A GRAND PROJECT REPORT ON Potential of Life Insurance in Ahmedabad At

A Project Report Submitted In Partial Fulfillment of MBA Degree

Under The Project Guidance of

Mr. SMITH MEHTA

Submitted By: - JAGDISH J GONDALIYA Roll No : 520842696

Submitted To:IDEA Institute of Management & Technology Ahmedabad-1535 1

CONTENTS PARTISULARS Acknowledgement Executive Summary Introduction Introduction of the Industry Life Insurance Function of insurance Players in Indian insurance industry Seven ps of insurance industry Various types of Life Insurance Policies Introduction of the Company Company Profile Vision and mission Values Management partners Insurance Plans/Products S.W.O.T analysis Research Methodology Objective Scope of study Sampling Methodology Limitations Survey Graph Analysis & Data Interpretation Findings & recommendations Findings & Recommendations Growth Potential Conclusion Bibliography 2 Page No. 4 5 (7-24) 7 10 13 16 23 25 27 28 29 30 32 50

(54-59) 55 56 57 59 (60-81) 61 (82-84) 82 83 84 (85)

Annexure Questionnaire

(86-87) 87

LIST OF GRAPHS Particulars [Fig 1] No of People Having Insurance [Fig 2] Types of Insurance Policy Respondents Have [Fig 3] Preferance of Respondents of Insurance Cos [Fig 4] Benefits of Insurance Perceived by Respondents [Fig 5] Features of Insurance Policy That Attracted Respondents [Fig 6] Peoples Perception About Insurance [Fig 7] Persons Having Insurance For [Fig 8] Reasons Behind Taking Insurance Policies [Fig 9] Satisfaction of Respondents With Respect to Policies [Fig 10] Satisfaction of Respondents With Respect to Agents [Fig 11] No of Respondents Paying Tax [Fig 12] Respondents Perception About Best Form of Investment Page No. 61 62 63 64 65 66 67 68 69 70 71 72

[Fig 13] Peoples Perception of Appropriate Age For Buying Insurance 73 [Fig 14] Peoples Opinion About Insurance Companies in India [Fig 15] What People Look For in Insurance Companies [Fig 16] People Interested In Going For Insurance Away From Their City 3 74 76 77

[Fig 17] People Planning For New Investment

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ACKNOWLEDGEMENT

I am thankful to MetLife India Insurance Co. Ltd. for providing me an opportunity to undertake project in their esteemed organization. I would like to special thanks to my project manager Mr. Smeet Mehta (Sales Manager) and Mr sarvin Dalal (Agency manager) at MetLife India Insurance Co. Ltd,Ahmadabad. who helped me throughout the project and also encouraged me to take this project in future course for my career. I am also thankful to all the staff members of MetLife India Insurance Co. Ltd to make my project successful.

I am also thankful to Pro. Arnash mem (faculty members) for providing me guidance in preparing my project report.

Last but not the least I am thankful to my parents and god for helping me a Lot. .

JAGDISH J GONDALIYA.

EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and MET LIFE INDIA INSURANCE CO. LTD. has given me the opportunity to work and get experience in highly competitive and enhancing sector. The success story of good market share of different organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like MET LIFE INDIA INSURANCE CO. LTD, MAX NEW YORK LIFE, BAJAJ ALLIANZ, TATA AIG, etc has adequate agents in the market they can capture big market as compared to the other companies. Agents are the best way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer.

INTRODUCTION
Introduction of the Industry Players in Indian insurance industry 7ps of Insurance industry Introduction of the Company Company Profile Vision and mission Core value Management Insurance Plans
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THE HISTORY OF INDIAN INSURANCE INDUSTRY The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years.

Life Insurance In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A 7

number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. Unethical practices adopted by some of the players against the interests of the consumers then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness, solidity, growth and reach. Insurance may be described as a social device to ensure protection of economic value of life and other assets. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. The term "risk" is used to describe the possibility of adverse results flowing from any occurrence or the accidental happenings, which produce a monetary loss. Insurance is a pool in which a large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered 8

by the unfortunate few, due to accidental events, are made good. The sharing of risk among large groups of people is the basis of insurance. The losses of an individual are distributed over a group of individuals. Definitions: General definition: In the words of John Magee, Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risks that attach to individuals.

Fundamental definition: In the words of D.S. Hansell, Insurance accumulated contributions of all parties participating in the scheme.

Contractual definition: In the words of justice Tindall, Insurance is a contract in which a sum of money is paid to the assured as consideration of insurers incurring the risk of paying a large sum upon a given contingency.

Characteristics of insurance Sharing of risks Cooperative device Evaluation of risk Payment on happening of a special event The amount of payment depends on the nature of losses incurred. 9

 The success of insurance business depends on the large number of people insured against similar risk. Insurance is a plan, which spreads the risk and losses of few people among a large number of people. The insurance is a plan in which the insured transfers his risk on the insurer. Insurance is a legal contract which is based upon certain principles of insurance which includes, utmost good faith, insurable interest, contribution, indemnity, causas proxima, subrogation, etc. The scope of insurance is much wider and extensive.

Functions of insurance: Primary functions: 1. Provide protection:- Insurance cannot check the happening of the risk, but can provide for the losses of risk. 2. Collective bearing of risk: - Insurance is a device to share the financial losses of few among many others. 3. Assessment of risk: - Insurance determines the probable volume of risk by evaluating various factors that give rise to risk.

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4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to certainty. Secondary functions: 1. Prevention of losses: - Insurance cautions businessman and individuals to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions. 2. Small capital to cover large risks: - Insurance relives the businessman from security investment, by paying small amount of insurance against larger risks and uncertainty. 3. Contributes towards development of larger industries. Other Function: Means of savings and investment: Insurance companies are business houses. The product they sell is financial protection. To succeed and survive, they must cover their costs, which

include payments to cover the losses of policyholders, as well as sales and administrative expenses, taxes and dividends. Insurance companies have two sources of income for covering these costs: premiums and investment income. The premiums are collected on a regular basis and invested in Government Bonds, Gilt, stocks, mutual funds, real estates and other conservative avenues. However, investment income depends on market conditions, interest rates, economy etc. and varies from year to year. Because of the uncertainty associated with the

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investment income, insurance companies must generate enough income from premiums to cover the bulk of their expenses.

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

1818 : Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.

1870 : Bombay Mutual Life Assurance Society, the first Indian life 'Insurance company started 'Its business,

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 pubic.

1956 : 245 Indian and foreign insurance and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 chores from the Government of India.

Liberalization of Indian Insurance 12

1994: Insurance sector invited private participation to induce a spirit of competition amongst the various insurers and. to provide a choice to the consumers.

1997: Insurance regulator IRDA was set up as there felt the Feed:

To set up an independent regulatory body, that provides greater autonomy to insurance companies in order to improve their performance, In the first year of insurance market liberalization (2001) as much as 16 private sector companies including joint ventures with leading foreign insurance companies have entered the Indian insurance sector. Of this, 10 were under the life insurance category and six under general insurance. Thus in all there are 25 players (12-life insurance and l3general insurance) in the Indian insurance industry till date.

