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1.1. INTRODUCTION OF THE STUDY
This study is being conducted to increase the customer base of MetLife
India Insurance Company Limited. Taking into consideration the Market scenario,
MetLife India Insurance has tough time to play in the Market, why because there
are other players in the Insurance Sector, which has got good Market share as well
as given a good service like MetLife India Insurance. Therefore this study would
help MetLife India Insurance to opt the best for their move in the Market.Regarding service, MetLife India Insurance has a good remark from the customer.
I hope definitely this study will help the Company to understand the requirements
for enhancing their customer base.
When we consider the current market scenario, it will not be easy for
MetLife India Insurance to increase its performance. This is because there are
other players in the Insurance sector who have good Market share and the same
time giving excellent service as that of MetLife India Insurance. The Researcher
definitely hopes that this study will help the company to understand the
requirements for enhancing the customer base.
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1.2 SCOPE OF THE STUDY
Project entitled Study on Customer Satisfaction of Insurance Products of
MetLife India Insurance Co. in Alwaye helps to understand the untapped Market
Potential, derive ways for expanding the Market share and making the customer
satisfied with the product and service. Also in time to find out different ways for
taking advantage of customers long standing trust and relationship with
Insurance Sector.This project gives a clear picture of the products, service etc offered by
the Company. For a Company customer satisfaction is one of the important
factors to consider because of existence of a Company depends more on
customers.
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1.3 OBJECTIVE OF THE STUDY
The following are the objectives of the study
1.3.1 PRIMARY OBJECTIVE:
To assess the level of customer satisfaction for Life Insurance products of MetLife India Insurance.
1.3.2 SECONDARY OBJECTIVES:
1) To assess the awareness regarding the Insurance products of
MetLife India Insurance, in Alwaye city.
2) To know about customer preference for Insurance Products.
3) To find out more reason for customers selecting a particular
Company.
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1.4 RESEARCH METHODOLOGY
A research methodology defines what the activity of research is, how to
proceed, how to measure progress and what constitutes success.
STEPS THAT WAS TAKEN FOR THE MARKET RESEARCH:
The objective of the present study can be accomplished by conducting asystematic Market Research. The Market Research is the systematic design,
collection, analysis and reporting of data and finding that are relevant to different
Marketing situation facing the Company.
The descriptive Research includes survey and facts finding enquiries. The
major purpose of the descriptive Research is the description of state of affairs, as
it exists at present. The main limitation of this method is that the Researcher has
no control over the variable. He can only report what has happened and what is
happening.
1) DEFINE THE PROBLEM AND OBJECTIVE DESIGN
The research objective states what information is needed to solve the
problem. The objective of Research is to an opinion of existing customers both
the competitors and developing the Marketing strategies to improve the business.
This Research will also help to identify the competitors strengths and weakness,
their promotional strategies, various products and services offered by the
competitor.
As customers are major assets for the company, it is important that the
Company should aware of customer satisfaction level. If the customer is not
satisfied with the present condition then they should take the correct decision.
Therefore, this Research is very helpful to the Company. This study also aims to
identify who is the major player in the Market and who is stronger.
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2) Developing research plan
Once the problem is identified, the next step to prepare the plan for getting
the information needed for the Research. The present study will adopt the
exploratory approach in which large amount of information is needed and finallygetting into conclusion.
3) Research design
A research design is a framework for conducting the Market Research. It
includes the procedures necessary for obtaining the information needed to
structure or solve Marketing Research a good Research design will ensure that the
marketing Research should conduct effectively.
Typically a research involves the following steps.
Define information needed.
Design the exploratory, descriptive, and casual phases of the
Research.
Specify the measurement and scaling procedure.
Construct a questionnaire of appropriate form of data collection.
Specify the sampling procedure and sampling size.
Develop a plan for the data analysis.
The basic requirement for success in any formal Marketing Research
project is a sound Research design. A good Research design is purely the
framework or plan for a study that followed in completing a study.
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Descriptive Research
Descriptive studies are concerned with describing the characteristics of a
particular individual or group. They are undertaken in many circumstances. There
is a general feeling that descriptive studies or factual and very simple.
Descriptive study is well structured. It is necessary that the Researcher
give sufficient thought to frame the Research questions and deciding.
1.5 Source of Data
Primary data was obtained with the help of a structured questionnaire.The questionnaire was administrated by personal interview with respondents. The
questionnaire used for the data collection was a structured one. The questionnaire
consists of choice, closed and open-end questions.
Secondary data refers to the information or facts are already available. The
source of secondary data journals website etc.
Form of Data Collection
Main mode used for collecting data was through Survey Method.
Sampling Technique
The technique Method is used in the study was Random Sampling .
Sampling Size
Sample size for the study was 100. 100 Respondents were interviewed. Out
of this, 25 Respondents were MetLife India Insurance Customers and remaining
25 Respondents were Non- MetLife India Insurance Customers.
Area f Study
Area of study was limited to Alwaye.
Data Analysis
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The data collected from the survey requires an accurate analysis.
Therefore, this analysis was done using Percentage Method and Pie Diagram.
Tools of Data Collection
Questionnaire was designed in accordance with the primary data needed
for analysis. Secondary data was collected from the records of Companies and
Websites.
Questionnaire Design
Questionnaire contains both close ended and open ended questions.Close-ended questions specify all possible answers and provide answers that are
easier to interpret and own words and often reveals about their thinking.
1.6 Techniques Adopted for analysis
Percentage Test
Pie Diagram
Duration of the study
The study was carried out from 15 March to April 30, 2010 for a period of 45
days.
Limitations of the Study
1) The survey was conducted in Alwaye city, alone therefore the costume or
the result may not be applicable to more cities.
2) Some of the customers were reluctant at motive of the Survey to give their
views.
3) Most of the customers were busy. Therefore, the data supplied by them
may not be exact and accurate.
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CUSTOMER SATISFACTION
Customer satisfaction refers to how satisfied customers are with the
products or services they receive from a particular agency. The level of
satisfaction is determined not only by the quality and type of customer experience
but also by the customers expectations.
A customer may be defined as someone who:
Has a direct relationship with, or is directly affected by your agency and
receives or relies on one or more of your agencys services or products.
Customers in human services are commonly referred to as service users,
consumers or clients.
An organization with a strong customer service culture places the customer
at the centre of service design, planning and service delivery. Customer
centric organizations will:
Determine the customers expectations when they plan
Listen to the customer as they design
Focus on the delivery of customer service activities
Value customer feedback when they measure performance.
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IMPORTANCE OF CUSTOMER SATISFACTION:
There are a number of reasons why customer satisfaction is important in
Insurance Sector:
Meeting the needs of the customer is the underlying rationale for the
existence of community service organizations. Customers have a right to
quality services that deliver outcomes.
Organizations that strive beyond minimum standards and exceed the
expectations of their customers are likely to be leaders in their sector.
Customers are recognized as key partners in shaping service development
and assessing quality of service delivery.
The process for measuring customer satisfaction and obtaining feedback
on organizational performance are valuable tools for quality and continuous
service improvement
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INSURANCE
Functions of Insurances
There are two types of definitions of Insurance
1. Functional Insurance
2. Contractual Insurance
Functional Insurance
The term insurance may be defined as Co- operative mechanism to spread
the risk caused by a particular event over a number of people who are exposed it
and to ensure them against the risk.
Contractual Insurance
Insurance has been defined to be that in which a sum of money as a
premium is paid in consideration of the Insurance incurring the risk of paying a
large sum upon a give contingency.
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FUNCTIONS OF INSURANCES
Functions of Insurances can be suited in two parts.
