRUDENTIAL Forever Life is retirement product targeted at individuals in their 30's
• ICICI PRUDENTIAL LifeTime Pension is a regular premium market linked pension plan.
• ICICI PRUDENTIAL LifeLink Pension is a single premium market linked pension plan.

Single Premium Solutions

• ICICI PRUDENTIAL Assure Invest is a single premium savings product with life cover for
terms of 5, 7 or 10 years.
• ICICI PRUDENTIAL Reassure is a retirement product for senior citizens who are on the
verge of retirement or have just retired.
• ICICI PRUDENTIAL also launched "salaam zindagi", a social sector group insurance policy
targeted at the economically under privileged sections of the society.

Group Insurance Solutions

ICICI PRUDENTIAL also offers Group Insurance Solutions for companies seeking to enhance
benefits to their employees.
ICICI PRUDENTIAL Group Gratuity Plan: ICICI Pru's Group Gratuity Plan helps employers
fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to
structure schemes that can provide benefits beyond the statutory obligations.



ICICI PRUDENTIAL GROUP SUPERANNUATION PLAN:

ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement
kitty for each member of the group. Employees have the option of choosing from various annuity
options or opting for a partial commutation of the annuity at the time of retirement.

ICICI PRUDENTIAL GROUP TERM PLAN:

ICICI Pru's flexible group term solution helps to provide affordable cover to members of a group.
The cover could be uniform or based designation or rank or a multiple of salary. The benefit the
policy is paid to the beneficiary nominated by the member on his/her death.

FLEXIBLE RIDER OPTIONS;

ICICI PRUDENTIAL life offers for flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
• Accident and disability benefit: if the death occurs as the result of an accident during the term
of the policy the beneficiary receives an additional amount equal to the sum assured under the
policy. If the death occurs while

• Level Term Cover: This rider provides the option to increase the risk cover. It may be
increased for an additional amount upto a maximum of the existing basics sum assured on
your policy

• Critical Illness Benefit: protects the insured against the financial loss in the event of 9
specified critical illnesses. Benefits are payable to the insured for medical expenses prior to
death.

• Major Surgical Assistance Benefit: provides financial support in the event of medical
emergencies, ensuring that benefits are payable to the life assured for medical expenses
incurred for surgical procedures. Cover is offered against 43 different surgical procedures.

AWARENESS…

According to Saugata Gupta Chief - Marketing of ICICI Pru life's communication
strategies have been very successful in building the brand and driving awareness of the company
and the category. ORG-Marg's Brand track survey undertaken last year indicate that though
awareness of LIC stands at 100%, ICICI Pru life stands not far behind in the second place at 70%.
Further the awareness scores for ICICI Pru life double between February 2001 and September
2001.

ORG Marg research also showed that the communication not only created saliency
and awareness, but also succeeded in influencing the buying decision. ICICI Pru life emerged far
ahead of other private players as far as share of wallet went, with 52% of the respondents saying
that they intended to buy policy from ICICI Pru life.

ADVERTISING EFFECTIVENESS…



ICICI Pru is a case study in the role of marketing in reshaping an industry. It
highlights how an industry where "sell" and "push" were often used words and consumer was
nothing more than a file number, has changed to one where "consumer preference" and
"consumer pull" rule the roost. Here's a look at how ICICI Pru changed the rules of the games and
emerged a leader in the process.

BACKGROUND

When the insurance sector was liberalized in 2000, the private players contend with a
few issues. Ratio of premium to GDP was low: 1.3% of GDP was invested in insurance.
Insurance penetration was at an abysmal 22% of insurable population. Besides the above the
private players were faced with attitudinal barriers, perception of insurance has a tax saving tool
and lack of a consumer centric approach in service and product offerings.

THE MARKETING CHALLENGES FACING ICICI Pru:

The challenge therefore was to change established category drivers (death payment
and Tax saving) and to get the consumer to evaluated insurance on a more emotional plat form
rather than a mere rational decision. (tax savings).

