Effectiveness of training program at icici pru

TABLE OF CONTENTS
Page No.
List of Tables & Illustrations 7
Abbreviations 8
Executive Summary 9
Chapter 1- Introduction 11
1.1 Theory and concept 11
1.2 Literature Review 15
Chapter 2 -Research methodology 17
2.1 Objectives 17
2.2 Limitations 18
2.3 Sources of Data Collection 18
2.4 Sampling Procedure 18
2.5 Primary Data Collection 18
2.6 Operationalization of the Variables 19
2.7 Five Point Rating Scale 19
Chapter 3 - Industry Profile 20
3.1 Origin of Life Insurance 20
3.2 Origin of Life Insurance in India 20
3.3 Indian Insurance Market – History 21
3.4 Insurance Market – Present 22
Chapter 4 - Company Profile 23
4.1 Overview of the company 23

4.2 Promoters 26
4.3 Products 28
4.4 Awards 33
4.5 Board of Directors 37
4.6 Management Team 37
4.7 Hierarchical Structure 38
Chapter 5 - Training in ICICI Prudential 40
5.1 Training Objectives in Insurance sector 40
5.2 Training Programs for Advisors 40
5.3 Incentive Schemes for Advisors 41
5.4 Reasons for choosing career in insurance 44
5.5 Reasons for joining ICICI Prudential 45
Chapter 6 - Training Components 46
6.1 Training Inputs – V1 46
6.2 Role of Trainer – V2 47
6.3 Facilities at venue –V3 48
6.4 Relevance to job – V4 49
6.5 Overall evaluation – V5 50
Chapter 7 - Interrelationships among training components 51
7.1 Correlation matrix between the variables 51
7.2 Satisfactory aspects of training program – V6 54
7.3 Improvements suggested by respondents – V7 54
Chapter 8 – Conclusions 55
Appendices 57
References 60
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LIST OF TABLES
Table No. Title Page No.
1 Rating Scales and their interpretation
19
2 GP Membership Scheme 44
3 Feedback on Training Inputs
46
4 Feedback on Role of Trainer
47
5 Correlation analysis matrix
51
LIST OF ILLUSTRATIONS
Number Title Page No.
1 Mission of ICICI Prudential
24
2 Segments of ICICI
26
3 Value of Life Insurance
29
4 Hierarchical Structure of ICICI
38
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5 Hierarchical Structure of Training
Department 39
6 Reasons for career in insurance
45
7 Reasons for joining ICICI Prudential
45
8 Feedback on Training Inputs
47
9 Feedback on Role of Trainer
48
10 Satisfaction with facilities at venue
49
11 Feedback on relevance to job
49
12 Feedback on overall training program
50
ABBREVIATIONS
ADRs American Depository Receipts
ATM Automated Teller Machines
FDI Foreign Direct Investment
GP Grand Perks
HDFC Housing Development and Finance Corporation
HR Human Resources
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ICICI Industrial Credit and Investment Corporation of India
IRDA Insurance Regulatory and Development Authority
JV Joint Ventures
MDRT Million Dollar Round Table
MFIs Micro Finance Institutions
NCFM National Stock Exchange Certification
NGOs Non Governmental Organizations
NYSE New York Stock Exchange
OST C Oriental Staff Training College
EXECUTIVE SUMMARY
This project on “training effectiveness for advisors” in insurance industry
has been undertaken in ICICI Prudential, Hyderabad and Secunderabad branches. This
project attempts to understand the objectives of training programs of insurance companies. A
detailed study of the training programs conducted by ICICI Prudential for its financial
advisors has been made. The main objective is to understand the impact of the training
programs on the performance levels of the financial advisors
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ICICI Prudential is currently No.1 private life insurer in the country. It has
one of the largest distribution networks amongst private life insurers in the country. This has
generated curiosity in me to know how far training programs have improved the employee’s
job performance. An attempt has been made to understand the effectiveness of training
programs at entry level, i.e., for advisors has been made here. For, the advisor/ agent are the
public face of the insurance company and make the most enduring impact on the customer.
The study involved both primary and secondary sources for collecting
information. The secondary sources include company’s website, books, journals, insurance
magazines, HR reviews, articles on internet etc.The primary data was collected with the help
of a structured questionnaire administered to 25 advisors who were selected through
simple random sampling technique.
The data has been analyzed by assigning scores to the responses given by the
advisors and with the help of a correlation matrix between different variables, the
conclusions have been arrived at. The observations made during the data analysis have been
represented with the help of pie charts and bar diagrams.
Finally, the conclusion part discusses about the major findings of the study
and the various measures to be taken by the ICICI Prudential to improve its training
programs for advisors. The advisors were not satisfied with the duration of the training
program since they were already in regular employment with some or the other company.
They wanted the timings to be re – scheduled. However, ICICI Prudential has been taking
care to take note of such problems and constantly trying to update the knowledge and skills
of the advisors.
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CHAPTER 1
INTRODUCTION
1.1 Theory and Concept
“It is our people who make the difference where it matters most…”
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(Tesco 2002)
“This is a global success story made possible by the quality and determination
of over 100,000 people worldwide.” (Vodafone 2002)
“…we believe that competitive advantage is achieved through our people…”
(Kellogg 2002)
Every organization requires competent employees for the successful
functioning of its various departments. To ensure that the staff works efficiently and
effectively, the organization has to continuously evaluate their performance and bridge any
performance gaps by providing appropriate training to them. For, it is the people who ‘make
or mar’ an organization.
Traditionally, the training policy in an organization focused on enhancing the
productivity and effectiveness of the employees so that the medium term and long term
strategies of the organization could be successfully fulfilled. Since up gradation of skills and
knowledge has direct relevance to performance, training policy till date was desired to have
linkages with other HR systems and policies like performance appraisal, career planning,
rewards and promotion as decided by the management.
With the ushering in of Globalization and Liberalization since early 1990s,
there has been a sea change in our business processes, and our corporate practices forcing
organizations to mould themselves to the new era of competition, where they have to
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compete not at local or national level but at international level. This necessitates huge
investments in the training programs for providing the requisite skill set to the staff.
The ultimate aim of any training program is to achieve:
- Continuous Improvement
- Change-in-Attitude
- Cost Saving
- Total Productivity
- Scope for development
When organization has invested in some training, how do we know if it has a
success? Our gut feeling might be that skills and practice have improved. But in what ways
and by how much has it improved, and did organization get value of money? Answers to
these questions can be found by doing evaluation.
The evaluation of training forms the remaining part of the training cycle
which starts with the identification of training needs, establishing objectives and continues
through to the design and delivery of the training course itself.
