1. 1
A
Summer training report
On
Training undertaken at
Titled
“Unit-Linked Insurance Plan (ULIP) of MetLife India Insurance
Company Limited”.
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
2012-2013
Submitted To: - Submitted By:-
Miss: Ena Gupta Arif Khan
Roll no: 1058270006
2nd
year
2. 2
Training certificate
We here by certify that MrArifKhan ,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 aperiod of 45 days starting
from 17th
june 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. AmitPatak ,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. AmitPathak
Sales Manager
MetlifeIndia Insurance
Shahjahanpur branch
3. 3
ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, MrAmitPathak, 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
4. 4
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 investorsA 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.
6. 6
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.
7. 7
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
9. 9
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.
12. 12
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.
14. 14
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
17. 17
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.
20. 20
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.
21. 21
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:-
22. 22
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
23. 23
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
27. 27
GENERAL INSURERS
Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com
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.
29. 29
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:-
The core values of Metlifeinclude : People Count , Financial Strength ,Partnership, Personal
Responsibility, Innovation and Integrity & Honesty.
30. 30
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.
Besides, its Bancassurance Partners include Axis Bank, Barclays Bank, Dhanalakshmi
Bank, J & K Bank, and Karnataka Bank.
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%.
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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
32. 32
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
33. 33
Core Team Member of Met Life India Insurance Co.Ltd:-
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
35. 35
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
36. 36
(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
38. 38
3.1 Introduction :-
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.
39. 39
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.
40. 40
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.
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.
41. 41
3.1. Title of the Study:-
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
42. 42
3.4 Type Of Research:-
Quantitative as well as Qualitative
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
43. 43
Data Universe:-
12,00,000 people (census 2006)
Sample Size:-
100 clients
Confidence level 95%
Confidence interval 10%
44. 44
3.5.1 Methodology:-
The study was aimed at measuring the customer’s preference for life insurance
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.
45. 45
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.
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
46. 46
and blood pressure measuring equipments. In return forthis, the pamphlets of the
clinic were distributed along with the company brochures.
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.
47. 47
3.6LIMITATIONS:
Some of the difficulties and limitations faced by me during my training are as
follows:
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
50. 50
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,
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:
51. 51
Q 1;Customer Preference For ULIP:-
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
65%
25%
90%
15%
67%
35%
75%
10%
85%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
returns costs risks liquidity inflation
protection
Column1
low
52. 52
Q 2:Customer Preference For ULIP:-
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.
53. 53
Q3: The Influence Of Age On The Decision To Invest in ULIP’s:-
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.
54. 54
Q4:Age and the Decision To Invest In ULIP:-
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
0
5
10
15
20
25
30
35
40
45
50
age influences investment
decision
ulip as a social security tool
55. 55
Q5: Influence Of Age In taking The Decision To Invest In ULIP:-
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.
56. 56
6: Most Suitable Age For Investment In ULIP:-
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.
57. 57
0 10 20 30 40 50 60
below 20
20-30
30-40
40-55
above 55
Most Suitable Age For Investment In ULIP
Number of Respondents
58. 58
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.
61. 61
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.
63. 63
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 favourablyforKotak 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 Ulipplans offered by Kotak offerGreater
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.
65. 65
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
66. 66
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.
68. 68
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
70. 70
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.
71. 71
What remains to be achieved, is the trust and faith of the general public in the private players.
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.
73. 73
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
74. 74
agents as also a statement showing the benefits the investors will get through
the investments made.
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.
76. 76
Questionnaire
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
77. 77
ULIP A BETTER OPTION
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)
78. 78
Q12) ULIP holders mostly belong to the age group of:
a)
Below 20
b)
20 – 30
c)
30 – 40
d)
40 – 55
e)
Above 55
79. 79
THE CHOICE OF INSURER
Rate the following statements on the basis of Your preference for the insurance
company:
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
80. 80
1 2 3 4 5 6
7
Metlife
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
81. 81
PERSONAL INFORMATION:
Q17) Specify your GENDER:
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)
