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  2. 2. SAAB MARFIN MBA TABLE OF CONTENTS PARTICULARS PAGENUMBERS 1. Executive Summary 01-02 2. Introduction 03-14 3. Need for Insurance 15-22 4. Company Profile 23-32 5. Vision-Mission 33-36 6. Products 37-43 7. Stress Management 44-61 8. Stress Management at work place 62-82 9. Findings & Analysis 83-95 10. Suggestions 96-98 11. Limitations of the study 99-100 12. Conclusion 101-102 13. Annexure 103-106 14. Bibliography 107-108 “STRESS MANAGEMENT”
  4. 4. SAAB MARFIN MBA EXECUTIVE SUMMARY Insurance is the pooling of fortuitous losses by transfer of such risk toinsurers, who agreed to provide the pecuniary benefit on their occurance, or torender service connected with risk. It is the transfer of financial responsibilityfor the risk at the point of occurance and conventionally involves the insurer ina commitment to pay. The insurance service lead to efficient and productiveallocation of capital resources, facilitate growth of trade and commerce.Globalization will certainly increase insurance penetration and all professionalsshall equip themselves to exploit opportunities offered by this sector. ICICI PRUDENTIAL has maintained its lead amongst the private playersof life insurance with a market share of about 39%. The biggest achievement isin pension segment, where company introduced a slew of products andcaptured around 23% of the total pension market. ICICI Prudential have acustomer centric growth strategy and has taken a number ofstrategies against this. The consumers are the largest economic group in any country and thepresent day business activities are because of consumers only. Thus,consumers are the pillars of the economy. The consumers are not only theheart of marketing system, but also the controller of marketing functions. But ifthe modern marketing system consumers sovereignty has become a myth onaccount of the variety of problems in the process of merchandising. The studyof consumer behavior enables marketers to understand and predict consumerbehavior in the market place; It also promotes understanding of the role thatconsumption plays in the lives of the individual. “STRESS MANAGEMENT”
  5. 5. SAAB MARFIN MBA This gives me an opportunity to work on with this endeavor focusing onthe study of consumer behavior towards the insurance products with specialreference to ICICI PRUDENTIAL. The primary objective of the study is tounderstand the attitude and perception of the respondents towards insuranceproducts. The study gives an insight to the insurance industry. It briefly explainsabout the history of life insurance sector. It also contains the organizationalprofile of ICICI PRUDENTIAL, stating about its mile stones, vision, products,protection, solutions, advertising effectiveness and finally about its marketingstrategies and challenges. The study ends up with the suggestions in order tomodify the current system for a higher growth and progress. INTRODUCTION “STRESS MANAGEMENT”
  7. 7. SAAB MARFIN MBA INTRODUCTIONLIFE INSURANCE Life insurance is a contract providing for a payment of a sum ofmoney to the person assured or failing him to the person entitled toreceive the same on the happening of certain event. Uncertainty of deathis inherent in human life. Ii is this risk, which gives rise to the necessityfor some form of protection against the financial loss arising from death.Insurance substitutes this uncertainty by certainty. The objective ofinsurance is normally to provide: A Family Protection. B Provision for old age. INSURANCE INDUSTRYORIGIN OF INSURANCE The origin of insurance dates back to the 12th century, the origin ofinsurance appeared first in marine and land fields. The ideas ofinsurance were made in Babylonia and India at quite an early period; thecourts of Hammurabi and Mano recognized the provision for sharing thefuture losses. However there is no evidence that insurance in its presentform was practiced prior to 12th century. Tracing the history of insuranceto the present day, one can easily gauge the performance of industryboth collectively as an industry as well as individually by the companies. In earlier times, travelers by sea and land were very much exposedto risk of losing their vessels and merchandise because piracy on theopen seas and highway robbery of caravan were common. References to “STRESS MANAGEMENT”
  8. 8. SAAB MARFIN MBAsimilar practices are also found in Manab Dharma Shastra whichcontained rules for sea from contracts which was observed by traders.Insurance conceived as method of sharing of the losses embodying theprincipal of co-operation existed in the early civilization. Many may not be aware that the life insurance industry of India isas old as it is in any other part of the world. The first Indian life insurancecompany was the Oriental Life Insurance Company, which was started inIndia 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 thecountry. However, the Government of India, concerned by the unethicalstandards adopted by some players against the consumers, nationalizedthe industry in two phases in 1956 (life) and in 1972 (non-life). Theinsurance business of the country was then brought under two publicsector companies, Life Insurance Corporation of India (LIC) and GeneralInsurance Corporation of India (GIC). Reforms were initiated with the passage of Insurance Regulatoryand Development Authority (IRDA) Bill in 1999. IRDA was set up as anindependent regulatory authority, which has put in place regulations inline with global norms. So far in the private sector, 12 life insurancecompanies 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 anauthority to protect the interest of holders of insurance policies, toregulate, to promote and ensure orderly growth of insurance industries.Insurance Regulatory and Development Authority (IRDA) has sought thecomments of industry participants to finalize the guidelines for onlineagents training institutes. “STRESS MANAGEMENT”
  9. 9. SAAB MARFIN MBA These proposed guidelines are in addition to its standardinstructions and guidelines applicable for approval/renewal of agentstraining institutes. The guidelines would be applicable to all the onlinetraining institutes including in-house training institutes of the insurers. As per the draft guidelines, the applicant should undergo at least120 hours practical training in life or general insurance business. Thecomposite training should be for at least 180 hours, where the applicantis seeking license for the first time to act as an insurance agent. The duration should be minimum of 24 days for 120 hours trainingand 36 days for 180 hours training with a maximum five hours per day.Stating that no product training/market survey should be included intothis 120/180 hours training, the regulator said revision examinationcould 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/- “STRESS MANAGEMENT”
  10. 10. SAAB MARFIN MBA 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 compliedwith. 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 arerequired to observe good faith. The seller cannot mislead the buyer inrespect of transactions, but he has no subject of the contract, it is thebuyer’s duty to be careful while entering into a contract. LET THEBUYER BE AWARE is a legal rule.INSURABLE INTEREST: The owner of the property has a right under law to effect insuranceon the property if he is likely to suffer financially when property is lostor 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 insurancecontracts are not gambling transactions. “STRESS MANAGEMENT”
  11. 11. SAAB MARFIN MBAINDEMNITY: 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 principals 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 lossINSURANCE MARKET IN INDIA By any yardstick, India, with about 200 million middle classhouseholds, presents a huge untapped potential for players in theinsurance industry. Saturation of markets in many developed economieshas made the Indian market even more attractive for global insurancemajors. Life insurance is mainly considered as a saving instrument rather “STRESS MANAGEMENT”
  12. 12. SAAB MARFIN MBAthan an investment avenue as it promotes compulsory savings besidesreducing tax burden on the policyholder and protect the family of thepolicyholder in the event of unforeseen happening. It is the only savinginstrument, which covers the life risk besides giving tax concession bothat entry (premium paid) and at exitHISTORY AND PRESENT STATUS OF INSURANCE MARKET ININDIA The insurance sector in India has come a full circle frombeing an open competitive market to nationalization and back to aliberalized market again. Tracing the developments in the Indianinsurance sector reviles the 360-degree turn witnessed over a period ofalmost two centuries.A BRIEF HISTORY OF THE INSURANCE SECTOR The business of life insurance in India in its existing formstarted in India in the 1818 with the establishment of Oriental LifeInsurance Company in Calcutta. Some of the important milestones in theLife Insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted asthe first statue to regulate the life insurance business. 1928: The Insurance Companies Act enacted to enable thegovernment to collect statistical information about both life andnon-insurance business. “STRESS MANAGEMENT”