It is the function of evaluation to assess whether the learning objectives
originally identified have been satisfied and any deficiency rectified. It is part of a
continuing management process consisting of planning, implementation and evaluation;
ideally with each following the other in a continuous cycle until successful completion of
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the activity. Evaluation process must start before training has begun and continue throughout
the whole learning process.
Donald Kirkpatrick developed four level models to assess training
effectiveness. According to him, evaluation always begins with level first and should move
through other levels in sequence.
 Reaction Level: The purpose is to measure the individual’s reaction to the training
activity. The benefit of Reaction level evaluation is to improve Training and Development
activity efficiency and effectiveness.
 Learning Level: The basic purpose is to measure the learning transfer achieved by
the training and development activity. Another purpose is to determine to what extent the
individual increased their knowledge, skills and changed their attitudes by applying
quantitative or qualitative assessment methods.
 Behavior Level: The basic purpose is to measure changes in behavior of the
individual as a result of the training and development activity and how well the
enhancement of knowledge, skill, attitudes has prepared them for their role.
 Result Level: The purpose is to measure the contribution of training and
development to the achievement of the business/operational goals.
There are three possible opportunities to undertake an evaluation:
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 Pre Training Evaluation: it is a method of judging the worth of a program before
the program activities begin. The objective of this evaluation is (a) To determine the
appropriateness of the context of training activity and (b) To help in defining relevant
training objectives.
 Context and Input Evaluation: is a method of judging the worth of a program
while the program activities are happening. The objectives of this evaluation are (a) To
assess a training course or workshop as it progress (b) To find out the extent of program
implementation and (c) To determine improvement and adjustments needed to attain the
training objectives.
 Post Training Evaluation: is method of judging the worth of a program at the end
of the program activities. The focus is on the outcome. It tries to judge whether the transfer
of training to the job has taken place or not.
The onus to decide on the effectiveness of the training program should
primarily be on the employee and through his performance and quality of output, the
organization should form impressions. The employee undergoing training therefore should
demonstrate the additional skills and competence at his workplace to enable the organization
to value it and to realize the value such efforts add to the organization in achieving its goals
and objectives and to frame and practice relevant HR policies and processes.
1.2 Literature Review
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As customer relationship plays a major role in the insurance business,
adequate training has to be provided to the employees to understand the customer needs and
communicate the suitable product details according to their requirements. A company will
be successful if the intermediaries interacting with the customers have a sound knowledge of
the products available and are able to convey the same to the end users.
Insurance expert Dale S Beach defined training as “the organized procedure
by which the employees learn knowledge and skills for a definite purpose.” The
organization has to conduct training programs to educate the staff about the various products
available, to
improve their communication skills and also to equip them to handle different types of
customers.
Liberalization and privatization of the insurance sector have resulted in a
competitive market. Insurance companies require smart and skilled personnel to compete
with their rivals in the market. The companies should impart necessary knowledge and skills
to the employees by conducting training programs, seminars, conferences and workshops.
The HDFC Standard Life Insurance Company imparts knowledge on insurance and other
related business process through Management Trainees Program. The Oriental Staff
Training College ( OSTC ) is the training center for Oriental Insurance Company.
As a part of on-the-job training, companies are tying with training institutions
to upgrade the employee knowledge on the latest technology and novel techniques in the
industry to improve his performance. Strong academia-industry partnerships are also
witnessed. United India Insurance Company in partnership with Dr. Ambedkar Law
University in Tamil Nadu provides a post graduate diploma course in general insurance law
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and practice. A survey reveals that the training sensitivity among the private insurers stands
at 3 on the scale of 0 to 5, where 0 represents not sensitive and 5 represents highly sensitive.
A study of the Indian insurance sector by McKinsey & Co., the global
consultancy firm, says a mere 25-30% of the life insurance agents have the acceptable level
of training and sales standards set by their companies. The study further says there is not
much to differentiate between those advisors who have spent more than two years in a
company and
new recruits without any sales experience. Definitely, this is a sad reflection on the quality of
training imparted to the agents!!!!
The focus of the training during the last decade has shifted from ‘training for
survival’ to ‘training for success’. Training, therefore, has to serve as a vehicle for change.
To satisfy the curiosity of agents, the faculty members will have to become real coaches and
not mere cheerleaders. The training system has to develop wings to fly towards greater
heights. All this is possible only when the organizations evaluate the effectiveness of the
existing training programs on performance improvement of the employees and thereafter
make suitable changes in the training policy to bridge the performance gaps in the
employees.
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CHAPTER 2
RESEARCH METHODOLOGY
2.1 Objectives
The primary objective of the study is to analyze the effectiveness of training
programs conducted for advisors in terms of their performance with special emphasis on
ICICI Prudential. The scope of the study encompasses –
 To understand the objectives of the training programs of insurance companies.
 To study the content and methodology of ICICI Prudential’s training programs for
advisors.
 To analyze trainees feedback on the training programs
 To recommend feasible improvements in the training programs conducted by ICICI
Prudential for advisors
2.2 Limitations
 The study is confined to ICICI Prudential, Hyderabad branch only
 Sampling errors might have occurred
 There was a difficulty in getting responses from the advisors as some of them refused
to respond making excuse of lack of time
 The responses of the advisors may not be genuine.
 The questions included in the questionnaire may not be comprehensive.
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2.3 Sources of Data Collection
The relevant data was collected from both primary sources and secondary sources. The
starting point of my information gathering has been the secondary sources such as internet,
books, journals and so on .
First, I made a study of the training objectives of the insurance companies to train its
personnel through secondary sources such as internet, insurance magazines, and journals and