THE CAMPAIGN OBJECTIVES:

• Reposition the category in the consumer's mind. Influence the consumer to view it as a
protection instrument and not a tax saving product alone.
• In the process, create differentiation for the ICICI Pru brand as a provider of social security
and family protection.
• Achieve leadership status in saliency, image and product parameters.
• Build credibility and trust.

CREATIVE STRATEGY:

The essence of the creative strategy is to get the consumer to re look at insurance as a
means to lead a worry free life and not as a necessary evil. To this effect the core brand insight
highlighted was "As head of the family, it is my responsibility to take care of my loved ones and
protect them from the uncertainties of life", summed up in the advertising idea: 'we cover you at
every step in life'

MARKET STRATEGY:



In a market likely to be cluttered, we used multiple touch points to reach the
consumer. The role for each medium was envisaged. The TV medium was used to enhance the
emotional link with the brand. Strategic use of 15 sec. Edits facilitated high frequency levels. In
print, the cost per response rather than the cost per thousand as responses were measured in form
of call-ins. Radio FM, Cinema, Internet were used to create a media multiplier effect.

THE RESULTS OF COMMUNICATION EFFORTS:

Being number one in awareness and saliency. Awareness: ICICI Pru showed a
significant jump in awareness between Feb and Sept 2001. Image: highest score among all
insurance players including LIC, on image parameters like safety, modernity, service, good
returns
Etc. intention to invest: next only to LIC as per research

SUM UP

In just over a year ICICI PRUDENTIAL has emerged as India's # 1 private life
insurance company with almost 50% of the private players has sold highest number of policies
both in volume and value.

RECRUITMENT


AND
CHANNEL DEVELOPMENT

RECRUITMENT

Before an organization can fill a job vacancy, it must find people who not only are qualified for
the position but also want the job. Recruitment process is one of the ways that an organization
can deal with shortages in its human resources needs

Recruitment refers to organizational activities that influence the number and types of
applicants who apply for a job and whether the applicants accept jobs that are offered.eis a
process of searching for prospective employees and stimulating and encouraging them to apply
for jobs in an organization.

Although recruitment can be quite expensive, organizations have not have always treated it as
systematically as other HR functions, such as selection. During the coming years, however, the
importance of recruitment will probably increase for many organizations.



Recruitment process is affected by various factors in the environment. The recruitment process
begins with an attempt to find employees with the abilities and attitudes desired by the
organization and to match them with the tasks to be performed. Whether potential employees
will respond to the recruiting effort depends on the attitudes they have developed toward those
tasks and the organization on the basis of their past social and working experiences. Their
perception of the task will also be affected by the work climate in the organization.

Prerequisites of a good recruitment policy:
• It should be in conformity with its general personnel policies.
• It should be flexible enough to meet the changing needs of the organization.
• It should be so designed as to ensure employment opportunities for its employees on a long
term basis so that the goal of the organization should be achievable and it should develop the
potentialities of the employees.
• It should match the qualities of the employees with the requirements of the work for which
they are employed.
• It should highlight the necessity of establishing job analysis.

THE ORGANIZATION'S VIEW OF RECRUITING

Several aspects affect recruiting from the organization's viewpoint

• Recruiting Requirements

• Organizational Policies and Practices

• Organizational Image

Recruiting Requirements: the recruiting process necessarily begins with a detailed job
description and job specification. Without these, it is impossible for recruiters to determine how
well any particular applicant fits the job. It should be made clear to the recruiter which
requirements are absolutely essential and which are merely desirable. This can help the



organization avoid unrealistic expectations for potential employees. Contrasting with the
unrealistic approach, the effective organization examines the specifications that are absolutely
necessary for the job. It then uses these as its beginning expectations for recruits.

