1

Training certificate

We here by certify that Mr Arif Khan ,a student of MBA (Marketing), 2010-11, of

Sun Institute of Management & Technology Shahjahanpur, has worked with us in the

capacity of a Project Trainee Cum Financial Advisor (FA)for a period of 45 days starting

from 17thjune to 2nd August 2010.

The title and scope of her project was “Unit-Linked Insurance Plan (ULIP) of Metlife India

Insurance Company Limited and comparative study of these plans of its three immediate

competitors”

The project was carried out under the guidance of Mr. Amit Patak ,Sales Manager, Metlife

India Insurance Company Limited (Shahjahnpur Branch)

We found her to be a dedicated and diligent performer. We take this opportunity to wish her

every success in her future endeavors.

Sincerely:- Mr. Amit Pathak

Sales Manager Metlife India Insurance

Shahjahanpur branch

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ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr Amit Pathak, Designation Sales

Manager, Dep’t sales, for guiding me right form the inception till the successful completion

of the project. I sincerely acknowledge him for extending their valuable guidance, support for

literature, critical reviews of project and the report and above all the moral support

he/she/they had provided to me with all stages of this project.

I would also like to thank my internal guide Miss. Ena Gupta for guide me throughout

Arif Khan

SIMT

3

Preface

This research is a part of my summer training without which my M.B.A. is

incomplete. Summer training is an integral part of every M.B.A. course. We can’t rely merely

upon the theoretical knowledge. It is to be complimented by practical know-how for it to be

fruitful. A positive and correct result of the classroom learning needs realities of practical

situation.

The training enables the management students to themselves see the working

conditions under which they have to work in the future. It gives them real feel of the

corporate world, which helps them to better equip themselves with the required skills.

The training at Met Life Insurance Co. Ltd. for 45 days was a great learning

experience for me. Met Life Insurance Co. Ltd. is a well diversified insurance services group

having businesses in life insurance and Health insurance. With its performance, it has proved

itself an alluring investing destination for investors.

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EXECUTIVE SUMMARY

ULIP is an innovative product of the Insurance Companies. It is an Investment cum Insurance

product. Its unique features have made it popular among the investors A research study was

carried out, based on the conditions prevailing in the Insurance Market and the with a view to

determine the investors preference for ULIP plans and also the comparison of the plans of

MetLife and its 3 immediate competitors in Jaipur.

The topic of the project was “Unit-Linked Insurance Plan (ULIP) of MetLife India

Insurance Company Limited- determining its preference, most suitable age for

investing and comparative study of these plans of its three immediate competitors”.

In order to facilitate data collection for research study, canopies were set up at three places in

Jaipur itself. The data was collected by means of the Questionnaire designed for data

collection, which was analyzed with the help of tables and diagrams.

In order to facilitate research study, parameters and features of ULIP, were identified, which

would be of help in designing the questionnaire.

These parameters for determining customer preference for ULIP and also the comparative

study were identified based on the conditions prevailing in the investment market and the

unique benefits and flaws in the Unit Linked Insurance Plan (ULIP).

Since, ULIP involves investment of the premiums paid in the share market, it was clear that

recession would have impacted people’s decision to invest.

To elicit people’s opinion as regards the impact of recession on the decision to invest in

ULIP, questions were designed and included in the questionnaire.

Majority of the investors were found to have lost money due to investment in ULIP.

But since the share market in India has been showing improvements, respondents were

hopeful of high returns.

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This is followed by a two day Compliance and Sales Training (CST), in which information

regarding the company products is given. This is to better equip the Financial Advisors (FA)

to sell and close deals.

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TABLE OF CONTENTS

S. No. Topic Page no.

1. Introduction of Insurance industry

2. Met life insurance co.ltd

3. Research methodology

3.1 Title of the study

3.2 Duration of the project

3.3 Objective of study

3.4. Type of research

3.5. Sample size and method of selecting sample

3.6 Limitation

4. Facts & Findings

5. Analysis & Interpretation

6. SWOT analysis

7. Conclusion

8. Recommendation and Suggestions

9. Appendix

10. Bibliography

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CHAPTER 1

INTRODUCTION TO INSURANCE INDUSTRY

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1. INSURANCE INDUSTRY IN INDIA

THE MEANING OF INSURANCE:-

Insurance is a policy from a large financial institution that offers a person, company, or other

entity reimbursement or financial protection against possible future losses or damages.

Insurance is important to understand for anybody that is considering buying an insurance

policy or simply understanding the basics of finance. Insurance is a hedging instrument used

as a precautionary measure against future contingent losses. This instrument is used for

managing the possible risks of the future.

Insurance is bought in order to hedge the possible risks of the future which may or may not

take place. This is a mode of financially insuring that if such a incident happens then the loss

does not affect the present well-being of the person or the property insured. Thus, through

insurance, a person buys security and protection.

A simple example will make the meaning of insurance easy to understand. A biker is

always subjected to the risk of head injury. But it is not certain that the accident causing him

the head injury would definitely occur. Still, people riding bikes cover their heads with

helmets. This helmet in such cases acts as insurance by protecting him/her from any possible

danger. The price paid was the possible inconvenience or act of wearing the helmet; this ie

equivalent to the insurance premiums paid.

Though loss of life or injuries incurred cannot be measured in financial terms, insurance

attempts to quantify such losses financially.Insurance can be defined as the process of

reimbursing or protecting a person from contingent risk of losses through financial means, in

return for relatively small, regular payments to the insuring body or insurance company.

Insurance can range from life to medical to general (residential, commercial property,

natural incidents, burglary, etc).

Life Insurance:-

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It insures the life of the person buying the Life Insurance Certificate. Once a Life

Insurance is sold by a company then the company remains legally entitled to make payment to

the beneficiary after the death of the policy holder.

Medical Insurance:-

This is also known as mediclaim. Here, the policy holder is entitled to receive the

amount spent for his health purposes from the insurance company.

General Insurance:-

This insurance type involves insuring the risks associated with the general life such as

automobiles, business related, natural incidents, commercial and residential properties, etc.

1.1 INDIAN INSURANCE MARKET – HISTORY

The insurance sector in India has come a full circle from being an open competitive market to

nationalisation and back to a liberalised market again. Tracing the developments in the Indian

insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.

A BRIEF HISTORY OF THE INSURANCE SECTOR:-

The business of life insurance in India in its existing form started in India in the year 1818

with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

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1956: 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalised. LIC formed by an Act of Parliament, viz. LIC

Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the year 1850 in

Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the

general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies’ viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC

incorporated as a company.

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INSURANCE SECTOR REFORMS:

In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N.

Malhotra was formed to evaluate the Indian insurance industry and recommend its future

direction.

The Malhotra committee was set up with the objective of complementing the reforms

initiated in the financial sector. The reforms were aimed at "creating a more efficient and

competitive financial system suitable for the requirements of the economy keeping in mind

the structural changes currently underway and recognizing that insurance is an important part

of the overall financial system where it was necessary to address the need for similar

reforms…"

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

1) Structure:-

Government stake in the insurance Companies to be brought down to 50%.

