Summer training Report On

“Recruitment of Financial Advisor at Met Life And Generating Business from Them”

UNDER THE GUIDENCE OF Sudhir Kumar (sales manager)

SUBMIITED BY: Prashant Singh Bhadauriya MBA 3rd sem Roll no. 0909470066

GALGOITA INSTITUTE OF MANAGEMENTECHONOLOGY

MAHAMAYA TECHNICAL UNIVERSITY

DECLARATION
This project report has been undertaken as a fulfilment of the requirement for the award of the degree of Master Business Administration of GIMT, Gr. NOIDA (UPTU).

This project report was executed during the summer training program of MBA program under the supervision of Mr. SUDHIR KUMAR.

Further, we declare that this project is our original work and the analysis and finding are for academic purpose only. This project has not been presented in any seminar elsewhere for the award of any degree or diploma.

(Under the supervision)
Mr. Sudhir Kumar Sales Manager MetLife Insurance Ltd. Gr.Noida (U.P)

(Submitted by)
PRASHANT SINGH BHADAURIYA MBA IIIrd sem.

Acknowledgement
I acknowledge my indebtedness to all who generously helped by sharing their invaluable experience with me, without which this project would have never been accomplished. First and the foremost I convey my sincere thanks to Mr Sudhir Kumar under whose able guidance this project could be accomplished. It was his perspective guidance, constant encouragement and constructive criticism that was the guiding light during the entire tenure of this project. I thankful acknowledge the assistance provided by all the faculty members of GIMT, Gr.Noida

PREFACE
The business of insurance is related to protection of economic value of assets. Every asset has a value. In India insurance business is classified primarily as a life insurance or non-life or general insurance. In India insurance company MetLife insurance company ltd is one of the major private player that commenced its. In this project I was entrusted with the task of recruiting financial advisors for the company and generating business from them. The knowledge and the experience generated during the training has provided me with an opportunity to provide some suggestions that would be of great help for the organisation and would facilitate the growth.

Prashant Singh Bhadauriya

TABLE OF CONTENT
 Introduction  Company Profile
 Vision & Mission  Management team

 Partners  Product Range
 SWOT Analysis

 Insurance Agency As A Career

Definition of an Agent

  

Authority of an Agent Agent’s Regulation Other intermediaries

Research Methodology  Study design  Sample size  Aim of the study  Objective of the study  Scope of the study

 Data analysis

 Recruitment of an advisor  Methods of remunerating Agents  Agency As Profession  Requirements for becoming an agent  Role of an Advisor

 Introduction

 Prerequisites for success

 Importance of Advisor  Profile of an Advisor  Benefits and Support  Career Progression  Training of Advisor  Rewards and Recognition  Promotional strategies  Distribution and channel Management

Conclusion

 Recommendations & suggestion

 Limitation  Bibliography  Questionnaire

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

Life Insurance
In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938.

Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. “Unethical practices adopted by some of the players against the interests of the consumers” then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that “nationalization has lent the industry fairness, solidity, growth and reach.”

Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: The market contained 154 Indian and 16 foreign life insurance Companies

General Insurance
The General insurance business in India started with the establishment of Triton Insurance Company Limited in 1850 at Calcutta. In 1907, the first company, The Mercantile Insurance Ltd. was set up to transact all classes of general insurance business. General Insurance Council, a wing of the Insurance Association of India in 1957, framed a code of conduct for ensuring fair conduct and sound business practices. In 1968 the Insurance Act was amended to regulate investments and to set minimum solvency margins. In the same year the Tariff Advisory Committee was also set up. In 1972, The General Insurance Business (Nationalization) Act was passed to nationalize the general insurance business in India with effect from 1st January 1973. For these 107 insurers was amalgamated and grouped into four company’s viz., the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. General Insurance Corporation of India was incorporated as a company.

Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated

and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

MAJOR POLICY CHANGES
Insurance sector has been opened up for competition from Indian private insurance companies with the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for the entry of private players into the insurance market which was hitherto the exclusive privilege of public sector insurance companies/ corporations. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions: Company is formed and registered under the Companies Act, 1956;The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company; The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business. The minimum paid up equity capital for life or general insurance business is Rs.100crores.The minimum paid up equity capital for carrying on

reinsurance business has been prescribed as Rs.200crores.The Authority has notified 27 Regulations on various issues which include Registration of Insurers, Regulation on insurance agents, Solvency Margin, Reinsurance, Obligation of Insurers to Rural and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc. Applications were invited by the Authority with effect from 15th August, 2000 for issue of the Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at Hyderabad.

Changing face of Indian insurance industry: Indian life-insurance market is the target market of all the companies who either want to extend or diversify their business. To tap the Indian market there has been tie-ups between the major Indian companies with other International insurance companies to start up their business. The government of India has set up rules that no foreign insurance company can set up their business individually here and they have to tie up with an Indian company and this foreign insurance company can have an investment of only 24% of the total start-up investment. Indian insurance industry can be featured by: · Low market penetration. · Ever growing middle class component in population. · Growth of customer’s interest with an increasing demand for better insurance products. · Application of information technology for business. · Rebate from government in the form of tax incentives to be insured. Today, the Indian life insurance industry has a dozen private players, each of which are making strides in raising awareness levels, introducing innovative products and increasing the penetration of life insurance in the vastly underinsured country. Several of private insurers have

introduced attractive products to meet the needs of their target customers and in line with their business objectives. The success of their effort is that they have captured over 28% of premium income in five years. The biggest beneficiary of the competition among life insurers has been the customer. A wide range of products, customer focused service and professional advice has become the mainstay of the industry, and the Indian customer’s forms the pivot of each company’s strategy. Penetration of life insurance is beginning to cut across socio-economic classes and attract people who have never purchased insurance before. Life insurance is also now being regarded as a versatile financial planning tool. Apart from the traditional term and saving insurance policies, industry has seen the entry and growth of unit linked products. This provides market linked returns and is among the most flexible policies available today for investment. Now products are priced, flexible, and realistic and sustain so people in better position to understand the risk and benefits of the product and they are accepting these innovative products. So it is clear that the face of life insurance in India is changing, but with the changes come a host of challenges and it is only the credible players with a long term vision and a robust business strategy that will survive. Whatever the developments, the future and the opportunities in this industry will surely be exciting.

Various types of life insurance policies:· Endowment policies: This type of policy covers risk for a specified period, and at the end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy. · Money back policies: This type of policy is for periodic payments of partial survival benefits during the term of the policy as long as the policy holder is alive.

· Group insurance: This type of insurance offers life insurance protection under group policies to various groups such as employers-employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost. · Term life insurance policies: This type of insurance covers risk only during the selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies. Whole life insurance policies: This type of policy runs as long as the policyholder is alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder. · Joint life insurance policies: These policies are similar to endowment policies in maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy. · Pension plan: a pension plan or annuity is an investment over a certain number of years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period. · Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).

COMPANY PROFILE

70 million customers in MetLife India Insurance Company Limited (MetLife) is an affiliate of Met Life Inc. And was incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited, and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by offering a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices. MetLife has

More than 50,000 Financial Advisors, who help customers, achieve peace of mind across the length and breadth of the country. MetLife, Inc., through its affiliates, reaches more than The Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include the number one life insurer in the United States (based on life insurance enforce), with over 140 years of experience and relationships with more than 90of the top one hundred FORTUNE 500® companies. The MetLife companies offer life insurance, annuities, automobile and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions.