Organizational Policies and Practices: in some organizations, HRM policies and practices
Affect recruiting and who is recruited. One of the most significant of these is promotion from
within. For all the practical purposes, this policy means that many organizations recruit from
outside the organization only at the initial hiring level. Most employees favor this approach. They
feel this is fair to present loyal employees and assures them of a secure future and a fair chance at
promotion. Some employees also feel this practice helps protect trade secrets.

Organizational Image: the image of the employer generally held by the public can also affect
recruitment. All these being equal, it should be easier for an organization with a positive
corporate image to attract and retain employees that an organization with a negative image.
Recruitment should also be somewhat easier for companies that exude a strong community
presence or positive name recognition.

The Potential Employee's view of Recruiting

The applicant has abilities, attitudes, and preferences based on the past work
experiences and influences of parents, teachers, and others. These factors affect recruits in two
ways: how they set their job preferences, and how they go about seeking a job. Understanding
these is vital to effective recruiting.

SOURCES OF RECRUITMENT:

• INTERNAL RECRUITING
• EXTERNAL RECRUITING

INTERNAL RECRUITING:

Organizations can make effective use of skills inventories for
identifying internal applicants for job vacancies. It is difficult, however, for HR managers to be
aware of all current employees who might be interested in the vacancy. To help with this
problem, they use an approach called job posting and bidding.

In the past, job posting was little more than the use of bulletin boards and company publications
for advertising job openings. Today, however, job posting has become one of the more innovative



recruiting techniques being used by organizations. Many companies now see job posting as an
integrated component of an effective career management system.

A model job posting program was implemented at National Semiconductor. Postings are
computerized and easily accessible to employees. Computer software allows the employees to
match an available job with their skills and experience. It then highlights where gaps exist so the
employees know what is necessary if they wish to be competitive for a given job.

INSIDE MOONLIGHTING AND EMPLOYEE'S FRIENDS

If there is a short-term short shortage, or if no great amount of additional
work is necessary, the organization can use inside moonlighting. It could offer to pay bonuses of
various types to people not on a time pay-roll to entice workers into wanting to take on a
"second" job. Nationally, it is estimated that approximately 6 percent of all employed people have
held more than one job at the same time. Moonlighting is so common at some organizations that
HR departments consider issuing "moonlighting policies" that include the communication of
performance expectations, prevention of conflict of interest, and protection of proprietary
information. Thus, some persons will clearly be motivated to accept the additional work if they
are fairly compensated.

Before going outside to recruit, many organizations ask present employees to
encourage friends or relatives to apply. Some organizations even offer "finders fees" in the form
of monetary incentives for a successful referral. When used wisely, referrals of this kind can be a
powerful recruiting technique.

INTERNAL: WITHIN THE ORGANIZATION.

Merits of Internal Recruitment are:

• It improves morale of employees

• It is easier to evaluate the existing employees through a sense of job security and
opportunities and advancement

• It promotes loyalty among the employees require less training since they already
know the company policies and procedure.

• It is less costly



Demerits of Internal Recruitment are:

• It may lead to in breeding within the organization.

• The possibility of the right candidate being chosen may depend upon the
recruiter's perception about his employees.

• It may not be suitable for jobs requiring some innovative techniques.

METHODS OF INTERNAL RECRUITMENT

• Promotion

• Transfer

• Demotion

EXTERNAL RECRUITING:

When an organization has exhausted its internal supply of applicants, it
must turn to external sources to supplement its workforce. Research indicates that walk-ins
provide an important external source of applicants. As labor shortages increase, however,
organizations are becoming more proactive in their recruitment efforts.

A number of methods are available for external recruiting: media
advertising, e-recruiting, employment agencies, executive search firms, special-events recruiting,
and summer internships, etc.

Media Advertisements: organizations advertise to acquire recruits. Various media are used, the
most common being help-wanted ads in daily newspapers. Organizations also advertise for
people in trade and professional publications. Other media used are billboards, subway and bus
cards, radio, telephone, and television. Some job seekers do a reverse twist; they advertise for a
situation wanted and reward anyone who tips them off about a job.

