1ASummer training reportOnTraining undertaken atTitled“Unit-Linked Insurance Plan (ULIP) of MetLife India InsuranceCompany Limited”.Submitted in partial fulfillment for theAward of degree ofMaster of Business Administration2012-2013Submitted To: - Submitted By:-Miss: Ena Gupta Arif KhanRoll no: 10582700062ndyear
2Training certificateWe here by certify that MrArifKhan ,a student of MBA (Marketing), 2010-11, ofSun Institute of Management & Technology Shahjahanpur, has worked with us in thecapacity of a Project Trainee Cum Financial Advisor (FA)for aperiod of 45 days startingfrom 17thjune to 2ndAugust 2010.The title and scope of her project was “Unit-Linked Insurance Plan (ULIP) of Metlife IndiaInsurance Company Limited and comparative study of these plans of its three immediatecompetitors”The project was carried out under the guidance of Mr. AmitPatak ,Sales Manager, MetlifeIndia Insurance Company Limited (Shahjahnpur Branch)We found her to be a dedicated and diligent performer. We take this opportunity to wish herevery success in her future endeavors.Sincerely:-Mr. AmitPathakSales ManagerMetlifeIndia InsuranceShahjahanpur branch
3ACKNOWLEDGEMENTI express my sincere thanks to my project guide, MrAmitPathak, Designation SalesManager, Dep’t sales, for guiding me right form the inception till the successful completionof the project. I sincerely acknowledge him for extending their valuable guidance, support forliterature, critical reviews of project and the report and above all the moral supporthe/she/they had provided to me with all stages of this project.I would also like to thank my internal guide Miss. Ena Gupta for guide me throughoutArif KhanSIMT
4PrefaceThis research is a part of my summer training without which my M.B.A. isincomplete. Summer training is an integral part of every M.B.A. course. We can’t rely merelyupon the theoretical knowledge. It is to be complimented by practical know-how for it to befruitful. A positive and correct result of the classroom learning needs realities of practicalsituation.The training enables the management students to themselves see the workingconditions under which they have to work in the future. It gives them real feel of thecorporate world, which helps them to better equip themselves with the required skills.The training at Met Life Insurance Co. Ltd. for 45 days was a great learningexperience for me. Met Life Insurance Co. Ltd. is a well diversified insurance services grouphaving businesses in life insurance and Health insurance. With its performance, it has proveditself an alluring investing destination for investors.
5EXECUTIVE SUMMARYULIP is an innovative product of the Insurance Companies. It is an Investment cum Insuranceproduct. Its unique features have made it popular among the investorsA research study wascarried out, based on the conditions prevailing in the Insurance Market and the with a view todetermine the investors preference for ULIP plans and also the comparison of the plans ofMetLife and its 3 immediate competitors in Jaipur.The topic of the project was “Unit-Linked Insurance Plan (ULIP) of MetLife IndiaInsurance Company Limited- determining its preference, most suitable age forinvesting and comparative study of these plans of its three immediate competitors”.In order to facilitate data collection for research study, canopies were set up at three places inJaipur itself. The data was collected by means of the Questionnaire designed for datacollection, which was analyzed with the help of tables and diagrams.In order to facilitate research study, parameters and features of ULIP, were identified, whichwould be of help in designing the questionnaire.These parameters for determining customer preference for ULIP and also the comparativestudy were identified based on the conditions prevailing in the investment market and theunique benefits and flaws in the Unit Linked Insurance Plan (ULIP).Since, ULIP involves investment of the premiums paid in the share market, it was clear thatrecession would have impacted people’s decision to invest.To elicit people’s opinion as regards the impact of recession on the decision to invest inULIP, questions were designed and included in the questionnaire.Majority of the investors were found to have lost money due to investment in ULIP.But since the share market in India has been showing improvements, respondents werehopeful of high returns.
6This is followed by a two day Compliance and Sales Training (CST), in which informationregarding the company products is given. This is to better equip the Financial Advisors (FA)to sell and close deals.
