A

GRAND PROJECT REPORT

ON
Product Portfolio analysis
At

A Project Report Submitted In Partial

Fulfillment of MBA Degree

Project Guidance of Faculty Guidance Of

Mr. SMITH MEHTA Prof. ARNAZ MAM

Submitted By: - MAYURDHVJSINH.P.CHUDASAMA

Roll No : - 520815204
Submitted To:-
IDEA Institute of Management & Technology
Ahmedabad-1535

INDEX

1
S.No Particular Page.No
1 Acknowledgement 2

2 Preface 3
3 Introduction 5
4 Company Profile 19
5 Objectives of the project 24

6 Limitations of the project 24

7 Scope of the study 25
8 26
Management Team
9 Types of Plan 27
10 Market share of various companies 39
11 Comparison of various company’s products 41

12 Michael Porter model 45

13 SWOT Analysis 48
14 Research Methodology 50
15 Finding, analysis and Interpretation 52
16 Recommendation 65
17 Conclusion 67
18 Bibliography 68
19 Annexure 69

ACKNOWLEDGEMENT
We learn in Management is “Manage + Men + T (Time, Task, etc.)”. We all agree with this
statement & wish to include that it would have been not possible to complete this project
without help and support of many people. We are thankful to all of them.

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 First and foremost we are thanking full to ‘Mr. Sarvin Dalal (Agency
Manager) and Mr. Smith Mehta (Sales Manager), MetLife India
Insurance LTD for giving us this valuable opportunity to have our Grand Project at the
well-known business. We thank him to take keen interest in our work, and guide us
throughout our survey.

We would also like to express our profound gratitude to Dr.Trilok Sharma,

who shared his expertise knowledge of marketing field. In addition we are also thankful to
Prof. Arnaz mam, for guiding us about the financial aspect of our project.

It is with a deep sense of gratitude that we would like to acknowledge our Director
Mr. Ashish Patel and all Faculty members who have been kind enough to us in regard to
completion of the project.

We would like to acknowledge with thanks the resource full service and support
rendered by Librarian and Lab assistant at IIMT (Idea Institute of Management &
Technology)

It would be an incomplete acknowledgement if we don’t remember our Parents.

This report would not have become a reality without blessing of our Parents who constantly
inspired us, supported us, and contributed their precious knowledge toward our project. We
sincerely extend our gratitude to them for their inspiration and prayer.

Last but not the least we all thank to almighty GOD who gave an opportunity to
three of us to work together and with the co-operation of each other we have reached this
milestone successfully. We are also thankful to our seniors, our classmates and other
friends who helped us in getting through this project work, smoothly. Special thanks to
those who inspired us to go for this project, and also to those who think “Why This & Why
Not This”!

Preface
As a part of our syllabus of after 4th SEM in M.B.A. we have to go through
two months of Grand Project in any reputed Industry.

During this period we have to observe/critically analyse our own live

experience about the culture, the procedure and people at work. We have to
understand basic interrelationship between sales and marketing function,

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Human management department, Finance department and different service
functions for integration of an organization.

We have to prepare a Report based on our own exposures and experiences

during training and give update and relevant information regarding making of
a Marketing strategy and changes in product applied in industry.

For this, I select METLIFE INDIA INSURANCE COMPANY LTD. branch

at C.G.Road-Ahmedabad, which is selling life insurance policy.

The subject of Marketing is the creation of new better idea and improving the
existing ones. A new and better marketing strategy is one, which gives more
strength to business. From the study of existing ideas, a new idea is to be
conceived. For the successful implementation of the marketing strategy into
an actual reality.

Insurance – An Introduction
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.

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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 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 insurer’s 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.

♦ The success of insurance business depends on the large number of people insured
against similar risk.

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♦ 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, causes 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.

4. Provide certainty: - Insurance is a device, which helps to change from uncertainty to

certainty.

Secondary functions:

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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.

The evolution of Insurance in India can be summarized as:

Year Changes
1818 Oriental Insurance Company. The first Insurance company in India
1870 Bombay Mutual Life Assurance Company. First Indian Insurance company.
1912 The Indian Life Assurance Company enacted the first law to regulate the life
insurance business in India.

1926 The Indian Assurance company act enacted to enable the government to Collect
the statistical information about the insurance.
1938 The earlier legislation consolidated and amended the life insurance act with the
objective of protecting the interest of insurance in the public.

1956 245 Indian and foreign players and prudent societies are taken once by govt. And
nationalized.

2000 FDIs are allowed to come and entered into the insurance business.

2002 There are total 16 insurance companies are available out of which two are
Government companies.

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 2009 There are total 22 companies are available in the market out of which 3 are
wholly Indian companies.

Working of Life Insurance: - Risk has to be assessed in order to decide tithe

premium or to decide that subject is insurable or not.

Pure Risk vs. Speculative Risk:

Event representing there will be possibility of loss or no loss is called pure risk. These risks
are insurable in nature.

Speculative risk is the one which truly resembles gamble. There is the possibility of loss or
gain and wherever there is a chance of making profit there insurance cannot exist.
Therefore these risks are not insurable in nature.

Approaches to Risk Management:

Risk Management is the process of minimizing the risk due to unforeseen events. Steps
Involved in selecting the Risk Management is:

· To identify all the things that can be possibly wrong.

· To consider possibility that an event can occur.

Techniques toward the Risk Management;

1. Avoiding the Risk: - Risk can be managed by avoiding it as when the perils will come then
it will be managed.

2. Eliminate the Risk: - Risk can be managed by eliminating the cause of the loss.

3 Reducing the Risk: - Risk can be reduced by handling them in a systematic manner.

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4. Transfer of Risk: - Risk can be minimized by transferring the risk of loss to any
Other Person which is a true form of the INSURANCE.

