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

Submitted By: - MAYURDHVJSINH.P.CHUDASAMA Roll No : - 520815204 Submitted To:IDEA Institute of Management & Technology Ahmedabad-1535


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Preface Introduction Company Profile


2 3 5 19 24 24 25 26 27 39 41 45 48 50 52 65 67 68 69

Objectives of the project Limitations of the project Scope of the study Management Team Types of Plan Market share of various companies Comparison of various company’s products Michael Porter model SWOT Analysis Research Methodology Finding, analysis and Interpretation Recommendation Conclusion Bibliography Annexure

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.


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 &

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”!

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,

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.


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 against similar risk. 5 people insured

♦ 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: 6

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:
1818 1870 1912

Oriental Insurance Company. The first Insurance company in India Bombay Mutual Life Assurance Company. First Indian Insurance company. The Indian Life Assurance Company enacted the first law to regulate the life insurance business in India. The Indian Assurance company act enacted to enable the government to Collect the statistical information about the insurance. The earlier legislation consolidated and amended the life insurance act with the objective of protecting the interest of insurance in the public. 245 Indian and foreign players and prudent societies are taken once by govt. And nationalized. FDIs are allowed to come and entered into the insurance business. There are total 16 insurance companies are available out of which two are Government companies. 7

1926 1938

1956 2000 2002


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

Working of Life Insurance:
Pure Risk vs. Speculative Risk:

- Risk has to be assessed in order to decide tithe premium or to decide that subject is insurable or not.

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;

Avoiding the Risk: - Risk can be managed by avoiding it as when the perils will come then it will be managed. 2. 3 Eliminate the Risk: - Risk can be managed by eliminating the cause of the loss. Reducing the Risk: - Risk can be reduced by handling them in a systematic manner. 8


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 Public Sector Life Insurance Corporation of India Private Sector Allianz 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

Websites www.licindia.com Companywww.allianzbajaj.co.in




Max New York Life Insurance Co. Limited MetLife Insurance Company Limited SBI Life Insurance Company Limited AMP Sanmar Assurance Company Limited

www.maxnewyorklife.com www.metlife.com www.sbilife.co.in www.ampsanmar.com

Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com TATA AIG Life Insurance Company Limited www.tata-aig.com Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com

GENERAL INSURERS Public Sector National Insurance Company Limited Oriental Insurance Company Limited 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.nationalinsuranceindia.com www.orientalinsurance.nic.in

New India Assurance Company Limited www.niacl.com United India Insurance Company Limitedwww.uiic.co.in


HDFC Chubb General Insurance Co. Ltd. REINSURER General Insurance Corporation of India www.gicindia.com

PRIVATE PLAYERS IN THE INDIAN INSURANCE MARKET COMPANY Birla Sun Life Om Kotak HDFC-Standard Life INDIAN FOREIGN INSURER AREA PARTNER Aditya Birla Sun Life, Canada Life Group Kotak Mahindra Old Mutual, South Life Finance Africa HDFC

Standard Life, UK


Royal Sundaram ICICI-Prudential Max New York Life Tata-AIG ING Vysya Aviva MetLife India Bajaj Allianz SBI Life Insurance

Sundaram Finance ICICI Max India Tata Group Vysya Bank Dabur Jammu & Kashmir Bank, M. Pallonji Bajaj Auto SBI

Royal Sun, UK Prudential, UK New York Life, USA AIG, USA

Life and Non-Life Life Life Life and Non-Life

ING Insurance, Life Netherlands CGU Life, UK Life MetLife, USA Allianz Cardiff, France Life Life & Non-Life 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:

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


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;

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. 15

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 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 Life Stage Primary Need 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.

“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 17

Revenue: Net income: Employees: Website: -

▲$44.776 billion USD (2005) ▲$4.651 billion USD (2005) 83,800 (2006) 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.


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 lifeinsurance 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 doubledigit 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.


 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.


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



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.

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.


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




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


1. Protection 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 Maximum Entry Age Maximum Maturity Age Minimum Sum Assured Maximum Sum Assured Policy Term 18 years 60 years 65 years Rs. 50,000 No Limit 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

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 Coverage Term Premium Payment Term Minimum Sum Assured Maximum Sum Assured Riders Accidental Death Benefit Rider Critical Illness Rider Waiver of Premium Rider Term Rider

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

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

Minimum Term Minimum Vesting Age Maximum Vesting Age Minimum Premiums Premium Paying Term

Max – 63 years 10 years 45 years 70 years Single Pay: Rs. 1,00,000 Regular Premium: Rs. 50,000 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.


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 2050 years old. Plan at a glance Coverage Term Option A Minimum Entry Age of the 0 years Child Maximum Entry Age of the 8 years Child Minimum Entry Age of the 20 years parent Maximum Entry Age of the 50 years Parent Policy Term 21 years - Age at Entry Minimum Sum Assured Rs 1,00,000 Maximum Sum Assured No Limit Option B 0 years 12 years 20 years 50 years 25 years - Age at Entry Rs 1,00,000 No Limit


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

Option B: Policy matures at age 25 of the child. Age of the Child 17 years 21 years 23 years 25 years Percentage of Payout 20% of Sum Assured 30% of Sum Assured 50% of Sum Assured Guaranteed Additions Assumed Milestone Class XII College Higher Education Wedding


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

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 99 years 3 years Annual: Rs 60,000; All other modes Rs 80,000 5 times the annualized premium Monthly, Quarterly, Half-yearly, Yearly

Maturity Age Premium Payment Term Minimum Annualized Premium Minimum Basic Sum Assured Premium Payment Modes 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.