7TABLE OF CONTENTSS.No. Topic Page no.1. Introduction of Insurance industry2. Met life insurance co.ltd3. Research methodology3.1 Title of the study3.2 Duration of the project3.3 Objective of study3.4. Type of research3.5. Sample size and method of selecting sample3.6 Limitation4. Facts & Findings5. Analysis & Interpretation6. SWOT analysis7. Conclusion8. Recommendation and Suggestions9. Appendix10. Bibliography
91. INSURANCE INDUSTRY IN INDIATHE MEANING OF INSURANCE:-Insurance is a policy from a large financial institution that offers a person, company, or otherentity reimbursement or financial protection against possible future losses or damages.Insurance is important to understand for anybody that is considering buying an insurancepolicy or simply understanding the basics of finance. Insurance is a hedging instrument usedas a precautionary measure against future contingent losses. This instrument is used formanaging the possible risks of the future.Insurance is bought in order to hedge the possible risks of the future which may or may nottake place. This is a mode of financially insuring that if such a incident happens then the lossdoes not affect the present well-being of the person or the property insured. Thus, throughinsurance, a person buys security and protection.A simple example will make the meaning of insurance easy to understand. A biker isalways subjected to the risk of head injury. But it is not certain that the accident causing himthe head injury would definitely occur. Still, people riding bikes cover their heads withhelmets. This helmet in such cases acts as insurance by protecting him/her from any possibledanger. The price paid was the possible inconvenience or act of wearing the helmet; this ieequivalent to the insurance premiums paid.Though loss of life or injuries incurred cannot be measured in financial terms, insuranceattempts to quantify such losses financially.Insurance can be defined as the process ofreimbursing or protecting a person from contingent risk of losses through financial means, inreturn for relatively small, regular payments to the insuring body or insurance company.Insurance can range from life to medical to general (residential, commercial property,natural incidents, burglary, etc).Life Insurance:-
10It insures the life of the person buying the Life Insurance Certificate. Once a LifeInsurance is sold by a company then the company remains legally entitled to make payment tothe beneficiary after the death of the policy holder.Medical Insurance:-This is also known as mediclaim. Here, the policy holder is entitled to receive theamount spent for his health purposes from the insurance company.General Insurance:-This insurance type involves insuring the risks associated with the general life such asautomobiles, business related, natural incidents, commercial and residential properties, etc.1.1 INDIAN INSURANCE MARKET – HISTORYThe insurance sector in India has come a full circle from being an open competitive market tonationalisation and back to a liberalised market again. Tracing the developments in the Indianinsurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.A BRIEF HISTORY OF THE INSURANCE SECTOR:-The business of life insurance in India in its existing form started in India in the year 1818with the establishment of the Oriental Life Insurance Company in Calcutta.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 toregulate the life insurance business.1928: The Indian Insurance Companies Act enacted to enable the government tocollect statistical information about both life and non-life insurance businesses.1938: Earlier legislation consolidated and amended to by the Insurance Act with theobjective of protecting the interests of the insuring public.
111956: 245 Indian and foreign insurers and provident societies taken over by thecentral government and nationalised. LIC formed by an Act of Parliament, viz. LICAct, 1956, with a capital contribution of Rs. 5 crore from the Government of India.The General insurance business in India, on the other hand, can trace its roots to the TritonInsurance Company Ltd., the first general insurance company established in the year 1850 inCalcutta by the British.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 allclasses 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 solvencymargins and the Tariff Advisory Committee set up.1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised thegeneral insurance business in India with effect from 1st January 1973.107 insurers amalgamated and grouped into four companies’ viz. the NationalInsurance Company Ltd., the New India Assurance Company Ltd., the OrientalInsurance Company Ltd. and the United India Insurance Company Ltd. GICincorporated as a company.
12INSURANCE SECTOR REFORMS:In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N.Malhotra was formed to evaluate the Indian insurance industry and recommend its futuredirection.The Malhotra committee was set up with the objective of complementing the reformsinitiated in the financial sector. The reforms were aimed at "creating a more efficient andcompetitive financial system suitable for the requirements of the economy keeping in mindthe structural changes currently underway and recognizing that insurance is an important partof the overall financial system where it was necessary to address the need for similarreforms…"In 1994, the committee submitted the report and some of the key recommendations included:1) Structure:-Government stake in the insurance Companies to be brought down to 50%.Government should take over the holdings of GIC and its subsidiaries so that thesesubsidiaries can act as independent corporations.All the insurance companies should be given greater freedom to operate.2) Competition:-Private Companies with a minimum paid up capital of Rs.1bn should be allowed toenter the industry.No Company should deal in both Life and General Insurance through a single entity.Foreign companies may be allowed to enter the industry in collaboration with thedomestic companies.Postal Life Insurance should be allowed to operate in the rural market.Only One State Level Life Insurance Company should be allowed to operate in eachstate.