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

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

Number Of Products Presence Through MetLife Offices Presence Through Bank Partners

"Coming

into

your

own",

are

It's all about People, MetLife's key resource. MetLife will succeed because we are winning from within.

performing as a Leader to be really effective and successful by acting and making decisions independently to get results.

Functioning teams

productively a

in

Operating resources results.

with for

an

intense business

towards

common

dedication to managing monetary strong

purpose; realizing the collective power of diverse work-groups.

Conducting all business endeavors with truth, sincerity and fairness.

Continuously

creating

and

introducing new and original ideas and ways of doing things.

VISION & 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.

Management Team
Rajesh Relan
Managing Director

MSVS Phanesh
Appointed Actuary

Sameer Bansal
Director- Agency

Nitish Asthana
Director- Bancassurance & Business Partnerships

Joydeep Mukherji
Chief Financial Officer

Balachander Sekhar
Director – Marketing

KR Anil Kumar
Director - Legal & Risk and Company Secretary

P. S. Sankaran
Director – Compliance & Internal Controls

KS Raghavan
Chief Administrative Officer

Gaurav Sharma
Director - Customer Service and Operations

Preetinder Chadha
Deputy Director-Training

Kiran yadav
Deputy Director- Human Resources

PARTNERS

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

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

Met Junior - Par On attaining maturity, the Person Insured will receive the Sum Assured, the Reversionary Bonus and the Terminal Bonus, if any. Met Little Star When child is born, a star is born in family. And, parents would like to provide their star with all the building blocks that could develop his or her potential to the fullest. This could mean special instruction sessions for talented children, unique training gear for exceptional athletes or qualified training for born singers to provide that extra-edge.

To ensure this, parents would need an investment and protection package that is exclusively designed to help you plan for financial security, no matter what uncertainties life brings. 'Met Little Star', a Unit-Linked, regular premium, child insurance plan helps parents do just that. It secures finances for child's educational needs and ensures that plans go as planned, no matter what the circumstances. \Met Junior Money Back MetLife offers 'Met Junior Money Back' - a money back plan that combines savings and security. Child's well-being is our highest priority. So MetLife offer a money back plan which provides guaranteed periodic survival benefits at the end of 5, 10 & 15 years, along with guaranteed growth of savings.

A plan which offers both timely and efficient return on investment with payouts at different milestones.

Survival Benefit At the end of 5 years At the end of 10 years At the end of 15 years 20% of Sum Assured 20% of Sum Assured 20% of Sum Assured

Upon survival to maturity 40% of Sum Assured plus total Guaranteed Additions

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

Retirement:-

Met Growth MetLife offers 'Met Growth' - a Unit-Linked solution to help in golden years. It is specially designed to provide financial security for future requirements. This plan allows to start planning immediately by ensuring the safety of first year premiums. It also helps create retirement fund faster by giving you 100% allocation from the second year onwards, coupled with attractive loyalty additions into fund Guaranteed.

Benefit

• Death Benefit
In the unfortunate event of death, the higher of the Sum Assured or the Fund Value would be payable. If death of the Person Insured occurs before age 7, the Fund Value plus the regular premium received by us in the first policy year is payable.

• Maturity Benefit
On maturity, you will receive the Fund Value including the Guaranteed Loyalty Addition or you can opt for the settlement options.

• Loyalty Additions
You get the guarantee of enhancing your wealth creation through guaranteed loyalty additions (up to 120% of the first year annual premium) at the end of the 10th & 15th year plus Guaranteed Additions as a % of the Fund Value.

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

• Death Benefit
In case of death during the accumulation period, the death benefit payable is: Under Option A: A guaranteed amount of 110% of the Fund Value is payable to the nominee. Under Option B: 100% of the Fund Value is payable to the nominee.

• Vesting Benefit
On the vesting date, i.e. at the end of the accumulation term,you can take onethird of your retirement kitty as a tax-free lump sum and utilize the balance to buy annuities. Or you can use the entire retirement kitty to buy annuities. Met Pension-Par 'Met Pension (Par)' serves as a friendly helping hand so one can stay financially independent even after retirement. It helps to build up a fund for golden years.

With this plan, one can ensure his\her enjoy retirement as a happy new chapter. Benefits Death Benefit In case of death while one is saving for retirement, the death benefit payable is: 1. Return of premiums. 2. Accrued reversionary bonus, if any. 3. Any insurance on the life of the Insured that may be provided by riders to this policy.

Vesting Benefit On the vesting date, you can take one third of your retirement kitty as a tax-free lump sum and utilize the balance to buy annuities or you can use the entire retirement kitty to buy annuities. The retirement fund on the date of vesting is equal to the Sum Assured plus Guaranteed Additions plus the compounded reversionary bonuses plus the terminal bonus, if any.

Guaranteed Additions

Savings:-

Met Sukh 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. 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.

Met Suvidha 'Met Suvidha' is a flexible Endowment Plan that combines savings and security. In addition to providing you rotection till the maturity of the plan, it helps you save for your specific long term financial objectives. This long term savings-cum-protection plan comes to a customer at affordable premiums.

Met Suvidha is available in both participating as well as non-participating versions.

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

'Met 100' - a whole life policy where customer pay premiums for 15, 20 or 25 years. It helps create a legacy for the children, leaving money for a dependant spouse and, more importantly, provides insurance cover at affordable rates. Met 100 is available in participating as
well as non- participating versions

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

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

Protection:-

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

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

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

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

Met Suvidha-Rural Met Suvidha (Rural) is a participating flexible Endowment Plan that combines savings and security. In addition to providing protection up to maturity, it helps to save for specific long term financial objectives. This long term savings-cum-protection plan comes at affordable premiums. Benefits: Met Suvidha - Par In the event of death during the term of the policy, the beneficiary will receive the base Sum Assured, the

accrued reversionary bonus and terminal bonus if any. Maturity Benefit

On maturity of the policy, you will receive the base Sum Assured, the accrued reversionary bonus and

Met Suvidha - Par terminal bonus if any.

It is an Endowment plan that offers both savings and life insurance.

• •

Flexible premium paying options to suit various income cycles. A plan which participates in the bonuses declared by the company.

Customization possible with Accident Death Benefit, Critical Illness, Term, Waiver of Premium Riders for comprehensive protection.

Investment:-

MetLife’s Unit-Linked Insurance Plans ensure systematic enhancement of wealth. Be it higher returns or the right blend of protection and wealth optimization, they help to ensure the right choice and peace of mind. (IN THESE POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER )

Met Easy A simplified unit-linked plan which offers an opportunity to systematically build wealth and protection for you and your family. (The maximum Sum Assured available in this product is based on age, at the time of buying the policy.)

BenefitsDeath Benefit After Policy the 1st Year: Fund Value plus the Regular

In the event of death: In the 1st Policy Year: Higher of 50% of the Sum Assured Fund or the is

Higher of 100% of the Sum

Premium received by us in the first policy payable. Maturity Benefit year is

Assured or Fund Value. If death of the Insured Person occurs

Value

On maturity, you payable. before age 7, the will receive the

Fund including Loyalty

Value the Addition

or you can opt for the options. Loyalty Additions With Met Easy, settlement

you get the benefit of potentially your creation loyalty

enhancing wealth with

additions that are added to your

policy on maturity.

39

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

Met Smart Plus-Regular Pay 'Met Smart Plus' – a Unit-Linked Whole life plan that matures at age 100. If you want to protect your family from 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. It’s a right plan to go with.