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 20072008 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:


Market share of Private Players in India:





SUM ASSURED: 1,00,000 5856 6280 6592 6158 9099 7585 7120

SUM ASSURED: 2,00,00 11412 12559 12884 11836 17698 15020 14240


SUM ASSURED: 1,00,000 7572 7953 9094 8362 NA 9102 8890

SUM ASSURED: 2,00,00 14844 15906 17888 16244 NA 18054 16480







SUM ASSURED: 1,00,000 6000 6464 6683 6252 9219 7719 7330

SUM ASSURED: 2,00,000 11700 12928 13067 12024 17938 15270 14660


SUM ASSURED: 1,00,000 7668 8089 9160 8432 NA 9184 9010

SUM ASSURED: 2,00,000 15036 16177 18019 16384 NA 18218 16700


Comparative Premium Chart (Sum Assured: Rs 1,000,000)

Life Insurer

Age (Yrs)
25 30 35 40 45 50 55 60

Tenure (Yrs) 5
2,600 2,700 3,300 4,500 6,600 9,900

2,500 2,600 3,200 4,300 6,400

2,500 2,800 3,600 5,000 7,400






2,700 2,700


3,100 3,300 3,600 4,000 4,400 5,700 6,300 8,400 NA NA NA 2,933 3,032 3,798 5,525 8,258 NA NA NA 2,544 3,227 4,613 6,940 NA NA NA NA 2,933 3,334 4,067 6,681 NA NA NA NA 2,861 3,821 5,534 8,306 NA NA NA NA 2,180 2,964 4,375 6,649 NA NA NA NA 2,535 3,086 4,188 6,187 8,970 NA NA NA NA NA NA NA NA 3,064 3,905 4,564 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 2,755 3,416 4,739 6,960 NA NA NA

9,700 11,200 NA NA 2,933 3,032 3,248 4,738 6,875 10,439 NA NA 2,356 2,812 3,841 5,752

15,000 14,700 21,000 2,933 3,032 3,172 4,317 5,267 7,739 11,423 NA 2,356 2,564 3,128 4,287 6,247 9,860 15,068 NA 1,954 2,043 2,454 3,189 4,561 7,344 11,215 17,037 NA NA NA NA NA NA NA NA 2,933 3,032 3,172 4,317 5,807 8,776 13,258 NA 2,356 2,564 3,277 4,703 7,247 11,335 17,384 NA 1,954 2,043 2,552 3,542 5,541 8,814 13,538 NA 2,424 2,645 3,196 4,298 6,077 9,180 13,593


25 30 35 40 45 50 55 60


25 30 35 40 45 50 55 60

8,860 10,623 13,741 NA NA 1,954 2,150 2,895 4,346 6,796 10,657 NA NA 2,424 2,645 3,306 4,739 6,761 NA NA NA 1,954 2,454 3,542 5,384 8,354 NA NA NA 2,424 2,755 3,747 5,400 7,797


25 30 35 40 45 50 55 60


25 30 35 40 45 50 55

10,351 11,988 15,679 NA


60 MAX NEW YORK LIFE 25 30 35 40 45 50 55 60 BIRLA SUN LIFE (TERM PLAN) 25 30 35 40 45 50 55 60

NA 2,100 2,160 2,570 3,480 5,040 7,940 12,140 NA 2,890 2,950 3,290 4,080 5,380 7,710 11,080 NA

21,668 2,110 2,280 2,910 4,150 6,360 9,990 NA NA 2,890 2,950 3,310 4,310 5,990 8,790 13,100 NA

NA 2,120 2,430 3,270 4,840 7,450 NA NA NA 2,890 2,950 3,510 4,690 6,720

NA 2,210 2,700 3,770 5,650 NA NA NA NA 2,890 3,010 3,720 5,150 7,670

NA 2,410 3,050 4,330 NA NA NA NA NA 2,890 3,160 4,030 5,860 8,930 NA NA NA



10,180 11,960 15,680 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.


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


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


• • •

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 charge on ULIP plans as compare to other insurance players. 1153.6 cr AFYP on 2008.

• • •

• • •

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.


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.

• • •


• •

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.

• •


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.

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.

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.

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

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….


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 is collected through questionnaire schedule method.

Face to Face

Findings , Analysis and Interpretation

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

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

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


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


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


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 Response Brand 1 39 2 29 3 29 4 17 53 5 14 6 9 7 8

8 5

Promotion Relation with Agent Rate of Return Life Insurance Cover Tax Benefits Better Services Allocation Charges

28 22 16 13 9 15 8

27 31 15 11 13 15 9

31 26 21 15 14 8 6

19 21 24 23 22 13 11

16 19 27 25 18 15 16

12 15 19 21 23 25 26

9 7 20 24 25 29 28

8 9 8 18 26 30 46

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…..

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


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)


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 35 38 49 32 24 35 29 27 57 3 36 31 32 29 4 27 29 31 32 5 14 6 26 38

Insurance Stock Market Mutual fund Bank / Fixed Deposits / Post

Office savings Others (Real estate, Gold etc.)






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)……….


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


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


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

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


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 nittygritty 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.


 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.

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


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 nonlife 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.


 www.metlife.co.in  www.irdaindia.org  www.insuranceworld.com 64

 www.Google.com

 www.Yahoo.com  Philip Kotler  Times of india



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 66

 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 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 1 2 3 4 5 6 7 8


 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 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 68 3 4 5

 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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