133) Regulatory Body:-The Insurance Act should be changed.An Insurance Regulatory body should be set up.Controller of Insurance (Currently a part from the Finance Ministry) should be madeindependent.4) Investments:-Mandatory Investments of LIC Life Fund in government securities to be reduced from75% to 50%.GIC and its subsidiaries are not to hold more than 5% in any company (There currentholdings to be brought down to this level over a period of time).5) Customer Service:-LIC should pay interest on delays in payments beyond 30 days.Insurance companies must be encouraged to set up unit linked pension plans.Computerisation of operations and updating of technology to be carried out in theinsurance industry The committee emphasized that in order to improve the customerservices and increase the coverage of the insurance industry should be opened up tocompetition.But at the same time, the committee felt the need to exercise caution as any failure on the partof new players could ruin the public confidence in the industry. Hence, it was decided toallow competition in a limited way by stipulating the minimum capital requirement of Rs.100crores. The committee felt the need to provide greater autonomy to insurance companies inorder to improve their performance and enable them to act as independent companies witheconomic motives. For this purpose, it had proposed setting up an independent regulatorybody.
14Insurance Industry:-The committee emphasized that in order to improve the customer services andincrease the coverage of the insurance industry should open up to competition. But at thesame time, the committee felt the need to exercise caution as any failure on the part of newplayers could ruin the public confidence in the industry.Hence, it was decided to allow competition in a limited way by stipulating theminimum capital requirement of Rs. 100 crores. The committee felt the need to providegreater autonomy to insurance companies in order to improve.Insurance Regulatory Authority:-On the recommendations of the Malhotra Committee, government has set up aninterim Insurance Regulatory Authority (IRA), with a view to activate an insuranceregulatory apparatus essential for proper monitoring and control of the insurance industry.The IRA is headed by a chairman who is also Controller o0f insurance andchairman of TBC. The other members of the IRA, not exceeding seven in number of whomnot more than three shall serve full time, shall be nominated by the central government.4 I’s Of Insurance Service:-The 4 I’s refers to the different dimensions/ characteristics of any service. Unlikepure product, services have its own characteristics and its related problems. So the serviceprovider needs to deal with these problems accordingly.The service provider has to design different strategies according the varying feature ofthe service. These 4 I’s not only represent the characteristics of different services but also theproblems and advantages attached to it.These 4 I’s can be broadly classified as:• Intangibility• Inconsistency• Inseparability• Inventory
15• Intangibility:-Insurance is a guarantee against risk and neither the risk nor the guarantee istangible. Hence, insurance rightly come under services, which are intangible. Efforts havebeen made by the insurance companies to make insurance tangible to some extent byincluding letters and forms.• Inconsistency:-Service quality is often inconsistent. This is because service personnel have differentcapabilities, which vary in performance from day to day. This problem of inconsistency inservice quality can be reduced through standardization, training and mechanization.• Inseparability:-Services are produced and consumed simultaneously. Consumers cannot and do not separatethe deliverer of the service from the service itself. Interaction between consumer and theservice provider varies based on whether consumer must be physically present to receive theservice.• Inventory:-No inventory can be maintained for services. Inventory carrying costs are moresubjective and lead to idle production capacity. When the service is available but there is nodemand, cost rises as, cost of paying the people and overhead remains constant even thoughthe people are not required to provide services due to lack of demand.In the insurance sector however, commission is paid to the agents on each policythat they sell. Hence, not much inventory cost is wasted on idle inventory. As the cost ofagents is directly proportionate to the policy sold.
