Professional Documents
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Anubhav Metlife
Anubhav Metlife
ON
METLIFE INDIA
Submitted By:
Anubhav Tyagi
MBA(IT)
IIIT Allahabad
ACKNOWLEDGEMENT
Also I would like to thanks, Mr. Sachin Tyagi and Mr. Kumud.
K. Tyagi for correcting, formatting and polishing my work with his
special advices and guidance. Also I appreciate the staff of Metlife
India, Kailash Colony and facility support provided by them for the
past two months.
Indian Institute Of Information Technology-Allahabad
3
Anubhav Tyagi
MBA(IT)
IIIT Allahabad
OBJECTIVE
The insurance sector in India has come a full circle from being an
open competitive market to nationalisation and back to a
liberalised market again. Tracing the developments in the Indian
insurance sector reveals the 360-degree turn witnessed over a
period of almost two centuries.
1907: The Indian Mercantile Insurance Ltd. set up, the first
company to transact all classes of general insurance business.
In 1994, the committee submitted the report and some of the key
recommendations included:
1) Structure
2) Competition
3) Regulatory Body
4) Investments
• GIC and its subsidiaries are not to hold more than 5% in any
company (There current holdings to be brought down to this
level over a period of time)
5) Customer Service
Why Insurance ?
By taking life insurance a person can have peace of mind and need
not worry about the financial consequences in case of any
untimely death.
1. Life Insurance
2. General Insurance
Insurance - Life
Your family counts on you every day for financial support: food,
shelter, transportation, education, and much more. Insurance
provides you with that unique sense of security that no other form
of investment provides. It gives you a sense of financial support
especially during that time of crisis irrespective of the fluctuations
in the stock market. Insurance provides for your career goals right
from your childhood years.
Life insurance is all about making sure your family has adequate
financial resources to make those plans and dreams come true. It
provides financial protection to help your family or business to
manage after your death.
Whole life policies - Cover the insured for life. The insured does
not receive money while he is alive; the nominee receives the sum
assured plus bonus upon death of the insured..
Since a single policy cannot meet all the insurance objectives, one
should have a portfolio of policies covering all the needs.
Insurance - General
Since a single policy cannot meet all the insurance objectives, one
should have a portfolio of policies covering all the needs.
MET-LIFE BEGINS::
The new company insured Civil War sailors and soldiers against
disabilities due to wartime wounds, accidents, and sickness. In
1868, after several reorganizations and five difficult years, the
company decided to focus on the life insurance business. A new
company was chartered to sell "ordinary" insurance to the middle
class. The founders chose the name because they had been most
successful in New York City, or the "Metropolitan" District.
MetLife Today
Additional grants for disaster relief were made in 2001 and 2002
to a number of different organizations including the Children’s
Health Fund and the Renaissance Economic Development
Corporation.
For its future successes, the company can draw on the reservoir of
history that has produced an enduring set of corporate values
based on almost 135 years of integrity, social responsibility, strong
leadership, financial strength, and innovative products and
services
Vision / Mission
Core Values
CORPORATE GOVERNANCE
Corporate Partners
J&K Bank
the Bank not only as a financial heart but also the social heart of
the community.
The J&K Bank is the first state owned bank of the country and
53% of equity is held by the Govt. of J&K. The bank has a
consistent track record of growth and profitability. It has a unique
distinction of being banker to the J&K State Govt. and has also
been appointed by RBI as its agency in J&K, responsible for
carrying general banking business of the Central Govt. and
collection of taxes pertaining to the Central Board of Direct Taxes.
Dhanalakshmi Bank
Karnataka Bank
Other Partners
KARVY
GEOJIT SECURITIES
WAY2WEALTH
MINI MUTHOOTHU
1) Met100
Highlights
2) Met100 Gold
Highlights:
3) Met Sukh
Highlights
4) Met Bhavishya
Highlights
5) Met-Mortgage Protector
Highlights
6) Met Suvidha
premium paying term between 15-30 years i.e terms are available
for 15, 16, 17, 18…30 years. Met Suvidha has been developed
keeping in
mind people with shorter and irregular earning spans eg.
celebrities. The policy allows for flexibility in paying provides
protection to an individual whenever required, and offers tax
advantage. Also, being a participatory policy it is suitable for
people who would like to share the future prosperity of the
company by getting reversionary bonuses and terminal bonuses.
8) Met Suraksha
USP
• Financial security after retirement
• Multiple premium paying options
• Tax benefits throughout the premium paying options.
Highlights
Highlights
• Flexiblity
• Tax benefits
• Provides coverage upto 100 years of age
Highlights
12)MET-SMART
13)MET-ADVANTAGE
• Corporate sales
• Agency sales
Corporate/Group Sales:
Agency Sales:
o Sales Manager(SM)
o Assistant Sales Manager (ASM)
o Financial Advisors(FA)
But, insurance not being an off the shelf product and one which
requiring personal counseling and persuasion, distribution posed a
major challenge for the insurance companies. Further insurable
population of over 1 billion spread all over the country has made
the traditional channels of the insurance companies costlier. Also
due to
What is Bancassurance?