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

Met Smart Premier- Single Pay Payable lump sum at the time of policy taken. Health:Met Health Care UIN no: 117N048V01 Health problems strike unexpectedly. In addition to causing ill health, it can also scar financial health. One need to protect himself against such a situation through a health insurance plan. In order to ensure you are well protected to face any health condition that could befall you, MetLife presents - Met Health Care, a simple health insurance policy with unique and smart advantages for you and your family#. (# Family means spouse and two children. Every additional family member shall be underwritten as per the underwriting conditions laid by the Company from time to time.)

Met Health Care is a long term health insurance plan from MetLife. This plan covers

1. 2.

Hospitalization expenses by providing a Daily Cash benefit as chosen by 10 major Critical Illnesses by providing a lump sum

you. benefit.

3. Total & Permanent Disability due to accident by providing a lump sum benefit. All the above benefits can be availed without the hassle of undergoing any medical examination.

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Just fill up the simple application form and start enjoying the unmatched benefits of Met Health Care.

Benefits Death/Maturity Benefit

There is no Death/Maturity Benefit under Met Health Care. Tax Benefits

The premium paid (excluding the service tax) under this plan is eligible for Tax Benefits under Section 80 D of the Income Tax Act, 1961 as per the provisions and conditions given therein and are subject to any changes made in the tax laws in future.

Reasons to Buy 1. Coverage for the entire family.

2. No Claim Discounts.

3. Guaranteed Cover* till age 65. 4. Payouts in addition to other Insurance Plans. 5. Multiple Claims.

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SWOT ANALYSIS

Strengths
1) 2) MetLife enjoys good reputation and goodwill in the minds of general public. MetLife has a wide range of products in order to suit the needs of every segment of the society. 3) The company has also very good distribution network with over 50’000 insurance agents who are placed in different parts of country. 4) 5) 6) The company has a good customer base and is expanding very fast on it. The bonus rates provided by company are also high. Staffs working at the company are well qualified people. There is less wastage of time that results in prompt customer service and full attention to the customer.

Weaknesses:

1. The premium charged by the company on various policies is not at all compatible with premium offered by other companies.

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2. There is less advertising of the products and services offered by the company.

3. The company has less number of insurance policies in comparison to its various competitors.

4. The company has low number of branch offices in comparison to other companies.

Opportunities:

1. Growth in untapped rural market by private players. 2. Purchasing power of both rural and urban customer is increasing significantly. 3. Other private players in insurance industry are doing well in urban market because of transparency in functioning of the company. So, MetLife also has an opportunity. 4. People are more aware about the importance of life insurance because of growth in education.

Threats:
1. The company does not have a proper advertising channel, infect this can be the major reason that despite having the same kind of services (even better), it is lagging behind. 2. The company is not coming up with more creative ideas.

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3. High attrition rate of insurance advisors. 4. High premium charged for sum assured.

INSURANCE AGENCY AS A CAREER
DEFINITION OF AN AGENT OR ADVISOR
1. An agent is the one who acts on the behalf of another. The ‘another’ on whose behalf the

agent acts, is called principal. This is simple definition. The lawyer is the agent of the client, when he argues the case in the court. An ambassador is the agent of the country. It is function, which determines the relationship of agency, not the designation.

2. According to section 182 of the Indian Contracts Act, an ‘agent’ is the person employed to do any act for another or to represent another in dealing with the third person. The person for whom such act is done or who is so represented is called ‘principal’. In the insurance industry, the term ‘agent’ is ordinarily applied to a person engaged by the insurer to procure the new business. The Insurance Act defines an insurance agent as one who is licensed under sect ion 42 of the act and is paid by the way of commission or otherwise, in
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consideration of this soliciting or procure insurance business, including business relating to the continuance, renewal or revival of the policies of insurance. He is, for all purpose, an authorised salesman for insurance.

3. There is legal maxim ‘qui facit alium, facit perse’, which means that he who acts through

others, acts to himself. The principal is bound by what the agent does. Therefore, contracts enter into through an agent, and obligations arising from acts done by an agent, may be enforced in the same manner and will have the same legal consequences, as if the contracts have been into, and the acts done, by the principle himself. 4. Under section 183 of the Contracts Act, any person who is a major, according to the law to which he is subject, and is of sound mind, can employ an agent. Section 184 provides that as between the principal and third persons, any person can become an agent. Thus though a minor may be employed as an agent and the principle would be bound by his actions, the minor himself will not be liable to his principal. Unlike other contacts, no consideration is necessary to create an agency contract.

AUTHORITY OF AN AGENT:
 While the maxim cited above makes the principal liable for all the acts done by the agent, he can restrict his liability by specifying the extent of authority granted to the agent. This authority may be expressed or implied. An authority is said to be expressed when it is stated by the words, spoken or written. It is implied when it is inferred by the circumstances of the case.

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 The L.I.C. does not authorize its agent to collect premium (except first premium along with the proposal) or the other amounts from policyholders. But if the agent collects such amounts, remits them to the insurer and gets receipts to be handed over back to the policyholder, implied authority can be inferred or constructed. The LIC’s stand has been that its agent are not authorised to collect renewal of premiums and that if they do so, they are acting as agent of policyholder not LIC. The implication is that if an agent collects premium from the policyholder and does not remit the same in the office. The LIC would not be liable for the amount. The courts have upheld this stand. Other insurance company in India may not follow LIC’s practice. They may grant more or less authority.

AGENT’S REGULATIONS

 The Insurance Regulatory and Development authority (IRDA), constituted by the IRDA act of 1999, issued the IRDA (Licensing of Insurance Agents) Regulation 2000.these regulations deals with the issue of licences under section 42 of the insurance act, 1938 and other matters relating to agents. the regulations are reproduced in full at the end of this course and form part of study material.
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 By another notification in October 2002, these regulations were made ineffective for corporate

agents and new IRDA (Licensing of Corporate Agents) Regulations, 2002 were issued. These regulations deal with the issue of licences and other matters relating to corporate agents. In terms of these regulations, a licence will not be given if the person is (a) minor, (b) found to be of unsound mind, (c) found guilty of criminal misappropriation or criminal breach of trust of cheating or forgery or an abetment of or attempt to commit any such offence (d) found guilty of or knowingly participating in or conniving any fraud, dishonesty or misrepresentation against an insurer or insured € not possessing the requisite qualifications and specific training (f) not passed such examinations as are specified by the regulations (g) found violating the code of conduct as specified by the regulations.

 It is not only an individual who can become an agent. Collective like companies, firms, banks, cooperative societies, etc., can also become agents. These collective will designate one or more persons as ‘Corporate Insurance Executives’, who will be required to obtain licences. Other who may also work for the corporate agent, will be called ‘Specified Persons’ and they will be required to obtain certificates.

 The agent licence as well as corporate agent licence is granted for 3 years. It may be renewed after three years with renewal fee. The certificate is also valid for three years.

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OTHER INTERMEDIARIES:
 Different kinds of agents are recognised under the Contract Act. In the airline industry, for example, there is the system of general agent, who has authority to act on behalf of principle on all matters within a specified sphere. Such general agents may represent more than one principle at the same time. Similar systems of general agents exist also in shipping industry. They represent foreign shipping companies and are authorised to deal with shippers and local authorities like the ports or the stevedores, to ensure that the ship’s visit to the port is profitable and without any problems.

 Brokers arrange to place the business of their clients with insurers on terms that ae standard or negotiated. This becomes necessary when the needs of the proposer are unique and not met by the benefits under the standard plans of insurance. Brokers understand the nuances of the business well and also know the policies of insurer. A broker usually does business with more than one insurance company. He collects commission from the insurer with whom the business is placed and does not charge the prospect.