Government should take over the holdings of GIC and its subsidiaries so that these

subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate.

2) Competition:-

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

enter the industry.

No Company should deal in both Life and General Insurance through a single entity.

Foreign companies may be allowed to enter the industry in collaboration with the

domestic companies.

Postal Life Insurance should be allowed to operate in the rural market.

Only One State Level Life Insurance Company should be allowed to operate in each

state.

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3) Regulatory Body:-

The Insurance Act should be changed.

An Insurance Regulatory body should be set up.

Controller of Insurance (Currently a part from the Finance Ministry) should be made

independent.

4) Investments:-

Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%.

GIC and its subsidiaries are not to hold more than 5% in any company (There current

holdings to be brought down to this level over a period of time).

5) Customer Service:-

LIC should pay interest on delays in payments beyond 30 days.

Insurance companies must be encouraged to set up unit linked pension plans.

Computerisation of operations and updating of technology to be carried out in the

insurance industry The committee emphasized that in order to improve the customer

services and increase the coverage of the insurance industry should be opened up to

competition.

But at the same time, the committee felt the need to exercise caution as any failure on the part

of new players could ruin the public confidence in the industry. Hence, it was decided to

allow competition in a limited way by stipulating the minimum capital requirement of Rs.100

crores. The committee felt the need to provide greater autonomy to insurance companies in

order to improve their performance and enable them to act as independent companies with

economic motives. For this purpose, it had proposed setting up an independent regulatory

body.

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Insurance Industry:-

The committee emphasized that in order to improve the customer services and

increase the coverage of the insurance industry should open up to competition. But at the

same time, the committee felt the need to exercise caution as any failure on the part of new

players could ruin the public confidence in the industry.

Hence, it was decided to allow competition in a limited way by stipulating the

minimum capital requirement of Rs. 100 crores. The committee felt the need to provide

greater autonomy to insurance companies in order to improve.

Insurance Regulatory Authority:-

On the recommendations of the Malhotra Committee, government has set up an

interim Insurance Regulatory Authority (IRA), with a view to activate an insurance

regulatory apparatus essential for proper monitoring and control of the insurance industry.

The IRA is headed by a chairman who is also Controller o0f insurance and

chairman of TBC. The other members of the IRA, not exceeding seven in number of whom

not more than three shall serve full time, shall be nominated by the central government.

4 I’s Of Insurance Service:-

The 4 I’s refers to the different dimensions/ characteristics of any service. Unlike

pure product, services have its own characteristics and its related problems. So the service

provider needs to deal with these problems accordingly.

The service provider has to design different strategies according the varying feature of

the service. These 4 I’s not only represent the characteristics of different services but also the

problems and advantages attached to it.

These 4 I’s can be broadly classified as:

• Intangibility

• Inconsistency

• Inseparability

• Inventory

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• Intangibility:-

Insurance is a guarantee against risk and neither the risk nor the guarantee is

tangible. Hence, insurance rightly come under services, which are intangible. Efforts have

been made by the insurance companies to make insurance tangible to some extent by

including letters and forms.

• Inconsistency:-

Service quality is often inconsistent. This is because service personnel have different

capabilities, which vary in performance from day to day. This problem of inconsistency in

service quality can be reduced through standardization, training and mechanization.

• Inseparability:-

Services are produced and consumed simultaneously. Consumers cannot and do not separate

the deliverer of the service from the service itself. Interaction between consumer and the

service provider varies based on whether consumer must be physically present to receive the

service.

• Inventory:-

No inventory can be maintained for services. Inventory carrying costs are more

subjective and lead to idle production capacity. When the service is available but there is no

demand, cost rises as, cost of paying the people and overhead remains constant even though

the people are not required to provide services due to lack of demand.

In the insurance sector however, commission is paid to the agents on each policy

that they sell. Hence, not much inventory cost is wasted on idle inventory. As the cost of

agents is directly proportionate to the policy sold.

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Some of the General Rules:-

1. Mis-description:-

The insurance policy shall be void and all the premiums paid by insured may be

forfeited by the insurance company in the event of mis-presentation or misdeclaration and/or

non-disclosure of any material facts.

2. Reasonable Care:-

The insured shall take all reasonable steps to safeguard the property insured against any

loss or damage. Insured shall exercise reasonable care that only competent employees are

employed and shall take all reasonable precautions to prevent all accidents and shall comply

with all statuary or other regulations

3. Fraud:-

If any claim under the policy may be in any respect fraudulent or if any fraudulent

means or device are used by the insured or any one acting on the insured’s behalf to obtain

any benefit under the insurance policy, all the benefits under the insurance policy may be

forfeited.

4. Few Basic Principles Of Life Insurance Are :-

1. Insurable interest

2. Utmost good faith

3. Subrogation

4. Contribution

5. Indemnity

5 Risks of loss not covered under general insurance are:

The loss or damage or liability or expenses whether direct or indirect occasion by

happening through or arising from any consequences of war, invasion, act of foreign enemy,

hostilities (whether war be declared or not), civil war, rebellion revolution, civil commotion

or loot or pillage in connection therewith and loss or damage caused by depreciation or wear

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and tear. However the risk of loss or damage by war can be insured by payment of additional

premium in some cases only.

Product Levels:

In this figure there is a nucleus or core in the center, which is supported by series

of tangible and intangible features and benefits and these form a cluster around the core

product.

AUGMENTED

CORE

POTENTIAL

EXPECTED

Level Type Of Service:-

Contents Insurance sector

1 . Core service Basic service product •

Life insurance policy

Non-life insurance policy

2. Expected service

Basic product and minimum purchase conditions that must be met.

• After sales service

• Low claim settling period.

3. Augmented service

Something different, which enables one product to be differentiated from other

• Technology

• Online premium payment

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• Payment through credit cards

• Standing instruction to bank

4. Potential service

Features that attract the customers and are useful to them.

• Maturity claims settled on or before the maturity date.

Loans: -

The core product of insurance company is insuring life and non life products. People

opt for this service as they want to secure their life, people dependent on them and other

valuable things in life.

The time factor plays an important role while providing service to the customer. The

customer expects that the procedures for settling the claim should be short and not much time

consuming. They should get the benefits of the service as soon as possible.

Today the technology is boosting in each and every field. Insurance is not an

exception. Companies have started providing customers facility of online payment of

premium through their websites.

They also provide online assistant to the customer the policy status and how to calculate the

premium. To calculate the premium they just need the present age, the type of police, sum

assured, and accident covered if any.

By filling in this information you can calculate the amount of premium you have to pay. The

customer can pay their premiums by means of credit cards or can also give standing

instruction to the bank in order to pay their monthly premiums.

The insurance companies also provide loan facilities against their policies. At present loans

are granted on unencumbered polices as follows:

Up to 90% of the Surrender Value for policies, where the premium due is fully paid up

, and Up to 85% of the Surrender Value for policies where the premium due is partly paidup.

The minimum amount for which a loan can be granted under a policy is Rs150. The rate of

interest charged is 10.5% p.a., payable half-yearly.

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Loans are not granted for a period shorter than six months, or on the security of lost policies

(the assured must have the duplicate policies) or on policies issued under certain plans.