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. A
private players in the Indian insurance market and A particular of the life
insurance companies and general insurance companies including their web
address is given below:

LIFE INSURERS Websites

Public Sector
Life Insurance Corporation of India www.licindia.com
Private Sector
Allianz Bajaj Life Insurance Companywww.allianzbajaj.co.in
Limited
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
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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

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 Limitedwww.uiic.co.in
Private Sector
Bajaj Allianz General Insurance Co.www.bajajallianz.co.in
Limited
ICICI Lombard General Insurance Co.www.icicilombard.com
Ltd.
IFFCO-Tokio General Insurance Co. Ltd.www.itgi.co.in
Reliance General Insurance Co. Limited www.ril.com
Royal Sundaram Alliance Insurance Co.www.royalsun.com
Ltd.
TATA AIG General Insurance Co.www.tata-aig.com
Limited
Cholamandalam General Insurance Co.www.cholainsurance.com
Ltd.
Export Credit Guarantee Corporation www.ecgcindia.com
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HDFC Chubb General Insurance Co. Ltd.
REINSURER
General Insurance Corporation of India www.gicindia.com

PRIVATE PLAYERS IN THE INDIAN INSURANCE MARKET

INDIAN
COMPANY FOREIGN INSURER AREA
PARTNER
Aditya Birla
Birla Sun Life Sun Life, Canada Life
Group
Kotak Mahindra Old Mutual, South
Om Kotak Life
Finance Africa
HDFC-Standard Life HDFC Standard Life, UK Life

11
 Sundaram Life and
Royal Sundaram Royal Sun, UK
Finance Non-Life
ICICI-Prudential ICICI Prudential, UK Life

Max New York Life Max India New York Life, USA Life

Life and
Tata-AIG Tata Group AIG, USA
Non-Life
ING Insurance,
ING Vysya Vysya Bank Life
Netherlands
Aviva Dabur CGU Life, UK Life
Jammu &
MetLife India Kashmir Bank, MetLife, USA Life
M. Pallonji
Life &
Bajaj Allianz Bajaj Auto Allianz
Non-Life
SBI Life Insurance SBI Cardiff, France Life

FEATURES OF INSURANCE INDUSTRY

Insurance Policy India provides the clients with the details required for
the cove rages in the policy, date of commencement of the policy and their
adopting organizations. It plays a important role in the Indian insurance
sector.

The Insurance Policy India is regulated by certain acts like the Insurance Act
(1938), the Life Insurance Corporation Act(1956), General Insurance Business
Nationalization) Act(1972), Insurance Regulatory and Development Authority
IRDA) Act(1999). The insurance policy determines the covers against risks,
sometime opens investment options with insurance companies setting high
returns and also informs about the tax benefits like the LIC in India. There are
two types of insurance covers:

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 1. Life insurance

2. General insurance

Life insurance – this sector deals with the risks and the accidents affecting
the life of the customer. Alongside, this insurance policy also offers tax
planning and investment returns. There are various types of life Insurance
Policy India:

a. Endowment Policy

b. Whole Life Policy

c. Term Life Policy

d. Money-back Policy

e. Joint Life Policy

f. Group Insurance Policy

General Insurance – this sector covers almost everything related to property,

vehicle, cash, household goods, health and also one's liability towards others.
The major segments covered under general Insurance Policy India are:

a. Home Insurance

b. Health Insurance

c. Motor Insurance

d. Travel Insurance

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 IRDA ACT 1999
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
composition of Authority
The Authority is a ten member team consisting of
(a) a Chairman,
(b) five whole-time members,
(c) four part-time members,
(all appointed by the Government of India)

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of
IRDA.(1) Subject to the provisions of this Act and any other law for the time
being in force, the Authority shall have the duty to regulate, promote and ensure
orderly growth of the insurance business and re-insurance business.

Without prejudice to the generality of the provisions contained in sub-section (1),

the powers and functions of the Authority shall include –

(A) Issue to the applicant a certificate of registration, renews, modify, withdraw,

suspend or cancel such registration;

(B) protection of the interests of the policy holders in matters concerning

14
 assigning of policy, nomination by policy holders, insurable interest, settlement of
insurance claim, surrender value of policy and other terms and conditions of
contracts of insurance;

(C) Specifying requisite qualifications, code of conduct and practical training for
intermediary or insurance intermediaries and agents;

KEY BENEFITS OF LIFE INSURANCE

Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from. Modern day
investments include gold, property, fixed income instruments, mutual funds and of course,
life insurance. Given the plethora of choices, it becomes imperative to make the right
choice when investing your hard-earned money. Life insurance is a unique investment that
helps you to meet your dual needs - saving for life's important goals, and protecting your
assets.

Let us look at these unique benefits of life insurance in detail.

Asset Protection

From an investor's point of view, an investment can play two roles - asset appreciation or
asset protection. While most financial instruments have the underlying benefit of asset
appreciation, life insurance is unique in that it gives the customer the reassurance of asset
protection, along with a strong element of asset appreciation.

The core benefit of life insurance is that the financial interests of one’s family remain
protected from circumstances such as loss of income due to critical illness or death of the
policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation
proposition. The customer therefore benefits on two counts and life insurance occupies a
unique space in the landscape of investment options available to a customer.

Goal based savings

Each of us has some goals in life for which we need to save. For a young, newly married
couple, it could be buying a house. Once, they decide to start a family, the goal changes to
planning for the education or marriage of their children. As one grows older, planning for
one's retirement will begin to take precedence.

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Clearly, as your life stage and therefore your financial goals change, the instrument in
which you invest should offer corresponding benefits pertinent to the new life stage.

Life insurance is the only investment option that offers specific products tailormade for
different life stages. It thus ensures that the benefits offered to the customer reflect the
needs of the customer at that particular life stage, and hence ensures that the financial goals
of that life stage are met.

The table below gives a general guide to the plans that are appropriate for different
life stages.

Life Insurance
Life Stage Primary Need
Product
Young & Wealth creation
Asset creation
Single plans
Wealth creation and
Young & Just Asset creation &
mortgage protection
married protection
plans
Children's Education
Married with education, Asset insurance, mortgage
kids creation and protection & wealth
protection creation plans
Middle aged Planning for Retirement
with grown retirement & solutions &
up kids asset protection mortgage protection
Across all
Health plans Health Insurance
life-stages

L
i
f
e

S
t
a
g
e

P
r
o
f
16
i
l
e
r

All through your life, several significant events the birth of your child, moving to a larger
home, his or her education and wedding, buying a new car, retiring from work will occur at
various stages and demand your financial commitment. If you plan in advance for these
events, you will quite naturally be prepared when they occur.

Life insurance is an effective tool that assists you to plan for your future such that you are
financially equipped to meet all your goals.

COMPANY PROFILE:

“We will leverage our strengths in executing complex global-scale projects to make

leading edge insurance services affordable by all individual consumers and businesses

in India. We will offer unparalleled value to create customer delight and enhance

business productivity. We will also generate value for our capabilities beyond Indian

borders while enabling millions of India's knowledge workers to deliver their services

globally”.

Type Public :- (NYSE: MET)

Industry: - Finance and Insurance
Founded: - 1868
Headquarters: - New York, NY
Key people: - C. Robert Henrikson, Chairman of the Board, President, and CEO
Products: - Insurance

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Revenue: - ▲$44.776 billion USD (2005)
Net income: - ▲$4.651 billion USD (2005)
Employees: - 83,800 (2006)
Website: - www.metlife.com

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. MetLife is the largest Life Insurer in the United States, with more than $3.3
trillion of life insurance in force. A leader in savings and retirement products and services
for individuals, small business, and large institutions. MetLife serves 90 of the largest
Fortune 100 companies. It has a large global market in more than 12 countries. 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 40,000 Financial Advisors, who help customers achieve peace of mind
across the length and breadth of the country.