 In India, till October 2002, only insurance agents licensed by IRDA were permitted to procure and solicit life insurance business. Brokers only dealt with reinsurance business. The law was amended

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in September 2002, and the IRDA has issued (Insurance Brokers) Regulations, 2002 providing for , licence of ‘direct brokers’, ‘reinsurance brokers’, and ‘composite brokers’, the last being authorised to deal with direct business as well as reinsurance businesses.

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RESEARCH METHODOLOGY
In this study of Recruitment and Development practices of Met Life Insurance Ltd. descriptive type of research has been done for collecting the primary data. It includes surveys facts, findings, and enquiries of different kinds. The major purpose of this descriptive research is the description of the state of affair as it exists at present. Moreover there is no control over the variables under study; but only reporting of what is happening or what has happened can be done.

Study design:

Primary data, which has been collected for descriptive research, was based on the telecalling mainly by hot calling, cold calling, objection handling etc. For secondary data collection method the help of various reference books have been taken which are mentioned in bibliography and also by way of surfing through the company’s website.

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The 5 stage recruitment process:

PRE APPROACH
1.

PRE-APPROACH:

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 It

refers

to

preparing

in

order

to

approach

the

prospect. It requires forming some ideas as to how the interview could begin and proceed.  It involves collection of basic information regarding the prospect’s

   

Income level Interests and habits Present occupation Family position

 To make this stage more effective a script is prepared. A script is nothing but a set pattern of doing things and responding to the objections.

2. APPROACH

 It involves the meeting with the prospect and explaining him the benefits attached on becoming an advisor of reputed organisation like MetLife.

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3. INTERVIEW:
 It begins by making the prospect listen about the proposal that the company is offering.  It is important that the proposal we make to the prospect should be seen by him as beneficial and complimentary to existing arrangements.

4. OBJECTION HANDLING:

 Prospects raise objections like ‘I do not want to be a financial advisor’, ‘I cannot attend the training’. These objections can be handled by providing the prospect with complete and convincing answer.

5. CLOSE:

 It involves helping the client in taking decisions in favour of MetLife insurance.  The various task involved in it are:
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  

Collecting a cheque from client. Getting the form filled. Completing the documentation with form filled, cheque collected and date of birth of proof.

Sample size: Out of total universe, 100 respondents have been taken for convenience and were named as prospective-100 or P-100. These P-100 were the simultaneously and rigorously approached consistently to join the company. Among these P-100, then finally P-15 were selected which were more of sure and confident to be selected and further developed for joining the business.

AIM OF THE STUDY
Recruitment and development are multifaceted concepts. The relevance of recruitment and selection is to determine the number of personnel required and development deals with the further overall grooming of the candidate as an employee. The HR proceeds with the identification of sources of recruitment and finding suitable candidates for employment. Both internal and external sources of manpower are used depending upon the types of personnel needed. The aim of the selection policy is the selection of suitable candidate for a suitable job. The selection procedure starts only when the recruitments are done, that is, the various suitable candidate pools are made available. The selections are done from this pool.

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Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development. This project has the following aims: 1. To understand the nature of Recruitment and Development policy for acquiring suitable personnel. 2. To understand the variables of Recruitment and Development in Met Life Insurance Ltd. 3. To identify the sources of manpower supply with a view to acquire the best possible candidate. 4. To understand the procedure of Recruitment and Development in Met Life Insurance Ltd.
5. To understand the procedure of Recruitment and Development in Met Life Insurance Ltd.

6. Finally to bring out the challenges ahead with respect to recruitment and selection of advisors.

RESEARCH OBJECTIVE
The objective of the company was to recruit financial advisors for the company and generate work from them. In the insurance industry, there are two channels of distribution –Alternate distribution and tied agency. Advisor recruitment is part of tied agency. Tied agency is the largest distribution channels of MetLife comprising a large advisor force that target various customer segments.

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With focus on sales and people development, tied agency has emerged as robust, predictable and sustainable business model.

SCOPE THE STUDY
The scope of this study is to observe the degree of satisfaction levels of the employer as well as the employees towards the Recruitment and Development techniques adopted by the company. The deviations if any, towards this effect have also been studied. Apart from getting an idea of the techniques and methods in the recruitment procedures a close look will be taken at the insight of corporate culture prevailing out there in the organization. This would not only help to be familiar with the corporate environment but it would also enable to get a close look at the various levels authority-responsibility relationship prevailing in the organization. This study also focuses on studying the various techniques adopted by the organization to retain the new recruits. The stipulated time for the project is insufficient to undergo an exhaustive study about the topic assigned. Moreover the scope of the topic (Recruitment and Development) is wide enough, so it is difficult to cover the entire topic within the stipulated time, but still whatever could be done towards.

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DATA ANALYSIS & INTERPRETATION
QUE.1- ARE YOU EMPLOYED
YES NO TOTAL 70 30 100 70% 30% 100%

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no, 30%

yes, 70%

INTERPREATION
 70% Respondent say they are employed.  30% Respondent say they are unemployed.

QUE.2-WHAT IS YOUR OCCUPATION?
Government job Private job Business

20
55 15

20% 55%

15%

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Other

10

10% 100%

TOTAL

100

60%

50%

40%

30%

Private job, 55%

20% Government job , 20%

10%

Business, 15%

Other, 10% Other

0% Government job Private job Business

INTERPREATION
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 20% Responder in government job  55% Respondent are private job  15% Respondent are going business  10% Respondent other than mention

QUE.3- PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES NO.OF COMPANY’S NAME RESPONDE NT L.I.C. Reliance Life Insurance Met life India Ins. Co. Ltd Bajaj Allianz ICICI Prudential SBI Life Max New York Life TOTAL 74 3 2 3 9 7 2 100 74 3 2 3 9 7 2 100 SHARE (%)

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

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QUE.4-TYPES OF INSURANCE POLICY RESPONDENTS HAVE POLICY TYPE NO. OF RESPONDEN TS LIFE POLICY NON LIFE POLICY BOTH 45 45 75 25 75 25 SHARE (%)

80 70 60 50 40 30 20 10 0

L Policy, 75 ife

B oth, 45 Non L Policy, ife 25

Life Policy

Non Life Policy

Both

INTERPRETATION  

75% of the respondents have only Life Insurance Policy. While 45% of the respondents have both.
25% of the respondents have only Non- life Policy.

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QUE.5-BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS NO.OF BENEFITS RESPONDE NTS Cover Future Uncertainty Tax Deductions Future Investment TOTAL
F uture Investment 25%

SHARE (%)

55 20 25 100

55 20 25 100

C over F uture Uncertainty 55% Tax Deductions 20%

INTERPRETATION  55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance policy.

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 Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future investments respectively.

QUE.6- PEOPLE PERCEPTION ABOUT INSURANCE RESPONSE NO. OF RESPONDEN TS A saving tool A tax saving device A tool to protect your family 81 74 100 81% 74% 100% SHARE (%)

120 100 80 60 40 20 0 A savings tool A tax saving device

As aving tool, s 81

A tool to protect yoour fam 100 ily, A tax s aving device, 74

A tool to protect yoour family

INTERPRETATION • • 81% of the respondents have perception of Insurance being a saving tool. And 74% of the respondents have perception of Insurance being a tax saving device.

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But 100% of the respondents are with the view that Insurance is a tool to protect your family.