Primary
Secondary
PRIMARY FUNCTION:
a) Insurance provide certainty :
The insurance provides certainty of payment at the uncertainty of loss.
b) Insurance provides Protection :
The main function of Insurance is to provide protection.
c) Risk Sharing :The risk is uncertain and therefore the risk arising from Insurance is
uncertain.
d) Prevention of Loss :
The insurance joins hand with those institutions which are engaged in
prevention losses of the society because the reduction in less causes lesser
payment to the assured and so more saving is possible which will assist in
reducing the premium.
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e) It provides capital :
The insurance provide capital to the society; the accumulated funds are
invested in productive channel.
f) It improves Efficiency :
The Insurance eliminates worries and miseries of losses of death and
destruction of property.
g) It helps Economic Progress :
The insurance by protecting the society from huge losses of dangers
destruction and death provide and initiate to work hard for the betterment of
the masses.
Types of Insurances:
Classification based on nature of Insurances
Life Insurances
Fire Insurances
Marine Insurances
Social Insurances
Miscellaneous Insurances
Business Point of view
Fire Insurances
General Insurances
Risk Point of view
Personal Insurances
Property Insurances
Liability Insurances
Fidelity Insurances
Role and Importance of Insurance
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The process of Insurance has been evolved to safeguard the interest of
people from uncertainty by providing certainty of payment at a given
contingency. The insurance principle comes to be more and more used and useful
in modern affairs. Not only does its serve the individuals, or of special groups of
individuals, it tends to pervade and to transform our modern social orders too.
Use to Individuals
1. Insurance provides security and safety.
2. Insurance afford piece of minds.
3. Insurance protects most property.
4. Insurance eliminates dependency.
5. Life insurance encourages saving.
6. Life insurance provides profitable investment.
7. Life insurance fulfills the needs of protection.
Uses to a special group of individuals / Business
1. Uncertainty of business losses is reduced
2. Business- efficiency is increased with Insurance.
3. Enhancement of credit
4. Business continuation
5. Welfare of employees
Uses to the society
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1. Wealth of the society is predicted
2. Economic growth of a country
3. Reduction in inflation
MARKET DEFINED
Marketing is a social process by which individuals and grows obtain what
they need and want through creating, offering and freely enhancing products and
services of value with others.
Service marketing includes all economic activities whose output isnt a
physical product or construction is generally consumed at that time it is produce
and provides added value in forms such as convenience, amusement, timelines,
comfort or health) that are essentially intangible concerns of its purchaser.
There will always, one can assume be need for some selling. However the
aim of Marketing is to make selling superfluous. The aim of marketing to know
and understand the customer so well that the product or service fits him and self
itself.
Ideally, Marketing should result in a customer who is ready to buy. All
that should be needed then is to make the product r service available.
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We see marketing management as the art and the science of choosing
target Markets and getting, keeping and growing customers through creating,
delivering and communicating customer superior customer value.
Therefore marketers start with Market segmentation. For chosen target
Market, the firm develops a Market offering. The offering is positioned in the
minds of the target buyers as delivering central benefits.
Marketers use numerous tools to elicit desired responses from their target
Markets. These tools constitute Marketing Mix.
Marketing Mix is the set of marketing tools that the firm uses to pursue its
Marketing objectives in the target Market.
SERVICE MARKETING MIX
1. Product
2. Price
3. Promotion
4. Place
5. People
6. Physical Evidence
7. Process
1. PRODUCT
a. Product variety
b. Quality
c. Design
d. Features
e. Brand Name
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f. Packaging
g. Sizes
h. Services
i. Warranties
j. Return
2. PRICE
a. List price
b. Discounts
c. Allowancesd. Payment Period
e. Credit Terms
3. PROMOTION
a) Sales Promotion
b) Advertising
c) Sales Force
d) Public Relations
e) Direct Marketing
4. PLACE
a) Channels
b) Coverage
c) Assortments
d) Locations
e) Inventory
f) Transport
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5. PEOPLE
a) Employees
Recruting
Training
Motivation
Rewards
Teamwork
b) CustomersEducation
Training
6. PHYSICAL EVIDENCE
a) Facility Design
b) Equipment
c) Signage
d) Employee Dress
7. PROCESS
a) Flow of activities
b) Number of steps
c) Customer involvement
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The ultimate purpose of the Marketing is to help Organizations to achieve
their objectives. Todays Companies are facing the toughest competition ever.
Companies can outperform the competition if they can move from a product and
sales philosophy to a Marketing philosophy. Companies can go about winning
customers and outperforming competitors by doing a better job of meeting and
satisfying customer needs. Only customer centered companies are adept at
building customers, not just products. They are skilled in Market engineering, not
just product engineering. There is a growing Market for services and increasing
dominance of service in economies worldwide. Services are a dominant force in
Countries around the world. The tremendous growth and contribution of theservice Sector has drawn increasing attention to the issues and problems of
service Sector Industry.
INTRODUCTION TO INSURANCE
Today, only one business, which affects all walks of life, is insurance
business. Thats why insurance industry occupies a very important place among
financial services operative in the world. Owing to growing complexity of life,
trade and commerce, individuals as well as business firms are turning to insurance
to manage various risks.
Therefore a proper knowledge of what insurance is and what purpose does it serve
to individual or an organization is therefore necessary.
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The future is never certain, so its rightly said,
AN INSURANCE POLICY IN HAND KEEPS THE TENSION AWAY.
The earliest transaction of insurance as practiced today can be traced
back to the 14 th century AD. The business of insurance started with marine
business by Traders who used to gather in the Lloyds coffee house in London,
wherein they had agreed to insure their ships in transit.
The 1st Life Insurance Policy was issued on 18th June, 1583, on the life
of William Gibbons for a period of 12 months.
Industry organization.
The insurance industry provides protection against financial losses resulting
from a variety of perils. By purchasing insurance policies, individuals and
businesses can receive reimbursement for losses due to car accidents, theft of
property, and fire and storm damage; medical expenses; and loss of income due to
disability or death.
The insurance industry consists mainly of insurance carriers and
insurance agencies and brokerages. In general, insurance carriers are large
companies that provide insurance and assume the risks covered by the policy.
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Insurance agencies and brokerages sell insurance policies for the carriers. The
insurance industry also includes a number of independent organizations that
provide a wide array of insurance-related services to carriers and their clients.
One such service is the processing of claims forms for medical practitioners.
Other services include loss prevention and risk management. Also, insurance
companies sometimes hire independent claims adjusters to investigate accidents
and claims for property damage and to assign a dollar estimate to the claim.
Insurance agencies and brokerages sell insurance policies for the
carriers. While some of these establishments are directly affiliated with a particular insurer and sell only that carriers policies, many are independent and
are thus free to market the policies of a variety of insurance carriers. In addition to
supporting these two primary components, the insurance industry includes
establishments that provide other insurance-related services, such as claims
adjustment or third-party administration of insurance and pension funds.
Goods and services.
The insurance industry provides protection against financial losses resulting froma variety of hazards. By purchasing insurance policies, individuals and businesses
can receive reimbursement for losses due to car accidents, theft of property, and
fire and storm damage; medical expenses; and loss of income due to disability or
death.
Direct insurance carriers offer a variety of insurance policies. Life
insurance provides financial protection to beneficiariesusually spouses and
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dependent childrenupon the death of the insured. Disability insurance supplies
a preset income to an insured person who is unable to work due to injury or
illness, and health insurance pays the expenses resulting from accidents and
illness. An annuity (a contract or a group of contracts that furnishes a periodic
income at regular intervals for a specified period) provides a steady income
during retirement for the remainder of ones life. Property-casualty insurance
protects against loss or damage to property resulting from hazards such as fire,
theft, and natural disasters. Liability insurance shields policyholders from
financial responsibility for injuries to others or for damage to other peoples
property. Most policies, such as automobile and homeowners insurance, combine both property-casualty and liability coverage. Companies that underwrite this
kind of insurance are called property-casualty carriers.