The "everyone" in MetLife’s vision took on added meaning in 2000 as the company
welcomed an important new constituency: shareholders. MetLife transformed itself from
mutual to stock ownership in April of that year through a demutualization and initial public
offering that was completed in just 18 months after Board authorization.

The year 2001 was a true test of the qualities that define MetLife. The company’s core
values, brought to life in what MetLife does every day, were no more evident than in
MetLife’s response to the tragic events that shook our nation on September 11. MetLife
responded quickly. The company served its customers, communities and employees during
this difficult time. At the same time, MetLife invested $1 billion in a broad array of
publicly-traded common stocks.

In 2001, MetLife was the first insurance company to establish a financial holding
company with a nationally chartered bank. Leveraging its unparalleled distribution
channels, MetLife entered the retail-banking arena with the launch of MetLife Bank,
making it an easy and convenient way for MetLife’s customers to realize their financial
goals.

MetLife announced in 2002 that it would be continuing its long-standing relationship with
Snoopy and the rest of the PEANUTS® characters. The company signed a new contract
that would allow the characters to appear in MetLife’s domestic and international
advertising for the next 10 years.

The sale of State Street Research & Management Company to BlackRock, Inc. was
announced in 2004. In line with MetLife’s strategy to focus on core business growth, the
sale benefited many of the company’s Individual and Institutional Business clients who
held investments through State Street Research, as it became part of one of the largest
publicly traded investment management firms in the U.S.

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The company’s stated long-term goal is to become the recognized leader throughout the
world for relationship building, connectedness and caring in financial services – in the
"giant league" with over 100 million people as MetLife customers by the year 2010.
MetLife took a major step toward realizing this goal in 2005, when it acquired Travellers
Life & Annuity and substantially all of Citigroup’s international insurance businesses for
$12 billion. Completed on July 1, 2005, the Travellers acquisition made MetLife the largest
individual life insurer in North America based on sales, the second largest provider of retail
annuities and the largest provider of institutional annuities.
Working Mother Magazine honored MetLife in 2005 by naming the company one of the
"100 Best Companies for Working Mothers," for the seventh consecutive year. In 2005, the
company was named to Diversity Inc.’s list of the Top 50 Companies for Diversity. In early
2006, MetLife was also named to the National Association for Female Executives’ annual
list of Top 30 Companies for Executive Women.

In 2006, MetLife appointed C. Robert (Rob) Henrikson chairman of the board of

directors, president and chief executive officer of MetLife, Inc. Henrikson was
appointed CEO on March 1, 2006 and chairman of the board on April 25, 2006.

On 8 March 2010, Met Life announced the acquisition of the international leader life-
insurance business, American Life Insurance Company (Alico), from American
International Group (AIG). MetLife [MET] will pay approximately $15.5 billion, including
$6.8 billion in cash and the remainder in equity securities. The price of the deal, which is
expected to close by the end of this year, is subject to closing adjustments.

Henrikson has been the architect of an aggressive growth strategy that included double-
digit organic growth, the divestiture of non-core businesses, and an M&A strategy which
resulted in market leadership in all of MetLife’s core product lines. Before it was
commonly talked about, Henrikson recognized the opportunities presented by the changing
demographics in a global marketplace and set the company on a course for continued
success by developing innovative products and services and strengthening the company’s
distribution power in the U.S. and 16 markets in Asia Pacific, Latin America and Europe.

Today, a time when consumers are feeling a greater financial burden than ever before,
MetLife is helping millions of customers create their own personal safety net. At no time in
the company’s history has MetLife been as well positioned to capitalize on its history, its
reputation for security and stability, and its innovative products and services as it is today.
In the future, MetLife will continue to grow its business with focus, innovation and
profitability. This will be accomplished by drawing on the reservoir of history that has
produced an enduring set of corporate values based on more than 138 years of integrity,
social responsibility, strong leadership and financial strength.

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ACHIEVEMENTS
 Largest life insurer in the US with approximately $3.4 trillion of life insurance in force.

 Serves 70 million customers and experiences the existence of over 140 years in the
industry

 Ranked 39 on the FORTUNE 500 listing

 Ranked 6th In Fortune Magazine 2009 List of “America’s Most Admired Companies”

 Named by Forbes magazine as “The Best Managed Insurance Company in America

(2008)”

 3rd Runner up in customer loyalty survey Conducted by Business Standard & AC

Nielson in 2008.

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Our 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.

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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 OBJECTIVE

1. To study and learn about the various Insurance plans of MetLife.

2. To study about the various insurance companies and the products offered by them.
3. To study the customers perception about the Insurance.

LIMITATIONS

1. Difference in the opinion of the customers and the company.

2. Company is not willing to disclose full information.

3. Biased behavior of the respondents.

4. Sample size being small, may not reflect the opinion of major segment.
5. Time frame is limited.
6. Difficulty in analyzing the data because of multiple responses given by the
respondents.

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 SCOPE OF STUDY

In today’s emerging Indian economy the role and scope of Insurance companies has
increased manifold and hence this sector has seen tremendous growth and
competition over the years. Through my project I am trying to give an in depth
analysis on the same harping on the growth and emergence of new companies in the
turf which was predominated by government backed companies. his study relates to
evaluate various insurance companies in terms of products, revenue, sales, and
human resources. It also covers emergence and growth of new insurance
companies in India. In this study I will go through the products of
various insurance companies and evaluate all the products and
compare those products with Metlife products so that company
can easily improve their productivity and boost their sales. In this
study a research will be conducted by using a structured questionnaire to compare
the products and market share of various insurance companies. It also helps in
knowing customers needs which is very beneficial for company to increase
productivity and boost sales. It is also helpful to understand various marketing
strategies adopted by various insurance companies so that company can increase
their market share by modifying marketing strategies and can better serve the
customers’ needs. I am also collecting information from the company, websites,
journals, magazines and unpublished data available at company to compare various
insurance companies. I have also done a certification of IRDA to get a financial
advisor license. I have also gone through compliance sales training (CST) so that I
can get better knowledge of existing products of Metlife and it is also helpful in
comparing with other companies products.