so on. Then I gathered information about the training programs conducted for advisors by
ICICI Prudential by interacting with some of the advisors already working for the company.
2.4 Sampling Procedure
A sample of 25 advisors is selected for the study, using simple random sampling
procedure. The focus of study was on advisors who were trained in the recent past. So, the
sample was drawn from among the advisors who were working for ICICI Prudential since
last 1 – 2 months.
2.5 Primary Data Collection
Data was collected through an interview schedule, consisting of both open ended and
closed ended questions. The schedule covered parameters like training methodology, trainer
feedback, overall effectiveness of training program, relevance of training program etc. Most
of the interviews were conducted over telephones since these advisors need not report to any
branch regularly. Most of the times, they were found to be in the field searching for
prospective customers. The approximate time taken for each interview was 10 minutes
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2.6 Operationalization of Variables
All the variables were grouped into 7 categories and assigned symbols as follows:
V1 – training inputs, V2 – role of trainer , V3- facilities at venue, V4- relevance of training
program for job, V5- overall evaluation of training program, V6- most satisfactory aspects of
training program, V7- improvements suggested by respondents.
2.7 Five Point Rating Scale
The ratings that the respondents had to assign for different variables (V1, V2, V3, V4, V5)
are categorized as follows:
Table 1: Rating Scales and interpretation
Ratings Interpretation
1 Poor, Not at all relevant, No
2 Below average, Not that much relevant, Yes
3 Average, Not sure
4 Above average, Relevant
5 Excellent, Highly relevant
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CHAPTER 3
INDUSTRY PROFILE
3.1 Origin of Life Insurance
Life insurance was born in England when the first policy providing temporary
cover for a period of 12 months was issued as early as 1583 A.D. The Amicable Society
started granting fluctuating sum on death since 1705 and a fixed sum since 1757. With the
development of mortality tables, life insurance acquired a scientific character. The Equitable
Society founded in 1762 was the first society established on scientific basis.
3.2 Origin of Life Insurance in India
In India, after the failure of 2 British companies, the European and the Albert
in 1870, which attempted writing business on Indian lives, first Indian life assurance
company was formed in the same year called Bombay Mutual Assurance Society Ltd. It was
followed by Oriental life assurance Company limited in 1874, Bharat in 1896 and
Empire of India in 1897. The idea of insurance was born out of a desire of the people to
share the loss of an individual by many.
Originally, it was restricted to other forms of life insurance. It started with
marine insurance where the losses on account of perils of the sea were shared by all who
were engaged in trade. References to some forms of insurance have been found in the codes
of Hammurabi Manu.
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The Swadeshi movement of 1905 provided impetus to the formation of
several companies such as the “Hindustan Cooperative”, the ‘United India’, the ‘Bombay
life’, the ‘National’. Further in the wake of freedom movement, number of companies such
as the ‘New India’, the ‘Jupiter’, and the ‘Lakshmi’ emerged.
The government began to exercise certain measure of control on insurance
business by passing ‘Insurance Act’ in 1912. In order to control the investment of funds,
expenditure and management, a comprehensive Act was passed known as ‘Insurance Act
1938’. To control the affairs, the office of controller of insurance was established. The Act
was amended extensively in 1950.
3.3 Indian Insurance Market – History
Insurance has a long history in India. Life insurance in its current form was introduced in
1818 when Oriental Life Insurance Company began its operations in India. General
insurance was however a late entrant in 1850 when Triton insurance company set up its base
in Kolkata.
History of insurance in India can be bifurcated into 3 eras:
a) Pre Nationalization b) Nationalization c) Post Nationalization
Life insurance was the first to be nationalized in 1956. Life Insurance
Corporation of India was formed by consolidating the operations of various life insurance
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companies. General Insurance followed suit and was nationalized in 1973. General
Insurance Corporation of India was set up as the controlling body with New India, United
India, National and Oriental as its subsidiaries. The process of opening up of the insurance
sector
was initiated against the background of Economic Reform Process which commenced from
1991. For this purpose, Malhotra Committee was formed which submitted report in 1994 and
Insurance Regulatory Development Act (IRDA) was passed in 1999. Subsequently, Indian
Insurance was opened for private companies which began operations since 2001.
3.4 Indian Insurance Market – History
For years now, private players have been active in the liberalized
environment. The insurance market has witnessed dynamic changes which include presence
of a fairly large number of insurers both life and non life segment. Most of the private
insurance companies have formed joint venture partnering well recognized foreign players
across the globe.
There are now 29 insurance companies operating in the Indian market – 15
private life insurers, 9 private non-life insurers and 6 public sector companies (see
Appendix). With many more joint ventures in the offing, the insurance industry in India
today stands at cross roads as competition intensifies and companies prepare survival
strategies in a de-tariffed scenario. There is pressure from both within the country and
outside on the Government to increase the Foreign Direct Investment (FDI) limit from the
current 26% to 49% which would help JV partners to bring in funds for expansion.
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CHAPTER 4
COMPANY PROFILE
4.1 Overview of ICICI Prudential
ICICI Prudential Life Insurance Company is a joint venture between
ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a
leading international financial services group headquartered in the United Kingdom. Total
capital infusion stands at Rs. 37.72 billion, with ICICI Bank holding a stake of 74% and
Prudential plc holding 26%.
The company began its operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA). Today, their nation-wide team
comprises of over 955 branches in addition to 1,033 micro-offices, over 261,000 advisors;
and 20 banc assurance partners.
ICICI Prudential was the first life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row,
ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The
Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As the
company widens its distribution, product range and customer base, it continues to tirelessly
uphold its commitment to deliver world-class financial solutions to customers all over India.
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Figure 1: Mission of ICICI Prudential
ICICI Prudential Life is all about……
The success of the company will be founded in its unflinching commitment to
5 core values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each
of the values describes what the company stands for, the qualities of people and the way
they work.
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Total
Protectio
n
Life We cover you at
every step in Life
Wealth
Health