Some insurance policies cover groups of people, ranging from a few to thousands
of individuals. These policies usually are issued to employers for the benefit of
their employees or to unions, professional associations, or other membership
organizations for the benefit of their members.
Among the most common policies of this nature are group life and health
plans. Insurance carriers also underwrite a variety of specialized types of
insurance, such as real-estate title insurance, employee surety and fidelity
bonding, and medical malpractice insurance.
Working Conditions
Hours.
Many workers in the insurance industryespecially those in
administrative support positionswork a 5-day, 40-hour week. Those in
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executive and managerial occupations often put in more than 40 hours. There are
several occupations in the insurance industry where workers may work irregular
hours outside of office settings. Those working in sales jobs need to be available
for their clients at all times. This accommodation may result in these individuals
working 50 to 60 hours per week.
Work environment .
Insurance employees working in sales jobs often visit prospective and existing
customers' homes and places of business to market new products and provide
services. Others working in the industry may need to frequently leave the office toinspect damaged property, and at times can be away from home for days,
travelling to the scene of a disastersuch as a tornado, flood, or hurricaneto
work with affected policyholders and various government officials.
A small, but increasing, number of insurance employees spend most of their time
on the telephone working in call centres, answering questions and providing
information to prospective clients or current policyholders. These jobs may
include selling insurance, taking claims information, or answering medical
questions.
INDIAN INSURANCE INDUSRY OVERVIEW
All life insurance companies in India have to comply with the strict
regulations laid down by Insurance Regulatory and development Authority of
India (IRDA). Therefore there is no risk in going in for private insurance players.
Life Insurance Corporation of India (LIC) remains by far the largest player in the
market.
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The private companies are coming out with better products which are
more beneficial to the customer. Among such products are the ULIPs or the Unit
Linked Investment Plans which offer both life cover as well as scope for savings
or investment options as the customer desires. Further, these types of plans are
subject to a minimum lock-in-period of three years to prevent misuse of the
significant tax benefits offered to such plans under the Income Tax Act. Hence
comparisons of such products with mutual funds would be erroneous.
Life Insurance in its current form came in India from the UK, with the
establishment of British firm, Oriental Life insurance Company, in 1818.
The 1st
Indian insurance company was the Bombay Mutual AssuranceSociety Ltd, formed in 1870. By the year 1956, when the life insurance business
was nationalized and the Life Insurance Corporation Of India ltd (LIC) was
formed on 1st September, 1956.
OVERVIEW OF INSURANCE REGULATION
The insurance sector in India is regulated under the Insurance Act,
1938 and the IRDA Act, 1999 . The Insurance Act, 1938 defines four categories
of insurance life, fire, marine and miscellaneous. In general, two categories of
insurers are licensed life and general (covering the last three product
categories).
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Every insurer seeking to carry out the business of insurance in India is
required to obtain a certificate of registration from the Insurance Regulatory and
Development Authority (IRDA) prior to the commencement of business. The pre-
conditions for applying for such registration have been set out under the Insurance
Act, the IRDA Act and the various regulations prescribed by the IRDA.
INSURANCE INDUSTRY POTENTIAL
Asia is amongst the worlds largest insurance markets contributing
nearly 39% of global insurance business.
The Life Insurance Industry has grown by 27% p.a. over the last 5 yearsand by about 62% in the first eleven months of 2006 -07.(Source IRDA
Journal -April2007)
Global Life Insurance Market: $1,521 billion, Global Non-Life Insurance
Market: $922 billion
India is 23rd in insurance business with 0.41% share.
Out of one billion people in India, only 35 million people are covered by
insurance.
TABLE NO:A1
INDIA INSURANCE DENSITY AND PENETRATION
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Year Life Non life Total2005 18.3 4.4 22.7
2006 33.2 5.2 38.4
2007 40.4 6.2 46.6
2008 41.2 6.2 47.4
Indian life insurance industry is considered the fifth largest life insurance
market, and growing at a rapid pace of 32-34 per cent annually, according to the
Life Insurance Council. However, industry experts now believe that India's life
insurance industry is likely to grow by around 10 per cent in 2010 over the
previous year, mainly due to increased efficiency but also due to expansion in
small towns and villages.
Growth Rate of Insurance sector
Public Sector: 5.5%
Private Sector: 57.4%
India: Investment in insurance sector up 18.6%, growth dips to 19.6%
Total investments of insurance sector as on March 31, 2009, stood at Rs 9,75,258
crore .
Noun 1. Crore - the number that is represented as a one followed by 7 zeros; ten
million, recording an increase of 18.61 % over the previous year.
While life insurers reported 19.63% increase in investments, non-life insurers
registered only a 4.64% growth. In both, life and non-life insurance business,
private sector insurers reported larger increase in investments than the public
sector ones. This may be owing to a lower base of private sector companies in the
previous year. Though total investments have increased, growth in 2008-09 stood
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at 19.63 %, lower than 26.78% recorded for 2007-08.
Both traditional funds as well as Ulips decelerated in 2008-09. Growth in
traditional funds was marginally lower. A substantial deceleration
deceleration /deceleration/ (de-sel?er-ashun) decrease in rate or speed.
Early deceleration was observed in Ulips from 98.48% in 2007-08 to 29.82% in
2008-09. Total investments of non-life insurers were Rs 58,893 crore, an increase
of 4.64% from Rs 56,280 crore as on March 31, 2008.
During 2008-09, the pattern of investments for general insurers remained the
same as observed in 2007-08, except for investments in infrastructure that have
gone up from 13.61% in 2007-08 to 15.25 % in 2008-09.
MAJOR LIFE INSURANCE COMPANIES IN INDIA
Presently there are about 18 Life Insurance companies in the country. There is
about only one public sector LIC and the rest are private sector. Although LIC has
been dominating The Life Insurance business since past few years the private
players have now started to take the momentum.
TABLE NO:A2
MARKET SHARE FOR 5 YEARS.
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LIFE INSURANCE COMPANIES IN INDIA
1. Life Insurance Corporation of India
PRIVATE PLAYERS
2. Tata AIG Life Insurance Company Ltd
3. Kotak Mahindra Old Mutual Life Insurance Ltd
4. Birla Sun Life Insurance
5. ICICI Prudential Life Insurance
6. Aviva Life Insurance
7. Allianz Bajaj
8. Max New York Life Insurance
9. Bharti Axa Life Insurance10. SBI Life Insurance
11. Reliance Life Insurance
12. ING Vysya Life Insurance
13. Sahara India Life Insurance
14. HDFC Standard Life Insurance
15. Shriram Group
LIFE INSURANCE CORPORATION OF INDIA
27
PLAYERS 2003-04 2004-05 2005-06 2006-07 2007-2008 2008-2009
LIC 94% 87% 78% 74% 56% 64%
Private
Player
6% 13% 22% 26% 44% 36%
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LIC continues to be the dominant life insurer even in the liberalized scenario of
Indian insurance and is moving fast on a new growth trajectory surpassing its own
past records. LIC has issued over one crore policies during the current year. It has
crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005,
posting a healthy growth rate of 16.67% over the corresponding period of the
previous year. From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance business.