Advantages to banks
Advantages to insurers
Advantages to consumers
HYPOTHESIS
After meeting few clients and collecting some data it was known
that the clients are making their investment decisions with the
advice of different consultancy bodies.
Follow up
Maintain Relationships
Did you know it's far easier to re-sell an existing client than to sell
to someone who doesn't know and trust you? Did you also know
that you lose 1/12 of the value of a client every 30 days you don't
communicate with them?
So knowing these two facts, what's the easiest, most profitable
It's far easier to re-sell to an existing client. It's also... Far More
Profitable! to create a Back-End For Your Business. Once you've
spent the high upfront costs to acquire a new client, it's relatively
inexpensive to send them a letter promoting another product or
service.
Interest-Rate Risk:
Reinvestment risk:
Call Risk:
Default risk:
Inflation risk:
Risk and return are closely related with each other, they are
inversely proportional to each other. With increase in risk the rate
of return rises and with decrease in risk the rate of return
decreases.
There is one more type of risk that an individual have to face while
investing his/her money in any kind of business or other activity,
and that is Inflation.
no risk high
24% 10%
medium
32%
low
34%
no
22%
yes
78%
yes no
that whether they want to earn more money or not. This clearly
indicates that there is a huge market for the companies who are in
the sector of selling insurance products and other market linked
products.
The maximum people in this survey was the persons in the age
group of 25-35 who are young, dynamic and have a large network
of people around them. These young and dynamic persons should
be targeted because from them only there will be the upcoming
entrepreneurs.
Our survey also signifies this fact that flexi-working hours are the
choice of today. We surveyed a number of people(High net work
and High net worth individuals) and found out that what actually
they inclined too, so that we understand that while investing there
money and time in the business opportunity available in the
insurance sector, will they be giving there free time to it.
no
20%
yes
80%
yes no
So, while targeting the High network or High net worth individuals,
we should try to make them feel that they need not have to work
at bounded timings, and should make them feel the easiness of
working in flexi working hours and how they can make there
unproductive time, a productive one.
no
38%
yes
62%
yes no
So while targeting these High net worth and high net work
individuals, one should be clear about the opportunities available
The above analysis of our showed that HNI’s are very much eager
to go for the business opportunities available, but the next thing is
that, how many of them are aware of the income generation
source, i.e awareness of the people about these opportunity.
25 23
awareness
20
15 12
9
10 6
5
0
1
no. of people
Also the companies who want to target these HNI’s should know
the places where they will find these influential individuals. Such
influencial individual are generally attached to some or the other
community organizations such as by being a member of civic
group, social or political group or any of the religious groups.
Community Groups
14%
30%
32%
12%
12%
The main reason for this is mainly its late entry in the Indian
market (in 2001) wherein the older companies have already
have a stronger foot hold it is just a beginning for this and so it
will have to pay for its share of time to get to the roots. Again it
being a foreign company Indian mass cannot rely on the same
at such an early stage, they have this thinking that it may anytime
get shut down. They lack trust and faith in MetLife and so fear in
investing their money with it.
Know Met-life?
yes
40%
no
60%
yes no
VALIDITY OF HYPOTHESIS
The hypothesis we took when we had started the project was that
the HNI’s while investing there money consult with some
consultants, that can be a banker, a investment consultant or a
chartered accountant, also that most of these person want to have
extra income, but the major concern is the risk associated with it
i.e the risk should be less or no risk should be there. Adding to it
these HNI’s are inclined towards the new business opportunities
available and are pretty much aware about these opportunities
present. Also that they are not sure about the credibility of the
private companies and that’s why they do not want to invest there
money in the private sector i.e they prefer the public sector
companies..
Product Innovation
Distribution Network
1. Distribution Network:
2. FOS Management
Investment Management
Others
2. Health Insurance:
E – BROKING
FUTURE PERSPECTIVE
Challenges in Distribution
1. The threat of new players taking over the market has been
overplayed.
possible.
CRM with BI tools can help insurance firms monitor the ebb and
flow of customer behaviour, giving them a holistic 360-degree
view of their customers
Spending on CRM is up
saving, etc] have failed to emulate the LIC model because margins
are getting squeezed. There are several pain areas that new
insurance firms face—acquiring new customers, retaining them,
cross-selling products and controlling rising costs while providing
comprehensive support.
access. At the same time, they don’t want to pay a premium for
these services. High customer expectations and lower exit barriers
could lead to increased customer attrition.
Call center text mining: This tool can help improve the customer
experience by resolving complaints rapidly. Insurers are using
these tools to mine text from call center transcripts to identify
issues faced by customers.