Company believes that it is on the threshold of an exciting new opportunity,
where it can play a significant role in redefining and reshaping the sector. Given the quality
of parentage and the commitment of its team, there are no limits to its growth.
The VISION of the company is
“To make the company the dominant Life and Pensions player built on trust by world-
class people and service.”
The company proposes to achieve its vision by:
• Understanding the needs of the customers and offering them superior
products and services.
• 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 the policy holders.
• Providing and enabling environment to foster growth and learning for the
employees.
• Building transparency in all dealings.
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Every member of the ICICI Prudential team is committed to 5 core values:
Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine
forth in all they do, and have become the keystones of company’s success.
4.2 Promoters
ICICI Bank
The World Bank, Government of India and representatives of the private
sector founded ICICI in 1955 to encourage and assist industrial development
and investment in India. ICICI Bank is India’s second-largest bank with total
assets of about Rs.112, 024 Crore and a network of about 450 branches and offices
and about 1750 ATMs. It 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, asset management and information
technology. ICICI Bank posted a net profit of Rs.1637 Crore for the year ended
March 31, 2004. ICICI Bank’s equity shares are listed in India on stock exchanges
at Chennai, Delhi, Kolkata and Vadodara, 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). The Various segment
of ICICI are
Figure 2: Segments of ICICI
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Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe,
the US and Asia, provides retail financial services products and services to more
than 16 million customers, policyholder and unit holders worldwide. As of June 30,
2004, the company had over US$300 billion in funds under management.
Prudential has brought to market an integrated range of financial services products
that now includes life assurance, pensions, mutual funds, banking, investment
management and general insurance. In Asia, Prudential is the leading European life
insurance company with a vast network of 24 life and mutual fund operations in
twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand and Vietnam.
The company has six Bancassurance tie-ups, having agreements with ICICI
Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some co-
operative banks, as well as over 150 corporate agents and brokers. It has also tied up with
NGOs, MFIs and corporates for the distribution of rural policies and organizations like Dhan
for distribution of Salaam Zindagi, a policy for the socially and economically
underprivileged sections of society.
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ICICI Prudential has recruited and trained about 2,14,000 insurance advisors
to interface with and advise customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.
Figure 2 : Value of Life Insurance
Valueofbenefit
Time Period
Death
Insurance
Stock market
Bond
But the value of Life Insurance...
Maturity
life cover
4.3 Products
Insurance Solutions for Individuals
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ICICI Prudential Life Insurance offers a range of innovative, customer-centric
products that meet the needs of customers at every life stage. Its 27 products can be
enhanced with up to 6 riders, to create a customized solution for each policyholder.
Savings Solutions
• SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of
protection.
• Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of
protection as well as liquidity options.
• Save n Protect is a traditional endowment savings plan that offers life protection
along with adequate returns.
• Cash Bank is an anticipated endowment policy ideal for meeting milestone expenses
like a child’s marriage, expenses for a child’s higher education or purchase of an
asset.
• LifeTime & LifeTime II offer customers the flexibility and control to customize the
policy to meet the changing needs at different life stages. Each offer 4 fund options-
Preserver, Protector, Balancer and Maximiser.
• LifeLink II is a single premium Market Linked Insurance Plan which combines life
insurance cover with the opportunity to stay invested in the stock market.
• Premier Life is a limited premium paying plan that offers customers life insurance
cover till the age of 75.
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• InvestShield Life is a Market Linked plan that provides capital guarantee on the
invested premiums and declared bonus interest.
• InvestShield Cash is a Market Linked plan that provides capital guarantee on the
invested premiums and declared bonus interest along with flexible liquidity options.
• InvestShield Gold is a Market Linked plan that provides capital guarantee on the
invested premiums and declared bonus interest along with limited premium payment
terms.
Protection Solutions
• Lifeguard is a protection plan, which offers life cover at very low cost. It is available
in 3 options- level term assurance, level term assurance with return of premium and
single premium.
Child Plans
• SmartKid education plans provide 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 the child’s life. SmartKid plans
are also available in unit-linked form- both single premium and regular premium.
Retirement Solutions
• Forever Life is a retirement product targeted at individuals in their thirties.
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• SecurePlus Pension is a flexible pension plan that allows one to select between 3
levels of cover.
Market-linked retirement products
• LifeTime Pension II is a regular premium market-linked pension plan
• Life Link Pension II is a single premium market-linked pension plan.
• Invest Shield Pension is a regular premium pension plan with a capital guarantee on
the investible premium and declared bonuses.
ICICI Prudential also launched- Salaam Zindagi, a social sector group insurance policy
targeted at the economically underprivileged sections of the society.
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance
benefits to their employees.
• ICICI Pru 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 Pru 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.
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• ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform or
based on designation/rank or a multiple of salary. The benefit under the policy is paid
to the beneficiary nominated by the member on his/her death.
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal
cost, depending on the specific needs of the customer.
• Accident & disability benefit: If 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 traveling in an authorized mass
transport vehicle, the beneficiary will be entitled to twice the sum assured as
additional benefit.
• Accident Benefit: This rider option pays the sum assured under the rider on death
due to accident.
• Critical Illness Benefit: protects the insured against 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 benefits are payable to the life assured for medical
expenses incurred for surgical procedures. Cover is offered against 43 surgical
procedures.
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• Income Benefit: This rider pays the 10% of the sum assured to the nominee every
year, till maturity, in the event of the death of the life assured. It is available on
SmartKid, SecurePlus and Cash Plus
• Waiver of Premium: In case of total and permanent disability due to an accident,
the premiums are waived till maturity. This rider is available with SecurePlus and
Cash Plus.
Keyman Insurance Plans
A keyman is an individual who directly affects the profitability and the continuity of
a business and whose absence may have an adverse effect on the health and continuity of the
business. Keyman insurance is a life insurance policy taken by the company on the life of
such a key person.
The objective of the Keyman insurance is to provide the company with money
so that the financial losses to the company can be protected, in absence of the Keyman. The
aim is to indemnify the company of these losses and to allow business continuity.
All premiums paid for securing a Keyman life insurance policy are treated as
business expenditure u/s 37 (1).
Rural Plans
ICICI PruLife Rural Products are designed to meet the needs of the rural consumers. These
products offer the following features:
1. Low and Affordable Premiums
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2. Life Cover
3. Savings Option
4. Hassle free procedure.
Mutual Funds
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through these
investments and the capital appreciations realized are shared by its unit holders in proportion
to the number of units owned by them.
4.4 Awards
ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008 in three key
categories for its marketing initiatives
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ICICI Prudential Life was awarded the INDY’s Award for Excellence in Mass
Communication in the category of Most Creative Advertisement-Television
India's Most Customer Responsive Insurance Company
Avaya Global Connect - Economic Times Customer Responsiveness Awards, 2007
Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was adjudged the
Entrepreneur of the Year-Manager at the Ernst and Young Entrepreneur Awards 2007
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Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was awarded the
Outstanding Businesswoman of the Year at CNBC TV18's India Business Leader Awards
2007
ICICI Prudential Life Insurance won the award for the Best Life Insurer-Runner up at the
Outlook Money & NDTV Profit Awards 2007
ICICI Prudential Life’s, retirement solutions campaign for the year 2006-07 was awarded the
Bronze Effy trophy in the services category.It also won the Brand Equity Bravery Award
2007, instituted by Ad club.
33