The same motives which inspired our forefathers to bring insurance into existence
in this country inspire us at LIC to take this message of protection to light the
lamps of security in as many homes as possible and to help the people in
providing security to their families
TATA AIG LIFE INSURANCE CO. LTD
American International Group, Inc (AIG). Tata AIG Life
combines the Tata Groups pre-eminent leadership position in India and AIGs
global presence as the worlds leading international insurance and financial
services organization. The Tata Group holds 74 percent stake in the insurance
venture with AIG holding the balance 26 percent. Tata AIG Life provides
insurance solutions to individuals and corporate. Tata AIG Life Insurance
Company was licensed to operate in India on February 12, 2001 and started
operations on April 1, 2001
The Tata Group is one of the Indias largest and, most respected
conglomerates. American Life Insurance (AIG), a world leader in insurance and
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financial services, is the leading international insurance organization with
operations in more than 130 countries and jurisdictions.
1) KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED
Kotak Mahindra is one of the Indias leading
financial conglomerates, offering complete financial solutions that encompass
every sphere of life. From commercial banking, to stock broking, to stock
broking, to mutual funds, to life insurance, to investment banking, the groupcaters to the financial needs of individuals and corporate.
The group has a net worth of over Rs. 5,824crores, employs around
20,000 people in its various businesses and has a distribution network of
branches, franchisees, representative offices and satellite offices across 370 cities
and towns in India and offices in New York, London, San Francisco, Dubai,
Mauritius and Singapore. The Group services around 4.4 million customer
accounts.
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2) BIRLA SUN LIFE INSURANCE COMPANY LIMITED
Birla Sun Life Insurance Company Limited (BSLI) is a
joint venture between the Aditya Birla Group and the Sun Life Financial Services
of Canada. It started operations in March 2001 after receiving its registration
license from IRDA in January 1001. The Aditya Birla Group is the second largest
business house in India, with a turnover exceeding Rs. 260 billion and an asset
base in excess of Rs. 180 billion. The Groups market capitalization is
approximately Rs. 150 billion. It has 7 lakh investors and employees around72,000 people.
Sun Life Financial has evolved from a single mutual fund life
insurance company into one of the most highly rated insurance and wealth
management institutions in the world. Sun Life Insurance Company of Canada,
Sun Lifes primary insurance arm, is among the largest international financial
services organizations in the world, with assets under management of over US$
201 billion.
3) ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
ICICI Prudential Life Insurance Company is a
joint venture between ICICI Bank one of the Indias foremost financial services
companies and prudential plc- a leading international financial services group
headquartered in the United Kingdom. Total capital infusion stands at 42.72
billion, with ICICI Bank holding a stake of 74% and prudential plc holding 26%.
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4) AVIVA LIFE INSURANCE COMPANY INDIA LIMITED
Aviva is the UKs largest and the worlds fifth largest insurance group. It
is one of the leading providers of life and pensions products to Europe and has
substantial business elsewhere around the world. With a history dating back to
1696, Aviva has a 40 million-customer base worldwide.
In India, Aviva has a joint venture with Dabur, one of the Indias
oldest and largest Groups of companies. A professionally managed company,
Dabur is the countrys leading producer of traditional healthcare products. In
accordance with the government regulations Aviva holds a 26% stake in the jointventure and the Dabur group holds the balance 74% share.
5) BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED
Bajaj Allianz Life Insurance CompanyLimited is a Union between Allianz SE, one of the worlds largest Life Insurance
companies and Bajaj Auto, one of the biggest 2-&- 3 wheeler manufacturers in
the world. Allianz SE is a leading insurance conglomerate globally and one of the
largest asset managers in the world, managing assets worth over a Trillion Euros
(Over Rs. 55, 00,000). Allianz has over 115 years of financial experience in over
70 countries.
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8) SBI Life Insurance COMPANY LTD.
SBI Life Insurance is a joint venture between the State
Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with
an authorized capital of Rs. 1000 cores. SBI owns 74% of the total capital and
BNP Paribas Assurance the remaining 26%.
State Bank of India enjoys the largest banking franchise in India. Along
with its 7 associate Banks, SBI Group has the unrivalled strength of over 14,500
branches across the country, arguably the largest in the world. BNP Paribas, partof the worlds top 10 groups of banks by market value and part of Europe top 3
banking companies, is one of the oldest foreign banks with a presence in India
dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance
company in France, and a world- wide leader in Creditor insurance products
offering protection to over 50 million clients. BNP Paribas Assurance operates in
42 countries mainly through the banc assurance and partnership model.
9) Reliance Life Insurance COMPANY LTD.
Reliance Life Insurance Company Limited is a
part of Reliance Capital Ltd., a part of Reliance - Anil Dhirubhai Ambani
Group. Reliance Capital is one of India's leading private sector financial
services companies, which ranks among the top 3 private sector financial services
and banking companies. Reliance Life Insurance is not only one of India's fastest
growing life insurance companies, but also counts among the top 4 private sector
insurers. In just 2 years, the Company has crossed the mark of 1.7 Million
policies .
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10)ING VYSYA LIFE INSURANCE
Established in India in September 2001, ING Vysya
Life Insurance Company Limited is a joint venture between Vysya Bank, which is
one of the largest private sector banks in India, and ING Insurance Co., which is
the world's second largest life insurance company. This private life insurance
company has around 140 branches all over India, with head office in Bangalore.
ING Vysya Life Insurance Co. has around 3000 employees with over 21,000 sales
insurance agents and brokers. ING Vysya Life presently has around 4.5 lakh
customers, and is making a total income of Rs. 400 crore.
11) SAHARA INDIA LIFE INSURANCE
The Sahara Pariwars latest foray is in the field of Life
Insurance. The Pariwars life insurance company Sahara India Life Insurance
Company Ltd. - has been granted license by the insurance regulator the IRDA
on 6th February 2004. With this approval Sahara India Life Insurance Company
Ltd. becomes the first wholly and purely Indian company, without any foreign
collaboration to enter the Indian Life insurance market. The launch is with an
initial paid up capital of 157 crores. The Chairman of the company is Shri Subrata
Roy Sahara who is also the Chairman of Sahara Pariwar.
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12)HDFC STANDARD LIFE INSURANCE
HDFC Standard Life is a strong, financially secure
business supported by two strong and secure promoters HDFC Ltd and Standard
Life. HDFC Ltds excellent brand strength emerges from its unrelenting focus on
corporate governance, high standards of ethics and clarity of vision. Standard Life
is a strong, financially secure business and a market leader in the UK Life &
Pensions sector.
13) SHRIRAM GROUP
Shriram Life Insurance Company is the jointventure between the Shriram group and the Sanlam Group. The Shriram Group is
one of the largest and well-respected financial services conglomerates in India.
The Groups main line of activities in financial services include chit fund, truck
financing, consumer durable financing, stock broking, insurance broking and life
insurance. The Group gas a customer base of 30 lacs chit subscribers and
investors and operates through a network of 630 offices all over the country. The
group has the largest agency force in the Shriram Group. The Shriram Group is
one of the largest and well respected financial services conglomerates in India.
Sanlam Life insurance Limited, a part of Sanlam group,, is one of the largest
providers of Life insurance in South Africa with 3.2 million individual policies
under administration.
14) FUTURE GENERALI LIFE INSURANCE COMPANY LTD.
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The Company commenced business 16th of June,
2008 after receiving requisite approvals from the Insurance RegulatoryDevelopment Authority (IRDA). Canara HSBC Life has access to 4100 bank
branches all over India.The shareholding pattern of the Joint Venture is as follows
- Canara Bank holds 51% equity, HSBC Insurance (Asia Pacific) Holdings Ltd
26% and Oriental Bank of Commerce 23%. The Venture has an initial paid up
capital of INR 325 crores which will further increase in line with our expansion
plans.