PLAYERS IN INDIAN INSURANCE INDUSTRY 6.1 LIFE INSURERS Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:

Life Insurance Corporation of India (LIC) 13

6.2 GENERAL INSURERS:

General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsure)

GIC had four subsidiary companies, namely ( with effect from Dec'2000, these subsidaries have been de-linked from the parent company and made as independent insurance companies. 1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited, 3. National Insurance Company Limited 4. United India Insurance Company Limited.

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Yr: 2000-2007: Insurance Industry in the year 2000-2001 had 15 new entrants, namely: Life Insurers: S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Name of the Company Max New York Life Insurance Co. Ltd. HDFC Standard Life Insurance Company Ltd. ICICI Prudential Life Insurance Company Ltd. Om Kotak Mahindra Life Insurance Co. Ltd. Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited ING Vysya Life Insurance Company Private Limited Allianz Bajaj Life Insurance Company Ltd. Metlife India Insurance Company Pvt. Ltd. Reliance Life Insurance Company Ltd. Shriram Life Insurance Company Ltd. Sahara India Life Insurance Company Ltd. Bharti AXA Life Insurance Company Ltd. Aviva Life Insurance Company Ltd.

General Insurers: S.No. Name of the Company 15

1 2 3 4 5 6

Royal Sundaram Alliance Insurance Company Limited Reliance General Insurance Company Limited. IFFCO Tokio General Insurance Co. Ltd TATA AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited.

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SEVEN Ps OF INSURANCE SECTOR:

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Wherever there is uncertainty there is risk. We do not have any control over uncertainties which involves financial losses. The risks may be certain events like death, pension, retirement or uncertain events like theft, fire, accident, etc. Insurance is a financial service for collecting the savings of the public and providing them with risk coverage. The main function of Insurance is to provide protection against the possible chances of generating losses. It eliminates worries and miseries of losses by destruction of property and death. It also provides capital to the society as the funds accumulated were invested in productive heads. Insurance comes under the service sector and while marketing this service, due care is to be taken in quality product and customer satisfaction. While marketing the services, it is also pertinent that they think about the innovative promotional measures. It is not sufficient that you perform well but it is also important that you let others know about the quality of your

P roduct

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positive contributions. The creativity in the promotional measures is the need of the hour. The advertisement, public relations, word of mouth communication needs due care and personal selling requires intensive care. INSURANCE MARKETING: The term Insurance Marketing refers to the marketing of Insurance services with the aim to create customer and generate profit through customer satisfaction. The Insurance Marketing focuses on the formulation of an ideal mix for Insurance business so that the Insurance organisation survives and thrives in the right perspective. MARKETING --MIX FOR INSURANCE COMPANIES: The marketing mix is the combination of marketing activities that an organisation engages in so as to best meet the needs of its targeted market. The Insurance business deals in selling services and therefore due weight-age in the formation of marketing mix for the Insurance business is needed. The marketing mix includes sub-mixes of the 7 P's of marketing i.e. the product, its price, place, promotion, people, process & physical attraction. The above mentioned 7 P's can be used for marketing of Insurance products, in the following manner: 1.Product: A product means what we produce. If we produce goods, it means tangible product and when we produce or generate services, it means intangible service product. A product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore services are their product. In India, the Life Insurance Corporation of India (LIC) and the General Insurance Corporation (GIC) are the two leading companies offering insurance services to the users. Apart from offering life insurance policies, they also offer underwriting and consulting services. When a person or an organisation buys an Insurance policy from the insurance company, he not only buys a policy, but along with it the assistance and advice of the agent, the prestige of the insurance company and the facilities of claims and compensation. It is natural that the users expect a reasonable return for their

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investment and the insurance companies want to maximize their profitability. Hence, while deciding the product portfolio or the product-mix, the services or the schemes should be motivational. The Group Insurance scheme is required to be promoted, the Crop Insurance is required to be expanded and the new schemes and policies for the villagers or the rural population are to be included. The Life Insurance Corporation has intensified efforts to promote urban savings, but as far as rural savings are concerned, it is not that impressive. The introduction of Rural Career Agents Scheme has been found instrumental in inducing the rural prospects but the process is at infant stage and requires more professional excellence. The policy makers are required to activate the efforts. It would be prudent that the LIC is allowed to pursue a policy of direct investment for rural development. Investment in Government securities should be stopped and the investment should be channelized in private sector for maximizing profits. In short, the formulation of product-mix should be in the face of innovative product strategy. While initiating the innovative process it is necessary to take into consideration the strategies adopted by private and foreign insurance companies. 2.Pricing: In the insurance business the pricing decisions are concerned with: i) The premium charged against the policies, ii) Interest charged for defaulting the payment of premium and credit facility, and iii) Commission charged for underwriting and consultancy activities. With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. In a developing country like India where the disposable income in the hands of prospects is low, the pricing decision also governs the transformation of potential policyholders into actual policyholders. The strategies may be high or low pricing keeping in view the level or standard of customers or the policyholders. The pricing in insurance is in the form of premium rates. The three main factors used for determining the premium rates under a life insurance plan are mortality, expense and interest. The premium rates are revised if there are any significant changes in any of

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these

factors.

Mortality (deaths in a particular area): When deciding upon the pricing strategy the average rate of mortality is one of the main considerations. In a country like South Africa the threat to life is very important as it is played by host of diseases. Expenses: The cost of processing, commission to agents, reinsurance companies as well as registration are all incorporated into the cost of installments and premium sum and forms the integral part of the pricing strategy Interest: The rate of interest is one of the major factors which determines people's willingness to invest in insurance. People would not be willing to put their funds to invest in insurance business if the interest rates provided by the banks or other financial instruments are much greater than the perceived returns from the insurance premiums.

3.Place: This component of the marketing mix is related to two important facets -i) Managing the insurance personnel, and ii) Locating a branch. The management of agents and insurance personnel is found significant with the viewpoint of maintaining the norms for offering the services. This is also to process the services to the end user in such a way that a gap between the services- promised and services -- offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem. The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence of the personnel. The agents and the rural career agents acting as a link, lack professionalism. The front-line staff and the branch managers also are found not assigning due weight-age to the degeneration process. The insurance personnel if not managed properly would make all efforts insensitive. Even if the policy makers make

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provision for the quality upgrading the promised services hardly reach to the end users. It is also essential that they have rural orientation and are well aware of the lifestyles of the prospects or users. They are required to be given adequate incentives to show their excellence. While recruiting agents, the branch managers need to prefer local persons and provide them training and conduct seminars. In addition to the agents, the front-line staff also needs an intensive training program to focus mainly on behavioral management. Another important dimension to the Place Mix is related to the location of the insurance branches. While locating branches, the branch manager needs to consider a number of factors, such as smooth accessibility, availability of infrastructural facilities and the management of branch offices and premises. In addition it is also significant to provide safety measures and also factors like office furnishing, civic amenities and facilities, parking facilities and interior office decoration should be given proper attention. Thus the place management of insurance branch offices needs a new vision, distinct approach and an innovative style. This is essential to make the work place conducive, attractive and proactive for the generation of efficiency among employees. The branch managers need professional excellence to make place decisions productive. 4. Promotion: The insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy is very high and the rural economy has dominance in the national economy. It is essential to have both personal and impersonal promotion strategies. In promoting insurance business, the agents and the rural career agents play an important role. Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch managers and front line staff. They also have to be given proper training in order to create impulse buying. Advertising and Publicity, organisation of conferences and seminars, incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through the