  13. 13. SAAB MARFIN MBA 1938: Earlier legislation consolidated and amended to by theInsurance Act with the objective of protecting the interest of the insuringpublic. 1956: 245 Indian and foreign insurers and provident societiesare taken over by the central government and nationalized. LIC found byan Act of Parliament, viz. LIC Act 1956, with a capital contribution ofrupees Five Crores from the Government of India.INSURANCE SECTOR REFORMS In 1993, Malhotra Committee, headed by former FinanceSecretary and RBI Governor R.N. Malhotra, was formed to evaluate theIndian insurance industry and recommend its future direction. TheMalhotra committee setup with the objective of complimenting thereforms initiated in the financial sector. The reforms where aimed at"creating a more efficient and competitive financial system suitable forthe requirements of the economy keeping in mind the structural changescurrently underway and recognizing that insurance is an important partof the overall financial system where it was necessary to address theneed for similar reforms.."In 1994, the Committee submitted the report and some of the keyrecommendations 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. “STRESS MANAGEMENT”
  14. 14. SAAB MARFIN MBA 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 passageof the IRDA Bill in the Parliament in December 1999. The IRDA since itsincorporation as statutory body in April 2000 has fastidiously stuck to itsschedule of framing regulations and registering the private sectorinsurance companies. The other decisions taken simultaneously to provide the supportingsystems to the insurance sector and in particular the life insurance “STRESS MANAGEMENT”
  15. 15. SAAB MARFIN MBAcompanies was the launch of the IRDAs online service for issue andrenewal of license to agents. The approval of institutions for imparting training to agents hasalso ensured that the insurance companies would have trained work forceof insurance agents in place to sell their products, which are expected tobe introduced by early next year. Since being set up as an independent statutory body the IRDA hasput in a framework of globally compatible regulations. In the privatesector 12 life insurance and 6 general insurance companies have beenregistered. Insurance is an Rs 400 billion business in India, and together withbanking services adds about 7% to Indias GDP. Gross premium collectionis about 2% of GDP and has been growing by 15 to 20% per annum. Indiaalso has the highest number of life insurance policies in force in theworld, and total investable funds with the LIC are almost 8% of GDP. Yetmore than three fourth of Indias insurable population has no lifeinsurance or pension cover. Health insurance of any kind is negligibleand other forms of non life insurance are much below internationalstandards. To tap the vast insurance potential and to mobilize long termsavings we need reforms which include revitalizing and restructuring ofthe public sector companies, and opening up the sector to privateplayers. A statutory body needs to be made to regulate the market andto promote a Healthy market structure. Insurance Regulatory Authority(IRA) is one such body, which checks on these tendencies. IRA rolecomprises of following three functions: a. Protection of consumers interest “STRESS MANAGEMENT”
  16. 16. SAAB MARFIN MBA 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 thefinancial loss arising from a specified risk. Different situations anddifferent people require a different mix of risk-cost combinations.Insurance companies provide these by offering schemes of differentkinds. Unfortunately, the concept of insurance is not possible in ourcountry. As per the latest estimates, the total premium income generatedby life and general insurance in India is estimated at around 1.95% of GDP.How ever Indias share of world insurance market has shown an increaseof 10% from 0.31% in 1996-97 to 0.34% in 1997-98. Indias market sharein the life insurance business showed a real growth of 11% there byoutperforming global average of 7.7%. Non life insurance business grewby 3.1% against global average of 0.20%. In India insurance pending percapita was among the last in the world at $7.6 compared to $7 in theprevious year . Amongst the emerging economies, India is one of theleast insured countries but the potential for growth is phenomenal, as asignificant portion of its population is in services and the life expectancyalso increased over the years. The nationalized insurance industry has not offered consumers avariety of products. Opening of the sector to private firms will fostercompetition, innovation and variety of products. It would also generategreater awareness on the need for buying insurance as a service and notmerely for tax exemption, which is currently done on the demand side, astrong correlation between demand for insurance and per capita incomelevel suggests that high economic growth can spur growth in demand forinsurance. Also there exists a strong correlation between insurance “STRESS MANAGEMENT”
  17. 17. SAAB MARFIN MBAdensity and social indicators such as literacy. With social development,insurance demand will grow. “STRESS MANAGEMENT”
  18. 18. SAAB MARFIN MBA LIFE INSURANCE MARKET IN INDIA Life Insurance StatisticsIndian Population I bnGDP as on 2000 ( Rs bn) 50000 bnGross Domestic Saving as a % of GDP 32%NCAER estimate is Insurance 240 mnPopulationEstimated 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 ofpenetration of life insurance in India compared to other developednations can be judged by a comparison of per capita life premium.Country Life Premium per capita US $ in 1994Japan 3817UK 1280USA 964India 4 Clearly, there is considerable scope to raise per capita life premiumin the market is effectively tapped. India has traditionally been a highsavings oriented country often described as being on par with thriftyJapan. Insurance sector in the US is a big in the size as the bankingindustry there. This gives us an idea of how important is the sector is.Insurance sector canalizes the saving of the people to long-term “STRESS MANAGEMENT”
  19. 19. SAAB MARFIN MBAinvestments. 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 tobe under some sort of an insurance cover. Thus assuming a premium ofRs 5000 on an average, 100 million Rs 5000 = Rs 500 billion. This has made the sector the hottest one in India after IT. Withsocial security and security to public at large being the agenda foropening the sector, the role of the regulator becomes all the moreserious and one would be carefully watched at every step. The Insurance Regulator and Development bill is now an Act. Withthis India is now the cynosure of all the global insurance players.Numerous player, both Indian and foreign have announced their intentionto 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 andthe emerging economies is that insurance products are bought in theformer while these are sold in later. Focus if insurance industry ischanging towards providing a mix of both protection/risk cover andlong-term investment opportunities. “STRESS MANAGEMENT”
  21. 21. SAAB MARFIN MBAWHY LIFE INSURANCE? Life insurance cover is essential for it provides the followingbenefits: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 ourfamily. If you care for your familys needs you will definitely considerinsurance. Today insurance has become even more important due to thedisintegration of the prevalent joint family system, a system in which anumber of generations co-existed in harmony, a system in which a senseof financial security was always there as there were more earningmembers. Times have changed and the nuclear family has emerged. Apartfrom the other pitfalls of a nuclear family, a high sense of insecurity is “STRESS MANAGEMENT”
  22. 22. SAAB MARFIN MBAobserved in it today besides, the family has shrunk. Needs are increasingwith 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 cannotfritter away all your earnings. You need to save a part of it for the futuretoo 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 thereasons why insurance has gained importance and where insurance playsa successful role.An OverviewInsurance business is divided into four classes:1) Life Insurance business2) Fire3) Marine4) Miscellaneous Insurance. Life Insurers transact life insurance business; the rest is transactedby General Insurers. No composites are permitted as per law. Thebusiness of Insurance essentially means defraying risks attached to anyactivity over time (including life) and sharing the risks between variousentities, both persons and organizations. Insurance companies (ICs) areimportant 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 “STRESS MANAGEMENT”