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

QUE.7-SATISFACTION OF +VE RESPONDENTS WITH RESPECT TO SERVICE AGENT RESPONSE NO. OF RESPONDEN TS Satisfied Not satisfied Not Responded Total 45 55 0 100 45% 55% 0.0% 100% SHARE (%)

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S fied atis 45% Not s fied atis 55%

INTERPRETATION • • • 45% of the respondents are satisfied with their existing service agent. 55% of the respondents are not satisfied with their existing insurance agent. All of those who have taken a policy have responded.

QUE.8- NUMBER OF RESPONDENTS PAYING TAX RESPONSE NO. OF RESPONDENT S Paying tax 91 9 Not paying tax Total 100 100% 91% 9% SHARE (%)

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INTERPRETATION • Of the sample size of 100 respondents, 91 respondents are paying tax.

QUE.9-RESPONDENTS PERCEPTION ABOUT BEST FORM OF INVESTMENT FOR SECURING THEIR FUTURE NO. OF RESPONDEN TS Fixed Assets Bank deposits Jewellery Securities i.e. bonds, MFs Shares 75 11 25 40. 10 33% 5% 11% 17% 4%
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SHARE (%)

68

Insurance

70

30%

ix s , 80F ed As ets 75
70 60 50 40 30 20 10 0 Fixed Assets Bank deposits Jewellery Bonds/Mutual Funds Shares

Ins urance, 70 B onds /Mutual F unds 40 ,

Jewellery, 25 B ank depos , its 11

S hares 10 ,

Insurance

INTERPRETATION • 75% of the respondents are with the view that Fixed Assets is the best form of investment for securing their future. • 70% of the respondents are with the perception that Insurance is the best form of investment for securing their future, which is 2nd highest and this shows that insurance is an important key for securing your future. [Some of the respondents opted for two or more than two items]

QUE.10-PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES RESPONSE NO. OF RESPONDEN
68

SHARE (%)

69

TS Rigid plans Non user friendly Unsatisfactory services Non Aggressive Satisfactory Good Very good 67 29 26 35 24 10 0 67% 29% 26% 35% 24% 10% 0%

80 70 60 50 40 30 20 10 0
us er fri en dly ag gr es siv e un sa tis fa cto ry se rv ice s Sa tis fa ct or y Ve ry go od pl an s Go od

Ri gid

INTERPRETATION • 67% of the respondents have the opinion that Indian Insurance Companies have Rigid plans. • • 29.5% feel that Indian Insurance companies are Non-user friendly. 26.5% feel that services of Indian Insurance companies are Unsatisfactory.

No n

No n

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35.75% of the respondents are with the view that Indian Insurance companies are Nonaggressive.

24% of the respondents feel that products and services of Indian Insurance companies is Satisfactory.


Whereas only 10.25% feel that it is Good enough. And according to the data, no single person has felt that it is very good.

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

QUE.11-DO YOU WANT TO EARN EXTRA INCOME
YES NO TOTAL 80 20 100 80 20 100

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80% 70% 60% 50% 40% 30% 20% 10% 0%

YES, 80%

NO, 20%

S1 YES NO

INTERPREATION
 80% say yes  20% say no

QUE-12- DO YOU WANT TO BE A BUSINESS PARTENER
YES NO 15 85 15% 85%

TOTAL

100

100%

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YES, 15%

NO, 85%

INTERPREATION
 Only 15% respondent say yes  85% respondent say no

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RECRUITMENT OF ADVISOR
Being a MetLife Insurance advisor can be an enriching and exciting career option. It’s an opportunity to associate with an industry leader, be in touch with the latest and finest insurance practices from around the globe and grow both professionally and personally. Some of the benefits of being a MetLife Life Insurance advisor are: Unlimited earning potential. A clear career path All round support through exclusive advertising. A comprehensive benefit package.

   

MetLife believes that its ‘advisors’ are the ‘ambassadors’ to the customers. They are key source of business for the organisation are continuing link with the clients. Most financial opportunities are risky, need some financial investment and offer a one-time income. But, being an MetLife advisor is an ideal opportunity which is neither risky nor does it require any investment. And above all it offers a trail of future income.

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TEAM OF METLIFE FINANCIAL ADVISORS

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METHODS OF REMUNERATING AGENTS  A life insurance agent works on commission basis. He is paid a stated percentage of the premium collected through his agency. Section 40 (A) (1) of the insurance act stipulates that the maximum amount which can be paid to a life insurance agent, by way of commission or remuneration in any form, shall be 35%of the first years premium, 7 and half of the second and third years renewal premium and 5%of subsequent renewal premium.

 There are some exception to this. During the first 10 years of the insurer’s business, he may pay

40% instead of 35% of first year premium. Under certain circumstances, commission of 6% can be paid on the renewal premium even beyond the third year. Within these limits the manner of remunerating the FA will be determined by the insurer. Normally, under Term Assurance Plans, commission rates are less. Similarly, for shorter duration policies, commission rates are lesser then under long duration plans. Under single premium plans and pension plans rate of commission is very small.

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 New agents may be paid stipend to be adjusted against the commission to be earned, as when business begins to come in. brokers are paid on the totally different basis.

AGENCY AS A PROFESSION
 The insurance agent is bound by the terms of appointment of the insurer and is expected to procure business for the insurer. It is not the job that he has to do at fixed hours, in prescribed ways and under close supervision. Once license is appointed, he is an independent professional. He is the master of his time. He is not prevented from pursuing any other interest or vocation. Many agents see the agency as the means to earn a living. They may spend only a part of time on insurance, being busy on other work the rest of the time. Some agents however, try to study understand the business in great details and to improve their skills. They are trying to become best in the profession. They would be recognised as experts in the field.

 To most persons, life insurance is just one of the many avenues for financial outlays. When an agent approaches a prospect with a proposal for life insurance, the chances are that the prospect will no know much about the benefits under various plans. He may be vaguely familiar with the

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alternatives available, but it is unlikely to be sure of the details of all of them. He would need expert advice. If he sees the life insurance agent as one who is keen to divert his money to life insurance to the exclusion of other alternatives, then that agents intentions and expertise would be suspect. On the contrary, if he sees the agent as one who knows about other alternatives and who is willing to take note of the needs of the prospect, then the agent would have the better chance of persuading the prospect one way or the other. In other words, a life insurance agent, while dealing with the prospect, should be thinking of his interests and requirements and best financial arrangements that would be appropriate in his situation. Thus the life insurance agent is an agent of the prospect also.

 As an agent of the insurer, the life insurance agent is expected to obtain life insurance business and contributes to revenue of the insurer. He is also depended on the bring in business that would be profitable, to report attempts to commit any fraud, to report on the relevant features that affect the risk of the subject of insurance. He is in touch with the person to be insured. Having met him at his place of work or residence and observed his lifestyle and habits, he would be aware of the nature and characteristics of the risk, beyond what is contained in the proposal form. He is therefore, called the primary underwriter.

 As an agent of the prospect, he is expected to look after the interests of the prospect. Even people who are generally experts in financial matters, may not be aware of the implications of the insurance, in relation to terms and conditions, warranties, exclusions, tax provisions, right of parties, etc. agents have the dual responsibility of being true to the interests of both the
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parties in the transaction. He is obliged to reveal to the prospect all the important terms and conditions of the policy, even if they are restrictive or unpleasant. He is obliged to report to the insurer all the true facts about the prospect and the subject of insurance. He should not mislead either.