Text mining tools also help detect and capture other useful
pieces of information around a customer’s life stage, financial
needs and product interests. These can be used to generate leads
and trigger cross selling. However, to be fully effective, customer
• Collaborative CRM
• Operational CRM
• Analytical CRM
SWOT ANALYSIS:
1. STRENGHTS:
• Brand name:
• International Backup:
2. WEAKNESSES:
• Weaker tie-ups
• Late entry
3. OPPORTUNITY:
`
With such a large population and the untapped market area
of this population Insurance happens to be a very big
opportunity in India. Nearly 80% of Indian populations are
without Life insurance cover and the Health insurance. This
is an indicator that growth potential for the insurance sector
is immense in India.
4. THREAT:
RECOMMENDATIONS:
These days everybody is going for things, which they see on air.
Advertising and Publicity hold a very strong role in any products
life cycle, it helps the public know about the existence of the
products and the role, which they play in the lives of the people.
MetLife believes in strong ethics and believes that actions speak
more than words and so want its work to prove for itself and so
doesn’t believe in advertising and publicizing itself but in the
Indian context it is a must for any company to publicize itself
because it holds the best medium to reach to its customers and
also to increase its customer base.
1. Implementation of CRM –
MetLife India mainly operates in all the metros and in certain big
cities. In order to expand its position and to reach to its customers
what MetLife needs is to set-up its branches in more cities and
should also get into the rural areas where there is a huge
untapped market. As MetLife already has a wide global set up it
can easily expand in India also in order to reach to the customers
and be available at their door steps.
4. Product diversification –
The insurance companies today must meet the need of the hour
for more and more personalized approach for handling the
customer. Today managing the customer intelligently is very
critical for the insurer especially in the very competitive
environment. Companies need to apply different set of rules and
treatment strategies to different customer segments. However, to
personalize interactions, insurers are required to capture customer
information in an integrated system.
APPENDICES :
Appendix A
SURVEY QUESTIONAIRE:
For the purpose of finding out the exact market scenario and
behavior of HNI’s I prepared a questionnaire in which there was
questions through which I would be able to understand various
mindsets of these HNI’s.
QUESTIONNAIRE
Name:
Organization:
Area of operation:
Age:
Address:
E mail:
• Saving
• Income generation
• Security
• Tax redemption
• Other (please specify)
• High
• Low
• Medium
• No risk
• Yes
• No
• Yes
• No
• Yes
• No
APPENDIX B
Bancassurance in India
• For banks which are not eligible for this joint-venture option,
an investment option of up to 10% of the net worth of the
bank or Rs.50 crores, whichever is lower, is available;
• Finally, any commercial bank will be allowed to undertake
insurance business as agent of insurance companies. This
will be on a fee basis with no-risk participation.
Issues to be tackled
Given the roles and diverse skills brought by the banks and
insurers to a Bancassurance tie up, it is expected that road to a
successful alliance would not be an easy task. Some of the issues
that are to be addressed are:
Appendix C
• Direct selling
• Corporate agents i.e. pushing the insurance product through
the directors or partners of a company
• Group selling
• Worksite marketing
• Brokers and cooperative societies
Winds of change
Appendix D
Insurance companies
LIFE INSURERS
Public Sector
Private Sector
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:
APPENDIX E
The Indian economy is witnessing one of its best ever Bull Run on
the bourses. Traditional rules for allocating assets ,making
investment decisions ,gauging upside and weighing risk-returns
are all changing.And changing rapidly.Those who had followed the
However, experts believe that 2005 will be The Year of the Equity
and the yellow metal – a view well corroborated by over two dozen
market movers , analysts , brokers ,fund managers and research
houses. For once , the verdict was unanimous. If you have
invested , stay invested. If you have not made allocations, give a
higher weightage to equity class-atleast 40% on a conservative
level and 60% for agggressive investors.The estimate on returns
also varied- from the very conservative 15% to as high as 30% for
one year ; and,over a three year period.
2005 will be The Year of the Equity and the yellow metal
Enthuse banks
For banks which have made wrong calls on reading the dollar
movement and dwindling treasury gains from risking interest rates
, judicious investments in equity is also a commercial necessity.
Non-index stocks
While stating that equity is the best option , experts take pains to
point out that this is meant for investors willing to take a longer
view and not for traders wearing a grabs of investors. Horizon
should be for atleast one year and more.Moving in and out may
not give decent returns. Quite a few believe that non-Sensex
stocks may be in a position to outperform index returns.
However , this requires a proper selection procedure and
adherence to investment discipline. Fund managers feel that
diversified schemes would be the best bet for the non-savvy
investors , though thematic schemes or sector funds may generate
better returns in a bull market.
Threat
The risk in 2005 could emerge from the fact that the flows , which
have come into the Indian equity markets , could have come from
the currency view. There is a sensus that the dollar is going to
weaken . Dollar funds are chasing non-dollar assets . India has
received some of these flows . If the dollar gets a pull back from
the exisiting level , some of these flows could return and it could
have an adverse impact on our Indian markets
Appendix F
Indian Institute Of Information Technology-Allahabad
117
For getting the best out of the team Motivation is a must and so is
inspiring the team to reach greater heights. For doing the same
support from the team leader as well as the Company is a must,
which simultaneously enhances the qualities essential for being a
Leader at MetLife and such qualities, are required to be awarded.