A sample of 100 people will be taken to collect data by using structured and
unbiased questionnaire and probability sampling technique will be used to
select sample of 100 people from whole population and a random sample will
be selected

23
MARKETING TEAM STRUCTURE

24
 Products of the Company
Protection Plan

 Met Suraksha
 Met Suraksha TROP

Savings Plan

 Met Sukh
 Met Suvidha
 Met Saral
 Met 100

Investment Plans

 Met Smart Premier - Regular

 Met Easy Met Smart Plus - Regular Pay
 Met Smart Premier - Single Pay
 Met Smart Gold Met Smart plus - Single

Child Plans

 Met Bhavishya
 Met Junior Endowment
 Met Little Star
 Met Junior Money Back
 Met Magic

Retirement Plans

 Met Growth
 Met Advantage Plus
 Met Pension - Par

Group Plans

 Met Loan Assure

 Met Group Life
 Met Group Life in lieu of EDLI
 Met Group Gratuity

Rural Plans

 Met Vishwas , Met Suvidha - Rural

25
1. Protection plans:
Met Suraksha
Plan Overview

MetLife offers 'Met Suraksha - Term Assurance (TA)', a non

participating term assurance plan which provides you life cover at
a nominal cost. To put it simply, it is a life insurance plan that
gives you complete protection to enjoy life to the fullest. You can
further customize your plan with two riders – Accidental Death
Benefit and Critical Illness.

Plan at a glance

Minimum Entry Age 18 years

Maximum Entry Age 60 years
Maximum Maturity Age 65 years
Minimum Sum Assured Rs. 50,000
Maximum Sum Assured No Limit
Policy Term 5, 10, 15, 20, 25 years and Term to age
60
Premium Paying Terms Single Pay, Limited Pay (3 years),
Regular Pay

Riders:
Accidental Death Benefit Rider
Critical Illness Rider

Products Benefits
Maturity benefit - Nil

Tax Benefits - Under Sec 80C and Sec 10(10D) of the Income
Tax Act, 1961

2. Savings plan:
Met Sukh

Plan overview

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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.

Plan at a glance

Entry Age Min - 15 years

Max - 55 years
Coverage Term 20 years
Premium Payment Term Regular
Minimum Sum Assured Rs. 75,000
Maximum Sum Assured No Limit

Riders
Accidental Death Benefit Rider
Critical Illness Rider
Waiver of Premium Rider
Term Rider

Products Benefits
Death Benefit:-
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:-

Reasons to buy

1. Guaranteed Survival Benefit: Payment of 20% of the Sum

Assured every year starting from the 5th year till maturity.

2. Guaranteed Maturity Benefit:

Guaranteed payment of 40% of Sum Assured.
Guaranteed Addition of 10% of Sum Assured every year up to

27
 maturity.

3. Guaranteed Death Benefit: Guaranteed payment of Sum Assured

along with Guaranteed Additions (accrued till that time). This is
paid over and above the survival benefit payments already made.

4. Comprehensive protection by way of 4 riders.

5. Tax benefits as applicable under Section 80 C, 10(10D).

3.Retirement Plans:
Met Pension Plus
Plan Overview

MetLife offers “Met Pension Plus”- a Unit-Linked Pension Plan

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

Plan at a glance

Entry Age (in completed years) Min – 18 years

28
 Max – 63 years
Minimum Term 10 years
Minimum Vesting Age 45 years
Maximum Vesting Age 70 years
Minimum Premiums Single Pay: Rs. 1,00,000
Regular Premium: Rs. 50,000
Premium Paying Term Single Pay & Regular Pay

Products Benefits

Death Benefit:-
In case of an unfortunate death of the Person Insured during the
deferment period MetLife will pay to the nominee the Total Fund
Value in the Unit Account including Top-Up fund value and
Guaranteed Loyalty Additions (if any).
If the nominee is your named spouse, then your spouse has the
option to choose any of the immediate annuities offered by MetLife
or can also purchase an annuity from any other insurer.
Vesting Benefit:-
At the end of the policy terms, you have the following options to
get the vesting benefit under this Plan;
Use 100% of the Fund Value at maturity date to buy annuities.
Commute up to 1/3rd of the Fund Value at maturity and utilize
the balance to buy annuities.

Annuity Options:-
You can choose from a wide variety of eight immediate annuity
options at the time of retirement to match your pension
requirement.

Reasons to buy

1. Advantage of six diverse market linked funds to potentially

enhance your savings for retirement.

2. Get up to 1/3 rd of your retirement kitty as a tax-free lump sum

on retirement.

3. Opportunity to get tax benefits under Sec 80C on your

contribution.

4. Choice from amongst eight annuity options at the time of

retirement.

5. Get the benefit of protection while you are saving for retirement.

29
4.Children Plan:
Met Bhavishya
Plan Overview

MetLife offers 'Met Bhavishya' - a guaranteed money back plan

that pays out funds to help you meet the education and career
milestones of your 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 you 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.

Plan at a glance
Coverage Term
Option A Option B
Minimum Entry Age of the 0 years 0 years
Child
Maximum Entry Age of the 8 years 12 years
Child
Minimum Entry Age of the 20 years 20 years
parent
Maximum Entry Age of the 50 years
50 years
Parent
Policy Term 21 years - Age at 25 years - Age at
Entry Entry
Minimum Sum Assured Rs 1,00,000 Rs 1,00,000
Maximum Sum Assured No Limit No Limit

30
Riders:-

Accidental Death Benefit Rider

Critical Illness Rider
Waiver of Premium Rider
Term Rider

Products Benefits

Death Benefit:-
In the event of death of the Person Insured (the parent), the family
will receive a lump sum payment of Sum Assured. The fixed term
payment and maturity benefits will continue irrespective of the
death of the Life Insured and all future premiums on the policy
would be waived.

Maturity Benefit:-
On maturity of the policy, the plan offers Guaranteed Periodic
Additions and Terminal Additions:
1. Guaranteed Periodic Additions of 5% of the Sum Assured for
every completed year.
2. Terminal additions of 20% of the total Guaranteed Periodic
Additions.

Guaranteed Payouts
Option A: Policy matures at age 21 of the child.

Age of the Child Percentage of Payout Assumed Milestone

15 years 20% of Sum Assured Class X
17 years 30% of Sum Assured Class XII
20 years 50% of Sum Assured College
21 years Guaranteed Additions Higher Education

Option B: Policy matures at age 25 of the child.

Age of the Child Percentage of Payout Assumed Milestone

17 years 20% of Sum Assured Class XII
21 years 30% of Sum Assured College
23 years 50% of Sum Assured Higher Education
25 years Guaranteed Additions Wedding

31
 Reasons to buy

1. Guaranteed payouts at critical milestones of the child’s life.

2. Guarantee of policy continuance in case of the untimely demise

of parent.