ICICI Prudential Life’s website, www.iciciprulife.com was awarded the best website among
private life insurers at the Web 18 and Frost & Sullivan Genius of the Web Awards 2007 for
commendable work in the online.
4.5 Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad.
Mr. K.V. Kamath, Chairman
Ms. Kalpana Morparia, Vice Chairperson
Ms. Chanda Kochhar, Director
Mr. Barry Stowe, Director
Mr. H.T. Phong, Director
Prof. Marti G. Subrahmanyam, Director
Mr. Mahesh Prasad Modi, Director
Ms. Rama Bijapurkar, Director
Mr. Keki Dadiseth, Director
Ms. Shikha Sharma, Managing Director
34

Mr. N.S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
4.6 Management Team
The ICICI Prudential Life Insurance Company Limited Management team comprises
reputed people from the finance industry both from India and abroad.
Ms. Shikha Sharma, Managing Director & CEO
Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anita Pai, Executive Vice President – Customer Service & Technology
Dr. Avijit Chatterjee, Appointed Actuary
Mr. Puneet Nanda, Executive Vice President & Chief Investment Officer
4.7 Hierarchical Structure of ICICI Prudential
Hyderabad and Secunderabad branches
Figure 4 :
35
Branch sales manager
Sales manager
(1)
Assistant sales
manager
(2)
Unit manager
(10)
Advisors
(20-30)

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a
large advisor force that targets various customer segments. The strength of tied agency lies in
an aggressive strategy of expanding and procuring quality business. With focus on sales &
people development, tied agency has emerged as a robust, predictable and sustainable
business model.
In Hyderabad and Secunderabad , there are 6 branches and 5 spokes. In
each branch, there will be around 10 unit managers, 2 assistant sales managers and 1 sales
manager.
Generally the advisors works under the leadership of unit manager, who
motivate them in every step by providing training and guidance to them, usually each unit
manager have 20 to 30 advisors under them.
Figure 5: Hierarchy Structure of Training Department
36
Training Head
Training Managers
Associate training
manager
(2)
Branch manager
Consultant Trainers
(Freelancers)

CHAPTER 5
TRAINING AT ICICI PRUDENTIAL
One of the objectives of the present study is to understand the objectives of training
programs for advisors in insurance industry in general and then to make a study of the
training program conducted in ICICI Prudential.
5.1 Training objectives in insurance sector
In insurance sector, the need to be well trained assumes gigantic proportions.
A unique feature as regards insurance is that it is not merely sufficient to have a properly
trained workforce; there is a need to spread the message of insurance among the populace.
The above, to a great extent, depend on the knowledge ability of the distribution personnel
37

