A case study on ICICI Lombard.

1. PRAYAS
Case Study Competition
“ICICI Lombard”
Q.1 What is the role of insurance companies in the development sector?
Ans. Insurance today has become an integral part of the whole financial system. Insurance is a win-win
game. It is beneficial for both insurer and insured. On one side the insurer gets the premium and on the
other the insured gets risk free future. Our lives are full of uncertainty and risks. We can’t anticipate what
will happen at the next moment. Avoiding risks is not our cup of tea but mitigating risks is.
Insurance companies are playing a vital role in the development of Individuals, society
Entrepreneurs, Corporate, Economy, Government and a nation as a whole.
Role of insurance companies in the development of Individuals:
 A medium to save and invest money
 Social security-
 Sense of security and safety
 Employment generation
 Aid at the time of-
 Old age and retirement
 Education
 Marriage
 Risks related with fire, theft, accidents and others.
 Mobilization of savings
 Stressed free people leads to happy people and thus developed economy.
 When people invest in insurance, they are left with lesser amount. It will reduce the demand of
goods and thus it will reduce inflation.
 Financial stability
 Reap the benefits of young age in old age.
Role of insurance companies in the development of Corporate:
 Insurance is a stimulation of commerce, trade and industry as a whole.
 Transfer of risks ensures smooth functioning of business.

2.  Insurance helps to avoid disruptions of operations and thus aids in the survival and long life of
business.
 Insurance facilitates specialization of labor by taking over the burden of risk since it specializes in
bearing of risks.
 Optimum utilization of capital to generate more wealth.
 Increment in credit worthiness.
Role of insurance companies in the development of Country:
 Aid to Foreign trade
 Insurance provides development opportunity to those larger industries having more risks in
setting up.
Thus we can conclude that insurance companies play a vital role in the development of whole economy.
Q.2 What is the potential of insurance sector in India after Privatization?
Ans. Privatization refers to that process by which the participation of state and public sector in economic
activities is reduced. The main aim of privatization is to allow the private sector to run and manage the
industries and to minimize the reservation made for public sector. In other words, the implementation of
the policy of denationalization is called privatization.
Concept of Privatization on one hand, puts restriction on public sector and on the other provides
concessions, reliefs, allowances and facilities for the expansion of private sector.
Impact of Privatization in India, which would have positive impact on insurance sector are:
 Growth of Financial Markets
 Growth of industrial sector
 Growth of Banks
 Developments in higher Education
 Growth of Technology
Insurance sector in India has a bright future because Indian Economy is growing by leaps and bounds. A
huge part of India either does not know about insurance or do not have any type of insurance. In such a
condition India has lots of opportunity to get insured. In every sector Education, Technology, Finance,
Health our country is developing. India has a huge population and thus a vast potential in insurance sector.
Yesterday there were only few name like LIC and GIC in the insurance sector but today almost every bank
and financial organization is a part of Insurance sector. HDFC Standard life Insurance Co. Ltd. And Max
New York life insurance are the emerging names.
Potential of Insurance sector in India:

3.  Introduction of Foreign Direct Investment in the Insurance has also showcased the wide horizons
of insurance sector.
 Customer satisfaction and Customer Delight have become the soul objectives of market, thus
Insurance companies have wide opportunities to innovate its practices.
 Awareness of customers towards their life, house, property, vehicle, family are enticing people to
opt for insurance.
 Increasing Risks
 An increasing trend of salaries and high packaged jobs among younger generation has increased
the purchasing power thus people will have more money for savings and insurance.
 Privatization has opened the way for various private colleges and schools. An increase in the
number of literate people also has opened avenues for insurance sector.
Q.3 What are the business processes used in ICICI Lombard an what ar the challenges faced by the
company?
Ans. Business process used in ICICI Lombard includes-
 Setting of customer claims
 Sale of its products through various channels.
ICICI Lombard has various personal and Business products.
 Personal Products:
 Health Insurance
 Home Insurance
 Motor Insurance
 Overseas travel Insurance
 Domestic Travel Insurance
 Student Medical Insurance
 Business Products
 Fire Insurance
 Marine Insurance
 Industrial Insurance
 Corporate Insurance
 Liability Insurance
 Credit Insurance
 Channels
 Sales Executives
 Sales force
 Agents
 Brokers
 Online

4.  Banks
 Bancassurance channel
 Telesales Channel
Challenges faced by the ICICI Lombard in its Business Processes:
 Delayed deadlines
 Buyer dissatisfaction as it is difficult to have an exact information about the needs, likes
and preferences of the customer.
 It is also not easy to understand that Who, What, Why, When and how will buy the
product.
 Competitive Analysis
 In telesales customers hate to receive cold calls, if they receive also they do not respond
properly.
 Some people find it difficult to navigate through the online channel.
 Sales force in the insurance sector is overburdened with the targets and it creates
uncongenial aura at the workplace.
 Lapse of policies
 Fixation of premium amount ( Competitor’s Pricing)
 Claim Settlement is a tough process sometimes Insurance Companies have to suffer loss.
Q.4 What are the ways in which MIS can help to overcome the challenges mentioned in
Q.3?
Ans. Information is an important resource for managers. A Management Information System
may be defined as a complex interaction among people, computer and computer
technologies, and procedures designed to quickly provide relevant data or information,
collected both from internal and external organizational sources, for organizational use.
MIS is designed to acquire, store and convert data in to timely relevant information to help
managers carry out the planning, control and operation and operational functions of the
organizations.
MIS i.e. Management Information System is the solution to the various problems of any
organization. In case of ICICI Lombard also MIS is an efficient tool to face and solve all its
challenges.
BENEFITS of MIS:
 Use of Premia and Genesis Pathfinder results in to
 Reduced Times
 Increased Revenues

5.  Decreased costs
 Management of issues and policies
 Manage critical insurance functions
 Integrated Collaborative portal server (CPS)
 Improved speed and accuracy
 Ease of claim settlements
 Customer Relationship Management
 Better Customer service
 Customer satisfaction
 Customer delight
 Citrix Metaframe enables
 Faster rollout of applications
 Proper database Management
 Data mining
 Data storing
 Better information systems
 Increased efficiency of the organization
 Flexibility in easy modification of data
These benefits of MIS prove that Management Information system enables the smooth functioning at
each level of ICICI Lombard. It helps in the improvement of Business processes.
Purvi Jain
Shri Venketeshwar Institute of Technology
Indore