3. Guaranteed payouts of 250%* of the chosen Sum Assured.

4. Income Tax benefits.

* When the term of the plan is 25 years.

5.Investment Plans:
Met Gold Plus
32
 1. Plan Overview

MetLife offers 'Met Gold Plus' – a Unit-Linked Whole life plan that matures at age 99.
You want to protect your family from life’s 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.

2. Plan at a Glance

Entry Age (in completed years) Min – 18 years

Max – 65 years
Maturity Age 99 years
Premium Payment Term 3 years
Minimum Annualized Annual: Rs 60,000;
Premium All other modes Rs 80,000
Minimum Basic Sum 5 times the
Assured annualized premium
Premium Payment Modes Monthly, Quarterly, Half-yearly,
Yearly
Riders:-

You can further customize your policy by availing the following

riders at the time of purchasing the policy.
Accidental Death Benefit Rider (117A011V01)
Critical Illness Rider (117A012V01).

3. Product Benefit

• Death Benefit:-

In the unfortunate event of death the higher of the Sum Assured or

the Fund Value would be payable.
If case of death or maturity coincides with the termination of Return
Guarantee Fund -II, the guarantee NAV will be paid.

33
 • Maturity Benefit:-
On maturity, you may opt for taking the Fund Value in lump sum or
opt for the Settlement Options.

4.Reason To Buy
 Higher premium allocation along with low fund management
charges helps you to augment your wealth faster.

 Convenient Premium Paying Terms – 3 pay or 5 pay for Policy

Term 10 and 20 years respectively to suit various income cycles.

 Comprehensive Protection: Life insurance of upto 20 times# of your

annualized premium.

 Enhanced Protection with Accidental Death Benefit

rider(117C014V01) and Critical Illness Rider (117C013V01)

 Minimum Guaranteed Returns with Return Guarantee Fund -II.

 Tax Benefits as applicable.

*Depends on the age of the customer

Marketing strategy of all the companies is different

besides the lot of similarity in the products.

If we see the data then we will find that Met Life Insurance has very less
number of branches according to the latest data in annual report of 2007-
2008 by IRDA, Met Life Insurance has 192 branches, but the premium that
they offer to Insurance Industry is 1153.6 cores, and the number of life
advisors are not much if we compare it to other companies so from where
34
 does this Premium is amounting this much, it shows that MetLife focuses
on big business houses, i.e. they are much desperate for their business with
elephant then humming birds.

If we see the things in a different fashion then we will find that the Met
Life is having the shield of Guaranteed Maturity Value. No doubt the
company is having a long list of the product with them. Variety is there as
in the range of the product varies from Child product to retirement
solutions, but their focus is in SAVING PLAN as their SAVING PLAN;
MET SUKH was a huge success.

Market Share of all Insurance Companies in India:

35
Market share of Private Players in India:

36
COMPARISON OF PREMIUM OF MONEY BACK POLICIES

AGE 30 POLICY TERM 20 YEARS AGE 30 POLICY TERM 15 YEARS

YEARS YEARS

PREMIUM PREMIUM

37
COMPANY SUM SUM COMPANY SUM SUM
ASSURED: ASSURED: ASSURED: ASSURED:
1,00,000 2,00,00 1,00,000 2,00,00
MET LIFE 5856 11412 MET LIFE 7572 14844

LIC 6280 12559 LIC 7953 15906

ICICI PRU 6592 12884 ICICI PRU 9094 17888

ALLIANZ 6158 11836 ALLIANZ 8362 16244

BAJAJ BAJAJ

TATA AIG 9099 17698 TATA AIG NA NA

HDFC 7585 15020 HDFC 9102 18054

OM KOTAK 7120 14240 OM KOTAK 8890 16480

38
AGE 35 POLICY TERM 20 YEARS AGE 35 POLICY TERM 15 YEARS
YEARS YEARS

PREMIUM PREMIUM

COMPANY SUM SUM COMPANY SUM SUM

ASSURED: ASSURED: ASSURED: ASSURED:
1,00,000 2,00,000 1,00,000 2,00,000
MET LIFE 6000 11700 MET LIFE 7668 15036

LIC 6464 12928 LIC 8089 16177

ICICI PRU 6683 13067 ICICI PRU 9160 18019

ALLIANZ 6252 12024 ALLIANZ 8432 16384

BAJAJ BAJAJ

TATA AIG 9219 17938 TATA AIG NA NA

HDFC 7719 15270 HDFC 9184 18218

OM KOTAK 7330 14660 OM KOTAK 9010 16700

39
 Comparative Premium Chart (Sum Assured: Rs 1,000,000)
Life Insurer Age Tenure (Yrs)
(Yrs) 5 10 15 20 25 30 35 40
METLIFE 25 2,600 2,500 2,500 2,700 2,700 NA 3,200 NA
(SURAKSHA- TERM ASSURANCE)
30 2,700 2,600 2,800 3,100 3,300 3,600 NA NA