  23. 23. SAAB MARFIN MBA 2. Accumulate savings 3. Canalize savings into sectors needing huge long terminvestments. ICs receive, without much default, a steady cash stream ofpremium or contributions to pension plans. Various actuary studies andmodels enable them to predict, relatively accurately, their expected cashoutflows. 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 oflife-cover to the investors, the rate of return guaranteed in theirinsurance policies is relatively low. Consequently, the need to seek highrates of returns on their investments is also low. The risk-return trade offis heavily tilted in favour of risk. As a combined result of all this,investments of insurance companies have been largely in bonds floatedby GOI, PSUs, state governments, local bodies, corporate bodies andmortgages of long term nature. The last place where Insurancecompanies are expected to be over-active is bourses. Lately ICs have ventured into pension schemes and mutual fundsalso. However, life insurance, constitutes the major share of insurancebusiness. Life Insurance depends upon the laws of mortality and therelies the difference between life and general insurance businesses. Life hasto extinguish sooner or later and the claim in respect of life is certain. Incase of general insurance, however, there may never be a claim and theamount can never be ascertained in advance. Hence, Life Insuranceincludes, besides covering the risk of early happening of an event, anelement of savings also for the beneficiaries. Pension business alsoderives from life insurance in as much as the pension outgo again “STRESS MANAGEMENT”
  24. 24. SAAB MARFIN MBAdepends upon the laws of mortality. The forays made by insurancecompanies 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 PlansTerm Insurance Plans: “STRESS MANAGEMENT”
  25. 25. SAAB MARFIN MBA Pure life covers where you pay for risk cover and do not expectto receive anything else in return is now available in India. Opting forsuch policy will improve the efficiency of policy premium and enable youfor a bigger risk cover for the same cost. These are term insurance planswith maturity benefits; some term plans give your premium amountsback with interest. This is a marketing policy to suit the generalpsychology and should normally involve higher premium cost.Whole life insurance plans: Whole life policies require you to pay premium through out yourlife 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, moneyback policies involve paying highest premium. They give you maturitybenefits (normally sum assured) and additional profit by way of bonus,guaranteed additions; loyalty bonus etc. money policies also providepartial payment back to you at pre-set time periods. “STRESS MANAGEMENT”
  26. 26. SAAB MARFIN MBA DEFINITION OF SOME TYPES OF POLICIES1. ANNUITY An annuity is a steady stream of equal payments that one receivesevery year, or every month either for life or a fixed number of years, asreturn after making an investment either as a lump sum or throughinstallments paid over a certain number of years, a specific sum. Uponthe death of the annuitant, or at the expiry of the period fixed for annuitypayments, the invested annuity fund is refunded usually along with asmall bonus. Annuities differ from all other forms of life insurance in onefundamental way-they do not provide any insurance cover but offer aguaranteed income for a certain period or for life. Typically annuities are bought to generate income during onesretired life, which is why they are also called pension plans. An annuityprovides a solution to the biggest financial insecurity of old age retiresand the income from salary ceases.2. ENDOWMENT Endowment policies cover the risk for a specified period at the endof which the sum assured is paid back to the policyholder along with theentire bonus accumulated during the term of the policy. It is this featurethe payment of the endowment to the policyholder upon the completionof the policys term, which rightly accounts for the popularity ofendowment policies. Typically, ones responsibility for the financial protection of thefamily reduces significantly once the children are grown up andindependently settled. The focus then shifts to managing a smaller familyperhaps only oneself and ones spouse after retirement/ this is where theendowment the original sum assured and the accumulated bonus “STRESS MANAGEMENT”
  27. 27. SAAB MARFIN MBAreceived back comes handy. You can either use the endowment amountfor buying an annuity policy to generate a monthly pension for the wholelife, or put it in any other suitable investment of your choice. This is themajor benefit of an endowment policy over a whole life.3. MONEY BACK Unlike endowment plans, in money back policies the policyholdergets periodic "survivance payments" during the term of the policy and alump sum amount on surviving its term. In the event of the death duringthe term of the policy, the beneficiary gets full sum assured without anydeductions for the amount paid till date, and no further premiums arerequired to be paid. These types of policies are very popular, since theycan be tailored to get large amount at a specific periods as per the needsof the policyholder.FUTURE OF LIFE INSURANCE MARKET Even at modest estimates the size of life insurance market in Indiacould be around Rs. 40000 billion covering just 250 mn people… LIC had enjoyed the monopoly of the big life insurance marketsince 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 lifeinsurance cover. In fact LIC did attempt to evaluate the size of the marketand look at broad homogeneous segments of the market based on thedata provided by Decennial Census Report relating to worker populationcategorized into groups based on occupations. However LICs majorsegmentations were the urban, rural, male, female, medical andnon-medical segments. The census of occupation data was used more asa framework for formulating the business plans. But, now with the entryof new player, very conscious of their market shares, the evaluation of the “STRESS MANAGEMENT”
  28. 28. SAAB MARFIN MBAsize of the market for life insurance assumes importance. The marketsize with its viable segments is to be identified and suitable products tomeet the needs of these segments developed. Life insurance market covers the entire age range of thepopulation of 1000 mn in India. However taking into account theireconomic conditions and their ability to pay the premium for somesort life insurance cover or an annuity, the number of eligibleprospects for life insurance may be put around 30% of the totalpopulation viz, 300 mn. LIC has on its books as on date 125 mnpolicies. Research had shown, that each of these holders of thepolicies have on an average, 1.6 (as many policy holders have morethan one policy). Thus the no of persons holding life insurancepolicies with LIC good work out to 75 mn. This means only 25% ofthe potential market has so far covered, leaving the remaining 75%- avast market of 225 mn persons- to be covered.Market size ever expanding…This market size is dynamic and ever expanding. The growth is dictatedby 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 “STRESS MANAGEMENT”
  29. 29. SAAB MARFIN MBA 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 ofthe market for life insurance in India is enormous. Assuming the numberof persons who can be sold an insurance policy to be 250 mn, in terms ofnumber 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 worksout to Rs 40000 bn or $ 800 bn. The first years premium income can beassume as Rs 6250 per annum per policy. The figures would keepincreasing year by year due to the improvement in the economicconditions leading to increase in the number of potential prospects . “STRESS MANAGEMENT”
  31. 31. SAAB MARFIN MBA COMPANY PROFILEICICI GROUPOVERVIEW OF ICICI BANK ICICI Bank is Indias second-largest bank with total assets of aboutRs.146,214 crore at December 31, 2004 and profit after tax of Rs. 1,391crore in the nine months ended December 31, 2004 (Rs. 1,637 crore infiscal 2004). ICICI Bank has a network of about 530 branches andextension counters and over 1,880 ATMs. ICICI Bank offers a wide rangeof banking products and financial services to corporate and retailcustomers through a variety of delivery channels and through itsspecialized subsidiaries and affiliates in the areas of investment banking,life and non-life insurance, venture capital and asset management. ICICIBank set up its international banking group in fiscal 2002 to cater to thecross-border needs of clients and leverage on its domestic bankingstrengths to offer products internationally. ICICI Bank currently hassubsidiaries in the United Kingdom and Canada, branches in Singaporeand Bahrain and representative offices in the United States, China, UnitedArab Emirates, Bangladesh and South Africa “STRESS MANAGEMENT”