Certain types of policies are, however, without loan facility.

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FREQUENT TERMS USED

Agent:

An insurance company representative licensed by the state, who solicits, negotiates or

effects contracts of insurance, and provides service to the policyholder far the insurer.

Actual Total Loss:

It is a loss where the goods are completely lost and become irrecoverable additional

cover:

An insurance policy extended to cover additional risk perils such as strikes. Riots and

Civil commotion etc on payment of extra premium.

Agreed Value Policy:-

Policy which undertakes to pay a specified amount in case of total loss.

Under this case the policy does not take into account the current market value.

Assessor:-

Person who estimates the value of goods for the purpose of apportioning the sum payable by

the underwriters to settle the claims.Also called as Surveyor.

Assured:-

Party indemnified against 19ss by means of insurance.

Burglary:-

It is a theft committed by breaking into or out of the premises. Evidence of breaking In, Is

necessary.

Coverage:-

The scope of protection provided under a contract of insurance; any of several risks covered

by a policy.

Cargo insurance:-

A generic term used in both inland marine and ocean marine insurance to designate the type’s

of insurance available to provide coverage for cargo that is being transported by truck, rail,

air, ship, or boat.

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Certificate of Insurance:-

A statement of coverage issued to an individual insured, specifying the insurance benefits and

principal provisions applicable to the member.

Claim:-

The formal request by a policyholder or a claimant for payment of loss under an insurance

policy.

Co-insurance:-

A provision under which an insured who carries less than the stipulated percentage of

insurance to value, will receive a loss payment that is limited to the same ration which the

amount of insurance bears to the amount required;

Cover Note:-

Is the document that is issued provisionary pending issuance of insurance Policy.

Indemnity:-

Legal principle that specifies an insured should not collect more than the actual cash value of

a loss but should be restored to approximately the same financial position as existed before

the loss.

Insurable Interest:-

A condition in which the person applying for insurance and the person who is to receive the

policy benefit will suffer all emotional or financial loss, if any untouched event occurs.

Without insurable interest, an insurance contract is invalid,

Insurance:-

Social device for minimizing risk of uncertainty regarding loss by spreading the risk over a

large enough number of similar exposures to predict the individual chance of loss.

Net Premium:-

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The portion of premium rate which is designed to cover benefits of the policy, excluding

expenses, contingencies and profit.

Policy:-

Is the legal document that has the conditions of the insurance contract?

Premium:-

It is the amount paid to secure an insurance policy.

Salvage:-

Recovery made by an insurance company by the sale of property which has been taken over

from that insured as a part of loss settlement. The remains of damaged vehicle or any other

property.

Third party:-

Any person other than the two parties signing an insurance, contract.

Underwriting:-

Underwriting of a risk involves consideration of material, facts on the basis of which a

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MAJOR POLICY CHANGES :-

Insurance sector has been opened up for competition from Indian private insurance

companies with the enactment of Insurance Regulatory and Development Authority Act,

1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and

Development Authority (IRDA) was established on 19th April 2000 to protect the interests of

holder of insurance policy and to regulate, promote and ensure orderly growth of the

insurance industry. IRDA Act 1999 paved the way for the entry of private players into the

insurance market which was hitherto the exclusive privilege of public sector insurance

companies/ corporations. Under the new dispensation Indian insurance companies in private

sector were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or

through its subsidiary companies or its nominees, do not exceed 26%, paid up equity

capital of such Indian insurance company;

The company's sole purpose is to carry on life insurance business or general insurance

business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is Rs.100

crores.

The minimum paid up equity capital for carrying on reinsurance business has been

prescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include Registration of

Insurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of

Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of

policy holders' interest etc. Applications were invited by the Authority with effect from 15th

August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The

Authority has its Head Quarter at Hyderabad.

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PROTECTION OF THE INTEREST OF POLICY HOLDERS:-

IRDA has the responsibility of protecting the interest of insurance policyholders. Towards

achieving this objective, the Authority has taken the following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to provide

for: policy proposal documents in easily understandable language; claims procedure

in both life and non-life; setting up of grievance redressal machinery; speedy

settlement of claims; and policyholders' servicing. The Regulation also provides for

payment of interest by insurers for the delay in settlement of claim.

The insurers are required to maintain solvency margins so that they are in a position

to meet their obligations towards policyholders with regard to payment of claims.

It is obligatory on the part of the insurance companies to disclose clearly the benefits,

terms and conditions under the policy. The advertisements issued by the insurers

should not mislead the insuring public.

All insurers are required to set up proper grievance redress machinery in their head

office and at their other offices.

The Authority takes up with the insurers any complaint received from the

policyholders in connection with services provided by them under the insurance

contract.

1.2 INSURANCE MARKET - PRESENT

The insurance sector was opened up for private participation eight years ago. For years now,

the private players are active in the liberalized environment. The insurance market has

witnessed dynamic changes, which include presence of a fairly large number of insurers in

both life, and non-life segment. Most of the private insurance companies have formed joint

ventures with well-recognized foreign players across the globe. India’s life insurance market

has grown rapidly from 2001 to 2009.

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New business premiums have grown at 41% compounded annual growth rate (CAGR). Life

insurance market in India will double by2012.

1.3 CAPITAL REQUIREMENTS AND FOREIGN PARTICIPATION:-

Minimum capital requirement for direct life and Non-life Insurance company is

INR 1000 million and that for reinsurance company is INR 2000million.

A maximum 26% foreign equity stake is allowed in direct insurance and reinsurance

companies. In the 2004-05 budget, the Government proposed for increasing the foreign

equity stake to 49%, this has now come into effect.

There are a total of 13 life insurance companies operating in India, of which one is

a Public Sector Undertaking and the balance 12 are Private Sector Enterprises.

INSURANCE COMPANIES :

IRDA has so far granted registration to 12 private life insurance companies and 9 general

insurance companies. If the existing public sector insurance companies are included, there are

currently 13 insurance companies in the life side and 13 companies operating in general

insurance business. General Insurance Corporation has been approved as the "Indian

reinsurer" for underwriting only reinsurance business.

Particulars of the life insurance companies and general insurance companies including their

web address is given below:

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Table 2.1 Different Insurance companies operating in the Indian

Insurance Sector

LIFE INSURERS Websites

Public Sector

Life Insurance Corporation of India www.licindia.com

Private Sector

Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in

Birla Sun-Life Insurance Company Limited www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com

ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com

ING Vysya Life Insurance Company Limited www.ingvysayalife.com

Max New York Life Insurance Co. Limited www.maxnewyorklife.com

MetLife Insurance Company Limited www.metlife.com

Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com

SBI Life Insurance Company Limited www.sbilife.co.in

TATA AIG Life Insurance Company Limited www.tata-aig.com

AMP Sanmar Assurance Company Limited www.ampsanmar.com

Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com

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GENERAL INSURERS

Public Sector

National Insurance Company Limited www.nationalinsuranceindia.co

m

New India Assurance Company Limited www.niacl.com

Oriental Insurance Company Limited www.orientalinsurance.nic.in

United India Insurance Company Limited www.uiic.co.in

Private Sector

Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in

ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com

IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in

Reliance General Insurance Co. Limited www.ril.com

Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com

TATA AIG General Insurance Co. Limited www.tata-aig.com

Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com

Export Credit Guarantee Corporation www.ecgcindia.com

HDFC Chubb General Insurance Co. Ltd.