on account of the interface that they are required to maintain with all the prospects. The best
of advertisements and other forms of spreading message would be no substitute for a job
well done by the intermediary.
The advisor/ agent are the public face of the insurance company and make the
most enduring impact on the customer. The prospective policyholders today need
professional inputs from intermediaries whom they can trust and respect. Therefore, the
undeclared objective behind training the advisors is their professionalization, making them
capable of ‘good’ selling and thus ultimately benefitting the customer. Need analysis,
features and benefits, objection handling and closing skills are the key components of quality
insurance sales training.
The opening up of the sector has given a boost to the training industry. Acute
shortage of trained and expert professionals has spurred the corporate houses to adopt the
strategy of tying up with educational institutions and overcome the dearth of skilled
insurance professionals in this highly competitive market. A case in point is ICICI
Prudential. The company has joined hands with some training/ educational institutions to
start customized courses.
5.2 Training Program for Advisors
Advisors are the people who are not the employees of the ICICI prudential,
but works as commission agents. Becoming an advisor is a part time job offer which can be
taken up by any person above the age of 18 years and who has passed 12th
or higher
secondary, wherein the person can utilize his/her contacts for making a different high source
38

of income. They can be associated either full time or part time as per their requirements.
There are unlimited career paths and opportunities for income & growth for deserving
candidates.
The training program is conducted at all the branches of the company. Each
batch consists of minimum of 12 – 17 candidates. The training program consists of following
components:
 CAREER ORIENTATION PROGRAM – 4 hrs.
The candidates are provided with information about prospects for Indian economy, insurance
industry in general and ICICI Prudential in particular. They are also briefed on prospects and
career growth of an advisor.
 ADVISOR INDUCTION PROGRAM ( AIP ) – 4 days
The candidates are imparted with product knowledge, process knowledge and about the
company.
 REFRESHER TRAINING
I.R.D.A training of 50 hours duration (i.e., 7 hours per day for 7 days period) is mandatory.
The course comprises of different modules which are detailed below:
Module 1:
Chapters:
1. Introduction to Insurance
2. Fundamental Principles of Life Insurance
3. Life Insurance Products
39

Module 2:
Chapters:
4. Options, Guarantees and Riders
5. Computation of Premiums / Bonuses
Module 3:
Chapters:
6. Insurance Documents
7. Claims
8. Organization - Distribution Channels
9. Group Insurance and Superannuation Schemes / Pension Plans
Module 4:
Chapters:
10. Rural Market
11. Financial Planning and Taxation
12. Legislative and Regulatory Matters
13. Functions of the Agent
Module 5:
Chapters:
14. Fundamental of the Agency Law and Agency Commission Structure
15. Insurance Salesmanship and Selling Techniques
Test
40

The student has to undergo a test at the end of the program.
On successful completion of the test, the student will become an
IRDA (Insurance Regulatory and Development Authority) Certified Insurance Agent.
The advisors are also advised to complete Financial Markets Beginners
Module of NCFM (National Stock Exchange Certification) examination since the
company is now offering ULIPS or Unit Linked Investment Plans which offer both life cover
as well as scope for savings or investments options as the customer desires.
5.3 Incentive Schemes for Advisors
The advisors generally receive a premium of 12 % - 15% on the premium
amount in the case of life insurance products and in the case of health insurance products;
they are paid commission up to 35% of the premium amount. If the advisor achieves a target
of Rs.30 lakhs in a period of one year, he /she will become member of Million Dollar
Round Table (MDRT). The benefits derived from this membership is that the advisors
would get one free laptop , invitations to participate in National Conventions, family trips ,
international star clubs membership and so on.
Apart from this, there is Grand Perk (GP) membership which would entitle
them to various benefits. The different kinds of GP membership are given below:
Table 2: GP MEMBERSHIP SCHEME
Premium Amount Achieved
(in lakhs)
Type of Membership
1.5 SILVER
3.5 SILVER PLUS
41

10 GOLD
22 GOLD PREMIERE
40 PLATINUM
For Gold, Gold Premiere and Platinum members, the company offers free
LUTC ( Life Underwriter Training Council) Fellowship.
5.4 Reasons for choosing career in insurance industry
This was an open-ended question for which multiple responses were received from the
respondents. All the responses were grouped into 5 categories and the percentage of
respondents who opted for each was calculated as depicted below:
Figure 6: Reasons for career in insurance
23%
9%
29%
28%
11%
extra source of income
no initial investment
flexible working hours
no boundary limits
good social relations
5.5 Reasons for joining ICICI Prudential
Figure 7: Reason for joining ICICI Prudential
42

CHAPTER 6
TRAINING COMPONENTS
6.1 Training Inputs – V1
There are 7 sub – variables under V1 such as: course structure, course content, duration of
training program, training hand outs and aids, quality of exercise, training coordination &
organization and communication of training objectives clearly.
A five point rating scale was used to gather the responses from the advisors. The ratings
given for each sub – variable by each respondent is combined to get a total score for that
respondent. If a respondent gives rating of 1 to the entire 7 sub – variables, the total score for
that respondent would be 1* 7 = 7. Similarly, if a respondent gives rating of 5 to all, then
total score for V1 would be 5* 7 = 35. Therefore, if we calculate the total scores given by
each respondent in the same manner, the scores would vary from 7 to 35.
Taking the total score into consideration, all the scores obtained were again categorized into
3 and the frequency obtained is given below:
43

Table 3: Feedback on training inputs
Category Frequency Percentage
POOR (7 – 16) 0 -
AVERAGE ( 17- 26) 10 40
EXCELLENT(27 -35) 15 60
Figure 8: Feedback on Training Inputs
0
2
4
6
8
10
12
14
16
16-7 17-26 27-35
POOR AVERAGE EXCELLENT
POOR 16-7
AVERAGE 17-26
EXCELLENT 27-35
6.2 Role of Trainer
There are 5 sub – variables in V2 such as: Subject knowledge/ conceptual clarity, Trainer
created & maintained environment for learning, Trainers training skills & competence,
Presentation methodology and Guidance & support.
Applying the same procedure as for V1, we get the range of scores as 5 to 25. The
respondents are then categorized into 3 groups as:
44