  32. 32. SAAB MARFIN MBA ICICI Banks equity shares are listed in India on the Stock Exchange,Mumbai and the National Stock Exchange of India Limited and itsAmerican Depositary Receipts (ADRs) are listed on the New York StockExchange (NYSE). As required by the stock exchanges, ICICI Bank has formulated aCode 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 thecompanies listed on the Indian stock exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, anIndian financial institution, and was its wholly-owned subsidiary. ICICIsshareholding in ICICI Bank was reduced to 46% through a public offeringof shares in India in fiscal 1998, an equity offering in the form of ADRslisted on the NYSE in fiscal 2000, ICICI Banks acquisition of Bank ofMadura Limited in an all-stock amalgamation in fiscal 2001, andsecondary market sales by ICICI to institutional investors in fiscal 2001and fiscal 2002. ICICI was formed in 1955 at the initiative of the WorldBank, the Government of India and representatives of Indian industry. Theprincipal objective was to create a development financial institution forproviding medium-term and long-term project financing to Indianbusinesses. In the 1990s, ICICI transformed its business from adevelopment financial institution offering only project finance to adiversified financial services group offering a wide variety of productsand services, both directly and through a number of subsidiaries andaffiliates like ICICI Bank. In 1999, ICICI become the first Indian companyand the first bank or financial institution from non-Japan Asia to be listedon the NY After consideration of various corporate structuringalternatives in the context of the emerging competitive scenario in theIndian banking industry, and the move towards universal banking, the “STRESS MANAGEMENT”
  33. 33. SAAB MARFIN MBAmanagements of ICICI and ICICI Bank formed the view that the merger ofICICI with ICICI Bank would be the optimal strategic alternative for bothentities, and would create the optimal legal structure for the ICICI groupsuniversal banking strategy. The merger would enhance value for ICICIshareholders through the merged entitys access to low-cost deposits,greater opportunities for earning fee-based income and the ability toparticipate in the payments system and provide transaction-bankingservices. The merger would enhance value for ICICI Bank shareholdersthrough a large capital base and scale of operations, seamless access toICICIs strong corporate relationships built up over five decades, entryinto new business segments, higher market share in various businesssegments, particularly fee-based services, and access to the vast talentpool of ICICI and its subsidiaries. In October 2001, the Boards ofDirectors of ICICI and ICICI Bank approved the merger of ICICI and two ofits wholly-owned retail finance subsidiaries, ICICI Personal FinancialServices Limited and ICICI Capital Services Limited, with ICICI Bank. Themerger was approved by shareholders of ICICI and ICICI Bank in January2002, by the High Court of Gujarat at Ahmedabad in March 2002, and bythe High Court of Judicature at Mumbai and the Reserve Bank of India inApril 2002. ICICI Bank is Indias second largest bank wit an asset base of Rs.106812 crores. ICICI bank provides a broad spectrum of financial servicesto individuals and companies. This includes mortgages, car and personalloans, credit and debit cards and corporate and agricultural finance. Thebank services a growing customer base of more than 7 mn customeraccounts and five mn bondholders accounts through a multi channelaccess network. The includes about 450 branches and extension counters,1675 ATMs, call centers and Internet banking. ICICI bank posted a netprofit of Rs 1206 Crore for the year ended March 31, 2003. ICICI bank is “STRESS MANAGEMENT”
  34. 34. SAAB MARFIN MBAthe only Indian company to be rated above the country rating by theinternational rating agency Moodys and only the Indian company to beawarded an investment grade international credit rating. The enjoys thehighest rating from all Indian leading rating agencies.OVERVIEW OF ICICI VENTURE WINGICICI Venture, incorporated in 1988, is the most experienced and largestprivate equity and venture fund management company in India with fundscurrently under management in excess of Rs.20 billion (USD 400 million). Over the last 15 years, ICICI Venture has been successful inidentifying trends well ahead of the curve; be it retail, media andentertainment, information technology, real estate or pharmaceuticalsand biotechnology. During this period ICICI Venture launched andmanaged 8 funds with a corpus exceeding Rs. 20billion (USD 400 million).Each fund had a distinct investment theme and ICICI Venture today hassome of the best known and managed companies in India in its portfolio. “STRESS MANAGEMENT”
  35. 35. SAAB MARFIN MBAHerein ICICI Venture has followed the philosophy of being a multi-sectorplayer ensuring an optimum balance of risk and return to its investors. ICICI Venture has the distinction of managing a large number ofexits in the country. With over 100 liquidity events, the organization hasreaped rich experience and is well positioned to handle IPOs, strategicsale and/or mergers. ICICI Venture has a wide network of third party investors, whichinclude domestic investors such as public sector banks, financialinstitutions and insurance companies. A significant portion of the fundscorpus is also from international development financial institutions andinternational funds. The company has over 25 qualified professionals with experienceacross sectors and functions. The capabilities of the team, structure ofthe organization, emphasis on value creation and performance evaluationmatrices enable ICICI Venture to extract superior returns from itsinvestments. ICICI Venture has now launched the India Advantage Fund, with acorpus of Rs.10 Billion (USD 225 million). The Fund will invest inmid-sized growth companies for funding through expansions,acquisitions and restructuring. The Fund will also focus on mezzaninefunding and buyouts.ICICI PRUDENTIAL “STRESS MANAGEMENT”
  36. 36. SAAB MARFIN MBA ICICI PRUDENTIAL Life Insurance was established in 2000 with acommitment to expand and reshape the life insurance industry in India.The company was amongst the first private sector insurance company tobegin operations after receiving approval from Insurance RegulatoryDevelopment Authority (IRDA), and in the same time since, has takenseveral steps towards realizing its goal.THE COMPANY ICICI PRUDENTIAL Life Insurance Company is a joint venturebetween ICIC, a premier financial powerhouse and prudential plc; aleading international financial services group headquarters in the UnitedKingdom. ICICI Prudential was amongst the first private sector insurancecompany to begin operations in December 2000 after receiving approvalfrom Insurance Regulatory Development Authority (IRDA). ICICI and PRUDENTIAL came together in 1993 to form prudentialICICI Asset Management Company, which has today emerged as one ofthe leading mutual funds in India. The two companies bring together twoof the strongest financial service brands in Asia, known for theirprofessionalism, excellent quality of service and long term commitmentto customers. Riding on the success of this relationship, the twocompanies joined hands once more in 2000, to form ICICI PRUDENTIALLIFE INSURANCE, with a commitment to provide leading -edge lifeinsurance solutions. ICICI Bank has 74% stake in the company, andPrudential plc has 26%. To make ICICI Prudential the dominant Life and Pensions playerbuilt on trust by world-class people and service.This we hope to achieve by: “STRESS MANAGEMENT”
  37. 37. SAAB MARFIN MBA 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 unflinchingcommitment to 5 core values -- Integrity, Customer First, Boundaryless,Ownership and Passion. Each of the values describe what the companystands for, the qualities of our people and the way we work We do believe that we are on the threshold of an exciting newopportunity, where we can play a significant role in redefining andreshaping the sector. Given the quality of our parentage and thecommitment of our team, there are no limits to our growth.PRUDENTIAL PLC Established in 1848, Prudential Plc is a leading internationalfinancial services company in UK with around US $ 250 bn funds undermanagement, and more than 16 million customers worldwide. Prudentialhas brought to market an integrated range of financial services productsthat now includes: life assurance pensions mutual funds “STRESS MANAGEMENT”
  38. 38. SAAB MARFIN MBA banking investment management general insurance In Asia Prudential is UKs largest life insurance company with a vastnetwork 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 haschampioned customer centric products and services, supported by over60000 staff and agents across the region.DISTRIBUTION ICICI PRUDENTIAL has one of the largest distribution networksamongst private life insurance in India, having commenced operations in28 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, Federalbank, South Indian Bank, Bank of India, Lord Krishna Bank, Punjab andMaharashtra co-operative Bank, as well as some corporate agents. It hasalso tied-up with organizations like Dahn for distribution of SalaamZindagi, a policy for the socially and economically under privilegesections of society.SERVICE ICICI PRUDENTIAL has recruited and trained over 18000 insuranceagents to interface with and advice customers, and has the highest “STRESS MANAGEMENT”