27

CHAPTER 2

ABOUT METLIFE INSURACE

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2.1 MetLife: A Life Insurance Giant:-

With over 140 years of experience in Insurance business Metlife has been named by Forbes

as the Best Managed Insurance Co.in the Industry for 2008, an honour based on the track

record of the financial performance, innovation,

leadership and execution shown by Metlife over years.

Metlife has also been ranked 43 on the Fortune 500(2008), the MetLife

companies are one of the world’s largest, strongest and most respected financial

organizations. To add to its cap is another feather in the form of its No.1 ranking in several

group product areas, including life, disability, auto and home, as well as institutional

annuities.

Metlife serves over 90 of the top 100 FORTUNE 500 companies. It has around $558.6

Billion Assets under Management, more than 49,400 employees worldwide and more than 70

million customers around the world.

Metlife is a truely global organization with distribution access to over 47 countries, some of

which include The Americas (Argentina,Brazil,Chile,Mexico, United States, Uruguay);

(EMEIA) (Belgium,Ireland, Poland, UK (3), India);Asia Pacific (Australia, China, Hong

Kong, Japan, South Korea, Taiwan)

2.2 Metlife: Vision:-

To build financial freedom for everyone.

2.3 Metlife: Core Values:-

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The core values of Metlifeinclude : People Count , Financial Strength ,Partnership, Personal

Responsibility, Innovation and Integrity & Honesty.

People Count: It's all about People, MetLife's key resource. MetLife will succeed

because  we are winning from within.

Financial Strength: Operating with an intense dedication to managing monetary

resources for strong business results.

Partnership: Functioning productively in teams towards a common purpose; realising

the collective power of diverse work-groups.

Personal Responsibility: "Coming into your own", performing as a Leader to be

really effective and successful by acting  and making decisions independently to get

results.

Innovation: Continuously creating and introducing new and original ideas and ways

of doing things.

Integrity & Honesty: Conducting all business endeavours with truth, sincerity and

fairness.

2.4 Metlife India Insurance Company Limited (Metlife):-

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, with 25%

stake in the hands of Metlife International and the sremaining 75% stake with its Indian

Partners.

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Metlife commenced its operations in India in 2001 and since then the company has shown a

double digit growth, even in 2008 the company showed a growth of 14%.

Besides, its Bancassurance Partners include Axis Bank, Barclays Bank, Dhanalakshmi

Bank, J & K Bank, and Karnataka Bank.

MetLife is one of the fastest growing life insurance companies in the country. It serves its

customers by offering a range 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 inforce), 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 corporations and

other institutions.

Metlife in India enjoys a Pan India Geographical Presence with over 112 branches in over 87

cities. (As in May 2008)..

Table 2.1 Performance of Metlife based on Key Parameters

Parameters 2008 August 2010

Offices 49 114

Agency Units 101 222

Paid Up capital( in crores) 536 1480

AFYP (in Crores) 220 555.2

Market share 1.8% 3%

Banca tie ups 3 5

Agent base <10,000 31,895

31

FACT SHEET

Founded 2001

Started Operation FY 2001-02

Headquarters Bangalore, India

World Wide Web Address www.metlife.co.in

Managing Director Rajesh Relan

Employees 7688

Financial Advisors 56,072

Bancassurance Tie-Ups 5 (J&K Bank/Axis Bank/Dhanalakshmi Bank/Karnataka Bank/Barclays)

Number Of Products Over 20 products

Presence Through MetLife Offices 192 offices in 131 cities

Presence Through Bank Partners 1910 offices in 686 cities

32

Core Team Member of Met Life India Insurance Co.Ltd:-

33

Rajesh Relan Managing Director

MSVS Phanesh Murthy Appointed Actuary

ShilpaVaid Deputy Director- Human Resources

Gaurav Sharma Director - Customer Service and Operations

GirishMalhotra Director- Agency

KR Anil Kumar Director - Financial Planning& Controller

KS Raghavan Chief Administrative Officer

PreetinderChadha Deputy Director - Corporate Sales & Training

P. S. Sankaran Director – Business Support

Sameer Bansal Director- BA & BP

Vijay Raghavan Director - Marketing & Strategy

Met Life Partners:-

34

2.5 List of Products Offered By Metlife India:-

a. Traditional Products:

Met Suraksha (pure term plan)

Met Suvidha ( endowment plan)

Met Bhavishya (money back plan)

Met Sukh (money back plan)

b.ULIP (Unit Linked Insurance Plan):

Met Growth

Met Easy plus

Met Gold

Met Smart Life

(1)INVESTMENT PLAN:-

Met Smart Life

Met Easy Plus

Met Wealth Plus

Met Gold Plus

Met Fortune Plus

(2)HEALTH PLAN:-

Health Care

(3)MONTHLY INCOME:-

Met Monthly Income Plan(MMIP)

(4)RURAL PLAN:-

Met Vishwas

Met Suvidha

35

(5)PROTECTION PLAN:-

Met Suraksha

Met Suraksha Plus

Met Mortage Protector Plus

(6)SAVING PLAN:-

Met Sukh

Met Suvidha

Met 100

(7)RETIREMENT PLAN:-

Met Growth Super

Met Pension Plus

(8)CHILD PLAN:-

Met Bhavishya

Met Junior Endowment

Met Junior Money Back

Met Magic Plus

36

CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction :-

37

The marketing of insurance policies involves unique practices when compared to the

marketing of any other product. Insurance policies are intangible in

nature, so people do not realize the need and importance of insurance.

But with the advent of private players in the Indian Insurance Sector, there has been an

increase in the awareness among the general public as regards the importance of insurance.

At the same time, the products offered by insurance companies have been innovated over a

period of time.

Unit Linked Insurance Plans (ULIP) is also an outcome of the innovation undertaken by the

insurance companies.

3.1.1 About Unit Linked Insurance Plans (ULIP):-

Till recently, individuals seeking to provide protection to their family had no other option

except a life insurance term plan. The plan promised a stipulated amount to the family of

policyholder in the event of his death.

However, the insurance sector has evolved over the last few years and a number of innovative

products have been introduced in the market. One product category that is increasingly

catching the fancy of individuals is the Unit linked Insurance Plan (ULIP).

These plans, are a combination of insurance and investment and they provide the

policyholder with life cover and in addition to that offer the opportunity to earn returns on the

premium paid.

ULIPs give investors the best of both worlds -- risk cover and high returns. These combine

life cover with the potential for a bigger nest egg. ULIPs are insurance policies in which the

investment element, expenses and benefits are to the account of the policy holder.

38

The unit linked product in the long run is a very effective and efficient product on offer for

the customers, both in terms of returns and costs. The basic investments are identifiable. The

assets of the fund can be equity share, fixed income securities, money market instrument,

property and derivative instruments.