35 3,300 3,200 3,600 4,000 4,400 NA NA NA

40 4,500 4,300 5,000 5,700 6,300 NA NA NA

45 6,600 6,400 7,400 8,400 NA NA NA NA

50 9,900 9,700 11,200 NA NA NA NA NA

55 15,000 14,700 NA NA NA NA NA NA

60 21,000 NA NA NA NA NA NA NA

ICICI PRUDENTIAL 25 2,933 2,933 2,933 2,933 2,933 3,064 NA NA

(LIFEGUARD)
30 3,032 3,032 3,032 3,032 3,334 3,905 NA NA

35 3,172 3,172 3,248 3,798 4,067 4,564 NA NA

40 4,317 4,317 4,738 5,525 6,681 NA NA NA

45 5,267 5,807 6,875 8,258 NA NA NA NA

50 7,739 8,776 10,439 NA NA NA NA NA

55 11,423 13,258 NA NA NA NA NA NA

60 NA NA NA NA NA NA NA NA

LIC (ANMOL JEEVAN I) 25 2,356 2,356 2,356 2,544 2,861 NA NA NA

30 2,564 2,564 2,812 3,227 3,821 NA NA NA

35 3,128 3,277 3,841 4,613 5,534 NA NA NA

40 4,287 4,703 5,752 6,940 8,306 NA NA NA

45 6,247 7,247 8,860 10,623 NA NA NA NA

50 9,860 11,335 13,741 NA NA NA NA NA

55 15,068 17,384 NA NA NA NA NA NA

60 NA NA NA NA NA NA NA NA

SBI LIFE 25 1,954 1,954 1,954 1,954 2,180 NA NA NA

(SHIELD)
30 2,043 2,043 2,150 2,454 2,964 NA NA NA

35 2,454 2,552 2,895 3,542 4,375 NA NA NA

40 3,189 3,542 4,346 5,384 6,649 NA NA NA

45 4,561 5,541 6,796 8,354 NA NA NA NA

50 7,344 8,814 10,657 NA NA NA NA NA

55 11,215 13,538 NA NA NA NA NA NA

60 17,037 NA NA NA NA NA NA NA

KOTAK MAHINDRA OLD MUTUAL 25 NA 2,424 2,424 2,424 2,535 2,755 NA NA

(PREFERRED TERM PLAN)
30 NA 2,645 2,645 2,755 3,086 3,416 NA NA

35 NA 3,196 3,306 3,747 4,188 4,739 NA NA

40 NA 4,298 4,739 5,400 6,187 6,960 NA NA

45 NA 6,077 6,761 7,797 8,970 NA NA NA

50 NA 9,180 10,351 11,988 NA NA NA NA

55 NA 13,593 15,679 NA NA NA NA NA

40
 60 NA 21,668 NA NA NA NA NA NA

MAX NEW YORK LIFE 25 2,100 2,110 2,120 2,210 2,410 NA 2,670 NA

30 2,160 2,280 2,430 2,700 3,050 3,220 NA NA

35 2,570 2,910 3,270 3,770 4,330 NA NA NA

40 3,480 4,150 4,840 5,650 NA NA NA NA

45 5,040 6,360 7,450 NA NA NA NA NA

50 7,940 9,990 NA NA NA NA NA NA

55 12,140 NA NA NA NA NA NA NA

60 NA NA NA NA NA NA NA NA

BIRLA SUN LIFE 25 2,890 2,890 2,890 2,890 2,890 NA NA NA

(TERM PLAN)

30 2,950 2,950 2,950 3,010 3,160 NA NA NA

35 3,290 3,310 3,510 3,720 4,030 NA NA NA

40 4,080 4,310 4,690 5,150 5,860 NA NA NA

45 5,380 5,990 6,720 7,670 8,930 NA NA NA

50 7,710 8,790 10,180 11,960 NA NA NA NA

55 11,080 13,100 15,680 NA NA NA NA NA

60 NA NA NA NA NA NA NA NA

Michael Porter’s Model

The model originated from Michael.E.Porter’s book “Competitive strategy: Techniques for
analyzing Industries and competitors” in 1980. Since then, it has become a frequently used
tool for analyzing a company’s industry structure and their corporate strategy.

41
In his book, porter identified five competitive forces that shape every single industry and
market. These forces help us to analyze everything from the intensity of competition to the
profitability and attractiveness of an industry. The following image shows the relationship
between the different competitive forces.

Threats of new entrants-High

It is easier for new companies to enter into the industry and there will be more cut throat
competition. Factors that can limit the threat of new entrants are known as barriers to entry.
So in an insurance industry the average entrepreneur can’t come along and
start a new large insurance company. The threat of new entrants lies within the insurance
industry itself. Some companies have carved out niche areas in which they underwrite
insurance. So MetLife is fearful of being squeezed out b the big players. Another threat for
it is other financial services companies entering into the market. What would it take for a
bank or investment bank to start offering insurance products? In some countries, only
regulations that prevent banks and other financial firms from entering the industry. If those
barriers were ever broken down, like they were in the U.S with the Gramm-Leach-Bliley
Act of 1999.

Power Of Suppliers-low

This is how much pressure suppliers can place on a business. If one supplier has a large
enough impact to affect a company’s margins and volumes, then they hold substantial
power.
So in insurance industry, the suppliers of capital might not pose a big threat,
but the threat of suppliers luring away human capital does. If a talented insurance

42
underwriter is working for MetLife Insurance company(or one in a niche industry), there is
a chance that person will be enticed away by larger companies looking to move into a
particular market.

Power of Buyers-low

This is how much pressure customers can place on a business. If one customer has a large
enough impact to affect a company’s margins and volumes, then they hold substantial
power.
So for Metlife, the individual doesn’t pose much of threat to the company.
Large corporate clients have a lot more bargaining power with insurance companies. Large
corporate clients like airlines and pharmaceutical companies pay millions of dollars in
premium annually. Insurance companies try extremely hard to get high margin corporate
clients.

Availability of Substitutes-High

What is the likelihood that someone will switch to a competitive product or service? If the
cost of switching is low, then this poses to be a serious threat.
This one is pretty straight forward, for there are plenty of substitutes in the
insurance industry. Most large insurance companies offer similar suites of services.
Whether it is auto, home, commercial, health or life insurance. In some areas of insurance,
however, the availability of substitutes are far and few between. Metlife focusing on niche
areas usually have a competitive advantage, but this advantage depends entirely on the size
of the niche and on whether or not there are any barriers preventing other firms from
entering.

Competitive Rivalry-High

And last but not the least: this describes the intensity of competition between existing
firms in an industry. Highly competitive industries generally earn low returns because the
cost of competition is high.
The insurance industry is becoming highly competitive. The difference
between one insurance company and another is usually not that great. As a result insurance
has become more like a commodity, an area in which the insurance company with the low
cost structure, great efficiency and better customer service will beat out competitors.
Metlife also use higher investment returns and a variety of insurance investment products
to try to lure in customers. In the long run, we’re likely to see more consolidation in the

43
insurance industry. Larger companies prefer to takeover or merge with another rather than
spend the money to market and advertise the people.

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

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.

44
 • 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 charge on ULIP plans as compare to other insurance players.

• 1153.6 cr AFYP on 2008.

WEAKNESS

• Many competitors in the market of same products by the title and difference in
premium and offerings.

• Sustainable to risk associated with investments in money market.

• Very less network branches due to which it’s 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

45
 • 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.

• 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.

46
 RESEARCH METHODOLOGY

DESCRIPTIVE RESEARCH DESIGN

The research design adopted in this study is DESCRIPTIVE RESEARCH DESIGN. A

descriptive research design is the one which is description of the state of affairs as it exists
at present. It includes survey and fact finding enquiries of different kinds. The researcher
has no control over the variables. The researcher used this research design to find out the
respondents attitude and opinion about products offered.

SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It refers
to the techniques or procedures the researcher would adopt in selecting items for the
sample.

SAMPLING

The researcher adopted convenience sampling. It is the non probability sampling is that
sampling procedures does not any basis for estimating the probability that each item in the
population has of included in the sample. The researcher selects the people according to
their convenient.

SAMPLE SIZE

A sample of 100 people will be taken for the survey. The required data collected through
questionnaire.

SAMPLING AREA

The sampling unit may be a Geographical one such as state, District, Village etc., The
geographical sampling unit under study has covered the area of Ahmadabad like C.G Road,
Satellite, Paldi, Vasna, etc….