In developing a recruitment advertisement, a good place to begin is with the corporate image.
Simply using a corporate logo is not enough, however. Effective recruiting advertising is



consistent with the overall corporate image; that is, the advertisement is seen as an extension of
the company. Therefore, it must be representative of the values that the corporation is seeking in
its employees.

Another innovate way to attract prospective employees with particular skills is the use of
recorded want ads. Want ads recordings were used by 40 companies recruiting engineers and
scientists at New York City convention. At a special recruiting center, job hunters were able to
pick up a telephone and hear a three-minute taped recruiting message that included a job
description and details about how to contact the company.

E-Recruiting: perhaps no method has ever had as revolutionary an effect on organizational
recruitment practices as the Internet. There are many reasons for the popularity of the internet as a
method of recruitment. From the organization's perspective, it is relatively inexpensive way to
attract qualified applicants. From the job seekers perspective, the internet allows for searches over
broader array of geographical and company postings than was ever before possible.

Organizations are also beginning to see that having their own human resources. Web page on the
internet can be effective addition to their overall recruitment strategy. A typical organizational
home page will provide background information about the company, its products and services,
and employment opportunities and application procedures.

Special-events recruiting: when the supply of employees available is not large or when the
organization is new or not well known, some organizations have successfully used special events
to attract potential employees. One of the most interesting approaches is to provide job fairs.

Summer internships: another approach to recruiting and getting specialized work done that has
been tried by organizations is to hire students as interns during the summer or part time during the
school year. The use of internships is, in, fact, dramatically increasing. Organizations are using
more internships is to improve the diversity of their recruitment efforts.

College Recruiting: there is a growing gap between the skills that organizations will need over
the next several years and those currently possessed by potential employees. College recruiting
can be extremely difficult, time consuming, and expensive for the organization. Recruiters
believe that college recruiting is one of the most effective ways of identifying talented employees.
All this suggests that college recruiting will continue to play an important role in organizations
over all recruitment strategies, but that organizations will be careful about controlling expenses.

EXTERNAL: OUTSIDE THE ORGANIZATION.



MERITS OF EXTERNAL RECRUITMENT

• It provides larger pool candidates from which recruitment can be done.
• If the appropriate candidate is chosen, he may require less training

DEMERITS OF EXTERNAL RECRUITMENT

• It needs proper preparation and hence consumes a lot of time of the recruiter
• It is a costly affair.

Recruitment and Information Processing:

Data processing is costly. Processing applications and dealing with applicants involves
a lot of work. It is no wonder that busy line managers need a recruitment service section to co-
ordinate the burden for them.

The interview becomes a "mutually beneficial discussion". In other situations a
telephone contact may be the appropriate initial interview e.g. when advertising for a telesales
person. Poor applicants can be tested immediately. However for most jobs an initial meeting with
the candidate is essential at which spoken, presentational and practical skills can be tested.

A Recruitment Information System:

Processing applications involves data capture, storage, processing, outputting results
into the next processing stage and communicating results to various system users and back to
candidates.

A JOB FILE:

Creating a job file containing all job information. Copies of some of the contents to be sent to the
candidates in an applicant's pack. This file will contain the job analysis documents, details of
anticipated terms and conditions of employment etc. copies of job advertisements etc.
Information may be stored relating to numbers of applications from different sources and other
costs associated with filling the vacancy. We may use such data to evaluate the effectiveness of
the recruitment campaign

• An applicant file and the life history of an applicant to store the details of applicants.



• Invited for interview.

• Withdraw at any stage.

All applicants are "Work in Progress" whose details need to be up-dated from time to time. We
can see the value in a large firm or recruitment agency from having a computerized recruitment
information system. Once the details of a job vacancy are recorded, applicants can be linked to
the job. Personal details of applicants are available to be merged with any letters that are sent to
applicants as they progress through each stage of recruitment.