ULIPs are riding high these days on their equity investments, increasingly making their

presence felt as savings and investment tools, a trend that is getting reflected in terms of both

performance and average ticket size.

Unit-linked products, the domain of which is seen to be expanding steadily, will continue to

attract sections of the investing populace. (based on the performance of these plans and

people’s interest towards this innovative product.)

ULIPs, which are contemporary products across the world, are fast gaining in popularity in

India. Some of the factors contributing to their success are the simplicity, transparency and

flexibility of these plans.

These policies are adaptable to the changing needs of the customers over their lifetime. They

also give the choice to the customers to select an investment fund based on their risk profile

and offer all the benefits of a traditional life insurance plan.

The response to these plans is so encouraging that more and more players launching their

versions of ULIP.

Today, ULIP accounts for the bulk of the first year premium income that most

insurers earn going as high as 95 per cent for Birla Sun Life and ICICI Prudential.

According to data released by IRDA for April- December 2006, ULIP constituted almost

50% of the total portfolio in terms of premium income, a rise of 5% over the previous

corresponding period.

39

Premium earned from ULIP increased as much as 127% in the same period. Even in LIC

during the previous fiscal, ULIPs contributed 72% of

individual business portfolio, compared to just 50% during 2005-06.

Share of traditional products in private insurers’ total portfolio has declined from 21% during

April-December 2005 to 13% in April-December 2006.

In case of LIC in declined from 68% to 61% during the same period.

In simple terms ULIP is an Investment cum Insurance product, which works as a mutual fund

on one hand and an insurance product on the other hand. The entire investment made is kept

in the guaranteed fund in the first year.

This guaranteed fund forms the basis of loyalty additions paid by the company in the 10th year

and later years.

The entire amount is invested in the share market from the second year onwards, depending

on the debt-equity ratio decided by the policy holder.

On the insurance side of ULIP, the policy holders are offered 5 or 10 or 20 times of the

premium paid as insurance cover as chosen by them.

ULIPs being more lucrative in terms of returns associated with them, are preferred by

customers over other insurance products.

The Research study is directed towards determining the Customers preference for ULIPs. In

addition to this the age influences the people’s decision to invest in UlIPs, so finding out the

most suitable age for ULIP investors would help the company in segmenting and accordingly

targeting people based on the need analysis.

3.1. Title of the Study:-

40

Unit-Linked Insurance Plan (ULIP) of Metlife India Insurance Company Limited and

comparative study of these plans of its three immediate competitors”

3.2 Duration of the Project:-

45 days (17 June to 2 August)

3.3 Objectives of Research Study:-

To determine Customer’s preference for ULIP

To study the preference of the customer among the selected private insurance

companies viz. Bajaj Allianz, ICICI Prudential, Reliance Life as compared to Metlife

India

To determine the parameters on which the ULIP plans of METLIFE need

improvement.

To determine the degree (level) of impact of age on the buying behaviour and finding

out the most suitable AGE for ULIP

3.4 Type Of Research:-

Quantitative as well as Qualitative

41

3.5 Sample Size And Method Of Selecting Sample:-

Research Design

Questionnaire

Data Collection

There are two types of data collection they are as follows

1. Primary data and

2. Secondary data

1. Primary Data:-it is collected through survey. It can be collect in following ways:-

Observation

Personal interview

Telephone interviews

Mailing of questionnaire

Schedules

2. Secondary Data:-they are those which have already been collected by someone

else which has already been passed through statistical process. Sources of secondary data-

Internet

Reports

Newspapers

Books, etc.

Sampling Method:-

Simple random sampling

Data Universe:-

12,00,000 people (census 2006)

Sample Size:-

42

100 clients

Confidence level 95%

Confidence interval 10%

3.5.1 Methodology:-

The study was aimed at measuring the customer’s preference for life insurance

43

companies and the comparison of ULIP plans of the selected companies on basis of various

parameters considered essential for determining where METLIFE’s ULIP plans could be

improved.

For the above purpose a survey was conducted in Jaipur. A questionnaire was designed and

used as a means to collect. For data collection Canopies were set up outside :

a. Central Park ( C-Scheme) (50 questionnaires)

b. Secretarait (15questionnaires)

c. Crystall Mall ( 35questionnaires)

In all 100 questionnaires were filled up during the data collection process.

The methods used for data collection were:

1. Field survey method

2. Personal interview technique

3. Secondary sources viz. company database

The data collected was represented in the form of tables for drawing

inferences. Quantitative techniques like averages, percentages, range, two-way tables, chi

square test analysis were applied as required.

The level of preference, perception of the customers about the product and company were

identified by means of questions in the questionnaire asking the respondents to rate their

preferences on a scale of 1 to 7.

For the representation of data various charts and graphs have been used as per requirement.

44

In order to make the comparative study possible, parameters were chosen and questions were

designed eliciting ratings from the respondents. These ratings were tabulated and then

represented by means of line diagrams.

3.5.2 Time And Cost Expectation:-

The time involved in the data collection was 3 days as canopies were set up on the

above mentioned places in Jaipur on 3 different days.

This was followed by analysis of the data collected with the help of Excel and spss

During the process of data collection, considerable amount of time was spent in

explaining the purpose and the exact nature of the data required from the

questionnaires filled. In addition to this, in some cases questions had to be explained

to the respondents. Moreover, for some questionnaires had to be filled in as they were

not so well read and literate.

The cost involved was basically on the stationary as the canopies were provided by the

company.(Metlife)

In addition to this, when we set canopies outside the above mentioned places, we allied

with a clinic owner, wherein the owner provided us with weight measuring machines

and blood pressure measuring equipments. In return for this, the pamphlets of the

clinic were distributed along with the company brochures.

45

3.5.3 Factors Influencing The Buyers Decision To Invest In ULIP:-

The decision to invest in ULIP plans varies from person to person. It depends

upon many factors. The factors can be classified into personal, social, economic,

psychological and company related variables.

Age and experience of policyholder are personal factors, while education is a social factor.

Economic factors include occupation, income and wealth, and the psychological factors

consist of perception, satisfaction about the services rendered by insurance companies, the

impact of advertisement and personal selling made by insurance companies on policyholders.

Amongst the above mentioned factors, age directly influences people’s decision to invest in

ULIP. Questions regarding the scaling of age as a factor influencing the investment decision

have been included in the questionnaire as also determining the most suitable age for

investment in ULIP plans, based on customer preferences. This would be of great help to the

company in segmenting and accordingly target prospective customers.

Comparative study being one of the objectives of the research study, four parameters namely

premium charged, flexibility, number of funds and transparency were identified. These are

effectively the factors which influence the people’s selection of the Insurance Company,

keeping in mind the product (ULIP) features.

Questionnaire hasbeen designed to elicit preferences of the respondents for the selected

Insurance Companies, on the above mentioned parameters.

3.6LIMITATIONS :

Some of the difficulties and limitations faced by me during my training are as

follows:

46

Lack of awareness among the people – This is the biggest limitation found

in this sector. Most of the people are not aware about the importance and the

necessity of the insurance in their life. They are not aware how useful life insurance

can be for their family members if something happens to them.