  39. 39. SAAB MARFIN MBAnumber amongst private life insurers on the renowned Million DollarRound table (MDRT). Further, it leverages its state-of-the-art ITinfrastructure to provide superior quality of service to customers.MILESTONES ICICI PRUDENTIAL life insurance has crossed Rs 500 crore premiumincome mark on March 31, 2003 having issued nearly 350000 policies fora sum assured of Rs 8700 crore since its inception. The last fiscal had been significant growth for ICICI PRUDENTIALacross all segments, with 246827 policies issued in the period April2002-March 2003, and Rs 348 Crore premium from new business in thesame period, a 200 per cent growth over the previous fiscal (April2001-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 linkedproducts. It has garnered 23% of pensions premium amongst all playersfor the period April 2002-February 2003 and 34% in Feb alone. Today thecompany has established itself the number one private life insurer in thecountry.HISTORY: Incorporated on July 20, 2000 it is a 74:26, joint venture betweenICICI and Prudential plc of U.K. in November 2000, ICICI Prudential LifeInsurance was granted Certification of Registration for carrying out LifeInsurance business by the insurance Regulatory & Development Authorityof 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 privatelife insurer in India. ICICI Prudentials annualized premium grew more “STRESS MANAGEMENT”
  40. 40. SAAB MARFIN MBAthan three fold over the previous year. Continuing with its CustomerFirst philosophy, ICICI Prudential has significantly expanded its presenceto 29 operational Branches (2001-2002: 16), with the Advisor Forcegrowing to over 18000. It has also strengthened its Alternate Distributionchannels, i.e. Bancassurance, Corporate Agents and Direct Marketing,making purchase of insurance more accessible. Bancassurance and DirectMarketing channels have contributed to over 18% of the AnnualizedPremium. ICICI Prudential was amongst the first to identify the emergingopportunity in the Pension segment and launched two linked pensionproducts Life time Pension and Life Link Pension, which have been wellreceived in the market. MANAGEMENTBOARD OF DIRECTORS ICICI Prudential Life Insurance Company Limited Board comprisesreputed people from the finance industry both from India and abroad.Mr. K.V. Kamath, ChaimanMr. Mark NorbonMrs. Lalita D. GupteMrs. Kalpana MorpariaMrs. Chanda KochharMr. Kevin HolmgrenMr. M.P.ModiMr. R NaryananMs Shikha Sharma “STRESS MANAGEMENT”
  41. 41. SAAB MARFIN MBAMANAGEMENT TEAMMs Shikha Sharma, Managing DirectorMr. Sandeep Batra, Chief Financial Officer & Company SecretaryMr. Shubhro J. Mitra, Chief - Human ResourcesMr. Puneet Nanda, Head - InvestmentsMs. Anita Pai, Chief - Operations & UnderwritingMr. V. Rajagopalan, Appointed ActuaryMr. Shridhar Sethuram, Chief - Sales & MarketingMr. Anil Tikoo, Head - Information Technology. “STRESS MANAGEMENT”
  42. 42. SAAB MARFIN MBA VISION-MISSIONVISION To make ICICI Prudential the dominant Life and Pensions playerbuilt 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. “STRESS MANAGEMENT”
  43. 43. SAAB MARFIN MBA 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 unflinchingcommitment to 5 core values: Integrity Customer First Boundaryless Ownership Passion Each of the values describe what the company stands for, thequalities of our people and the way we work. We do believe that we areon the threshold of an existing new opportunity, where we can play asignificant role in redefining and reshaping the sector. Given the qualityof our parentage and the commitment of our team, there are no limits toour growth.VISION-MISSION To be dominant life and pension players built on trust byworld class people and service.INTEGRITY “STRESS MANAGEMENT”
  44. 44. SAAB MARFIN MBA 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 partnersBOUNDARYLESS 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 functionsOWNERSHIP 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 performancePASSION “STRESS MANAGEMENT”
  45. 45. SAAB MARFIN MBAWinning instinct- transmit boundless energy and enthusiasmto drive resultsStand up and make a difference - challenge status quo anddrive changeDemonstrate speed for competitive advantagePassionately nurture and reward excellence “STRESS MANAGEMENT”
  46. 46. SAAB MARFIN MBA PRODUCTS PRODUCTSInsurance Solutions For Individuals: “STRESS MANAGEMENT”
  47. 47. SAAB MARFIN MBA ICICI PRUDENTIAL Life Insurance offers a range of innovative, customercentric products that meet the needs of customer at every life stage. Its 13products can be enhanced with up to four riders, to create a customizedsolution for each policyholder.Saving Solutions ICICI PRUDENTIAL Save and Protect is a traditional endowmentsavings plan that offers life protection along with adequate returns. ICICI PRUDENTIAl CashBank is an anticipated endowment policyideal for meeting milestone expenses like a childs marriage, expensesfor childs education or purchase of an asset.Protection Solutions ICICI PRUDENTIAL Life Guard is a protection plan, which offers lifecovers at very low cost. It is available in three options - level termassurance, level assurance with return of premium and single premium.Child Solutions ICICI PRUDENTIAL Smart Kid provides guaranteed educationalbenefits to a child along with life insurance cover for the parent whopurchases the policy. The policy is designed to provide money atimportant milestones in childs life.Market Linked Solutions ICICI PRUDENTIAL LifeLink is a single premium Market LinkedInsurance Plan, which combines life insurance cover with the opportunityto stay, invested in the stock market. “STRESS MANAGEMENT”
  48. 48. SAAB MARFIN MBA ICICI PRUDENTIAL LifeTime offers customers the flexibility andcontrol to customize the policy to meet the changing needs at differentlife stages. It offers three investment options Growth Plan Income Plan Balanced PlanRetirement Solutions ICICI PRUDENTIAL Forever Life is retirement product targeted at individuals in their 30s 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 forcompanies seeking to enhance benefits to their employees. “STRESS MANAGEMENT”
  49. 49. SAAB MARFIN MBA ICICI PRUDENTIAL Group Gratuity Plan: ICICI Prus Group GratuityPlan helps employers fund their statutory gratuity obligation in ascientific manner. The plan can also be customized to structure schemesthat can provide benefits beyond the statutory obligations.ICICI PRUDENTIAL GROUP SUPERANNUATION PLAN: ICICI Pru offers a flexible defined contribution superannuationscheme to provide a retirement kitty for each member of the group.Employees have the option of choosing from various annuity options oropting for a partial commutation of the annuity at the time of retirement.ICICI PRUDENTIAL GROUP TERM PLAN: ICICI Prus flexible group term solution helps to provide affordablecover to members of a group. The cover could be uniform or baseddesignation or rank or a multiple of salary. The benefit the policy is paidto the beneficiary nominated by the member on his/her death.FLEXIBLE RIDER OPTIONS; ICICI PRUDENTIAL life offers for flexible riders, which can be addedto the basic policy at a marginal cost, depending on the specific needs ofthe 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 “STRESS MANAGEMENT”
  50. 50. SAAB MARFIN MBA 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 lifescommunication strategies have been very successful in building thebrand and driving awareness of the company and the category.ORG-Margs Brand track survey undertaken last year indicate that thoughawareness of LIC stands at 100%, ICICI Pru life stands not far behind inthe second place at 70%. Further the awareness scores for ICICI Pru lifedouble between February 2001 and September 2001. ORG Marg research also showed that the communication not onlycreated saliency and awareness, but also succeeded in influencing thebuying decision. ICICI Pru life emerged far ahead of other private playersas far as share of wallet went, with 52% of the respondents saying thatthey intended to buy policy from ICICI Pru life.ADVERTISING EFFECTIVENESS… ICICI Pru is a case study in the role of marketing in reshaping anindustry. It highlights how an industry where "sell" and "push" were oftenused words and consumer was nothing more than a file number, haschanged to one where "consumer preference" and "consumer pull" rulethe roost. Heres a look at how ICICI Pru changed the rules of the gamesand emerged a leader in the process. “STRESS MANAGEMENT”
  51. 51. SAAB MARFIN MBABACKGROUND When the insurance sector was liberalized in 2000, the privateplayers contend with a few issues. Ratio of premium to GDP was low:1.3% of GDP was invested in insurance. Insurance penetration was at anabysmal 22% of insurable population. Besides the above the privateplayers were faced with attitudinal barriers, perception of insurance has atax saving tool and lack of a consumer centric approach in service andproduct 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 evaluatedinsurance on a more emotional plat form rather than a mere rationaldecision. (tax savings).THE CAMPAIGN OBJECTIVES: Reposition the category in the consumers 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 relook at insurance as a means to lead a worry free life and not as anecessary evil. To this effect the core brand insight highlighted was "As “STRESS MANAGEMENT”