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mobile publicity van units would be effective in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders. 5. People: Understanding the customer better allows to design appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. Training the employees, use of IT for efficiency, both at the staff and agent level, is one of the important areas to look into. 6. Process: The process should be customer friendly in insurance industry. The speed and accuracy of payment is of great importance. The processing method should be easy and convenient to the customers. Installment schemes should be streamlined to cater to the ever growing demands of the customers. IT & Data Warehousing will smoothen the process flow. IT will help in servicing large no. of customers efficiently and bring down overheads. Technology can either complement or supplement the channels of distribution cost effectively. It can also help to improve customer service levels. The use of data warehousing management and mining will help to find out the profitability and potential of various customers product segments.

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7. Physical evidence: Distribution is a key determinant of success for all insurance companies. Today, the nationalized insurers have a large reach and presence in India. Building a distribution network is very expensive and time consuming. If the insurers are willing to take advantage of India's large population and reach a profitable mass of customers, then new distribution avenues and alliances will be necessary. Initially insurance was looked upon as a complex product with a high advice and service component. Buyers prefer a face-to-face interaction and they place a high premium on brand names and reliability. As the awareness increases, the product becomes simpler and they become off-the-shelf commodity products. Today, various intermediaries, not necessarily insurance companies, are selling insurance. For example, in UK, retailer like Marks & Spencer sells insurance products. The financial services industries have successfully used remote distribution channels such as telephone or internet so as to reach more customers, avoid intermediaries, bring down overheads and increase profitability. A good example is UK insurer Direct Line. It relied on telephone sales and low pricing. Today, it is one of the largest motor insurance operator. Technology will not replace a distribution network though it will offer advantages like better customer service. Finance companies and banks can emerge as an attractive distribution channel for insurance in India. In Netherlands, financial services firms provide an entire range of products including bank accounts, motor, home and life insurance and pensions. In France, half of the life insurance sales are made through banks. In India also, banks hope to maximize expensive existing networks by selling a range of products. It is anticipated that rather than formal ownership arrangements, a loose network of alliance between insurers and banks will emerge, popularly known as bancassurance. Another innovative distribution channel that could be used are the non-financial organisations. For an example, insurance for consumer items like fridge and TV can be offered at the point of sale. This increases the likelihood of insurance sales. Alliances with manufacturers or retailers of consumer goods will be possible and insurance can be one of the various incentives offered

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Various types of life insurance policies: Endowment policies: This type of policy covers risk for a specified period, and at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy. Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive. Group insurance: This type of insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost. Term life insurance policies: This type of insurance covers risk only during the selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies. Whole life insurance policies: This type of policy runs as long as the policyholder is alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder. Joint life insurance policies: These policies are similar to endowment policies in maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy.

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 Pension plan: a pension plan or annuity is an investment over a certain number of years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period. Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).

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COMPANY PROFILE

MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by offering 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 enforce), 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 Inc.:26

Celebrating 140 years, MetLife, Inc. is a leading provider of insurance and financial services with operations throughout the United States and the Latin America, Europe, and Asia Pacific regions. Through its domestic and international subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions.

FACT SHEET Founded Started Operation Headquarters World Wide Web Address Managing Director Employees Financial Advisors Bancassurance Tie-Ups 2001 FY 2001-02 Bangalore, India www.metlife.co.in Rajesh Relan 7688 56,072 5 (J&K Bank/Axis Bank/Dhanalakshmi Bank/Karnataka Bank/Barclays) Over 20 products 192 offices in 131 cities 1910 offices in 686 cities

Number Of Products Presence Through MetLife Offices Presence Through Bank Partners

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Vision and Mission

Build financial freedom for all through leadership in providing financial advice and building long-term relationships through innovative protection, accumulation and retirement products, robust underwriting processes and creating world-class customer service experience for our customers . We want to provide customers in India with world-class solutions for financial security, and in the process add significant value to our shareholders, associates and society.

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Our Core Values

We lead through Innovation to offer world class and competitive products to our customers

We build Long Term Relationships with our customers by creating a world class service experience through operational excellence and the innovative use of technology

We create a Customer Centered and Result Focused Vision that inspires each one of our Associates and has their buy-in

We are committed to creating a High Performance Organization by creating an environment that allows each one of our Associates to perform at their peak. As a result we will also be recognized as an Employer of Choice

We are committed to Partnering with our internal and external Customers for mutual success

We work with Integrity, Fairness and Financial Prudence in all our dealings keeping the interests of our Shareholders, Customers and Associates paramount

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 Rajesh Relan Managing Director MSVS Phanesh Murthy Appointed Actuary Shilpa Vaid Deputy Director- Human Resources Gaurav Sharma Director - Customer Service and Operations Girish Malhotra Director- Agency KR Anil Kumar Director - Financial Planning & Controller KS Raghavan Chief Administrative Officer Preetinder Chadha Deputy Director - Corporate Sales & Training P. S. Sankaran Director Business Support Sameer Bansal Director- BA & BP Vijay Raghavan Director - Marketing & Strategy

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Partners:-

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Corporate Social Responsibility:MetLife has always been committed to making a positive difference in the lives of the individuals and communities. Today, that commitment drives volunteer work and philanthropy across the globe. Working with non-profit organizations, MetLife supports programs that provide young people with the skills they need to succeed in life and create opportunities for people of all ages. MetLifes core values are personal responsibility, people count, partnership, integrity and honesty, innovation and financial strength. These values also shape the responsibility to the communities where the organization conducts its business.

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Child Plan:Met Bhavishya MetLife offers 'Met Bhavishya' - a guaranteed money back plan that pays out funds to help to meet the education and career milestones of children. With this plan, the Life Insured is that of the parent. The plan also has inbuilt guaranteed additions to add value to the policy over its term. There are two options to choose from and fixed term benefits, periodic additions & terminal additions are payable based on the option that select. The policy is suitable for parents with children between the ages 0-12 and parents in the age group of 20-50 years old. Met Junior Endowment MetLife offers 'Met Junior'- a flexible endowment plan that combines savings and security. Children's well-being is our highest priority. So MetLife offer a plan which offers both timely and efficient return on investment. All with a guarantee.
Met Junior - Non Par
On attaining maturity, the Person Insured will receive the Sum Assured. Met Junior - Par On attaining maturity, the Person Insured will receive the Sum Assured, the Reversionary Bonus and the Terminal Bonus, if any.