19. AEGON RELIGARE LIFE INSURANCE COMPANY LIMITED
AEGON, an international life insurance, pension and
investment company, Religare, one of Indias leading integrated financial services
groups and Bennett, Coleman & company, Indias largest media house, havecome together to launch AEGON Religare Life Insurance Company Limited. This
venture is dedicated to build a firm future, both for customers and employees and
will continue to balance a local approach with the power of an expanding global
operation.
20. DLF PRAMERICA LIFE INSURANCE CO. LTD.
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DLF Pramerica Life Insurance Company Ltd.
(DPLI) is a joint venture between DLF Limited and Prudential International
Insurance Holdings, Ltd. (referred to hereafter as "PIIH"). PIIH is a fully owned
subsidiary of Prudential Financial, Inc. (referred to hereafter as "PFI"). The
combination of the strength of the DLF brand and PFI's insurance expertise
provide the strongest possible foundations for DPLI to succeed in the rapidly
growing Indian life insurance market.
21 STAR UNION DAI-ICHI LIFE INSURANCE COMP. LTD.
Bank of India and Union Bank of India, two leading
Public Sector Banks in India and the Dai-ichi Mutual Life Insurance Company,
leading Japanese Company in the Life Insurance market, have floated a Joint
Venture Company, "Star Union Dai-ichi Life Insurance Co. Ltd." for undertaking
Life Insurance Business in India. The Company has been incorporated / registered
with the Registrar of Companies, Maharashtra on 25th September, 2007. The
Company has been issued the license for undertaking life insurance business in
India by Insurance Regulatory and Development Authority (IRDA) on
26.12.2008ion Bank of India, The Company, has been incorporated / registered
with the Registrar of Companies, Maharashtra on 25th September, 2007. The
Company has been issued the license for undertaking life insurance business in
India by Insurance Regulatory and Development Authority (IRDA) on
26.12.2008. The Company has best insurance, IT, finance and investment
resources to ensure that it soon earns a prominent position in insurance sector.
TABLE NO:A3
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LIFE INSURANCE COMPANIES
Sl.No.
Insurers ForeignPartners
Regn.No.
Date of Registration
Year of Operation
1. HDFC StandardLife Insurance Co.Ltd.
Standard LifeAssurance, UK
101 23.10.2000 2000-01
2. Max New York Life Insurance Co.Ltd.
New York Life,USA
104 15.11.2000 2000-01
3. ICICI-PrudentialLife Insurance Co.Ltd.
Prudential , UK 105 24.11.2000 2000-01
4. Om Kotak LifeInsurance Co. Ltd.
Old Mutual,South Africa
107 10.01.2001 2001-02
5. Birla Sun LifeInsurance Co. Ltd.
Sun Life, Canada 109 31.01.2001 2000-01
6. Tata-AIG LifeInsurance Co. Ltd.
AmericanInternationalAssurance Co.,USA
110 12.02.2001 2000-01
7. SBI Life InsuranceCo. Ltd.
BNP ParibasAssurance SA,France
111 29.03.2001 2001-02
8. ING Vysya LifeInsurance Co. Ltd.
ING InsuranceInternationalB.V.,
Netherlands
114 02.08.2001 2001-02
9. Allianz Bajaj LifeInsurance Co. Ltd.
Allianz, Germany 116 03.08.2001 2001-02
10.
Metlife IndiaInsurance Co.Ltd.
MetlifeInternationalHoldings Ltd.,
USA
117 06.08.2001 2001-02
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11.
Reliance LifeInsurance Co. Ltd.(Earlier AMPSanmar LifeInsurance Co. from3.1.2002 to29.9.2005)
--- 121 03.01.2002 2001-02
12.
AVIVA AvivaInternationalHoldings Ltd.,UK
122 14.05.2002 2002-03
13.
Sahara LifeInsurance Co. Ltd.
--- 127 06.02.2004 2004-05
14.
Shriram LifeInsurance Co. Ltd.
Sanlam, SouthAfrica
128 17.11.2005 2005-06
15.
Bharti AXA LifeInsurance Co. Ltd.
AXA Holdings,France
130 14.07.2006 2006-07
16.
Future GeneraliIndia LifeInsuranceCompany Ltd.
Generali, Italy 133 04.09.2007 2007-08
17.
IDBI Fortis LifeInsuranceCompany Ltd.
Fortis, Netherlands
135 19.12.2007 2007-08
18.
Canara HSBCOBC LifeInsuranceCompany Ltd.
HSBC, UK 136 08.05.2008 2008-09
19.
Aegon ReligareLife InsuranceCompany Ltd.
Religare, Netherlands
138 27.06.2008 2008-09
20.
DLF PramericaLife Insurance Co.Ltd.
Prudential of America, USA
140 27.06.2008 2008-09
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21.
Star Union Dai-ichi Dai-ichi MutualLife Insurance,Japan
142 26.12.2008 2008-09
22.
IndiaFirst lifeinsurance company
Legal & GeneralMiddle EastLimited, UK
143 05.11.2009 2009-10
23.
Life InsuranceCorporation of India
--- 512 01.09.1956 1956-57
SKILLS AND TRAINING
Across the region, the insurance sector is characterised by a shortage of
skills- particularly product development, underwriting, and actuarial skills. The
absence of skills clearly affects the development of the sector, specifically in the
areas of product innovation, risk assessment and pricing. This situation is
exacerbated by the nationalization requirements in some countries, which extendthe time required to train and equip staff for key positions, and the availability of
highly attractive positions in other areas of the financial services sector.
Cultivating the growth of a pool of skilled local insurance professionals is
paramount to the development of the insurance sector, given the existing acute
shortage of skills. As such, the study proposes that policymakers and regulators
act as catalysts in the development of professional knowledge in three ways:
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In general, it is customary to set minimum requirements for insurance
professionals that go beyond educational attainment and include specialized
insurance qualifications. Regulators can influence the market in raising the
standards of training programs by adopting internationally accredited programs
and selectively approving local programs that meet minimum criteria.
Training programs can be organized by the regulators, the industry itself
(such as associations of insurance companies and the companies themselves), and
by the private sector as the demand for such training increases. In countries where
the demand for tactful products is growing rapidly, regulators need to ensure the
availability of training programs to educate the market on these relatively new
products.
PRESENT SCENARIO OF INSURANCE INDUSTRY
India with about 200 million middle class household shows a huge untapped
potential for players in the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for global
insurance majors. The insurance sector in India has come to a position of very
high potential and competitiveness in the market. Indians, have always seen life
insurance as a tax saving device, are now suddenly turning to the private sector
that are providing them new products and variety for their choice.
Consumers remain the most important centre of the insurance
sector. After the entry of the foreign players the industry is seeing a
lot of competition and thus improvement of the customer service in
the industry. Computerisation of operations and updating of
technology has become imperative in the current scenario. Foreign
players are bringing in international best practices in service
through use of latest technologies
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The insurance agents still remain the main source through which
insurance products are sold. The concept is very well established in
the country like India but still the increasing use of other sources is
imperative. At present the distribution channels that are available in
the market are listed below.
Direct selling
Corporate agents
Group selling
Brokers and cooperative societies
Banc assurance
Customers have tremendous choice from a large variety of products
from pure term (risk) insurance to unit-linked investment products.