 To be able to advise the prospect on the best financial arrangements appropriate to his situation,

the agent needs to be familiar with the alternatives available in the market. He is also expected to know in full the benefits and limitations of the various plan being offered by his insurer. A good agent is a good financial planner, taking into account not merely the plans offered by the insurers, but by the innumerable schemes on offer in the market. This needs study on one’s own it also needs conviction that life insurance policies do not meet all the needs of the people. Other instruments have their own advantages.

REQUIREMENTS FOR BECOMING AN AGENT
 The insurance Act, 1938 lays down that an insurance agent must possess a license under

section 42 of the Act. That licence is to be issued by the IRDA. The IRDA has authorised designated persons, in each insurance company, to issue the licences on the behalf of IRDA. The fee for the licence, the manner of the making an application etc., have been described in the IRDA regulations.

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79  A licensed issued by the IRDA will be valid for three years. The licence may be act as an agent

for a life insurer, for a general insurer or as a ‘composite insurance agent’ working for a life insurer as well as general insurer. No agent is allowed to work for more than one life insurer or more than one general insurer.

 The qualifications necessary before a licence can be given are that the person (individual or corporate insurance executive)must • Be at least 18 years old
• Have passed at least 12th standard or equivalent examination, if he is to appointed in a place

with a population of 5000 or more or 10th standard otherwise. • Have undergone practical training for at least 100 hours in life or general insurance business, as the case maybe, from an institution, approved and notified by the IRDA. In case of a person wanting to become a composite insurance agent, the applicant should have completed at least 150 hours practical training in life and general insurance business, which may be spread over six to eight weeks.

 A person with the following disqualifications is debarred from holding a licence • •

He has been found to be unsound mind by a court of competent jurisdiction. Ha has been found guilty of criminal breach of trust, misappropriation, cheating, forgery or abetment or attempt to any of such offence.

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The licence once issued, can be cancelled whenever the person acquires a disqualification.

 Applications for renewal have to make at least thirty days before the expiry of the licence,

along with the renewal fees Rest. 250. If the application is not made at least 30 days before the expiry, but is made before the expiry date of licence, an additional fees of Rs. 100 is payable. If the application is made after the date of expiry, it would normally be refused.

 Prior to renewal of the licence, the agent should have completed atleast 25 hours practical training in life or general insurance business or at least 50 hours practical training in life and general insurance business in care of a composite insurance agent.

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ROLE OF AN INSURANCE ADVISOR

INTRODUCTION

1. An insurance agent is defined in the insurance Act. He requires a licence to be able to function as an agent. He is remunerated by way of commissions on the premium paid under policies procured through his efforts. Insurers designated agents differently like consultants, advisors and so on. The designations do not matter. He is the main component of the distribution channel for the life insurance business.

2. A life insurance agent would be required to solicit and procure new life insurance business, in a manner that is consistent with the interests of the policy holder and of the insurance company. For this purpose, he would have to do following:  Contact prospects for life insurance, study their needs and persuade them to buy.  Complete all related formalities, including filling up proposal forms, collecting premium, arranging medical examination, collecting proofs (of age or income), reports and the other information required by the underwriter. 3. After having sold a new insurance policy, the agent has to be ensure that the policy continues, without a lapse, till it become a claim. The concerned, the insurer, the policyholder, and the agent. For this purpose, he has to

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 Keep in touch with the policyholder to make sure that renewal premiums are paid in time.
 Ensure that nominations are made or changed according to changing circumstances.

PREREQUISITES FOR SUCCESS
1. In order that he performs all these tasks well, the agent has to be familiar with

 The benefits under the various plans of insurance offered by his insurer.  The office procedures for various matters including the forms and documents. The main documents have been listed out in an earlier chapter. The forms and procedures will vary between one insurer and another.

2. As stated earlier, the insurance agent is an agent of the prospect as well. He is looked upon as a

knowledgeable person, who can be trusted to give the right advice. To be able to match these expectations, the agent must be familiar with the benefits and other financial instruments suitable for savings and investments and also the law, particularly on taxation matters, relevant to these instruments. The variety of the instruments available for an individual is very vast and it is difficult for anyone to master the details of all of them.

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IMPORTANCE OF ADVISORS

MetLife India Insurance Co. Ltd. Aspires provides state of the art of customers’ service or opportunities or avenues for enterprising people to grow & prosper. The company wish to grow exponentially that is backed by the latest technology, hence offering its customers:  Complete and diversified product portfolio.  Faster and more accurate service.  Multi-channel distribution systems.  Highly trained professional sales people offering quality pre and post sales service. It is the above mentioned areas of personal specialization where the importance of an advisor clearly stands out the advisor not only contribute in bringing in new business for the company, but also plays an important role in offering world class pre and post sales services to the client with the support of the organisation. But the company in its principles clearly state out that an advisor to means “much more than a salesman or a salesman, we at MetLife recognize our advisors as the ambassadors of our organisation in the market place & we consider the advisor force would be out biggest differentiating factor in the coming years.” The advisor is an important asset not only for the organisation from the business point of view but also to the community be helping people

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attain financial security & builds fund for their future needs thereby assisting them in getting their financial freedom. If looked from the other side of the business where the company is operating the competitive Indian market and more so in the business of the life insurance where the customers looks for selfbelief & faith then the advisor certainly holds the vital link in the overall business proposition. They represent the company’s face & words on which the customers can trust because the customer knows that face. The advisor helps to create a web for the business to grow & driving the customer to come to the company with complete trust and faith.

THE PROFILE OF AN ADVISOR
Qualifications:
1. Age should be ideally between 25-60 years 2. Minimum education qualification is 10+2. 3. Good and convincing communication skills. 4. Capacity to build an impressive network. 5. Engaged in gainful business or corporation. 6. Willing to undergo extensive training & development. 7. Pleasing personality.

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Skills & Competencies:
As MetLife is always on lookout for people who have the following skills and competencies that we require in business are:  Actuarial skills.  Investment management skills.  Core operation skills.  Core underwriting skills.  Relationship management skills.  Project management skills.

Leadership & Team Skills:
 A passion for achieving results.  High energy levels & infectious enthusiasm.  Open to ideas  Strong team players  High calibre and ability  And above all, unyielding integrity.

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Job Profile:
As an advisor for the company, the role of the individual is no way limited to sell the policies of the company. But the role basically starts from the basics of explaining the life insurance aspect & the potential benefits to the customers. Further he is required to assist them in deciding upon the plan that suits them the best in terms of finance and security provide. Therefore the opportunity provided to the advisor is unlimited in no way and the typical benefits can be mentioned as followings:  There is absolutely no need for start-up capital.  There is the benefit of flexible working hours.  The freedom to work from anywhere & being ones’ own boss.  The unlimited earnings benefits in form of remuneration & incentives.  And the privilege of being a part of a world class sales team. The role of an advisor is multifaceted in the sense that his work scope is in no way limited. But in a nut shell the expectations from an advisor has been laid down by the management in the following manner under two main headings: 1. Providing continuous financial advice to clients  Identifying prospective clients.

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 Making appointments  Conductive review with the prospective/existing clients.

 Closing the sales contracts  Getting more referrals so as to increase the network  Providing pre & post sales services to clients.

2. The advisor is also required to regularly follow the internal sales & the internal reporting

system so as to get the feedback & further leads for prospective areas of business and improvement.

BENEFITS & SUPPORT PROVIDED
The benefits have already been mentioned very often in the previous section but is its’ necessary to look into them as a comprehensive criterion. The main benefits and support that an advisor would be availing of are the distinct MetLife advantages:

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Rewarding Career: The job profile as mentioned earlier are unlimited & an advisor will help people realize their dreams and provides them the financial & psychological security & faith. The ultimate rewards will be the differences made to all these lives and that would be most satisfying in the real sense.