Perception of the people towards Insurance sector – People still

consider insurance just as a Tax saving device. So today also there is always a rush

to buy an Insurance Policy only at the end of the financial year like January,

February and March making the other 9 months dry for this business.

Insurance does not give good returns – Still today people think that

Insurance does not give good returns. They are not aware of the modern Unit Linked

Insurance Plans which are offered by most of the Private sector players. They are

still under the perception that if they take Insurance they will get only 5-6% returns

which is not true nowadays. Nowadays most of the modern Unit Linked Insurance

Plans gives returns which are many times more than that of bank Fixed deposits,

National saving certificate, Post office deposits and Public provident fund.

Lack of awareness about the earning opportunity in the Insurance

sector – People still today are not aware about the earning opportunity that the

Insurance sector gives. After the privatization of the insurance sector many private

giants have entered the insurance sector. These private companies in order to beat

the competition and to increase their Insurance Advisors to increase their reach to

the customers are giving very high commission rates but people are not aware of

that.

Increased competition – Today the competition in the Insurance sector has

became very stiff. Currently there are 14 Life Insurance companies working in India

including the LIC (life insurance Corporation of India). Today each and every

company is trying to increase their Insurance Advisors so that they can increase their

reach in the market. This situation has created a scenario in which to recruit Life

insurance Advisors and to sell life Insurance Policy has became very very difficult

Others:-

Time constraints

Small sample size

47

Busy schedule of corporate guide and his team.

Business Month End Closing

48

CHAPTER 4

ANALYSIS AND INTERPRETATION

4.1 Customer Preference For ULIPs:-

ULIP being an innovative product, provides the customers with both investment and

insurance options. In addition to this ULIP provides other benefits like, Capital Appreciation,

49

Inflation Protection, Tax Benefit. However, people hesitate to invest in ULIP due to the risks

associated with it and also the illiquidity associated with it, due to the Lock-in-Period.

(3Years)

With a view to determine the customers preference for ULIP, two broad factors were

identified viz. Risk-Return Factors and Other Parameters (Capital appreciation, Inflation

protection and Liquidity)

The following Table shows the data obtained from the respondents:

Q 1;Customer Preference For ULIP:-

50

Parameters High Low

( in %) ( in %)

Returns from Ulip 65% 35%

Costs associated with Ulip 25% 75%

Risks associated with Ulip 90% 10%

Liquidity of Ulip 15% 85%

Inflation protection through Ulip 67% 33

returns costs risks liquidity inflation protection0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

65%

25%

90%

15%

67%

35%

75%

10%

85%

33%

lowhigh

Q 2:Customer Preference For ULIP:-

51

From the above diagram, it can be inferred that 65% of the respondents think that the returns

associated with ULIPs are high and 35% think returns are low. Similarly, only 75% of the

respondents consider the cost associated with ULIPs to be high. Moreover, 67% of the

respondents agree that ULIPs offer inflation protection.

From these figures, it can be inferred that the customers have a high preference for ULIP

plans due to the high returns, low cost and inflation protection offered by it, in addition to the

tax benefit that it offers.

On the flip side, 90% of the respondents are of the opinion that high risks are associated with

ULIP. Moreover, recessionary conditions have added to the risks with investment in ULIP.

In addition to this, as many as 85% of the respondents consider ULIP plans to be illiquid.

This is because once the money has been invested in Ulip, it can be withdrawn only after 3

years, and this withdrawal comes at a cost as charges are deducted by the insurance company

and tax benefits can no longer be availed by the investors.

So, it can be concluded that:

People prefer ULIPs due to the high returns, low costs associated with them and

inflation protection offered by them.

People hesitate to invest in ULIP due to high risks and low liquidity associated with

them.

Q3: The Influence Of Age On The Decision To Invest in ULIP’s:-

52

Age is a crucial factor in making the decision to invest in ULIP plans. The age of the people

directly influences their willingness to bear risks. The younger the people , the more is the

willingness to bear risks and the older, the less is the willingness to bear risks.

Questions eliciting respondents opinion regarding, age as a factor in making investment

decisions have been included in the questionnaire.

The respondents gave their opinion by rating the age related statements on a scale of 1 to 7.

Their responses have been tabulated and represented by means of a line diagram below.

Q4:Age and the Decision To Invest In ULIP:-

53

Agree Disagree

Parameters 1 2 3 4 5 6 7 Total

Age directly

influences

decision to

invest in Ulip

40 30 10 5 10 3 2 100

Ulip is a Social

Security Tool

1 3 5 11 15 20 45 100

1(agree) 2 3 4( can't 5 say) 6 7(disagree)0

5

10

15

20

25

30

35

40

45

50

age influences investment de-cisionulip as a social security tool

Q5: Influence Of Age In taking The Decision To Invest In ULIP:-

54

From the above diagram it is clear that majority of the respondents have agreed to the fact

that the age of the investor directly influences their decision to invest in Ulip plans. As many

as 70 respondents marked 1 or 2 as their answer, implying that they agree to the statement

that age directly influencesthe decision to invest.

On the other hand, when asked about their opinion about ulip as a social security tool, as

many as 65 respondents marked 6 or 7 as their answer, meaning that they disagree with the

statement that Ulip acts as a social security tool.

This gives a fair idea, that the most suitable age for investment in Ulip as per respondents

opinion would be somewhere above 20 , but less than 55 years of age.

Although, ulip is a product which is suitable for all age groups, but the investment decision

depends on the willingness to take risks, which declines with age.

The following table shows the responses of the respondents as regards the most suitable age

for investment in Ulip plans.

6: Most Suitable Age For Investment In ULIP:-

55

Age groups Number of Respondents

Below 20 10

20 – 30 15

30 – 40 55

40 – 55 15

Above 55 5

Total 100

The above table shows that the age group 30 to 40 has been marked by the respondents as

the most suitable age for investment in ULIP plans. It can inferred that the people belonging

to this age group are most willing to take risks, as they are well settled and are earning and

are ready to invest.

This is the age group which the company should target for the sale of ULIP plans. This will

help the company in saving the time wasted in convincing the prospects other than the

preferred age group to invest in ULIP plans.

If the segmentation and targeting for ULIP plans is done keeping in mind the most suitable

age group as mentioned above, then the sales of company’s ULIP Plans can be increased in a

short span of time.

Below is a Bar Diagram showing the most suitable age as per the opinion of the respondents.

56

below 20

20-30

30-40

40-55

above 55

0 10 20 30 40 50 60

Most Suitable Age For Investment In ULIP

Number of Respondents

57

Q7: Determining The Most Suitable Age For Investment In ULIP:-

Comparison Of ULIP Plans Of Metlife With Other Players ( 3 Immediate Competitors Of Metlife in shahjahanpur)

Based on the company sources, Baja Allianz, ICICI Prudential, OmKotak Mahindra Life

Insurance have been identified as Metlife’s immediate competitors in Jaipur.

The Questionnaire contained questions eliciting the respondents opinion about their

preference for the company.

For eliciting customers preference regarding investment in ULIP plans of the selected

Insurance companies, four parameters were identified for the purpose of comparison.