  52. 52. SAAB MARFIN MBAhead of the family, it is my responsibility to take care of my loved onesand protect them from the uncertainties of life", summed up in theadvertising idea: we cover you at every step in lifeMARKET STRATEGY: In a market likely to be cluttered, we used multiple touch points toreach the consumer. The role for each medium was envisaged. The TVmedium was used to enhance the emotional link with the brand. Strategicuse of 15 sec. Edits facilitated high frequency levels. In print, the cost perresponse rather than the cost per thousand as responses were measuredin form of call-ins. Radio FM, Cinema, Internet were used to create amedia multiplier effect.THE RESULTS OF COMMUNICATION EFFORTS: Being number one in awareness and saliency. Awareness: ICICI Prushowed a significant jump in awareness between Feb and Sept 2001.Image: highest score among all insurance players including LIC, on imageparameters like safety, modernity, service, good returnsEtc. intention to invest: next only to LIC as per researchSUM UP In just over a year ICICI PRUDENTIAL has emerged as Indias # 1private life insurance company with almost 50% of the private players hassold highest number of policies both in volume and value. “STRESS MANAGEMENT”
  54. 54. SAAB MARFIN MBAANALYSIS OF THE QUESTIONNARIE OF THE EMPLOYEES1. Do you have various other interests (social, religious), which remain neglected because you do not get time to attend to these Never 8% “STRESS MANAGEMENT”
  55. 55. SAAB MARFIN MBAOccasionally 4%Sometimes 52%Frequently 36%Very 0% “STRESS MANAGEMENT”
  56. 56. SAAB MARFIN MBA2. Do you feel stagnant in your role Never 4% Occasionally 12% Sometimes 32% Frequently 52% Very 0% “STRESS MANAGEMENT”
  57. 57. SAAB MARFIN MBA3. Are you able to satisfy the conflicting demands of the various peerlevel people Never 12% Occasionally 24% Sometimes 24% Frequently 36% Very 4% “STRESS MANAGEMENT”
  59. 59. SAAB MARFIN MBA4. Would you like to take more responsibility than at present Never 8% Occasionally 24% Sometimes 16% Frequently 36% Very 16% “STRESS MANAGEMENT”
  60. 60. SAAB MARFIN MBA5. The amount of work you have to do interferes with the quality youwant to maintain Never 4% Occasionally 4% Sometimes 48% Frequently 40% Very 4% “STRESS MANAGEMENT”
  61. 61. SAAB MARFIN MBA6. Is there not enough interaction between your role and other roles “STRESS MANAGEMENT”
  62. 62. SAAB MARFIN MBANever 8%Occasionally 8%Sometimes 32%Frequently 52%Very 0% “STRESS MANAGEMENT”
  63. 63. SAAB MARFIN MBA7. Do you wish to acquire more skills to handle the responsibilities ofyour role Never 4% Occasionally 8% Sometimes 20% Frequently 32% Very 36% “STRESS MANAGEMENT”
  64. 64. SAAB MARFIN MBA8. If you had full freedom to define your role you would be doingsome things different from what you do now Never 0% “STRESS MANAGEMENT”
  65. 65. SAAB MARFIN MBAOccasionally 16%Sometimes 44%Frequently 20%Very 20% “STRESS MANAGEMENT”
  66. 66. SAAB MARFIN MBA9. Several aspects of your role are vague and unclear Never 40% Occasionally 16% Sometimes 12% Frequently 32% Very 0% “STRESS MANAGEMENT”
  67. 67. SAAB MARFIN MBA10. Do you wish to have more financial resources for the workassigned to you Never 4% Occasionally 4% Sometimes 4% Frequently 28% Very 60% “STRESS MANAGEMENT”
  70. 70. SAAB MARFIN MBAMost of the employees feel that their other social aspectsremain neglected due to workload, which is incompatiblewith organizational role.Most of the employees feel that their roles are stagnantSome of the employees are not able to satisfy the conflictingdemands of the various peer level people.Most of the employees would like to take more responsibility thanthe presentMost of the employees feel that their work interferes with thequality they want to maintain in their jobMost of the employees feel that there is not enough interactionbetween their role and other roles because each one of them isworking independently.Most of the employees wish to acquire more skills to handle theresponsibilities of their roleSome of the employees feel that if they are given full freedom todefine their role they will do some things different from what theydo now.Most of the employees feel that they should be provided with morefinancial resources for the work assigned. “STRESS MANAGEMENT”
  72. 72. SAAB MARFIN MBASUMMARY OF SUGGESTIONS When an individual occupies more than 1 role there are bound to be conflicts between the different roles that he occupies. Such inter-role conflicts are quite frequent in a modern society, where an individual is increasingly occupying multiple roles in various organizations and groups. So the organization should throw a light on their employees social aspects. The organization should improve the facilities for leisure and recreation; fact of people doing things for enjoyment, when they are not working. The organization should arrange programs for entertainment. Also a place for relaxation. Create a place for indoor games like carom, table tennis etc As the individual grows older, he also grows in the role that he occupies in an organization of the individual that the role changes, and with this change in role, the need for taking up a new role becomes crucial. In order to be “STRESS MANAGEMENT”
  73. 73. SAAB MARFIN MBApromoted the nit managers have to reach certain targetsset to them. Reaching these targets sometimes becomesvery difficult. This is bound to produce stress. Thus theorganization should have a systematic strategy ofmanpower development.When there are conflicting expectations or demands bydifferent role senders, the role occupant may experiencethis stress. But most of the employees are able to satisfythe demands of the various peer level people.But some employees are not able to satisfy theexpectations from the boss, subordinates, peers orclients. The organization should provide the employeeswith full information about the products so that they areable to satisfy the peers or clients.A role occupant may feel that the functions, which hewould like to perform, are being performed by someother role. The stress felt may be called role erosion.Some important role expectations of the employee areshared by other roles within the role set. So theorganization should give a chance to employees who arewilling to take more responsibilities to enhance their “STRESS MANAGEMENT”
  74. 74. SAAB MARFIN MBAperformance. And thus provide training, guidance andassistance to the employeesWhen the role occupant feels that there are too manyexpectations from the significant others in his role set,he experiences role overload. Some employees feel thatthey cannot possibly finish the work within the time limit.The employees should be given sufficient time tocomplete the work since it is an insurance industry,getting the policies is quite difficultWhen a role occupant feels that he is not prepared toundertake the role effectively, he may experience thisstress. Almost all the employees wish to acquire moreskills because the organization is launching newproducts in the market for the clients and so the “STRESS MANAGEMENT”
  75. 75. SAAB MARFIN MBAemployees should posses enough knowledge, skills,training about the product because without enoughpreparation or orientation they are likely to experiencethis type of stressSo the organization should prepare the employees for theassigned new role.This stress arises out of the conflict between theself-concept and the expectations from the role, asperceived by the role occupant. Such conflicts arecommon, although they may not be so severe. Someemployees are willing to do things different from whatthey do now. So the organization should support suchemployees so that they can generate good business,which in turn will benefit the employees and also theorganization.Resource Inadequacy stress is experienced when theresources required by the role occupant for performingthe role effectively are not available, such as information,people, materials, finance or other facilities. The unitmanagers have to recruit 25 advisors to generatebusiness from them. For this purpose they have to go for “STRESS MANAGEMENT”
  76. 76. SAAB MARFIN MBAfieldwork and hunt for them. So in this process they haveto spend the money in looking out for the efficientpeople. So the company so provides financial resourcesand transportation facilities to the employees. This willreduce the stress of the employees and thus they will beable to perform they role effectively with the availabilityof adequate resources. “STRESS MANAGEMENT”
  77. 77. SAAB MARFIN MBALIMITATIONS LIMITATIONS OF THE STUDY Since private life insurance is the new theory in the Indian market, an in depth study was not possible. Some of the Unit Managers were engaged in their work and were not able to give their opinion about their working process. “STRESS MANAGEMENT”
  80. 80. SAAB MARFIN MBA CONCLUSION To conclude, I would like to say that working with ICICIPrudential for 2 months was a great experience. And I feel proud be anadvisor of an esteemed company, as ICICI Prudential is known for itsleadership in the private life insurance sector. The company should plan ahead and practice good timemanagement. It should also help the employees to develop a soundphilosophy of life and maintain a positive attitude.Stress Management by organization should be designed to reduce theharmful effects of stress in a way Help employees modify their perception and understanding of work stress Help employees cope more effectively with the consequences of stress. Help the employees to identify and then modify or eliminate work stressors “STRESS MANAGEMENT”