Successful Team:
Being at the MetLife gives the opportunity to be part of India’s best team of life insurance advisor

Attractive remuneration:
MetLife offers the most competitive remuneration benefits at person in the industry, which proves to be very useful from long term perspective of financial security. There is absolutely no limit to one’s earnings & the added incentives just help as advisor to get more than what he/she expects.

Independence:
At MetLife, the advisor is a boss in himself & in the real sense. There is the freedom to choose the workplace, the working timings &the amount of earnings one wan5ts to have. Moreover there is no need of any initial capital investment, yet one can become an entrepreneur in the most unexpected manner.

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World class team:
The company leverages on the international linkages that it has got to provide the best training available in the industry at present. The company aims to impart the necessary skills &competencies to all even if there is no previous experience with the individual. The presence to trained the house trainers & professionals provide the necessary aspects of the training required.

Career Agency System:
The company believe in encouraging the advisors to the highest level of success all through their career. One of the distinct factors is the opportunity and the option of management career option for the successful performs.

Best infrastructure:
The huge investment the company has made to develop the state of art infrastructure throughout the business. The infrastructure provides the necessary tools, technology & human support that enables to build a profitable long term relationship.

Sales And Marketing Support:

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The company has got unique sales & marketing tools to help &support the advisors at every stage of the career. The sales, promotion & marketing collaterals that the company possess help to achieve just that.

CAREER PROGRESSION
FA progression to ASM / SM

“Pegasus program”

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TRAINING OF ADVISORS  At MetLife, advisors go through both generic and specific, professional programmes that help them remain well informed and knowledgeable about company products in market.  There is further focus on self skills such as communication, managing long-term relationships and selling skills which are very relevant in a service driven industry like life insurance.

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 State of the art infrastructure training facilities coupled with an excellent faculty, guarantee an exceptional training environment.  A 17 day training schedule covers the mandatory IRDA training schedule covers the mandatory IRDA training requirements and MetLife product training module.  Revision session ensures that the candidates thoroughly understand the course contents and are well prepared for licensing examination.  Theoretical training is interspersed with practical appointment settings potential customers giving advisors feel of how their business will weak from the very first day.  All though, the unit manager and the management provide continue support to the advisor in achieving independence towards garnering business.

REWARDS AND RECOGNITION
 MetLife financial advisors are constantly recognised and rewarded for their performance.  Numerous contests all year round promote healthy competition amongst advisors and recognition of their effort.  Depending upon the level of business the advisor achieves in a year, he or she can become member of various clubs such ass met royal club.

 Advisors can also qualify for the renowned MDRT (million dollar round table) exclusive international forum that recognises the world’s most successful insurance agents in an annual get together in a global destination.
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 Advisors can also qualify FA conferences. There are many types of conferences: • • • • •

LEADER’S PRESIDENT’S MDRT COT TOT

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PROMOTIONAL STRATEGIES
Recently MetLife is advertising in outdoor TV and press. The company launched the TV ad about monthly income plan. The advertisement shows that, it is not known that when you’re monthly income will stop, so be prepared for future with MetLife’s monthly income plan. The ad is getting very popular. The company has also undertaken the internet campaigns to inform customers about the benefits of some of its products, particularly ULIP plans. MetLife for indirect marketing is sponsoring many big events like JJS and JAS (jewellery shows). MetLife also organises a activities and competitions in schools with scholarship distribution for promotion. MetLife also started a campaign with Radio Mirchi 98.3 FM. Held in different location of Jaipur and pan India. The company also setup stalls at various vacation fairs or events. Not only that, last year they had set up a camp where they offered free health check-up.

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Segmentation and Positioning Strategies:
Ata broad level, MetLife aims to secure the families of the middle class and upper class working people in urban and rural India. Their strategy has always been to focus on delivering value and convenience to customer, whether they are in rural or urban areas. Hence in urban areas they have focusing on product choice and flexibility and easy access for the customer; while in rural areas the focus is on partnering with NGO’s and grass root organisation and offering simple product that can be understood by the customers.

Communication and Media Analysis:
MetLife success has been built on its consistent focus on the customer and delivering on his/her needs. This includes several initiatives, such as: 1. Developing flexible products that are based on consumer needs and insights. 2. Offering differentiated service to the customer in a manner that is most. 3. Scientific risk management. 4. Investment strategy with a focus on safety, stability and returns are some of the factors that facilitate their growth. The marketing function of MetLife covers many activities—  Brand and media management  Channel support  Direct marketing, and  Corporate communication.

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The brand communication team is in charge of advertising, consumer research, media planning & buying Public Relations; that helps in developing and nurturing MetLife corporate identity while effectively communicating its varied product offerings to the customer. Channel marketing provides support to the sales force by providing streamlining the design and development of collaterals and sales tools across distribution channels. The direct marketing team is set up to high quality leads for profitable business. The company also looks at the capability to go beyond TV, outdoor and print.

DISTRIBUTION CHANNEL AND MANAGEMENT
MetLife has a wide distribution channel and management in India. It has launched operations with multi-channel distribution strategy that includes: 1. Advisors

2. Bancassurance 3. Agency 4. Corporate partners The company has a network of about 40,000 advisors which contribute the greatest percentage of business. Alternate channels like corporate partners and bank relationship also contribute very much in business these days.

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MetLife has a very good distribution network amongst private insurers in India, having commenced operation in more than 100 branches in India. Few of them are: Agra, Ahamdabad, Ajmer, Allahabad, Amritsar, Aurangabad, Agartala, Bangalore, Bareilly, Bhatinda, Bhopal, Bhubaneswar, Chandigarh, Chennai, Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Siliguri, Surat, Thane, Trichi, Trivandrum, Udaipur, Vadodara, Vashi, Vijayawada, etc.

Bancassurance:
Bancassurance in its simplest form is the distribution of insurance products through a bank’s distribution channels. In concrete terms Bancassurance, this is also known as Allfinaz- describes a package of financial services that can fulfil both banking and insurance need at the same time. The motives behind Bancassurance also vary. For banks, it is a means of product diversification and a source of additional fee income. Insurance companies see Bancassurance as a tool for increasing their market penetration and premium turnover. The customer sees Bancassurance as a bonanza in terms of reduced price, high quality product, and delivery at doorsteps. Actually everybody is a winner here.

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Agency:
In life insurance business wide distribution network and ties agency is biggest source of getting business for any company so developing them is key to increase share in life insurance market. Tied agency is a substantial business channel for MetLife because 70% f business of company comes from this channel. Company provides agency to individual whose age is between 25-40 years, and minimum qualification is 12th pass. As we have seen major business of company comes from this channel. MetLife is immensely concentrating on developing this channel. For that, MetLife does many activities like they do direct marketing, they recruit management trainees on fulltime project, they hold seminars, they also keep stalls in big events for developing that channel. Unit managers provide major support in developing this channel unit manager’s target is to recruit 30 advisors in 5-6 months’ time. MetLife provides lots of benefits to the advisors like flexibility in timing, different motivation factors like money, foreign trips, career building programs permission to access office etc. company called its offer to business opportunity for individual. People who accept the business offer and complete the 100 hours training of IRDA for getting license to do business of life insurance, they call them advisors of MetLife. The project given to management trainees involves developing business channels called agency. Through management trainees company tries to expand its business.