Met Little Star

When child is born, a star is born in family. And, parents would like to provide their star with all the building blocks that could develop his or her potential to the fullest. This could mean special instruction sessions for talented children, unique training gear for exceptional athletes or qualified training for born singers to provide that extra-edge. To ensure this, parents would need an investment and protection package that is 33

exclusively designed to help you plan for financial security, no matter what uncertainties life brings. 'Met Little Star', a Unit-Linked, regular premium, child insurance plan helps parents do just that. It secures finances for child's educational needs and ensures that plans go as planned, no matter what the circumstances.
\Met Junior Money Back

MetLife offers 'Met Junior Money Back' - a money back plan that combines savings and security. Child's well-being is our highest priority. So MetLife offer a money back plan which provides guaranteed periodic survival benefits at the end of 5, 10 & 15 years, along with guaranteed growth of savings. A plan which offers both timely and efficient return on investment with payouts at different milestones. Survival Benefit At the end of 5 years 20% of Sum Assured At the end of 10 years 20% of Sum Assured At the end of 15 years 20% of Sum Assured Upon survival to maturity 40% of Sum Assured plus total Guaranteed Additions

Met Magic MetLife offers 'Met Magic', a Unit-Linked (non-medical, regular premium) life insurance plan (Non Par). Parents always want their little angel to have the best, in every sphere of life. You don't want your child to have to compromise. No matter what the circumstances. Met Magic, a unique life insurance plan, helps you secure the future of your loved one!
(IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER )

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Retirement:-

Met Growth MetLife offers 'Met Growth' - a Unit-Linked solution to help in golden years. It is specially designed to provide financial security for future requirements. This plan allows to start planning immediately by ensuring the safety of first year premiums. It also helps create retirement fund faster by giving you 100% allocation from the second year onwards, coupled with attractive loyalty additions into fund. Guaranteed.
Entry Age (in completed years) Min 0 years (3 months to be completed) Max 60 years Min 18 years Max 75 years 15 / 20 / 25 / 30 years Regular Rs. 12,000 Min - 5 times the Annualized Premium ***Other Sum Assured multiples - 10 times & 20 times the Annualized Premium. Monthly, Quarterly, Half-yearly, Yearly

Maturity Age

Coverage Term Premium Payment Term Minimum Annualized Premium Basic Sum Assured

Premium Paying Modes

Benefit 35

 Death Benefit

In the unfortunate event of death, the higher of the Sum Assured or the Fund Value would be payable. If death of the Person Insured occurs before age 7, the Fund Value plus the regular premium received by us in the first policy year is payable. Maturity Benefit On maturity, you will receive the Fund Value including the Guaranteed Loyalty Addition or you can opt for the settlement options. Loyalty Additions You get the guarantee of enhancing your wealth creation through guaranteed loyalty additions (up to 120% of the first year annual premium) at the end of the 10th & 15th year plus Guaranteed Additions as a % of the Fund Value. At the end of the 10th year: 50% of the first year annualized premium At the end of the 15th year:

Met Advantage Plus

MetLife offers 'Met Advantage Plus' - a Unit-Linked Pension Plan that allows to effectively and efficiently accumulate retirement needs. As the name suggests, it comes with many advantages.One can choose from eight annuity options, two life cover options and get tax benefits under Section 80 C and 10 (10 A). One can buy the plan without any hassles and invest more as you approach retirement by using the top-up functionality. All in all, its a plan which works harder when one stop working. For one, it ensures that you lead a comfortable lifestyle post retirement.

Entry Age (in completed years) Min 20 years Minimum Term Minimum Vesting Age Maximum Vesting Age
10 years

Max 55 years

45 years 65 years 36

Minimum Premiums Premium Paying Term

Benefits Death Benefit

Single Pay: Rs. 1,00,000 Regular Premium: Rs. 10,000

Single Pay & Regular Pay

In case of death during the accumulation period, the death benefit payable is: Under Option A: A guaranteed amount of 110% of the Fund Value is payable to the nominee. Under Option B: 100% of the Fund Value is payable to the nominee. Vesting Benefit On the vesting date, i.e. at the end of the accumulation term,you can take onethird of your retirement kitty as a tax-free lump sum and utilize the balance to buy annuities. Or you can use the entire retirement kitty to buy annuities.

Met Pension-Par

'Met Pension (Par)' serves as a friendly helping hand so one can stay financially independent even after retirement. It helps to build up a fund for golden years. With this plan,one can ensure his\her enjoy retirement as a happy new chapter. Entry Age (in completed years) Minimum Term Minimum Vesting Age Maximum Vesting Age Minimum Sum Assured Maximum Sum Assured Minimum Annual Premium Premium Payment Term Min 18 years Max 60 years 10 years 45 years 70 years Rs. 50,000 No Limit Rs. 4000 p.a. for Regular Pay Single Pay, Limited Pay (3 or 5 Pay) & Regular Pay

37

Benefits Death Benefit In case of death while one is saving for retirement, the death benefit payable is: 1. Return of premiums. 2. Accrued reversionary bonus, if any. 3. Any insurance on the life of the Insured that may be provided by riders to this policy. Vesting Benefit On the vesting date, you can take one third of your retirement kitty as a taxfree lump sum and utilize the balance to buy annuities or you can use the entire retirement kitty to buy annuities. The retirement fund on the date of vesting is equal to the Sum Assured plus Guaranteed Additions plus the compounded reversionary bonuses plus the terminal bonus, if any. Guaranteed Additions

Savings:-

Met Sukh

38

MetLife offers 'Met Sukh'- a guaranteed money-back policy which provides guaranteed periodic survival benefits at the end of 5, 10, 15 & 20 years and guaranteed additions of 10% of the Sum Assured for the entire term. It not only covers your life, but also guarantees you cash payments at various milestones along with guaranteed growth of your savings. Entry Age Coverage Term Premium Payment Term Minimum Sum Assured Maximum Sum Assured Benefits
Death Benefit

Min - 15 years Max - 55 years 20 years Regular Rs. 75,000 No Limit

In the unfortunate event of death of the Person Insured, the Sum Assured along with the Guaranteed Additions are payable. The policyholder is entitled to Guaranteed Additions of Rs. 100 per Rs. 1,000 of the Sum Assured for each completed year. Maturity Benefit On maturity, the life insured will receive the Survival Benefits plus the Guaranteed Addition. Survival Benefits At the end of 5 years 20% of the Sum Assured At the end of 10 years 20% of the Sum Assured At the end of 15 years 20% of the Sum Assured Upon survival to maturity 40% of the Sum Assured plus Total Guaranteed Additions

39

Met Suvidha 'Met Suvidha' is a flexible Endowment Plan that combines savings and security. In addition to providing you protection till the maturity of the plan, it helps you save for your specific long term financial objectives. This long term savings-cumprotection plan comes to a customer at affordable premiums. Met Suvidha is available in both participating as well as non-participating versions. Minimum Entry Age Term Premium Paying Terms Minimum Annual Premium Amount Minimum Sum Assured Maximum Sum Assured Par: 15 years - 60 years Non-Par: 15 years - 70 years Par: - 15 years - 30 years Non-Par: 5 years - 30 years Single Pay, Limited Pay (5 or 10) & Regular Pay Rs. 2,500 Rs. 75,000 No Limit