  82. 82. SAAB MARFIN MBA “A study on Stress Management 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. Thuskindly co-operateName of employee :Age :Gender : Male FemaleMarital Status : Married UnmarriedOccupation :1.Do you have various other interests (social, religious), which remain neglected because you do not get time to attend to these Never Occasionally Sometimes Frequently Very (0) (1) (2) (3) Frequently (4)2. Do you feel stagnant in your role Never Occasionally Sometimes Frequently Very (0) (1) (2) (3) Frequently (4)3. Are you able to satisfy the conflicting demands of the various peer level people Never Occasionally Sometimes Frequently Very (0) (1) (2) (3) Frequently “STRESS MANAGEMENT”
  83. 83. SAAB MARFIN MBA (4)4. Would you like to take more responsibility than at present Never Occasionally Sometimes Frequently Very (0) (1) (2) (3) Frequently (4)5. The amount of work you have to do interferes with the quality youwant to maintain Never Occasionally Sometimes Frequently Very (0) (1) (2) (3) Frequently (4)6. Is there not enough interaction between your role and other roles Never Occasionally Sometimes Frequently Very (0) (1) (2) (3) Frequently (4)7. Do you wish to acquire more skills to handle the responsibilities of your role “STRESS MANAGEMENT”
  84. 84. SAAB MARFIN MBA Never Occasionally Sometimes Frequently Very (0) (1) (2) (3) Frequently (4)8. If you had full freedom to define your role you would be doing somethings different from what you do now Never Occasionally Sometimes Frequently Very (0) (1) (2) (3) Frequently (4)9. Several aspects of your role are vague and unclear Never Occasionally Sometimes Frequently Very (0) (1) (2) (3) Frequently (4)10. Do you wish to have more financial resources for the work assigned to you Never Occasionally Sometimes Frequently Very (0) (1) (2) (3) Frequently (4) “STRESS MANAGEMENT”
  86. 86. SAAB MARFIN MBA1. Organizational behavior : John W. Newstrom Keith Davis2. Managing Human Resources : Wayne. F. Cascio3. Making Organizational Roles Effective : Udai Pareek4. Web-Site : iciciprulife.com , google.com5. Journals : Company Journals & Magazine “STRESS MANAGEMENT”
  88. 88. SAAB MARFIN MBAWhat is Stress Stress is the general term applied to the pressures people feel inlife. The presence of stress at work is almost inevitable in many jobs.However, individual differences account for a wide range of reactions tostress, a task viewed as challenging by one person may produce highlevels of anxiety in another. When pressure begins to build up, it cancause adverse strain on person’s emotions, thought processes, andphysical condition. When stress becomes excessive, employees developvarious symptoms of stress that can harm their job performance andhealth, and even threaten their ability to cope with the environment.Stress also leads to physical disorders, because the internal body systemchanges to try to cope with stress. It is important that stress, both on andoff the job, be kept at a level low enough for most people to toleratewithout developing either emotional or physical disorders. Stress can be either temporary or long-term, either mild or severe.The effects on an employee depend mostly on how long its causes “STRESS MANAGEMENT”
  89. 89. SAAB MARFIN MBAcontinue, how powerful they are, and how strong the employee’s recoverypowers are. If stress is temporary and mild, most people can handle it orat least recover from its effects rather quickly. Stress is simply the bodys non-specific response to any demandmade on it. Stress is not by definition synonymous with nervous tensionor anxiety. Stress provides the means to express talents and energies andpursue happiness; it can also cause exhaustion and illness, eitherphysical or psychological; heart attacks and accidents. The importantthing to remember about stress is that certain forms are normal andessential. As the body responds to various forms of physical or psychologicalstress, certain predictable changes occur. These include increased heartrate, blood pressure (systolic and diastolic), and secretions of stimulatoryhormones. These responses to stress will occur whether the stress ispositive or negative in nature. In lay terms, it is known as the "fight orflight" mechanism. Continual exposure lowers the bodys ability to copewith additional forms of psychological or physiological stress. The resultsof continuing stress may cause disruption in one or more of the followingareas of health: physical, emotional, spiritual and/or social. Stress is a process that builds. Its more effective to intervene earlyin the process rather than later. Try to become aware of the signs thatsuggest the process has begunStress is the way your body responds to the demands placed on it.Positive or "good" stress can help you concentrate and focus. In someinstances, it actually increases your ability to survive. Your bodysresponse to stress can be hormonal, such as an adrenaline rush. It canalso be a rise in blood pressure, blood sugar, or body temperature. Thesephysical reactions can often make you more alert; give you more acuteeyesight or greater strength. Thats how your body gives you what you “STRESS MANAGEMENT”
  90. 90. SAAB MARFIN MBAneed to act. Ideally, your body automatically relaxes after you havehandled the situation. Your physical responses normalize and you areable to return to a state of rest. This process allows you to gatherphysical and emotional energy which helps you deal with changes andchallenges in your daily life. Your physical reaction to stress is the same for positive andnegative stress; the difference is that with negative stress your bodynever returns to the "pre-stress" relaxed state. You remain tense oranxious, which drains you of emotional and physical energy.The common expression for stress is ‘tension’ One is said to be tense,when there is some anxiety, some fear of whether the desirable thingsmay happen, whether something may go wrong, etc. It is a state ofdiscomfort felt in the mind and experienced by the body. When there istension, the body may become weak. In management literature, ‘Stress’ is defined as a response of thehuman body to a felt need. When one is hungry and there is an urge toeat food, the body is in a state of stress, which disappears when the needis fulfilled. This definition suggests that stress is a desirable condition,making one move towards fulfillment of needs. This is partly true. Stressoccurs also when the need arises out of fear and the urge is to run andescape. This may sometimes, be not possible. In that case, there is nomovement, the need remains unfulfilled and the stress condition doesnot disappear. Stress is identified as of two kinds. One is called EuStress, which isthe condition in which there is drive and effort to fulfill the needs.Motivation is high. Achievement is seen as possible. The situation ischallenging. Stress disappears when the need is fulfilledThere is success. The other is DiStress, which is the condition when thereis a sense of helplessness in being able to achieve. The feeling is of “STRESS MANAGEMENT”
  91. 91. SAAB MARFIN MBAfrustration. There is no success. May be, there is no attempt even,because success is seen as impossible. The stress condition remains. If one were to chart the level of stress and the level of effort put into work, it would be an inverted parabola. Eustress would be in theascending left side of the parabola. The challenge would be maximum atthe hump. The latter half on the right side represents Distress. Theproblems of stress are caused by Distress, not by Eustress. Eustress is necessary for the person to be fully alert, for all hisfaculties to come into play to face the situation. For example, agoalkeeper in football or hockey, will be totally relaxed when the ball is atthe other end of the ground, but becomes extremely alert as the ballmoved towards him. His body stiffens, the eyes begin to bulge, focussingon the ball and the movement of the players, picking up the slightest ofmovements and every nerve and muscle ready to respond to thosemovements. That is Eustress, without which the goalkeeper cannot be athis best. So also, Eustress is experienced by the batsman in cricket whenthe bowler is on the run, and by the tennis player when the ball is aboutto be served at the other end. Stress is a part of living. Too little stress and we become apatheticand ineffective. Too much stress and we live with anxiety, fatigue, andover time, increase our risk for accidental injury and serious illness.Maintaining an optimal level of stress is an ongoing challenge of everydaylife. The stress response of the body is meant to protect and support us.To maintain stability or homeostasis, the body is constantly adjusting toits surroundings. When a physical or mental event threatens thisequilibrium, we react to it. This process is often referred to as the "fightor flight response." We prepare for physical action in order to confront orflee a threat. Our ancestors responded to stressful ordeals in this fashion. “STRESS MANAGEMENT”