47
DATA COLLECTION
The information required for our project was collect mainly from the primary sources and
even from secondary sources. The primary source consists of the data analyzed from
questionnaire and interaction with the user at that time only. And internet is used as
secondary source.

DATA COLLECTION METHOD

Data is collected through questionnaire schedule method.

CONTACT METHOD
Face to Face

Findings , Analysis and Interpretation

48
Q1. How important it is to take a insurance policy?
 a. Very Important
 b. Important
 c. Not Important
 d. Don’t Know

INTERPRETATION
48 % of the total respondents surveyed think that Life Insurance policy is important for
them and 28.8% respondent think that it is very important and only 16% think that Life
insurance is not important for them.

Q2. Sources which helps you in making the investment decisions:

 a. Financial journal / business magazines
 b. Reference groups
 c. Television
 d. General / business newspapers
 e. Brokers / agents / professional consultant
 f. Word of mouth/ influencer

49
INTERPRETATION
Television is major source which helps in making the investment decision it’s the
perception of 30% respondent surveyed and 22% respondent make there decision on word
of mouth and only 7% respondent’s takes the help of Financial Journals/business
magazines.

Q3. What is the purpose of taking an insurance policy?

 a. Investment
 b. Tax Saving
 c. Old Age Saving
 d. For Your Family Needs
 e. For Certain Mishappening
 f. Security

50
 INTERPRETATION
28% respondents think that Investment is the main purpose for taking an insurance policy
and only 14% respondent think that there purpose of insurance policy is for Certain
Mishappening which is ultimately the main purpose of the Insurance.

Q4. According to you which among the following Life insurance companies would you
prefer?
 LIFE INSURANCE CORPORATION (LIC)
 AVIVA LIFE INSURANCE
 ICICI PRUDENTIAL
 METLIFE INDIA INSURANCE
 BIRLA SUN LIFE
 OTHERS

51
INTERPRETATION
46% of the respondent surveyed perception is that LIC is best among all the Insurance
players and 10% respondent think that Metlife is the best among other insurance players .

Q5. Are you aware of the allocation charges of different insurance companies?
 a. Yes
 b. No

52
INTERPRETATION
70% of the total respondents surveyed don’t aware of different charges charged by
Insurance companies and only 29% respondent surveyed aware about different charges.

Q6. Factors that influence your investment decisions in a particular company:

Ranking 1 2 3 4 5 6 7 8
Response

Brand 39 29 29 17 14 9 8 5

53
Promotion 28 27 31 19 16 12 9 8
Relation with 22 31 26 21 19 15 7 9
Agent

Rate of Return 16 15 21 24 27 19 20 8
Life Insurance 13 11 15 23 25 21 24 18
Cover
Tax Benefits 9 13 14 22 18 23 25 26
Better Services 15 15 8 13 15 25 29 30
Allocation 8 9 6 11 16 26 28 46
Charges

INTERPRETATION
26% of total people surveyed have ranked Brand as #1 for influence them for taking an
investment decision and 18% respondent ranked Promotions # 1 for there investment
decision and 14% people ranked relation with agent as #1 for there decision and 31%
respondent ranked Allocation charges as #8 for there investment decisions.

Q7. Which Company’s Insurance do you have?

 LIC

 ICICI Prudential

 Bajaj Allianz

 HDFC

 Birla Sun Life

54
  Others Pls Specify…..

INTERPRETATION
49% of total respondent surveyed have LIC’s Insurance Policy, 18% have ICICI Prudential
& only 5% respondents have Insurance policy of companies like Metlife, Bharti AXA,
IDBI Fortis etc.

Q8. Are you satisfied with the return, which you are getting from your current policies?
 a. Very Satisfied

 b. Satisfied

 c. Not Much Satisfied

 d. Dissatisfied

55
INTERPRETATION
38% respondent surveyed are satisfied with the return they are getting from their current
policies and only 46% respondent are not much satisfied & dissatisfied from the return they
are getting from their current policies.

Q9. Which type of fund will you prefer for investment ?

 a. Whole Life Policy (5 to 6 % low risk)
 b. Endowment (9% moderate)
 c. ULIP (>15% high risk)
 d. Equity (very high risk)

56
INTERPRETATION
34% of the respondent surveyed are willing to invest in ULIP plans which has high risk and
31% people surveyed are willing in Equity which has very high risk and only 12%
respondent surveyed willing to investment in whole life policy because of low rate of
return.

Q10. Where do you generally like to invest your money?

Rating response
1 2 3 4 5
Insurance 35 38 36 27 14

Stock Market 49 35 31 29 6

Mutual fund 32 29 32 31 26

Bank / Fixed Deposits / Post 24 27 29 32 38

57
Office savings
Others (Real estate, Gold etc.) 10 21 22 31 66

INTERPRETATION
32% of the respondent surveyed are like to invest there money in stock market , 23% of
respondent are like to invest in insurance and 21% people surveyed like to invest in Mutual
fund it shows that insurance has tough competition from other other investment instruments
like stock and mutual funds.

Q11. What attracts you more to buy insurance?

 a. Lower Premium Allocation Charges
 b. Guaranteed Return
 c. Return Depend on Market
 d. Any other (please specify)……….

58
INTERPRETATION
33% of respondent surveyed thinks that Return depend on market condition attracts them
more to buy an insurance policy (example- ULIPS) and 27% respondent think that
guaranteed return on an insurance policy attracts them more to buy an insurance policy and
only 19% respondents have a perception that low allocation charges attracts them for
buying an insurance policy.

Q12. Which factor will you give preference while buying an insurance policy?
 a. Brand
 b. Policy Scheme
 c. Relationship (agent)
 d. Service

59
INTERPRETATION
35% respondent surveyed give preference to Brand image for buying an insurance policy
and only 13% respondent surveyed give preference to the Service provided by the company
for buying an insurance policy.

Q13. Which mode would you prefer to pay premium?

 a. Single Premium
 b. Annually
 c. Half Yearly
 d. Monthly

60
INTERPRETATION
51% of the respondent surveyed willing to choose the annually premium pay and only17%
respondent choose monthly mode for paying a premium.

RECOMMENDATIONS

The Metlife India Insurance Company should now try to identify the gap between current
level of customer service and customer expectations. Some of the strategies being
recommended are as follows:

 Brand Building: MetLife is a very huge Brand in US in Insurance but in

India it is not known as an Insurance brand. So MetLife need to focus on Brand

61
 building Activities which can be done through Advertising, Road shows, Knops,
Sponsoring Events in rural & Urban Areas.