Met Saral MetLife presents 'Met Saral' - a non- participating endowment plan. As the name suggests, its a simple savings plan which gets customer into the savings habit without any medical tests. All need to do is fill in a simple application form and are ensured a guaranteed maturity amount of Rs 100,000, even in the case of death during the term. Take the first step towards a better financial future for customer and his family. Ensure and insure the first Lakh. 40

Met 100 'Met 100' - a whole life policy where customer pay premiums for 15, 20 or 25 years. It helps create a legacy for the children, leaving money for a dependant spouse and, more importantly, provides insurance cover at affordable rates. Met 100 is available in participating as well as non- participating versions. Non-Par Minimum Entry Age 15 yrs Maximum Entry Age 70 yrs for ppt of 15 yrs 65 yrs for ppt of 20 yrs 60 yrs for ppt of 25 yrs Par 0 yrs 70 yrs for ppt of 15 yrs 65 yrs for ppt of 20 yrs 60 yrs for ppt of 25 yrs 70 yrs for life ppt 15, 20, 25 yrs Rs. 50,000 No limit (subject to UW)

Premium Paying Terms Minimum Sum Assured Maximum Sum Assured Minimum Annual Premium

15, 20, 25 yrs Rs. 50,000 No limit (subject to UW)

Rs. 1,000 for issue age of < 15 Met 100 Gold: Rs. yrs 2,500 Rs. 2,500 for issue age of > = 15 Met 100 Platinum: 41

yrs

Rs. 7,500

Met 100 - Non-Par In the event of death, the Sum Assured is payable.

Death Benefit Met 100 - Par In the event of death, the Sum Assured plus the Reversionary Bonus and Terminal Bonuses, if any, are payable.

Maturity Benefit Met 100 - Par On maturity of the policy, the Sum Assured plus the Reversionary Bonus and Terminal Bonuses, if any, are payable. Met 100 - Non-Par On maturity of the policy, the Sum Assured is payable

Protection:-

42

Met Suraksha MetLife offers 'Met Suraksha - Term Assurance (TA)', a non participating term assurance plan which provides life cover at a nominal cost. To put it simply, it is a life insurance plan that gives complete protection to enjoy life to the fullest. Customer can further customize plan with two riders Accidental Death Benefit and Critical Illness. Met Suraksha TROP MetLife offers 'Met Suraksha - Term with Return of Premium (TROP)', a non participating term assurance plan which provides life cover at a nominal cost. To put it simply, it is a life insurance plan that gives complete protection to enjoy life to the fullest. You can further customize your plan with two riders Accidental Death Benefit and Critical Illness.

Met Mortgage Protector This plan which provides life cover for home loans taken for any period above 5 years. It is a decreasing term insurance with single and limited premium options. The plan covers an amount equal to the outstanding amount as per the policy schedule. It ensures the assets that have created stays with family.

43

Rural :None of us can be sure what tomorrow will bring. Shield your families against the unknown. MetLifes rural plans protect your loved ones against financial liabilities and help you save for tomorrow. All at affordable premiums

Met Vishwas 'Met Vishwas', - a single premium, micro insurance, nonparticipating term assurance plan which provides life cover at a nominal cost. On survival, customers get 110% or 125% of the premium.

Minimum Entry Age Maximum Entry Age Maximum Maturity Age Minimum Sum Assured Maximum Sum Assured Policy Term Premium Paying Terms

18 years 60 years 70 years Rs. 5,000 Rs. 50,000 5 or 10 years Single Pay

Met Suvidha-Rural Met Suvidha (Rural) is a participating flexible Endowment Plan that combines savings and security. In addition to providing protection up to maturity, it helps to save for specific long term 44

financial objectives. This long term savings-cum-protection plan comes at affordable premiums. Benefits: Met Suvidha - Par In the event of death during the term of the policy, the beneficiary will receive the base Sum Assured, the accrued reversionary bonus and terminal bonus if any. Maturity Benefit Met Suvidha - Par On maturity of the policy, you will receive the base Sum Assured, the accrued reversionary bonus and terminal bonus if any.

It is an Endowment plan that offers both savings and life insurance. Flexible premium paying options to suit various income cycles. A plan which participates in the bonuses declared by the company. Customization possible with Accident Death Benefit, Critical Illness, Term, Waiver of Premium Riders for comprehensive protection.

Investment:-

45

MetLifes Unit-Linked Insurance Plans ensure systematic enhancement of wealth. Be it higher returns or the right blend of protection and wealth optimization, they help to ensure the right choice and peace of mind. (IN THESE POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER ) Met Easy A simplified unit-linked plan which offers an opportunity to systematically build wealth and protection for you and your family. 10 years Minimum Age 8 at Entry Maximum Age 55 at Entry Minimum Premium Maximum Premium Sum Assured 20,000 6,00,000 15 years 3 50 15,000 4,00,000 20 years 0 (3 months to be completed) 50 12,000 3,00,000 10 times the annualized regular premium

5 times the 7.5 times the annualized regular annualized regular premium premium

Premium Yearly, Half-yearly, Yearly, Half-yearly, Yearly, Half-yearly, payment modes Quarterly, Monthly Quarterly, Monthly Quarterly, Monthly

46

(The maximum Sum Assured available in this product is based on age, at the time of buying the policy.) Benefits-

Death Benefit In the event of death: In the 1st Policy Year: Higher of 50% of the Sum Assured or the Fund Value is payable. After the 1st Policy Year: Higher of 100% of the Sum Assured or Fund Value. If death of the Person Insured

occurs before age 7, the Fund Value plus the Regular Premium received by us in the first policy year is payable. Maturity Benefit On maturity, you will receive the Fund Value including the Loyalty Addition

or you can opt for the settlement options. Loyalty Additions With Met Easy, you get the benefit of potentially enhancing your wealth creation with loyalty additions that are added to your policy on maturity.

Met Smart Gold MetLife offers 'Met Smart Gold'- a Unit-Linked wealth creation cum protection plan for the well-heeled. It's specially conceived so that one can get a plan to match his specific financial requirements. If you are keen on investing lump sum amounts over a shorter horizon, this is the ideal plan for you.

Met Smart Plus-Regular Pay 'Met Smart Plus' a Unit-Linked Whole life plan that matures at age 100. If you want to protect your family from lifes uncertainties; at the same time, you wish insurance would yield 47

higher returns on your investments. You want your insurance policy to help realize all your dreams. Its a right plan to go with.