  92. 92. SAAB MARFIN MBAMillions of years later, when you face a situation that you perceive aschallenging, your body automatically goes into overdrive, engaging thestress response. Immediately, you release the same hormones thatenabled cave people to move and think faster, hit harder, see better, hearmore acutely, and jump higher than they could only seconds earlier. Liketheirs, your heartbeat speeds up; your blood pressure increases; yourbreathing quickens. Most modern stresses, however, do not call for eitherfight or flight. Our experience of stress is generally related to how werespond to an event, not to the event itself. “STRESS MANAGEMENT”
  93. 93. SAAB MARFIN MBA Stress has existed throughout the evolution. About 4 billion yearsago, violent collision of rock and ice along with dust and gas, led to theformation of a new planet. The planet survive more than 100 millionyears of meltdown to give birth to microscopic life . These first organismsendured the harshest of conditions—lack of oxygen, exposure to sunsUV rays and other inhospitable elements, to hang on to their dear life.Roughly 300,000 years ago, the Neanderthals learnt to use fire in acontrolled way, to survive the Glacial Age. And around 30,000 years,Homo sapiens with their dominant gene constitutions and better copingskills, won the game of survival. Each step of evolution a test of survival,and survival, a matter of coping with the stress of changing conditions. Millions of trials and errors in the life process have brought men tothis stage. Coping with events to survive has led men to inventextraordinary technologies, beginning with a piece of sharpened stone. From the viewpoint of microevolution, stress induction oftranspositions is a powerful factor, generating new genetic variations inpopulations under stressful environmental conditions. Passing through abottleneck, a population can rapidly and significantly alters itspopulation norm and become the founder of new, evolved forms. Gene transposition through Transposable Elements (TE)—jumpinggenes, is a major source of genetic change, including the creation ofnovel genes, the alteration of gene expression in development, and thegenesis of major genomic rearrangements. In a research on thesignificance of responses of the genome to challenges, the Nobel Prizewinning scientist Barbara McClintock, characterized these geneticphenomena as genomic shock’. This occurs due to recombination eventsbetween TE insertions (high and low insertion polymorphism) and host “STRESS MANAGEMENT”
  94. 94. SAAB MARFIN MBAgenome. But, as a rule TEs remain immobilized until some stress factor(temperature, irradiation, DNA damage, the introduction of foreignchromatin, viruses, etc.) activates their elements. The moral remains that we can work a stress condition to ouradvantage or protect ourselves from its untoward follow-throughssubject to how we handle a stress situation. The choice is betweenbecoming a slave to the stressful situations of life or using them to ouradvantage "Nothing gives one person so much advantage over another as toremain always cool and unruffled under all circumstances” In a challenging situation the brain prepares the body for defensiveaction—the fight or flight response by releasing stress hormones, namely,cortisone and adrenaline. These hormones raise the blood pressure and thebody prepares to react to the situation. With a concrete defensive action (fightresponse) the stress hormones in the blood get used up, entailing reducedstress effects and symptoms of anxiety. When we fail to counter a stress situation (flight response) thehormones and chemicals remain unreleased in the blood stream for along period of time. It results in stress related physical symptoms such astense muscles, unfocused anxiety, dizziness and rapid heartbeats. We allencounter various stressors (causes of stress) in everyday life, which canaccumulate, if not released. Subsequently, it compels the mind and body to bein an almost constant alarm-state in preparation to fight or flee. This state ofaccumulated stress can increase the risk of both acute and chronicpsychosomatic illnesses and weaken the immune system of the human body. Stress can cause headaches, irritable bowel syndrome, eatingdisorder, allergies, insomnia, backaches, frequent cold and fatigue todiseases such as hypertension, asthma, diabetes, heart ailments and evencancer. In fact, Sanjay Chugh, a leading Indian psychologist, says that 70 “STRESS MANAGEMENT”
  95. 95. SAAB MARFIN MBAper cent to 90 per cent of adults visit primary care physicians forstress-related problems. Scary enough. Just about everybody—men, women, children and even fetuses—sufferfrom stress. Relationship demands, chronic health problems, pressure atworkplaces, traffic snarls, meeting deadlines, growing-up tensions or a suddenbearish trend in the bourse can trigger stress conditions. People react to it intheir own ways. In some people, stress-induced adverse feelings and anxietiestend to persist and intensify. Learning to understand and manage stress canprevent the counter effects of stress. Methods of coping with stress are aplenty. The most significant orsensible way out is a change in lifestyle. Relaxation techniques such asmeditation, physical exercises, listening to soothing music, deepbreathing, various natural and alternative methods, personal growthtechniques, visualization and massage are some of the most effective ofthe known non-invasive stress busters The words positive and stress may not often go together. But,there are innumerable instances of athletes rising to the challenge ofstress and achieving the unachievable, scientists stressing themselves outover a point to bring into light the most unthinkable secrets of thephenomenal world, and likewise a painter, a composer or a writerproducing the best paintings, the most lilting of tunes or the mostappealing piece of writing by pushing themselves to the limit.Psychologists second the opinion that some stress situations canactually boost our inner potential and can be creatively helpful. SudhaChandran, an Indian danseus, lost both of her legs in an accident. But,the physical and social inadequacies gave her more impetus to carry onwith her dance performances with the help of prosthetic legs rather thandeter her spirits. “STRESS MANAGEMENT”
  96. 96. SAAB MARFIN MBA Experts tell us that stress, in moderate doses, are necessary in ourlife. Stress responses are one of our bodys best defense systems againstouter and inner dangers. In a risky situation (in case of accidents or asudden attack on life et al), body releases stress hormones that instantlymake us more alert and our senses become more focused. The body isalso prepared to act with increased strength and speed in a pressuresituation. It is supposed to keep us sharp and ready for action. Research suggests that stress can actually increase ourperformance. Instead of wilting under stress, one can use it as animpetus to achieve success. Stress can stimulate ones faculties to delvedeep into and discover ones true potential. Under stress the brain isemotionally and biochemically stimulated to sharpen its performance Stress is, perhaps, necessary to occasionally clear cobwebs fromour thinking. If approached positively, stress can help us evolve as aperson by letting go of unwanted thoughts and principle in our life. Veryoften, at various crossroads of life, stress may remind you of thetransitory nature of your experiences, and may prod you to look for thetrue happiness of life. Organizational and individual programs to help managers andemployees cope up with stress have become increasingly popular, as thetoll taken by stress has become more widely known. Methods areavailable to individuals and organizations for managing stress andreducing its harmful effects. Stress management refers to any programthat reduces stress be helping people understand the stress response, “STRESS MANAGEMENT”
  97. 97. SAAB MARFIN MBArecognize stressors, and use coping techniques to minimize the negativeimpact of stress.INDIVIDUAL METHODS Stress management by individuals includes activities and behaviorsdesigned to eliminate or control the sources of stress and make theindividual more resistant to or better able to cope with stress. The firststep in individual stress management involves recognizing the stressorsthat are affecting the person’s life. Next, the individual needs to decidewhat to do about them.Practical suggestions for individual stress management include thefollowing Plan ahead and practice good time management Get plenty of exercise Develop a sound philosophy of life and maintain a positive attitude Concentrate on balancing your work and personal life. Learn a relaxation technique.ORGANIZATIONAL METHODS Stress management by organizations is designed to reduce theharmful effects of stress in three ways Identify and then modify or eliminate work stressors Help employees modify their perception and understanding of work stress Help employees cope more effectively with the consequences of stress. “STRESS MANAGEMENT”