Table 4: Feedback on the role of trainer
Category Frequency Percentage
POOR (5 – 11) 0 -
AVERAGE ( 12- 18) 0 -
EXCELLENT(19 -25) 25 100
Figure 9 : Feedback on the role of trainer
6.3 Facilities at the venue
The responses for V3 were obtained in the form of “yes” or “no”. The score assigned for
“no” response was ‘2’ and for “yes” was ‘1’. 20 out of 25 advisors interviewed found the
facilities provided by the company at the venue as satisfactory. In other words, 80% of the
respondents were satisfied with the facilities provided at the venue.
0
5
10
15
20
25
5 to 11 12 to 18 19 to 25
POOR AVERAGE EXCELLENT
45

Figure 10: Satisfaction with facilities at venue
80%
20%
yes
no
6.4 Relevance to the job
A 5 point rating scale was used to gather responses from the advisors which ranged from 1
for ‘not at all relevant’ to 5 for ‘highly relevant’. Of all the respondents, 92% felt that the
training programs conducted for them were highly relevant while only 8% were not sure.
Figure 11: Feedback on relevance to job
46

6.5 Overall evaluation of training program
As in the case of V1 and V2, here also same 5 point rating scale was used. Almost all of the
respondents have given highest rating to the training program as a whole. 15 respondents
gave ‘above average’ rating and 10 gave ‘excellent’ rating with respect to overall evaluation
of the training program.
Figure 12: Feedback on overall training program
47

CHAPTER 7
INTERRELATIONSHIP AMONG TRAINING COMPONENTS
7.1 Correlation analysis matrix
A correlation matrix has been drawn taking all the above five variables into consideration,
i.e., V1, V2, V3, V4 and V5, to understand the interrelationship among these variables.
Table 5 : Correlation matrix between the variables
V1 – Training Inputs
V1 V2 V3 V4 V5
V1 1
V2 0.89 1
V3 0.46 0.52 1
V4 0.52 0.58 0.25 1
V5 0.79 0.95 0.44 0.54 1
48

As could be seen from the intercorrelation matrix above, the training inputs are significantly
and positively correlated with all the other variables – roles of the trainer, facilities at venue,
relevance of the program and the overall evaluation of the training program. These
significant relationships are obvious since training inputs form the core part of any training
program. They are designed on the basis of training needs assessment made by the HR
department of the organization.
A positive correlation is found between training inputs and roles of the trainer (r 1,2
= 0.89).
This implies that the training inputs and trainer’s style of imparting the training program go
hand- in – hand. Depending on the course structure & content, the time allocated for each
module and the facilities provided at the venue, the trainer adopts suitable methods to create
environment for learning.
On the other hand, the least correlation has been found among training inputs and the
facilities provided at the venue by the organization (r1,3
= 0.46). This proves that the facilities
available at the venue have no much significance for the advisors. They are more concerned
about the way the training program has been designed and imparted.
Generally, there has to be a significant correlation between training inputs and the relevance
of the program to the job profile and the same has been found in the study also (r1,4
= 0.52).
For, the course structure & content is designed by taking the skills, knowledge and attitudes
required for effective performance of the job into consideration. The basic purpose of
providing training is to make the advisors capable of ‘good selling’.
Further, a significant correlation (r1,5
= 0.79) between the training inputs and the overall
evaluation of the training program by the advisors can also be seen in the matrix. That is, if
the advisors feel the training inputs are above average, they give similar rating for the
49

program as a whole. This shows that training inputs forms a crucial component for overall
success of the program.
V2 – Role of the trainer
Table shows that trainer’s subject knowledge and training skills have emerged as the most
significant variable in relation to the overall evaluation of the training program (r2,5
= 0.95 ).
In case of many training programs, it has been found that there is no impact on the
productivity of the employees even though the training inputs have been of very high
quality. This is because little do they realize that training is conducted so that employees can
implement the knowledge in their day- to-day work by developing requisite skills. Trainers
should not only impart knowledge but show to the participants a route map of how to
convert this gained knowledge into a skill over a period of time. But then many trainers are
not clear
how to convert the knowledge into a skill. These trainers concentrate more on the tools or
methods of the training rather than this conversion. This has been the major reason for
failure of several training programs. The significant relationship between trainer’s role and
relevance of program to the job (r2,4
= 0.58) proves the same.
Generally, the trainer’s teaching style and the creation of environment for learning depends
on the access to the various facilities available at the venue. For example, provision of audio-
visual aids can facilitate two way participation, quick revisit to material for clarifying a
point, offer entertainment etc. The positive and significant relationship between trainer’s role
and facilities at venue (r2,3
= 0.52) drives home the same point.
V3 – Facilities at venue
50

This variable does not have much significant relationship with the relevance of the program
to job and the overall evaluation of the training program (r3,4
= 0.25 , r3,5
= 0.44). this shows
that even if proper facilities are not provided at the venue, if the training inputs and the
trainer’s communication skills are good, the training program could be a success.
Herzberg has propounded that the presence of hygiene factors can only prevent
dissatisfaction but cannot lead to satisfaction. Similarly, facilities at venue being hygiene
factor , the satisfaction with it does not motivate employees to improve their performance.
They can at best facilitate creating an environment for learning.
V4 – Relevance to job
It is quite obvious that if the training program is found to be relevant to the job, the training
program will also be rated highly. This, however, depends to a great extent on how the
training knowledge is imparted by the trainer and converted to skills required for job.
7.2 Satisfactory aspects of training program
This was an open-ended question for which multiple responses were given by the advisors.
The various responses can be categorized into three broad areas: course material, training
facilities and trainer’s knowledge and skills.
As already discussed in Chapter 6, the advisors rated the trainer’s role as excellent. Most of
them were quite satisfied with the way the training was imparted. They found the trainers to
be responsive and approachable whenever they required any guidance and support.
7.3 Improvements suggested by the Advisors
The focus of the study was on advisors who received entry level training in last one to two
months. Many were already employed in different areas and this career formed an additional
51