Entry Age (in completed years) Maturity Age Premium Payment Term Minimum Annualized Premium Minimum Basic Sum Assured Premium Payment Modes

Min 0 years (3 months to be completed) Max 70 years 100 years Regular Rs. 12,000 Rs. 60,000 Monthly, Quarterly, Half-yearly, Yearly

Met Smart Plus- Single Pay Same as Met Smart Plus Regular but premium is payable in a single term or at the time of policy taken. Met Smart Premier- Regular Pay MetLife offers 'Met Smart Premier' a Unit-Linked Whole life plan that matures at age 100. You want to protect your family from lifes uncertainties; at the same time, you wish insurance would yield higher returns on your investments. You want your insurance policy to help realize all your dreams. Met Smart Premier- Single Pay Payable lump sum at the time of policy taken.

48

Health:Met Health Care UIN no: 117N048V01 Health problems strike unexpectedly. In addition to causing ill health, it can also scar financial health. One need to protect himself against such a situation through a health insurance plan. In order to ensure you are well protected to face any health condition that could befall you, MetLife presents - Met Health Care, a simple health insurance policy with unique and smart advantages for you and your family#. (# Family means spouse and two children. Every additional family member shall be underwritten as per the underwriting conditions laid by the Company from time to time.) Met Health Care is a long term health insurance plan from MetLife. This plan covers 1. Hospitalization expenses by providing a Daily Cash benefit as chosen by you. 2. 10 major Critical Illnesses by providing a lump sum benefit. 3. Total & Permanent Disability due to accident by providing a lump sum benefit. All the above benefits can be availed without the hassle of undergoing any medical examination. Just fill up the simple application form and start enjoying the unmatched benefits of Met Health Care.

Minimum/Maximum age of entry Cover ceasing age

18 years-55 years (At first entry, for the Principal insured) 3 months-55 years (For Secondary Insured lives) 65 years 49

Maturity/Death Benefit Benefits Offered

No Maturity/Death Benefit payable (a) Daily Hospitalisation Cash Benefit (b) Daily ICU Cash Benefit (c) Recuperation Benefit (d) Critical Illness Benefit (e) Accidental Total & Permanent Disability Benefit

Premium paying frequency Yearly. Half-Yearly mode is avaiable only if each of the persons insured choose a daily cash benefit of Rs. 3000 or more.

Illustration
Benefit Daily Hospitalisation Cash Benefit Option 1 Option 2 Option 3 Option 4 Rs. 4000 per day Rs. 6000 per day Rs. 10000 Rs. 3 Lakh Rs. 3 Lakh Option 5 Rs. 5000 per day Rs. 6000 per day Rs. 10000 Rs. 3 Lakh Rs. 3 Lakh

Rs. 1000 per day Rs. 2000 per day Rs. 3000 per day

Daily ICU Cash Benefit Rs. 2000 per day Rs. 4000 per day Rs. 6000 per day Recuperation Benefit Critical Illness Benefit Accidental Total & Permanent Disability Benefit Rs. 3000 Rs. 1 Lakh Rs. 1 Lakh Rs. 6000 Rs. 2 Lakh Rs. 2 Lakh Rs. 9000 Rs. 3 Lakh Rs. 3 Lakh

Benefits Death/Maturity Benefit There is no Death/Maturity Benefit under Met Health Care. Tax Benefits The premium paid (excluding the service tax) under this plan is eligible for Tax Benefits under Section 80 D of the Income Tax Act, 1961 as per the provisions and conditions given therein and are 50

subject to any changes made in the tax laws in future. Reasons to Buy 1. Coverage for the entire family. 2. No Claim Discounts. 3. Guaranteed Cover* till age 65. 4. Payouts in addition to other Insurance Plans. 5. Multiple Claims.

S.W.O.T ANALYSIS OF METLIFE INDIA INSURANCE 51

STRENGTHS

With over 139 years of experience Metlife have

approximately US $ 3.3 trillion of life insurance in force.

Brand Image , Business Experience and

Innovative products..
Large number of young workforce .The 40K agents

which are very selectively chosen .

Service quality which is the crux of their mission. Has tie up with banks like Axis , J&K , Barclays ,

Karnatka Bank and Dhanalakshmi bank.

Paidup capital of RS 1500 cr as on 2008 which

shows company dependability.

Very less charges on ULIP plans as compare to

other insurance players .

WEAKNESS

Many competitors in the market of same products

by the title and difference in premium and offerings.

52

 Sustainable to risk associated with investments in

money market. Very less network branches due to which its difficult for customer to make payment easily. Not focusing on consumer awareness mainly concentrating on personal selling . More focusing in urban areas not touching rural area which has a very good potential market for insurance sector. Lacking in advertisement due to which they are not able to cover a large area or large no of customer.

OPPORTUNITY

53

 Huge market is literally untapped. Out of

estimated 320 millions insurable markets only 20% of the population is insured.
Health insurance and pension schemes, an

estimated market potential of approximately $ 15 billion. Nearly 70% of the Indian population is without Life , Health , and Non-Life insurance. Per Capita life insurance premium in India in 2004 was $16 as compared to the world average of $ 292. Strong economic growth with increase in affluence and rising risk awareness leading to rapid growth in the Insurance sector.

THREATS

Players like bajaj and birla sunlife offer same plans

with low premiums.

54

 Entry of many other private companies with

equally strong experience and financial strength of foreign partners making the competition difficult and saturating the urban markets (example ; idbi fortis insurance , bharti axa insurance and more.)
Current govt. policies do not encourage gross

domestic savings. if the tax liability of the sevice class rises, the customer will have little money to invest.
Lic has woken up from sleep and is following

competitive strategies. its huge surplus in life fund gives a capability to lodge price war.

55

MAN Concept:

This concept means that before selling, the seller should make sure that the suspect should have the Money, Authority and Power to buy the product, and then only the prospect will become a Suspect. Before deciding suspect a person should identify that they should have enough money to buy that service, prospect should have authority and power of taking decision, he should also have need of buying the product. If a person have all these things than only he can become suspect of the product.

56

RESEARCH METHODOLOGY
Objective Scope of study Sampling methodology Limitations

57

RESEARCH METHODOLOGY

58

TITLE: To Study Potential of Life Insurance Industry in Ahmedabad. TITLE JUSTIFICATION: The above title is self explanatory. The study deals mainly with studying the buying pattern in the insurance industry with a special focus on MetLife India Insurance Co. Ltd. The various segments of the markets divided in terms of Insurance Needs, Age groups, Satisfaction levels etc will also studied. OBJECTIVE Main objective of the research is to have an analysis of life insurance industry in Ahmedabad. To accomplish this objective it has been divided into five. To determine reasons behind opting for an insurance. To know the most preferred policy. To determine customers perception towards private insurance companies and their expectation form private insurance companies. To determine the feedback on services provided by an insurance agent. To study the types of benefits provided by insurance services.

59

SCOPE OF THE STUDY A big boom has been witnessed in Insurance Industry in recent times. A large number of new players have entered the market and are trying to gain market share in this rapidly improving market. The study deals with reliance in focus and the various segments that it caters to. The study then goes on to evaluate and analyze the findings so as to present a clear picture of trends in the Insurance sector.