Customers are offered unbundled products with a variety of benefits
as riders from which they can choose. More customers are buying
products and services based on their true needs and not just
traditional money back policies, which is not considered very
appropriate for long-term protection and savings. There is lots of
saving and investment plans in the market. However, there are still
some key new products yet to be introduced - e.g. health products.
The rural consumer is now exhibiting an increasing propensity for
insurance products. A research conducted exhibited that the rural consumers arewilling to dole out anything between Rs 3,500 and Rs 2,900 as premium each
year. In the insurance the awareness level for life insurance is the highest in rural
India, but the consumers are also aware about motor, accidents and cattle
insurance. In a study conducted by MART the results showed that nearly one
third said that they had purchased some kind of insurance with the maximum
penetration skewed in favor of life insurance. The study also pointed out the
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private companies have huge task to play in creating awareness and credibility
among the rural population.
STATE OF THE MARKET
India is the fifth largest general insurance market in Asia with annual
premiums of $6.3 billion in FY09
Second largest population in Asia (and the world) and an increasing middle
class population + low penetration presents tremendous opportunityIt is projected that from 2006-2026 the working class population is
expected to increase from 675.8 million to 795.5 million
21 companies operating in India:
Intense competition and strong growth between FY01 and FY08
Market continues to be dominated by public sector, though share has
declined since FY01
Large middle class population, increased awareness and income levels
have fueled growth
Currently maximum foreign partner investment is 26% - soon expected to
increase to 49%
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The Road Ahead
Saturation of insurance markets in many developed economies has made
the Indian market more attractive for international insurance players, according to
'Booming Insurance Market in India (2008-2011). Further, according to the
report,
Total life insurance premium in India is projected to grow US$ 266 billion
by 2010-11 Total non-life insurance premium is expected to increase at a compound
annual growth rate (CAGR) of 25 per cent for the period spanning from
2008-09 to 2010-11
The home insurance segment is set to achieve a 100 per cent growth asfinancial institutions have made home insurance obligatory for housing
loan approvals In the next three years, health insurance is poised to become the second
largest business for non-life insurers after motor insurance
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CONCLUSION
Competition will surely cause the market to grow beyond current rates,
create a bigger pie and offer additional consumer choices through the
introduction of new products, services, and price options. Yet, at the same
time, public and private sector companies will have to be working together to secure healthy growth and development of the sector. Challenges such
as developing a common industry code of conduct, contributing to a
common catastrophe reserve fund, and chalking out agreements between
insurers to settle claims to the benefits of the consumer will require
concerted effort from both sectors.
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1.3 COMPANY PROFILE
METLIFE BUILDING
THE HEADQUARTERS OF METLIFE
HISTORY OF THE ORGANIZATION
METLIFE PROFILE
MetLife, Inc. is the holding corporation for the Metropolitan Life
Insurance Company or MetLife for short. The firm was founded on March 24,
1868. For most of its life the company was a mutual organization , but it went
public in 2000. The company is headquartered at 1095 Avenue of the Americas inMidtown Manhattan , New York City , though it retains some executive offices and
its board room in the MetLife Building , which it sold in 2005
MetLife is the largest life insurer in the United States , with more than
$3.3 trillion of life insurance in force. A leader in savings and retirement products
and services for individuals, small business, and large institutions, MetLife serves
90 of the largest Fortune 100 companies.
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Ranked 38 on the Fortune 500 list (April 2004) MetLife insurances (MetLife) is
one of the largest, strongest and most respected financial organizations. MetLife
through its' affiliates is the number one life insurer in the U.S with approx. @2.5
trillion of life insurance in force (as of Dec. 2002) and has been delivering
reliable, high quality service to its customers since 1868.
MetLife is a leader in group benefits that serve 88 of the top one
hundred FORTUNE 500 companies, and providing benefits to 37 million
employees and family members through its sponsors in the U.S.
The MetLife companies are also ranked #1 in group life and #1 in commercial
dental in the U.S. Headquartered in New York. MetLife through its affiliates,
subsidiaries and representative offices, operates in 15 countries throughout the
America, Europe and Asia. MetLife's institutional clients have approx. 35 million
employees and members. MetLife has assets under management worth $255
billion. (FORTUNE 500 is a registered trademark of FOURTUNE Magazine,
a division of Time, Inc)
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VISION
Build financial freedom for all through leadership in providing professionalfinancial advice and building long term relationships through innovative
protection, accumulation and retirement products, robust underwriting processes
and creating a world-class customer service experience for our customers.
OUR MISSION
By 2010, provide 5 million customers in India world-class solutions for
financial security and in the process add significant value to our shareholders,
associates and society.
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METLIFE INDIA INSURANCE COMPANY LIMITED
MetLife India Insurance Company Limited (MetLife) is an affiliate of
MetLife, Inc. and was incorporated as a joint venture between MetLife
International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co.
Private Limited and other private investors. MetLife is one of the fastest growing
life insurance companies in the country. It serves its customers by offering arange of innovative products to individuals and group customers at more than 600
locations through its bank partners and company-owned offices. MetLife has
more than 50,000 Financial Advisors, who help customers achieve peace of mind
across the length and breadth of the country.
MetLife, Inc., through its affiliates, reaches more than 70 million
customers in the Americas, Asia Pacific and Europe. Affiliated companies,outside of India, include the number one life insurer in the United States (based
on life insurance in force), with over 140 years of experience and relationships
with more than 90 of the top one hundred FORTUNE 500 companies. The
MetLife companies offer life insurance, annuities, automobile and home
insurance, retail banking and other financial services to individuals, as well as
group insurance, reinsurance and retirement and savings products and services to
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corporations and other institutions.
MetLife is headquartered in Bangalore with officers and presence in major Indian
cities, and an additional 1000 outreach points through its channel partners.
Through our highly professional agency system, we are dedicated to helping
Indian consumers plan for their financial security through customized solutions.
MetLife is driven by the principles of uncompromising integrity and the highest
level of professionalism. Its mission is to work with utmost integrity, fairness and
financial prudence in all its dealings.
MetLife benefits from its parent company's global presence in the field
of insurance, track record of establishing successful insurance operations in
emerging markets and the unique strengths of its other Indian promoters. Drawing
from these experiences, MetLife will be able to address the needs of the Indian
customer.
MetLife aspires to build on MetLife history of meeting policy holder
and contract obligations and the, ability to withstand the impact of adverse
economic factors. The MetLife brand, known for empowering people to feel
protected, guided and hopeful about their lives, will do the same for its Indian
customers.
In the past two years, MetLife has made significant contributions to the
growth of MetLife international. Since selling its first policy in January 2002,
MetLife has experienced strong growth from its agency force, which increased
45% during 2003 alone. The company presently has more than 24,000 policies in
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place and has recently entered the institutional market with a group life product.
While group insurance in India is not currently a large market, the
segment is forecasted to grow rapidly in the next two-to-three years. By focusing
on this untapped market, MetLife can meet the needs of large corporations,
helping them establish benefit programs that help them attract and retain top
talent. However, it is pertinent to mention here that India's Banc assurance and
Corporate Agency has also played a significant role in contributing to this
success.
COMPANY VALUES
PERSONAL RESPONSIBILITY
"Coming into your own", performs as a Leader to be really effective and
successful by acting and making decisions independently to get results.
PEOPLE COUNT
It's all about People, MetLife's key resource. MetLife will succeed because we
are winning from within.
PARTNERSHIP
Functioning productively in teams towards a common purpose; realizing the
collective power of diverse work-groups.
FINANCIALSTRENGTH
Operating with an intense dedication to managing monetary resources for strong
business results.
INTEGRITY AND HONESTY
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Conducting all business endeavors with truth, sincerity and fairness.