source of income for them. They are finding it difficult to manage time for both their regular
work and training classes. Hence, the advisors feel that if possible, the duration of the
training program has to be reduced or it should be imparted through distance mode.
The course structure and schedule were found to be satisfactory but the advisors feel that the
technical language used in the material should be simplified. This would help them in
explaining the products in simple language to the customers.
CHAPTER 8
CONCLUSION
ICICI Prudential, being No.1 private player in life insurance in the country
with the largest distribution network, has made efforts to update its training programs to
keep pace with the fast changing world. In a highly competitive market, such continuous
efforts are necessary to be ahead of competitors.
The major findings with respect to the training program for advisors
conducted by ICICI Prudential are –
• The advisors have chosen career in insurance to earn additional income and have
quick career growth.
52

• The advisors have joined ICICI Prudential mostly through references
• The course content is all encompassing, i.e., it covers a study of all aspects of
life insurance , an overview about economy and introduction to various products
of the company and the unique features of each.
• The training aids and handouts were found to be of high quality
• The conceptual knowledge and presentation skills of the trainers are rated to be
excellent.
• The training program is conducted at all the branches and the facilities provided
were considered to be satisfactory.
• The advisors had a problem with the duration of the training program and the
technical language of the material
The suggestions that can be made to improve the training program for advisors are –
• The duration of the training program could be reduced.
• The training program should be conducted during weekends so that the advisors can
concentrate properly.
• The training program could be imparted through distance mode or online mode.
• Besides in technical language, the concepts should be explained in simple language
or local language also which a layman can understand. This would help the advisors
to interact in a better way with the customers.
53

• Knowledge about one’s products and also that of the competitors should be provided
to the advisors so that they can handle customer queries well and develop good
selling skills.
• The techniques to promote the brand awareness of ICICI Prudential should be
included in the course.
ICICI Prudential should concentrate more on the training programs conducted
for the advisors. For, they are the ones who not only sell the company’s products but also
create and maintain brand image among the customers. Constant assessment of the advisor’s
skills in order to upgrade them would go a long way in achieving success in this dynamic
industry.
APPENDICES
LIST OF LIFE INSURERS IN INDIA
1. Bajaj Allianz Life Insurance Company Limited
2. Birla Sun Life Insurance Co. Ltd
3. HDFC Standard Life Insurance Co. Ltd
4. ICICI Prudential Life Insurance Co. Ltd
5. ING Vysya Life Insurance Company Ltd.
54

6. Life Insurance Corporation of India
7. Max New York Life Insurance Co. Ltd
8. Met Life India Insurance Company Pvt. Ltd.
9. Kotak Mahindra Old Mutual Life Insurance Limited
10. SBI Life Insurance Co. Ltd
11. Tata AIG Life Insurance Company Limited
12. Reliance Life Insurance Company Limited.
13. Aviva Life Insurance Co. India Pvt. Ltd.
14. Sahara India Life Insurance Co, Ltd.
15. Shriram Life Insurance Co, Ltd.
16. Bharti AXA Life Insurance Company Ltd.
17. Future Generali Life Insurance Company Ltd.
18. IDBI Fortis Life Insurance Company Ltd.
19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd
QUESTIONNAIRE
1. What prompted you to choose a career in insurance industry?
2. What motivated you to join ICICI PRUDENTIAL?
3. Rate the following:
(On Scale of 1 to 5: 1-poor, 2- below average, 3- average, 4-above average, 5- excellent )
A) Course structure
B) Course Content
55

C) Duration of training program
D) Handouts & Training aids
E) Quality of exercise
F) Training coordination & organization
G) Communication of training objectives clearly
4. Trainer Feedback
A) Subject knowledge/ conceptual clarity
B) Trainer created & maintained environment for
Learning
C) Trainers training skills & competence
D) Presentation methodology
E) Guidance & support
5. Were the facilities provided at the venue adequate?
Yes No
6. What did you like the best about the program?
7. What could have been done better?
8. What is your overall evaluation of the training program? (Rate on scale of 1 to 5)
56

9. Do you think this training program is relevant to your job profile? (tick appropriate one)
Highly relevant
Relevant
Not sure
Not that much relevant
Not at all relevant
10. Any other comments/ suggestions___________________________________________
_______________________________________________________________________
REFERENCES
WEBSITES
1. www.iciciprulife.com
2. www.ficci.com
3. www.citehr.com
4. http://www.scribd.com/word/full/3825168?access_key=key-wthi0bc71r4yqzime4e
57

5. http://www.scribd.com/doc/4369879/ICICI-PRULIFE STUDY?
from_email_friend_send=1
MAGAZINE
Insurance chronicle, Vol-VII, Issue-XI, November 2007
BOOKS
1. Cheng, Patrick Low Kim. “Training Success: understanding the learning and
training essentials.” Hyderabad , ICFAI University Press, 2005
2. Goldstein, Irwin.L. “Training in Organizations.” Thomas Wadsworth, 2001
3. Raju,P.V.L. “Training: Needs and Evaluation”( ed.), Hyderabad , ICFAI
University Press, 2005
4. Reddy, Dr.B.Rathan. “Effective HR Training and Development Strategy.”
Himalaya Publishing House, 2007
5. Reddy, Sumathi. “Training and Development: Perspectives from Service Sector”
(ed.), Hyderabad , ICFAI University Press, 2007
58

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