These parameters were:

i. Premium charged for ULIP products.

ii. Flexibility in terms of the number of times the type of fund in which the money is to

be invested in case of ULIP products is permitted.

iii. The number of fund options between which the investor can switch.

iv. The Transparency of the work of the agents and employees of the company.

Based on the data collected the following table has been drawn, which shows the customer

preferences for the chosen companies as regards the identified parameters.

58

Q8: Customer Preference For Different Insurance Companies:-

Parameters /

Companies

Metlife Bajaj Allianz ICICI

Prudential

Om Kotak

Mahindra Life

Reasonable

Premium

55% agreed

45% disagreed

50% agreed

50% disagreed

49% agreed

51% disagreed

41% agreed

59% disagreed

Greater

Flexibilty

58% agreed

42% disagreed

50% agreed

50% disagreed

57% agreed

43% disagreed

42% agreed

58% disagreed

Greater

Number of

funds

45% agreed

55% disagreed

55% agreed

45% disagreed

61% agreed

39% disagreed

32% agreed

68% disagreed

More

Transparent

35% agreed

65% disagreed

47% agreed

53% disagreed

51% agreed

49% disagreed

24% agreed

76% disagreed

59

Reasonable Premium

Greater flexibility Greater number of funds

More Transparent0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

55% 58%45%

35%

45% 42%55%

65%

disagreedAgreed

60

Q9: Customer Preference ForMetlife:-

The above diagram shows that, respondents are of the opinion that Metlife charges

Reasonable Premium, as many as 55% of the respondents agreed to this.

58% of the respondents agreed that Metlife’sUlip plans offer greater flexibility.

However, only 45% agreed that the number of funds offered to the investors for switching is

high. At the same time, investors are of the opinion that, Metlife’s agents and employees

should be transparent in their work and the investors should be informed about their

functioning.

It becomes clear that Metlife needs to work on :

a) The number of funds available to the investors for switching

b) The Transparency of the Company’s Agents and Employees.

Below, a line diagram has been drawn which shows the percentage of respondents who

responded favourably for the different Insurance companies, based on the features of the Ulip

plans offered by them to the investors.

61

Reaso

nable

Premium

Greater

Flex

ibilty

Greater

Number Of F

unds

More Tra

nspare

ncy0%

10%

20%

30%

40%

50%

60%

70%

Metlife Bajaj AllianzICICI PrudentialOm Kotak Mahindra Life

62

Q10: Comparison Based on Customer Preference:-

The respondents have responded most favourably for ICICI Prudential , as is evident from the

above diagram. Metlife and Bajaj Allianz have been responded by the investors in almost the

same way.

However, there have been a few differences in the responses in terms of the flexibility

offered by ULIP plans of the two companies, wherein 58% of the respondents consider that

Metlife’sUlip plans offer greater flexibility and as against this only 50% of the respondents

agreed that Bajaj’s Ulip plans offer flexibility.

As regards transparency, respondents consider that Bajaj’s employees work with greater

transparency as compared to Metlife’s employees. This is evident, since only 35% of the

respondents agreed that there is more transparency in Metlife, whereas in the case of Bajaj,

this figure came out to be 47%.

Om Kotak Mahindra, another close competitor of Metlife has been rated as the lowest, as the

respondents have responded the least favourably forKotak Mahindra. Only 24% of the

respondents agreed that the employees of Kotak Mahindra work transparently, 41% agreed

that their premiums are reasonable, 42% agreed that Ulip plans offered by Kotak offer

Greater Flexibilty and as low as 32% consider that Kotak offers greater number of funds for

switching purposes.

So, from the above discussion it can be effectively concluded that:

Respondents consider that the premiums charged for Metlife’sUlip plans are

reasonable.

Flexibility offered to the investors in terms of the number of times they can switch

between different funds as regards Ulip is also satisfactory in the case of

Metlife’sUlip plans.

However, the company needs to improve upon the number of funds available to the

investors and the transparency of its employees.

63

CHAPTER5 FACTS AND FINDING

64

My Learnings:-

The Summer Internship Project done at Metlife India Insurance Limited has been

extremely helpful in enhancing overall selling and analytical skills.

As part of the training program, a 7 day training session was kept, wherein the

fundamentals of Insurance were explained in full details.

This was followed by an online exam conducted by the IRDA( Insurance Regulatory And

Development Authority). After the exam was cleared, a two day training session called

the CST (Compliance and Sales Training ) was conducted to well equip the trainees to

sell and close deals.

As part of the CST, all the major products of Metlife were explained. Then began selling,

where the first step was prospecting i.e., filling My Market 100, who shall be called upon

for sales purposes.

Moving on, the first stage of maturity was considered to be when one is successful in

obtaining time from the prospect to meet them. While calling your prospect in order to fix

meeting time ensure the following:

Do not sound needy

Come straight to the point

Ensure the prospect that their time will not be wasted

Remain polite throughout while talking

Prepare your script before calling

While on call (meeting your prospect on the date and time given by him/her), one has to

ensure the following:

Try to analyze the need of the prospect

Explain the importance of insurance

If required , show your license

Give them in written the documents they need to submit

Give them an illustration of the premium payable

Ask for references

65

In addition to the Sales done, a Research Project as per the objectives mentioned above,

helped in enhancing analytical abilities.

Benefits To The Company:-

In terms of the recommendations given above, the company will benefit immensely if

these are implemented.

Besides, the following benefits will accrue to Metlife from the research study conducted:

A fair idea of the current and prospective investors’ opinion about Unit Linked

Insurance Plans (ULIP), based on the risk and returns associated with Ulips and

the unique features and benefits offered by Ulip plans.

The impact of recession on the people’s decision to invest in Ulips has also been

brought out through questions in the questionnaire. As many as 67% of the

respondents were of the opinion that recession has badly impacted their decision

to invest in Ulip. Investors have lost a major share of the money invested in Ulips

due to the current recessionary conditions.

However, 33% of the respondents felt that Asia is not much effected due to

recession and thereby, it does not affect their investment decisions.

Segmenting the market for ULIP according to the most suitable age as per the

respondents’ opinion. This will also save the company the time in offering wrong

products to wrong customers. In other words, keeping in mind the age of the

investor, a suitable plan can be offered and a sale obtained without much

difficulties.

Comparative study of Metlife with its 3 immediate competitors in

Jaipur( identified as per company sources) would also be of help to the company.

This has helped in bringing out the areas of improvement and modifications in the

existing ULIP plans of Metlife keeping in mind customer’s preference. These

modification and improvements have been mentioned above in the

recommendations.

66

CHAPTER 6

SWOT ANALYSIS

67

STRENGTHS:-

1. Distribution network is wide as compared to others.

2. Met life has a unique service & scheme.

3. Healthy relationship with customer.

4. Good commission in selling of product.

WEAKNESSES:-

1. Comparatively less awareness in the market

2. Delivery problem

3. Less coordination between organization employees

OPPORTUNITIES:-

1.Product is different as compare to others

2. Rural area is untapped

THREATS:-

1. Competitors are offering better services

2. Infiltration

68

CHAPTER 7CONCLUSION

69

Conclusion :-

From the above discussions it can be concluded that, the Research Project undertaken at

Metlife India Insurance Limited, has been of great help both to the company for the reasons

discussed above and to the trainee.