SIGNIFICANCE TO THE INDUSTRY: This is a limited study which takes into consideration the responses of 100 people. This data can be explorated to take in the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this can attempt to guide the future of the industry based on current trends. SIGNIFICANE FOR THE RESEARCHER: To facilitate and provide useful information for the study of the company and the insurance industry and also provide recommendations for MetLife India Insurance Co. Ltd

60

RESEARCH DESIGN EXPLORATORY & DISCRIPTIVE

EXPERIMENTAL RESEARCH The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary & secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behavior, through this questionnaire. SAMPLING METHODOLOGY Sampling Technique: Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judemental and convinent 61

Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees, Self Employed etc.

Sample size: The sample size was restricted to only 100, which comprised of mainly peoples from different regions of Ahmedabad due to time constraints. Sampling Area: The area of the research was Ahmedabad, India.

62

LIMITATIONS OF THE RESEARCH 1. The research is confined to a certain parts of Ahmedabad and does not necessarily shows a pattern applicable to all of Country. 2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

63

SURVEY
Graph Analysis Data Interpretation

64

DATA ANALYSIS & INTERPRETATION NUMBER OF PEOPLE HAVING INSURANCE RESPONSE Yes No Total NO. OF RESPONDENTS 70 30 100 SHARE (%) 70% 30% 100%

INTERPRETATION Of the sample size of 100 surveyed respondents 70%

of the respondents are having Insurance policy. 30% of the respondents are either not having any

Insurance policy at present or their policy is already matured. And at present 100% of the respondents are with the 65

view that Insurance is a tool to protect your family.

TYPES OF INSURANCE POLICY RESPONDENTS HAVE POLICY TYPE LIFE POLICY NON LIFE POLICY BOTH NO. OF RESPONDENTS 75 25 45 SHARE (%) 75 25 45

INTERPRETATION 75% of the respondents have only Life Insurance

Policy.

While 45% of the respondents have both.

25% of the respondents have only Non- life Policy.

66

[Some of the respondents opted for two or more than two items] PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES COMPANYS NAME L.I.C. Reliance Life Insurance Metlife India Ins. Co.Ltd Bajaj Allianze ICICI Prudential SBI Life Max New York Life TOTAL NO.OF RESPONDENT 74 3 2 3 9 7 2 100 SHARE (%) 74 3 2 3 9 7 2 100

67

INTERPRETATION

74% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent of respondents.

BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS BENEFITS Cover Future Uncertainty Tax Deductions Future Investment TOTAL NO.OF RESPONDENTS 55 20 25 100 SHARE (%) 55 20 25 100

[Fig4]
F uture Investment 25% Cover F uture Uncertainty 55%

T ax Deductions 20%

68

INTERPRETATION 55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy. Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively. FEATURES OF INSURANCE POLICY THAT ATTRACTED RESPONDENTS FEATURE Money Back Guarantee Larger Risk Coverage Easy Access to Agents Low Premium Companys Reputation TOTAL NO.OF RESPONDENTS 15 37 7 30 11 100 SHARE (%) 15 37 7 30 11 100

69

[Fig 5] REPUTATIO N OF COMPANY 11% LOW PREMIUM 30% MONEY BACK GUAARENT EE 15%

INTERPRETATION

EASY ACCESS TO AGENTS 7%

LARGER RISK COVERAgE 37%

Majority of the respondent (37%) found larger risk coverage as the most attracted feature of the all. Minimum respondents (7%) opted for easy access to agents. PEOPLE PERCEPTION ABOUT INSURANCE RESPONSE A saving tool A tax saving device A tool to protect your family 70 NO. OF RESPONDENTS 81 74 100 SHARE (%) 81% 74% 100%

INTERPRETATION 81% of the respondents have perception of Insurance

being a saving tool. And 74% of the respondents have perception of

Insurance being a tax saving device. But 100% of the respondents are with the view that

Insurance is a tool to protect your family. [Some of the respondents opted for two or more than two items] PERSONS HAVING INSURANCE FOR Response self spouse 71 No of respondents 40 28

children parents all

21 18 11

INTERPRETATION Among that 42% people who having insurance, they have insurance 40% for self, 28%for spouse ,21% for children and 18% for their parents and 11% for all family member.

REASONS BEHIND TAKING INSURANCE RESPONSE Tax saving Saving / Investment 72 NO. OF RESPONDENTS 80 80 SHARE (%) 80% 80%

Family protection

100

100%

INTERPRETATION 80% of the Respondents opted for Insurance for tax

saving benefits and saving/investment both. But all of them, i.e. 100% of the respondents have

opted for insurance for their family protection. [Some of the respondents opted for two or more than two items]

73

SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY RESPONSE Satisfied Not satisfied Not Responded Total NO. OF RESPONDENTS 60 40 0 100 SHARE (%) 60% 40% 0.0% 100%

INTERPRETATION 60% of the respondents are more or less satisfied with

their existing policy. 40% of the respondents are not satisfied with their

existing policy. 74

In this case all of those who have taken a policy have

responded.

75

SATISFACTION OF +VE RESPONDENTS WITH RESPECT TO SERVICE AGENT RESPONSE Satisfied Not satisfied Not Responded Total
Not Res ponded 0%

NO. OF RESPONDENTS 45 55 0 100

SHARE (%) 45% 55% 0.0% 100%

[F 10] ig

Not s fied atis 55%

S fied atis 45%

INTERPRETATION 45% of the respondents are satisfied with their existing

service agent. 55% of the respondents are not satisfied with their

existing insurance agent.

76

All of those who have taken a policy have responded.

77

NUMBER OF RESPONDENTS PAYING TAX RESPONSE Paying tax Not paying tax Total NO. OF RESPONDENTS 91 9 100 SHARE (%) 91% 9% 100%

INTERPRETATION Of the sample size of 100 respondents, 91 respondents

are paying tax.

78

RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE NO. OF RESPONDENTS Fixed Assets Bank deposits Jewellery Securities i.e. bonds, MFs Shares Insurance 75 11 25 40. 10 70 SHARE (%) 33% 5% 11% 17% 4% 30%

80 70 60 50 40 30 20 10 0

F ed ix As ets 75 s ,

[F 12] ig
Ins urance, 70 Bonds /Mutual F unds 40 , Jewellery 25 , Bank depos , 11 its

S hares 10 ,

Fixed Assets Bank deposits

Jewellery

Bonds/Mutual Funds

Shares

Insurance

INTERPRETATION 75% of the respondents are with the view that Fixed

Assets is the best form of investment for securing their future. 70% of the respondents are with the perception that

Insurance is the best form of investment for securing their

79

future, which is 2nd highest and this shows that insurance is an important key for securing your future. [Some of the respondents opted for two or more than two items] PEOPLES PERCEPTION ON APPROPRIATE AGE FOR BUYING INSURANCE RESPONSE After 25 years After 35 years After 45 years Anytime NO. OF RESPONDENTS 29 10 0 61 SHARE (%) 29% 10% 0% 61%

INTERPRETATION 29% of the respondents are with the view that

insurance should be bought after the age of 25 years. 10% of the respondents are with the view that 80

insurance should be buyed after the age of 35 years.