INNOVATION
Continuously creating and introducing new and original ideas and ways of doing
things
THE GOAL OF METLIFE
To contribute significantly to the MetLife mission of reaching 100
million customers by 2010. To help reach that goal, MetLife plan on launching
innovative products in the near future, this will act as a major differentiator among
competitors. In additions, with the launch of the new MetLife television
commercials, which is a first for our India operation, this will add greatly to
MetLife's global brand recognition. The combination of this brand and the
continued outstanding efforts will provide the fuel to drive MetLife further up the
road of success. MetLife delivers value and world-class service to customersthrough its financial advisors and corporate sales representatives. The mission of
MetLife Insurance is to build financial freedom for all.
What is financial freedom?
It is all about securing one's future. It about approaching lifes major
milestones without any worries. True financial freedom arises from identifying
your financial capabilities, setting realistic goals based on your dreams and
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aspirations and achieving them through a comprehensive plan. Most importantly,
while you set out to draw up financial plans for your life- you need to understand
that it isn't a one-time plan. The planning that goes into attaining your financial
freedom should be dynamic, since life itself is dynamic. What's good for you
today might not be next year.
During the course of your life you need to achieve your aspirations (life
owning of house), meet certain financial obligations (life educating your children
or-getting them married), ride over unforeseen contingencies and plan a
financially independent retirement phase. The Met Advice Financial Planning
could be the first step in your planning exercise. It attempts to give you onoverview of the various investment options available in the market today
MANAGEMENT TEAM
RAJESH RELAN
MANAGING DIRECTOR
Rajesh has twenty years experience in the financial services
sector, of which he has spent ten years in the Indian Life Insurance industry.
Visualizing the scope and growth, he became a part of this sunrise industry in
1999, much before it was opened to the private players.
Over these years, he has contributed significantly through his strategic
vision to the development of the private life insurance industry in areas like
regulatory & policy formulation, product development, policyholders protection
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and distribution models. He is widely recognized for the pivotal role he played
towards three different life insurance ventures in the country. In the first, he
played a critical role as a key project team member that led to the successfulformation of the JV. With the second life insurance company, a start-up, he was
one amongst the first five employees instrumental in launching and growing its
Indian operations. Finally, in his third stint he has been leading another life
insurance company MetLife, of which he is the Managing Director for India for
the last three and a half years. Rajesh joined MetLife India in 2006 and has
transformed the organization since then. With exceptional skills in business
strategy & planning, he has laid the foundation for MetLifes success in the Indian
market.
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57
TABLE NO: 4
MSVS PhaneshAppointed Actuary
Sameer Bansal Director- AgencyNitish Asthana Director- Bancassurance &
Business PartnershipsJoydeep Mukherji Chief Financial Officer KR Anil Kumar Director - Legal & Risk and
Company SecretaryP. S. Sankaran Director Compliance &
Internal ControlsKS Raghavan Chief Administrative Officer Gaurav Sharma Director - Customer Service and
OperationsShilpa Vaid Deputy Director- Human
Resources
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PRODUCTS OF MET LIFE
The plans provided by MetLife Insurance are listed below:
Protection Plans
Met Suraksha
Met Suraksha TROP
Met Suraksha Plus
Savings Plan
Met Sukh
Met Suvidha
Met Saral
Met 100
Investment Plans
Met Wealth Plus
Met Easy Plus
Met Smart Life
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Met Gold Plus
Met Fortune
Child Plans
Met Bhavishya
Met Junior Endowment
Met Junior Money Back
Met Magic
Retirement Plans
Met Growth Super
Met Pension-Plus
Met Pension - Par
Investments Plans
Met Easy Plus
Met Wealth Plus
Met Gold Plus
Met Smart Life
Rural Plans
Met Vishwas
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Met Suvidha - Rural
Health Plans
Met Health Care
Monthly Income
Monthly Income Plan
METLIFES ACHIEVEMENTS
MetLife enjoyed a golden performance on May 15, 2009 (New York) -
At the 15th Annual FCS Annual Portfolio Awards, the Financial
Communications
Society (FCS): four awards, all Gold trophies, plus the Best-in-Show
Multicultural award for its "South Asian Brand Television Campaign,"
created by IW Group. The award was sponsored by Forbes. MetLife
also won Gold in the new ROI category, which recognized the successof marketing campaigns for their stated return on investment.
MetLifes corporate vision to build financial freedom for everyone
guides the companys response to peoples growing need for first-rate
financial products and services through various life stages and
economic cycles. MetLifes trusted brand, capital strength, and existing
relationships with millions of individual and institutional customers
around the globe uniquely position MetLife among its competitors.
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The "everyone" in MetLifes vision took on added meaning in 2000 as
the company welcomed an important new constituency: shareholders.
MetLife transformed itself from mutual to stock ownership in April of
that year through a demutualization and initial public offering that was
completed in just 18 months after Board authorization.
The year 2001 was a true test of the qualities that define MetLife. The
companys core values, brought to life in what MetLife does every day,
were no more evident than in MetLifes response to the tragic eventsthat shook our nation on September 11. MetLife responded quickly.
The company served its customers, communities and employees during
this difficult time. At the same time, MetLife invested $1 billion in a
broad array of publicly-traded common stocks.
In 2001, MetLife was the first insurance company to establish a
financial holding company with a nationally chartered bank.
Leveraging its unparalleled distribution channels, MetLife entered the
retail-banking arena with the launch of MetLife Bank, making it an
easy and convenient way for MetLifes customers to realize their
financial goals.
MetLife announced in 2002 that it would be continuing its long-
standing relationship with Snoopy and the rest of the PEANUTS
characters. The company signed a new contract that would allow thecharacters to appear in MetLifes domestic and international
advertising for the next 10 years.
The sale of State Street Research & Management Company to
BlackRock, Inc. was announced in 2004 . In line with MetLifes
strategy to focus on core business growth, the sale benefited many of
the companys Individual and Institutional Business clients who held
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investments through State Street Research, as it became part of one of
the largest publicly traded investment management firms in the U.S.
The Companys stated long-term goal is to become the recognized
leader throughout the world for relationship building, connectedness
and caring in financial services in the "giant league" with over 100
million people as MetLife customers by the year 2010.
MetLife took a major step toward realizing this goal in 2005, when it
acquired Travelers Life & Annuity and substantially all of Citigroups
international insurance businesses for $12 billion. Completed on July 1,
2005, the Travelers acquisition made MetLife the largest individual life
insurer in North America based on sales, the second largest provider of
retail annuities and the largest provider of institutional annuities.
Working Mother magazine honoured MetLife in 2005 by naming the
company one of the "100 Best Companies for Working Mothers," for
the seventh consecutive year. In 2005, the company was named to
Diversity Inc.s list of the Top 50 Companies for Diversity. In early
2006, MetLife was also named to the National Association for Female
Executives annual list of Top 30 Companies for Executive Women.
In 2006 , MetLife appointed C. Robert (Rob) Henrikson chairman of the
board of directors, president and chief executive officer of MetLife,
Inc. Henrikson was appointed CEO on March 1, 2006 and chairman of
the board on April 25, 2006.
Henrikson has been the architect of an aggressive growth strategy that
included double-digit organic growth, the divestiture of non-core
businesses, and an M&A strategy which resulted in market leadership
in all of MetLifes core product lines. Before it was commonly talked
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about, Henrikson recognized the opportunities presented by the
changing demographics in a global marketplace and set the company
on a course for continued success by developing innovative products
and services and strengthening the companys distribution power in the
U.S. and 16 markets in Asia Pacific, Latin America and Europe.