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USE OF TECHNOLOGY:
To see how successful the company is in reaching out to its customers, it is necessary to see the technology initiatives of the company. It is a kind of communication channel, but it is put in this head as it deals exclusively with technology. With over branches spread across the country, MetLife found it imperative to have a system in place to connect each branch with the main office in Bangalore. Previously the company used to rely on a fox pro database. But the system was not flexible enough to serve the needs of a rapidly growing organisation. Bureaus across the country used to photocopy the application received by customers and then courier it to Bangalore office. The applications were scanned and then entered in database. The quality audit took place 2-3 days after the application was received. The final account statement was created after the quality audit. There was 7-8 days gap because of this process leading to a longer turnaround time per application. Customers who wanted redemption in a week faced problem with this system. Also if a particular office received more than the usual number of applications it is used to increase the load on the system as well as the personnel, which in turn lead to delays in transactions. Another area that required smoothening out involved the dispatch of statements to the customer. Earlier around 60-100 statements were printed everyday and were then faxed to the customers. This was not only time consuming but expensive as well, as each statement ran into minimum of three pages. Also valuable human resources were occupied in non-productive work like redialling the fax number in case the receiver was busy at the other end.

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The solution to this issue:
The priority was to implement a centralized database. Data is centred through the front-end tool PowerBuilder, which is not getting phased out and replaced by a client server based system. Now the company uses oracle for taking care of backend needs. With the centralised database , if there is an overload of applications receive in any particular branch, then the central pool of people in Bangalore distributes the load. The extra load is diverted to the area where the resources are relatively free. The centralised database has helped the company in providing better customer service. Now a customer is not attached to any particular branch. They can get their queries answered from any branch in the country. The branches now no longer courier the applications to the head office. The details are entered into the system on the same day using humming Bird which has been customized to suit the company’s needs. The advantage of the system is that along with the date even image is now available for viewing and verification. Due to the immediate availability of details in the application, the quality audit now happens on the same day. This has reduced to 24 hours.

Operational efficiency:
MetLife has been able to bring about greater efficiency in sending and receiving documents electronically from desktops, e-mails, and other business applications by integrating fax, e-mail and internet technologies. Information like history file, name of sender, time sent, destination address, billing codes, etc are also readily available with this system. Security has been enhanced as incoming faxes can

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be routed immediately to the addressee’s mailbox by direct selection on arrival (DSA). Outgoing faxes are sent during off-peak hours to lower operating costs. Transmission is also faster than manual faxing. Digitization has also enabled the ASA to cut down on cost of photocopying each transaction for storage purposes. The bank conducts between 800-1200 transactions per day on an average. Each transaction takes up at least 3 pages. This results in generation of lots of paper. Now with all transactions stored online, company has seen tremendous reduction in paper wastage as well as in case photocopying each page. Searching has also been made easier and human resources are now free for handling core activities.

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CONCLUSION
In today’s scenario there is a lot of potential for the growth of insurance sector as people are becoming more and more concerned about the safety and security of themselves and their loved ones. This increasing awareness and concern about the need for insurance requires the presence of expert people who can guide and advise people about insurance and suggest them the products that fit their needs perfectly. An insurance advisor is the one who can take up this responsibility and help people in this. It will not only be beneficial for the society but will also give the person a golden opportunity to grow, learn and achieve more. And with a back up of a reputed company like Met Life Insurance Ltd. there seems no barrier in achieving this

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RECOMMENDATIONS AND SUGGESTION

 Expand distribution in semi-rural areas.  Target semi-rural market Offer agency to local people. Open operational offices with highly educated team. Start business in small towns.

Other Recommendations:
1.

Provide lower premium policies so that we can target middle class people and generate good cash flow for further growth.

2.

Star advertising campaign again on television, radio and internet also. Do intensive marketing for business opportunity and products both.

3.

Keep more seminars and target LI/GI agents, CAS, tax consultant’s financial investor etc.

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4.

Provide best motivation to agency holders.

5.

Build trust upon customer through services and transparency in investment and other policy.

6.

Provide all branches in local language.

7.

Provide part time training.

8.

Focus on any mass marketing activity for generating awareness of company among people and giving them business opportunity too.

9.

Hold stalls activities in different places.

10. 11.

Do some social activities so that company could get benefit of marketing indirectly. Try to collect data of life/ general insurance agents across India and invite them to associate with MetLife.

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LIMITATATIONS

As the movement is not possible through the city due to some constraints so the movement was quite restricted.

 Lack of trust on any company of private sector.  Lack of knowledge about the products of MetLife and their total and blind faith on LIC.  Sometimes fresh graduates want to become an advisor but the company denies making them an advisor as they are fickle minded and also unreliable.  Some consider IRDA fees of Rs 1000 as a constraint.  Sometimes, even those people who want to become advisors for the company who are not a localise but then the major problem that they face is that they have got no natural market, so they are very susceptible about their performance weather they would be able to generate business for the company or not, so they avoid to take up this challenge.  Some people ask for comparative analysis with LIC.  Non availability of part time training.  All small towns are not open for doing this business.  One person cannot take the life insurance agency of two different companies.

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 A time constraint is the biggest constraint in taking up the study. People are not ready to go for training. As the training is 17 days and it involves full day, so it becomes difficult for them to leave their offices or shops for such a long time.

BIBLIOGRAPHY
 Kothari C.R., Research Methodology, Methods and Techniques,  Balachander S., IC-33 Life Insurance, First Edition (2007).
 www.metlife.co.in  www.irdaindia.com  www.google.com

 The Economic Times

Questionnaire

Hello. This is PRASHANT SINGH BHADAURIYA from MET LIFE INSURANCE COMPANY LIMITED, doing summer training. I would appreciate it if you could lend me just 2 minutes of

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your time for my project on Insurance Industry. I would like to assess if you are interested in taking a business opportunity available in the insurance sector which requires know investment of yours. NAME:_________________________ ADDRESS:______________________ ______________________________OCCUPATION:______

1. ARE YOU EMPLOYED? A). YES B). NO

2. WHAT IS YOUR OCCUPTION? A). Government job B). Private job C). Business D). If other than mention

3. WHICH INSURANCE POLICY DO YOU HAVE? A).LIFE B).NON-LIFE C).BOTH

4. YOU INVEST YOUR MONEY IN A). Saving accounts B). Fixed deposit C). Shares D). Insurance E). Mutual funds

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F). If other then specify

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

6. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE PLAN? a) COVER FUTURE UNCERTAINITY b) TAX DEDUCTIONS c) FUTURE INVESTMENT d) ANY OTHER _________(Specify)

7. WHAT’S YOUR PERCEPTION ABOUT INSURANCE? a) A SAVING TOOL b) A TAX SAVING DEVICE c) A TOOL TO PROTECT FUTURE

8. ARE YOU SATISFIED WITH THE SERVICE AGENT? a) SATISFIED

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b) NOT SATISFIED c) NOT RESPONDING

9. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS? a) SAVING & RETURNS b) SECURITY c) TAX BENIFITS

10. HOW WOULD YOU RATE INDIAN INSURANCE COs? a) RIGID PLANS c) UNSATISFATORY SREVICES e) SATISFACTORY g) VERY GOOD b) NON USER FRIENDLY d) NON AGGRESSIVE f) GOOD

11. DO YOU WANT TO EARN EXTRA INCOME A) Yes B) No

12. DO YOU WANT TO BE A BUSINESS PARTENAR C) Yes D) No

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Thank You for your valuable time and for your information the agency business in insurance sector is successfully pursued by businessman, housewife, freelancers, IT Consultants/CA, professionals like Doctors, Architects, Trader Segments, Auto, Real Estate, etc.

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