Whereas, 61% of the respondents are with the view

that buying of insurance do not have anything to do with age i.e. there is no age limitations. It can be purchased any time according to the need.

81

PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES RESPONSE Rigid plans Non user friendly Unsatisfactory services Non Aggressive Satisfactory Good Very good NO. OF RESPONDENTS 67 29 26 35 24 10 0 SHARE (%) 67% 29% 26% 35% 24% 10% 0%

INTERPRETATION 67% of the respondents have the opinion that Indian

Insurance Companies have Rigid plans. 82

29.5% feel that Indian Insurance companies are Non-

user friendly. 26.5% feel that services of Indian Insurance companies

are Unsatisfactory. 35.75% of the respondents are with the view that

Indian Insurance companies are Non-aggressive.

24% of the respondents feel that products and services

of Indian Insurance companies is Satisfactory. Whereas only 10.25% feel that it is Good enough. And according to the data, no single person has felt

that it is very good.

[Some of the respondents opted for two or more than two items]

83

WHAT PEOPLE LOOK FOR IN AN INSURANCE COMPANY RESPONSE A trusted name Friendly service & responsiveness Good plans Accessibility NO. OF RESPONDENTS 82 71 81 49 SHARE (%) 82% 71% 81% 49%

INTERPRETATION 82% customers look for a Trusted name in a company

for insurance. 81.5% customers look for a good plan in a company

for insurance. 84

Friendly service & responsiveness and Accessibility

are also important factors looked by customers in a company. [Some of the respondents opted for two or more than two items] PEOPLE INTERESTED IN GOING FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS RESPONSE Yes No Uncertain Total NO. OF RESPONDENTS 43 44 13 100 SHARE (%) 43% 44% 13% 100%

INTERPRETATION

85

The interested customers i.e. 43% are ready to go for

insurance even away from a city if services and products are worthwhile, which again is a good prospect (potential) for Max New york Life Insurance to take them on their favor.

PEOPLE PLANNING FOR NEW INVESTMENTS RESPONSE Planning Not planning Total NO. OF RESPONDENTS 87% 13 100 SHARE (%) 87% 13% 100%

[F 17] ig
Not Planning 13%

Planning 87%

INTERPRETATION 86

Only 13% of the customers contacted are not planning

for new investments presently. Whereas, 87% of the customers are still planning for

new investments this can be a great potential for MetLife India Insurance Co. Ltd to take them on their favor.

87

FINDINGS & RECOMMENDATIONS

88

FINDINGS & RECOMMENDATIONS 1. As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & 89

realizing its, importance. There is a large potential for insurance in India. 2. The entrance of private players will increase the competition and it would be a tough task to secure a good position in market. 3. Since Met Life India Insurance is leading with several companies policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship. 4. As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers. 5. As 43% of the customers are even ready to go for insurance if a service provider away from their city is providing it. But in turn they should provide good products and services. The company should try to convince these customers and get them in its favor.

GROWTH POTENTIAL 90

At present life insurance penetration in India is quite low 3.5% of GDP.

PHASE OF TRANSITION Life Insurance industry is under the phase of infancy after 50 years of monopoly. Competition from within and other sectors of financial market. Needs environmental support till it reaches a comfort zone

91

CONCLUSION The exhaustive research in the field of Life Insurance threw up some interesting trends which can be seen in the above analysis. A general impression that I gathered during Data collection was the immense awareness and knowledge among people about various companies and their insurance products. People are beginning to look beyond LIC for their insurance needs and are willing to trust private players with their hard earned money. People in general have been impressed by the marketing and advertising campaigns of insurance companies. A high

penetration of print, radio and Television Ad campaigns over the years is beginning to have its impact now. Another heartening trend was in terms of people viewing insurance as a tax saving and investment instrument as much as a protective one. A very high number of respondents have opted for insurance for such purposes and it shows how insurance companies have been successful to attract public money in recent times.

92

The general satisfaction levels among public with regards to policy and agents still requires improvement. But therein lies the opportunity for a relative player like MetLife India Insurance Co. Ltd. LIC has never been known for prompt service or customer oriented methods and MetLife India Insurance Co. can build on these factors.

BIBLIOGRAPHY

WEBSITES REFERRED
www.metlife.co.in www.irdaindia.org www.thehindubusinessline.com www.google.com Economic Times Phylip kotler

93

ANNEXURE

94

QUESTIONNAIRE NAME:_________________________ ADDRESS:______________________ ______________________________OCCUPATION:________ ___________ 1. ARE YOU EMPLOYED? YES NO 2. DO YOU HAVE ANY INSURANCE POLICY? YES NO 3. WHICH INSURANCE POLICY DO YOU HAVE? LIFE NON-LIFE BOTH

4. WHICH COS INSURANCE POLICY YOU PREFER THE MOST? (RANK THEM) a) b) c) d) e) f) g) h) LIC ICICIPRUDENTIAL SBI LIFE INSURANCE MET LIFE INDIA INSURANCE MAX NEW YORK LIFE INSURANCE BAJAJ ALLIANZE RELIANCE LIFE INSURANCE ANY OTHER ________( Specify)

5. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN? (RANK THEM) a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS 95

c) FUTURE INVESTMENT d) ANY OTHER _________(Specify) 6. WHATS YOUR PERCEPTION ABOUT INSURANCE? (RANK THEM) a) A SAVING TOOL b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE 7. ARE YOU SATISFIED WITH THE POLICY? a) SATISFIED b) NOT SATISFIED c) NOT RESPONDING 8. ARE YOU SATISFIED WITH THE SERVICE AGENT? a) SATISFIED b) NOT SATISFIED c) NOT RESPONDING 9. DO YOU PAY TAXES? YES NO

10.WHICH IS THE BEST FORM OF INVESTMENTS? (RANK THEM) a) FIXED ASSETS DEPOSITS 96 b) BANK

c) JEWELLERY i.e. Bonds, MFs e) SHARES

d) SECURITIES, f) INSURANCE

11.. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS? a) SAVING & RETURNS c) TAX BENIFITS 12.WHATS THE RIGHT AGE TO BUY INSURANCE? a) AFTER 25 Yrs c) AFTER 45 Yrs b) AFTER 35 Yrs d) ANYTIME b) SECURITY

13.HOW WOULD YOU RATE INDIAN INSURANCE COs? a) RIGID PLANS USER FRIENDLY c) UNSATISFATORY SREVICES AGGRESSIVE e) SATISFACTORY g) VERY GOOD 14.WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs? (RANK THEM) a) A TRUSTED NAME b) FRIENDLY SERVICE & RESPONSIVENESS c) GOOD PLANS d) ACCESSIBILITY 97 b)NONd) NONf) GOOD

15.WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS? a) YES UNCERTAIN b) NO c)

16.ARE YOU PLANNING FOR NEW INVESTMENTS? PLANNING NOT PLANING THANK YOU.

98