Today, a time when consumers are feeling a greater financial burden
than ever before, MetLife is helping millions of customers create their
own personal safety net. At no time in the companys history has
MetLife been as well positioned to capitalize on its history, its
reputation for security and stability, and its innovative products andservices as it is today.
In the future, MetLife will continue to grow its business with focus,
innovation and profitability. This will be accomplished by drawing on
the reservoir of history that has produced an enduring set of corporate
values based on more than 138 years of integrity, social responsibility,
strong leadership and financial strength.
Some other achievements
Largest life insurer in the US with approximately $3.4 trillion of life
insurance in force1
Serves 70 million customers and experiences the existence of over 140
years in the industry
Ranked 39 on the FORTUNE 500 listingRanked 6th In Fortune Magazine 2009 List of Americas Most Admired
Companies
Named by Forbes magazine as The Best Managed Insurance Company in
America (2008)
3rd Runner up in customer loyalty survey Conducted by Business Standard
& AC Nielson in 2008.
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METLIFE INDIA INSURANCE ON MASSIVE BRANCH EXPANSION
PLAN-INDIA
MetLife India Insurance plans to aggressively embark on a branch expansion programme and is eyeing a 275-strong network pan-India by End-March, a topcompany official said.
"The insurance market continues to be severely under-penetrated in India and we
need to leverage this opportunity. We plan to increase our number of branches
from the present 195 to 275 by March 2010," MetLife India Insurance's Managing
Director, Rajesh Relan.
The company has, so far this fiscal, infused a capital of Rs 370crore into thecompany which should suffice for present requirements, he said. The current
capital base of the company is Rs 1,950crore. The company also plans to increase
the strength of its financial advisors to over 1, 00,000 by December 2010.
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FIGURE A1
Graph showing the age of customers
15.0%
41.0%24.0%
20.0%
50&above
40-50
30-40
20-30
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INTERPRETATION
From the above graph, it is inferred that 20% of the customers were
between the ages of 20to30, 24%of the customers were between the age of 30 to
40, 41% of the customers were between the age of 40 to 50 and remaining 15% of
the customers were above 50 years.
FIGURE A2
Graph showing the occupation of customers
9.0%
56.0%
35.0%
others
own business
salaried
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INTERPRETATION
From the above graph, it is inferred that 35% of the customers were
salaried, 56%of the customers were having their own business and 9% of the
customers were having other occupation.
FIGURE A3
Graph showing the income level of customers
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17.0%
45.0%
30.0%
8.0%Above 4 Lakhs
2Lakhs-4Lakhs
1Lakhs-2Lakhs
Below 1 Lakhs
INTERPRETATION
From the above graph, it is inferred that 8% of the customers were having anincome level below 1 lakh, 30%of the customers were having an income level
between 1 lakh to 2 lakh, 45% of the customers were having an income level
between 2 lakh to 4 lakh and 17% of the customers were having an income level
above 4 lakh.
FIGURE A4
Graph showing the reasons prompted to take insurance policy
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23.0%
22.5%
20.2%
11.2%
23.0%
Tax Rebate
Savings
Risk Coverage
Medical Benef
Investments
INTERPRETATION
From the above graph, it is inferred that the investment and savings
was the main reason for customers to take insurance policy (accounted by 45.5%
of the Customers responses). This was followed by Tax Rebate (accounted by23% of the Customer Responses). Risk Coverage (accounted by 20.2% of the
Customers Responses) and Medical Benefit (accounted by 11.2% of the Customer
Responses). None of the Customers had taken insurance policy of Necessity.
FIGURE A5
Graph showing how customers come to know about METLIFE.
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60.0%
32.0%
Others
Insurance Advisors
Friends/Relatives
Advertisement
INTERPRETATION
From the above graph, it is inferred that 64% of the customers came to
know about METLIFE from the Insurance Advisors, and 32% of the customerscame to know from their Friends/Relatives and the other Customers came to
know from the Advertisements and other sources.
FIGURE A6
Graph showing what influenced customers to Purchase policy
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80.0%
18.0%
Trustworthy/Reliable
Relationship with Ad
Policy Plan
INTERPRETATION
It is inferred that 80% of the customers were influenced by the Relationship withthe Advisors to purchase the Policy,18% were influenced by the Policy Plan to
purchase Insurance Policy, only 2% of the customers were influenced by the
Trustworthiness or Reliability of the Company to Purchase the Insurance Policy.
FIGURE A7
Graph showing what influenced customers to take the policy
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56.0% 28.0%
15.0%
urance Advisors
Self
Friends
Family
INTERPRETATION
From the above graph, it is inferred that 56% of the customers take the
policy because of the Relationship with the Advisors,28% of the Customers
purchase the Policy because of their Friends/Relatives,15% were influenced by
the Family to purchase Insurance Policy, only 1% of the customers Purchase the
Insurance Policy for themselves.
FIGURE A8
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Graph showing whether the Customers are contacted by the Customer Care
dept.
INTERPRETATION
From the above graph, it is inferred that 70% of the customers says that
they were contacted by the customer care department and 30% says they are not
often contacted by the customer care department.
FIGURE A9
73
70.0%
30.0%
YES
NO
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Graph showing whether the customers are provided with proper
communications, updates and switch over details
27.0%
73.0%
No
Yes
INTERPRETATION
From the above graph, it is inferred that 73% of the customers says that
they were provided with proper communications, updates and switch over details
by the customer care department and 23% of the customers says that they were
not provided with proper communications, updates and switch over details by the
customer care department.
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FIGURE A10
Graph showing the satisfaction level of customers for the calls & notices
provided for the payment of renewal premium.
26.0%
59.0%
15.0%
Dissatisfied
Neutral
satisfied
INTERPRETATION
From the above graph, it is inferred that 59% of the customers are
Neutral in their satisfaction level,26% of the customers are dissatisfied with the
Calls and Notices provided for the payment of renewal premium and 15% of the
customers are satisfied with the calls and notices provided for the payment of
renewal premium.
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FIGURE A11
Graph showing the satisfaction level of customers for insurance products.
INTERPRETATION
From the above graph, it is inferred that 72% of the customers are
Neutral in their satisfaction level of their products, 23% of the customers are
satisfied with their products,2% of the customers are very satisfied with the
Insurance Products and 1% of the customers are dissatisfied with the Insurance
product.
76
72.0%
23.0%
DISSATISFIED
NEUTRAL
SATISFIED
VERY SATISFIED
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FIGUREA12
Graph Showing how likely the Customers purchase a product from
METLIFE
41.0%
54.0%
Poor
Fair
Good
Very Good
INTERPRETATION
From the above graph, it is inferred that 54% of the customers werehaving a Good chance of purchasing a product, 41% of the customers were
having a fair chance of purchasing a product from METLIFE, 4% of the
customers were having a very good chance of purchasing a product from
METLIFE and 1%of the customers were not having a chance of purchasing a
product from METLIFE.
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FIGURE A13
Graph showing the quality of relationship METLIFE maintain with their
customers
25.0%
41.0%
34.0%
Good
Very good
Excelllent
INTERPRETATION
From the above graph, it is inferred that 41% of the customers says that
quality of relationship METLIFE maintain with their customers is Very Good,
34% of the customers says that quality of relationship METLIFE maintain with
their customers is Excellent and 25% of the customers says that quality of
relationship METLIFE maintain with their customers is Good.
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FIGURE A14
Graph showing the relation between the Reasons for selecting an insurance
products and the Occupation of the customers for taking Insurance policy
occupation of customers
othersown businesssalaried
p e r c e n
t a g e
100
90
80
70
60
50
40
30
20
10