Form letters are needed. These may include:

• Acknowledgement of application.

• Invitation to e.g. interview with travel and accommodation details etc.

• Letters/ questionnaires requesting a reference.

DEVELOPING
A
RECRUITMENT PLAN



Developing a recruitment plan

A large part of successful hiring involves a commitment to plan and create the best
possible conditions to attract qualified candidates. Recruitment planning affects all areas of the
hiring process: performing a job analysis; preparing the job requisition; recruitment, screening
and interviewing applicants; and selecting the best-qualified candidate. To fulfill this
commitment individual recruitment processes will require advanced planning.

A Recruitment Plan should include the following:

1. Updated Position Description

• Review the recruitment, interviewing and selection guide
• Review current position description on file.
• Include any changes on the updated position description

2. Written Review of Diversity

• Review affirmative action statistics for the classification by department and control
unit.
• Provide a statement regarding any existing underutilization and plans to recruit a
diverse pool of qualified candidates.

3. Well Prepared Employee Requisition

• Essential functions should include the fundamental job duties of the position.
• Minimum requirements should reflect skills, knowledge and abilities required to
perform the essential functions of the position.
• Determine if an external or internal recruitment will be requested.



4. Advertising Plan

• Review previous advertising response rates with Human Resources.
• List publications, including any recruitment web sites, in which advertisements will be
placed and rationale.

5. Interviewing and Selection Process

• List of committee members
• List of interview questions
• Screening Techniques
• Methods of rating and /or ranking

AN OVER VIEW OF RECRUITMENT AND CHANNEL DEVELOPMENT AT
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

Recruitment refers to the process of finding possible candidates for a job or function. It
may be undertaken by an employment agency or a member of staff at the business or
organization looking for recruits. Either way it may involve advertising, commonly in
the recruitment section of a newspaper or in a newspaper dedicated to job adverts.
Employment agencies will often advertise jobs in their windows.
A program designed to attract candidates for employment, to provide them with information
regarding employment opportunities and to assist them in applying for employment.

ADVISOR AS A PROFESSION

Life Insurance is just of the many avenues for financial outlays. When an Advisor approaches a
prospect with the proposal for life Insurance, the chances are that the prospect will not know
much about the benefits under various plans. He may be vaguely familiar with the alternative
available, but it is unlikely to sure of the details of all of them. He would need expert advice. In
other words a Life Insurance Advisor while dealing with the prospect should be thinking of his
interest and requirements and the best financial arrangements that would be appropriate in his
situation.
As an advisor of the prospect, he is expected to look after the interests of the prospects. Even the
people who are generally expects in financial matters may not be aware of the implication of
Insurance, in relation to term and conditions , warranties , exclusions, tax provisions , rights of



parties. Advisors have the dual responsibilities of being true to the interest of both the parties in
the interest. He obliged to reveal to the prospects all the important terms and conditions of the
policies even if they are restrictive and unpleasant. He is also obliged to report to the insurer all
the true facts about the prospects and the subjects of insurance. He should not mislead either.

This process initially starts with collection of data base from all the segments such as students,
business, house wives, self employed, VRS with all having minimum qualification 10 plus 2 as it
is a basic requirement. The next stage is that we either approach them to do tele calling fix an
appointment at their convenient time which is feasible to the candidate and the manger.
Presentation such as BOP is given to the client and the procedure and documentation is
explained. Lastly by fulfilling these requirements an advisor is being recruited.