 Educating the Consumers: As per the survey Conducted it is found that

most of the respondents don’t know the core function of the insurance & they are
taking it only as an investment instrument & also they are not aware of the nitty-
gritty like different allocation charges. So MetLife should take initiative to educate
the consumers regarding all these aspects & take competitive Advantage on this
front as its Allocation charges are minimum in the whole Indian Insurance
Industry.

 Need to Increase Market Presence: As per the survey conducted it is

found that MetLife have only 3% market share, it is because its presence in market
is very less. It should make more channel partners & do business tie ups with more
broking houses & should hire marketing agencies for aggressive marketing
purpose. It can also increase its Business Units.

 Concentration More On Rural Areas : Metlife need to concentrate more towards

the rural areas as 60-70% of India population is living in rural areas and most of the people
in rural areas are not insured so there is a huge potential in the rural sector.

 Product Differentiation: Offering a product that is distinctly different from other

products available in the market by other insurance players.

 More Guaranteed Plans to be Introduced: As we know today the stock market

is giving very less return even in last year the return comes Negative so the company need
to introduce some more gurranted plans so that customer can invest in them and have
assured return on them which ultimately is an edge in competition in insurance sector.

 Need to commence Medical claim Products and General Insurance :

There are very less which are having Medical claim products and also very less
companies providing General Insurance with Life Insurance for example ICICI ,
Reliance and Bajaj Allianz so Metlife also need to come in General Insurance
business so that they can compete with these players.

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 Flexibility: The companies should make their products flexible for the
convenience of their customer.

 Hassle Free Service: All bureaucracy in customer interactions should be

eliminated.

 Proper Policy Documentation: Wrong interpretations/ non-awareness of policy

document by the customer may have serious implications in the long term and the
possibility of the same should be alleviated by the company which leads to.

CONCLUSION
The various conclusions drawn from the project are: -
There has been tremendous change in the insurance history. And with it there has been
continuous growth in this sector both in Indian as well as world context.
The opening up of the insurance sector has changed the whole look of the industry. While
the LIC in order to face the competition is coming with new strategies. New players like

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Metlife, ICICI, and Birla Sunlife are leading the sector due to their strategic management
and tailored made projects.
From our research also we conclude that though the awareness and people opting for LIC
plans are more as compare to Metlife but the later are gaining momentum in the market day
by day.
The primary reasons for buying an insurance policy, whether life or non-life is to protect us
from vagaries of life. We do not invest in insurance for returns; rather we invest in it for
regrettable necessities. Though a large proportion of policies available in the country
provide for returns, but nobody is looking for returns to the inflation rate. So what does
insurance offer, perhaps peace of mind, but even that takes time, due to poor claim
performance
The demand for insurance is likely to increase with rising per-capita incomes, rising
literacy rates and increase of the service sector, as has been seen from the example of
several other developing countries. In fact, opening up of the insurance sector is an integral
part of the liberalization process being pursued by many developing countries
Insurance is a Rs.400 billion business in India and yet its spread in the country is relatively
thin. Insurance as a concept has not been able to make headway in India. There has been a
strong fall in insurance business in recent years. Furthermore, it can be observed that non-
life business is not increasing as strongly as life business. On the other hand, growth
fluctuations have been relatively small with growth rates varying between 1% and 5%. Life
insurance business by contrast achieved average growth rates of 6%, although the actual
rates ranged from 0% to 13%. This shows on the one hand the increasing significance of
life insurance as an instrument for old age provisions and on the other hand indicates the
sensitivity of life insurance to changes in the institutional and economic environment.

Bibliography

Websites:
 www.metlife.co.in

 www.irdaindia.org

 www.insuranceworld.com

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 www.Google.com

 www.Yahoo.com

 Philip Kotler

 Times of india

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 ANNEXURE

QUESTIONNAIRE

Q1. How important it is to take a insurance policy?

 a. Very Important
 b. Important
 c. Not Important
 d. Don’t Know

Q2. Sources which helps you in making the investment decisions:

 a. Financial journal / business magazines11
 b. Reference groups 21
 c. Television 45
 d. General / business newspapers 16
 e. Brokers / agents / professional consultant 23
 f. Word of mouth/ influencer 34

Q3. What is the purpose of taking an insurance policy?

 a. Investment
 b. Tax Saving
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  c. Old Age Saving
 d. For Your Family Needs
 e. For Certain Mishappening
 f. Security

Q4. According to you which among the following Life insurance companies would you
prefer?
 LIFE INSURANCE CORPORATION
 AVIVA LIFE INSURANCE
 ICICI PRUDENTIAL
 METLIFE INDIA INSURANCE
 BIRLA SUN LIFE
 OTHERS

Q5. Are you aware of the allocation charges of different insurance companies?
 a. Yes
 b. No

Q6. Factors that influence your investment decisions in a particular company:

Ranking 1 2 3 4 5 6 7 8
Response

Brand
Promotion
Relation with
Agent

Rate of Return
Life Insurance
Cover
Tax Benefits
Better Services
Allocation
Charges

Q7. Which Company’s Insurance do you have?

 LIC

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  ICICI Prudential

 Bajaj Allianz

 HDFC

 Birla Sun Life

 Others Pls Specify…..

Q8. Are you satisfied with the return, which you are getting from your current policies?
 a. Very Satisfied

 b. Satisfied

 c. Not Much Satisfied

 d. Dissatisfied

Q9. Which type of fund will you prefer for investment ?

 a. Whole Life Policy (5 to 6 % low risk)
 b. Endowment (9% moderate)
 c. ULIP (>15% high risk)
 d. Equity (very high risk)

Q10. Where do you generally like to invest your money?

Rating response
1 2 3 4 5
Insurance

Stock Market

Mutual fund

Bank / Fixed Deposits / Post

Office savings
Others (Real estate, Gold etc.)

Q11. What attracts you more to buy insurance?

 a. Lower Premium Allocation Charges

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  b. Guaranteed Return
 c. Return Depend on Market
 d. Any other ( please specify)……….

Q12. Which factor will you give preference while buying an insurance policy?
 a. Brand
 b. Policy Scheme
 c. Relationship (agent)
 d. Service

Q13. Which mode would you prefer to pay premium?

 a. Single Premium
 b. Annually
 c. Half Yearly
 d. Monthly

PERSONAL INFORMATION:

Name:

Age:

Occupation:
 a. Service
 b. Business
 c. Self employed
 d. Retired

Income Level (per annum):

 a. Below 2 Lac
 b. 2 to 3 Lac .
 c. 3 to 5 Lac
 d. 5 to 7 Lac
 e. 7 to 10 Lac
 f. Above 10 Lac

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