Sales, which had to be accomplished as a part of the Summer Internship, has been of

immense help in developing basic sales & marketing skills.

Following have been my achievements, during the Summer Internship Period:

Survey done with interest of Metlife India Insurance Co. Ltd. has been conducted

successfully and results are discussed above.

Sales done during the Internship Period has helped in improving selling skills.

( Achieved Rising Star)

Achieved the designation of a Financial Advisor (FA) and hold a license issued by

the IRDA ( can start selling insurance on my own also.)

Entitled to commission on the sales achieved as per the company norms.

Corporate exposure and building networks during the Internship Period.

Finally, to conclude, Insurance Industry is a Sunrise Industry with opportunities for one and

all. Particularly in India there is more to insure as the rural sector remains majorly uninsured

and even those insured are under insured.

The importance of insurance and the scope it has in India is evident from the fact that the

major business houses have ventured in the Insurance Sector, since the opening up of this

sector for private players.

What remains to be achieved, is the trust and faith of the general public in the private players.

70

In addition to this, the continuous innovation undertaken by the private players has widened

the horizons of the Insurance Sector in India. But there is still a lot that can be achieved as far

as insurance in India is concerned.

The percentage of those insured can be effectively increased by bringing about a change in

the mentality of the people regarding insurance.

It is time that we start taking insurance in the right spirit, rather than as a liability, especially

in today’s risky and dynamic environment.

71

CHAPTER 8RECOMMENDATION AND SUGGESTION

72

Recommendations to the Company:-

During the surveys that were conducted and while interacting with people of Jaipur, it

was observed that:

There is a lack of awareness among the people about Metlife and its products.

People fear that they may end up losing money by making an investment in the

products of Metlife.

Investors are of the opinion that the work of Metlife’s employees should be made

more transparent.

As regards Ulip plans of Metlife, it has been found that the number of funds

available for switching should be increased, thereby enhancing the choices to the

investors.

Based on the above findings, the following recommendations have been made to the

company:

Advertisements:With the objective of spreading awareness about the

company and its products, Metlife should increase its expenditure on

advertisements in the form of T.V. Commercials, advertisements in the local

dailies, pamphlet distribution and by means of radio. This will not only help

the company to increase its sales, but also enhance the trust and the faith

among the people with regard to the existence of the company and its

products.

Transparency: In order to enhance the trust of the people in the company

and its fair & just working, it is recommended that the company should make

the working of its agents and its employees more transparent. The investors

can be provided with statements showing the earnings and the sales of the

agents as also a statement showing the benefits the investors will get through

the investments made.

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Modify Existing ULIP Plans: As is evident from the comparative study

of Ulip plans of Metlife, Bajaj Allianz, ICICI Prudential and Om Kotak

Mahindra Life that as regards premium charged and flexibility, the Ulip plans

of Metlife need not much improvement. This is because the respondents are of

the opinion that, premium charged for Ulips are reasonable and these plans

offer greater flexibility.

However, the Ulip plans of Metlife need improvement with regard to the

number of types of funds that are available for switching.

Along with greater transparency and increased number of funds, the Ulip plans

of Metlife can be made more favourable for the prospective investors.

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CHAPTER 9APPENDIXES

Questionnaire

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Q1) Have you invested in ULIP?

a) Yes b) No

If Yes please specify the name of the Insurance Company

If No, would you like to invest in ULIP future?

a) a)yes b) No

RISK-RETURN TRADE OFF

Rate the following on the basis of your preference on a scale of 1 to 7

Agree

Disagree

1 2 3 4 5

6 7

Q2) The returns associated with ULIP are high

Q3) The costs associated with ULIP are high

Q4) The risk component is predominant in ULIP

as compared to the insurance component

Q5) The recessionary conditions of the economy

have increased the risks associated with ULIP

ULIP A BETTER OPTION

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Rate the following on the basis of your preference for investment in ULIP on a scale of 1

to 7 L

Low High

1 2 3 4 5 6

7

Q6) The Liquidity of ULIP

Q7) Capital Appreciation resulting from

investment in ULIP

Q8) Inflation Protection offered by ULIP

AGE DETERMINES THE INVESTMENT DECISION

Rate the following on the basis of your preference on a scale of 1 to 7

Agree

Disagree

1 2 3 4 5 6 7

Q 9) Age directly influences the decision to

investment in ULIP

Q10) ULIP is not popular among the older

Population (above 55 years of Age)

Q11) ULIP cannot be relied upon for social

Security protection for the age

(particularly above 55 years of age)

Q12) ULIP holders mostly belong to the age group of:

a)

Below 20

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b)

20 – 30

c)

30 – 40

d)

40 – 55

e)

Above 55

THE CHOICE OF INSURER

Rate the following statements on the basis of Your preference for the insurance

company:

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Agree Disagree

Q13)Thepremium charged is more reasonable

1 2 3 4 5 6 7

Metlife

Bajaj Allianz

Om Kotak Mahindra Life

ICICI prudential

Q14)Their products offer greater flexibilty

Agree

Disagree

1 2 3 4 5 6 7

Metlife

Bajaj Allianz

Om Kotak Mahindra Life

ICICI prudential

Agree Disagree

Q15)They offer greater number of funds

1 2 3 4 5 6

7

Metlife

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Bajaj Allianz

Om Kotak Mahindra Life

ICICI prudential

Q16) There is greater transparency

Agree Disagree

1 2 3 4 5 6

7

Metlife

Bajaj Allianz

Om Kotak Mahindra Life

ICICI prudential

PERSONAL INFORMATION:

Q17) Specify your GENDER:

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a)Male b) Female

Q18) Specify your AGE:

a)

Below 20

b)

20 – 35

c)

35 – 45

d)

Above 45

Q19) Specify your OCCUPATION:

a)

Business Man

b)

Profession (specify)

c)

Student

d)

Others (specify

Q20) Specify your INCOME level:

a)

Below 1lac

b)

1lac – 3 lacs

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c)

3lacs – 5 lacs

d)

Above 5 lacs

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CHAPTER 10BIBLIOGRAPHY

WEB SITES:-

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www.metlife.co.in

www.metlife.com

www.irdaindia.gov

www.indianinsuranceresearch.com

www.bimaonline.com

www.bimadeals.com

www.thefinancialexpress.mht

outlookmoney_com-the false selling promises.mht (May 2, 2007)

Artani online Investments

www.personalfn.com

Unit Linked Insurance Plan - 1971.mht

Indian Express Finance ('ULIPs are suitable for all customers')

Yahoo India Finance

www.rgicl.com

www.ipruniverse.com

www.irdaindia.org

www.indiacore.com

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MAGAZINES:-

INSURANCE PLUS

BUSINESS INDIA

ECONOMIC TIMES

MATERIAL PROVIDED BY THE COMPANY

SURVEY

SEARCH ENGINES:-

www.google.com

www.yahoo.com

www.altavista.com

BOOKS :-

Marketing management by Philip Kotler

Insurance Advisor kit of Met Life

Yojna (Magazine)

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