TIED AGENCY:
Insurance is another name for risk transfer. The Insurer accepts the risk transfer by the insured
pools them and spreads them geographically, functionally and chronologically, thus reducing or
even eliminating the risk to the insured. The cost of this risk management is the premium, which
is paid by the insured to the insurers. In order for insurance as a business to be successful, it
necessary that the Insurance companies have business in large volumes, both in term of numbers
as well as value. This is due to the law of large numbers, which operates and helps to reduce the
risk to the insurance company its self.
The business model of insurance company is actually of great benefit to the insured as well as the
insures. The Indian population is greatly exposed to risk due to naturally calamities, disasters,
social disturbances, diseases, accidents, etc. given the above insurance helps to maintain a healthy
standard of living both for the insured and his/her dependents in the case of any unfortunate
eventuality. Despite the same however a large percentage of the Indian population is not insured.
The lack of insurance happens due to both the lack of awareness about insurance and its benefits,
as well as due to a general feeling of complacency in the general public. Insurance in India is
something that is still is purchased after lot of hard selling and persuasion. Insurance continues to
be a “PUSH” product and is not yet a “PULL” product like it is in other developed countries.
It is at this juncture that the sales and distributions channels for insurance products steps in.
distribution channels of all types are needed to create awareness about insurance and also make a
concerted effort to sell the same. Distribution channels do this through various means like
personnel contacts, direct mails, etc.



The primary factor for the success of insurance companies in a country like India is the sales, and
distribution. The basic principle of insurance the law of large numbers operates successfully in a
vast market like India only when more and more people become policy holders: and hence the
importance of sales and distribution.



Bancassurance and Alliances
The term bancassurance calls for little bit of explanation ,as this is a pretty new phenomenon in
the country . In a very simple manner this process can be defined as selling of insurance products
by banks. Banks are the deposit taking and leading institutions and include thrifts, savinsa , loans,
building socialises and other financial activities .
Banks entry into the insurance business is gathering momentum around the world and so fast is
the pace of this momentum that it is impossible to keep track of this industry world wide. Few of
the major countries, which have gone this way , are France, UK, Canada, Australia, Denmark,
Germany, Spain, the Netherlands, Japan. USA etc. there is no reason, which we could think of
why India should not be a witness to this change, in fact this will further strengthen the financial
base of the country and will help in mobilizing and channeling the much needed saving and
investments into the proper use.

Entry of banks, into the insurance market by controversies and acceptance throughout the world.
Many people say that this is the invasion of insurance market by banks , which should be the
exclusive domain of insurance companies .according to them bank have different market
( customers having excess/ less funds)and different product portfolio (that is various forma of
investing and leading products ) similarly insurance companies are suppose to sell insurance
policies . however , we feel that this is very narrow concept of banking , which has being
propagated this situation is typical to what is being referred as marketing myopia by T. levitt in
his celebrated HBR article , in which the firms are products oriented and not market oriented . If
banks and insurance companies were to stick to this model they would soon fid themselves going
down the way the mighty US railway companies have gone. So we seek the best for them to
survive is to come together.

Having established the need for relationship between the banks and insurance companies the next
question, which arises. Is that what is the like, which joins them. For banks the core guiding
philosophy is money management, on the other hand, guiding philosophy of insurance firms is
risk management. However both have a common market definition of being a provider of
financial services. Once this market is accepted it becomes imperative for insurance and banking
companies not to compete amongst each other rather the same pie. Once this view is accepted any
debate about the before mentioned threats should not sound very impressive. Here one should
remember that the partnership is of equalier, any one trying to gain an upper hand will do so at



the detriment of his own interest to all those who are still not convinced by the argument, we
would like to say that dynamics decide the entry of banks into insurance if the customer feels that
he is getting better services, surely this is a viable and wanted marriage. The market should
decide who is better and in the long run only the competent business model will survive. Apart
from this, technological progress has made possible for each of the parties to offer such a wide
range of product to their customer that the dividing line between the insurance product and
banking products is getting blurred day by day. Hence it makes sense for them to come closer to
closer to each other formally and strive for better customer services, as customer is the king.
Before moving to bancassurane in India, we would like to throw some light on the evolution of
this industry world wide.


A project report on recruitment and channel developmentat icici prudential

A project report on recruitment and channel developmentat icici prudential

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