16Some of the General Rules:-1. Mis-description:-The insurance policy shall be void and all the premiums paid by insured may beforfeited by the insurance company in the event of mis-presentation or misdeclaration and/ornon-disclosure of any material facts.2. Reasonable Care:-The insured shall take all reasonable steps to safeguard the property insured against anyloss or damage. Insured shall exercise reasonable care that only competent employees areemployed and shall take all reasonable precautions to prevent all accidents and shall complywith all statuary or other regulations3. Fraud:-If any claim under the policy may be in any respect fraudulent or if any fraudulentmeans or device are used by the insured or any one acting on the insured’s behalf to obtainany benefit under the insurance policy, all the benefits under the insurance policy may beforfeited.4. Few Basic Principles Of Life Insurance Are :-1. Insurable interest2. Utmost good faith3. Subrogation4. Contribution5. Indemnity5 Risks of loss not covered under general insurance are:The loss or damage or liability or expenses whether direct or indirect occasion byhappening through or arising from any consequences of war, invasion, act of foreign enemy,hostilities (whether war be declared or not), civil war, rebellion revolution, civil commotionor loot or pillage in connection therewith and loss or damage caused by depreciation or wear
17and tear. However the risk of loss or damage by war can be insured by payment of additionalpremium in some cases only.Product Levels:In this figure there is a nucleus or core in the center, which is supported by seriesof tangible and intangible features and benefits and these form a cluster around the coreproduct.AUGMENTEDCOREPOTENTIALEXPECTEDLevel Type Of Service:-Contents Insurance sector1 . Core service Basic service product •Life insurance policyNon-life insurance policy2. Expected serviceBasic product and minimum purchase conditions that must be met.• After sales service• Low claim settling period.3. Augmented serviceSomething different, which enables one product to be differentiated from other• Technology• Online premium payment
18• Payment through credit cards• Standing instruction to bank4. Potential serviceFeatures that attract the customers and are useful to them.• Maturity claims settled on or before the maturity date.Loans:-The core product of insurance company is insuring life and non life products. Peopleopt for this service as they want to secure their life, people dependent on them and othervaluable things in life.The time factor plays an important role while providing service to the customer. Thecustomer expects that the procedures for settling the claim should be short and not much timeconsuming. They should get the benefits of the service as soon as possible.Today the technology is boosting in each and every field. Insurance is not anexception. Companies have started providing customers facility of online payment ofpremium through their websites.They also provide online assistant to the customer the policy status and how to calculate thepremium. To calculate the premium they just need the present age, the type of police, sumassured, and accident covered if any.By filling in this information you can calculate the amount of premium you have to pay. Thecustomer can pay their premiums by means of credit cards or can also give standinginstruction to the bank in order to pay their monthly premiums.The insurance companies also provide loan facilities against their policies. At present loansare granted on unencumbered polices as follows:Up to 90% of the Surrender Value for policies, where the premium due is fully paid up, and Up to 85% of the Surrender Value for policies where the premium due is partly paidup.The minimum amount for which a loan can be granted under a policy is Rs150. The rate ofinterest charged is 10.5% p.a., payable half-yearly.
19Loans are not granted for a period shorter than six months, or on the security of lost policies(the assured must have the duplicate policies) or on policies issued under certain plans.Certain types of policies are, however, without loan facility.
20FREQUENT TERMS USEDAgent:An insurance company representative licensed by the state, who solicits, negotiates oreffects contracts of insurance, and provides service to the policyholder far the insurer.Actual Total Loss:It is a loss where the goods are completely lost and become irrecoverable additionalcover:An insurance policy extended to cover additional risk perils such as strikes. Riots andCivil commotion etc on payment of extra premium.Agreed Value Policy:-Policy which undertakes to pay a specified amount in case of total loss.Under this case the policy does not take into account the current market value.Assessor:-Person who estimates the value of goods for the purpose of apportioning the sum payable bythe underwriters to settle the claims.Also called as Surveyor.Assured:-Party indemnified against 19ss by means of insurance.Burglary:-It is a theft committed by breaking into or out of the premises. Evidence of breaking In, Isnecessary.Coverage:-The scope of protection provided under a contract of insurance; any of several risks coveredby a policy.Cargo insurance:-A generic term used in both inland marine and ocean marine insurance to designate the type’sof insurance available to provide coverage for cargo that is being transported by truck, rail,air, ship, or boat.
21Certificate of Insurance:-A statement of coverage issued to an individual insured, specifying the insurance benefits andprincipal provisions applicable to the member.Claim:-The formal request by a policyholder or a claimant for payment of loss under an insurancepolicy.Co-insurance:-A provision under which an insured who carries less than the stipulated percentage ofinsurance to value, will receive a loss payment that is limited to the same ration which theamount of insurance bears to the amount required;Cover Note:-Is the document that is issued provisionary pending issuance of insurance Policy.Indemnity:-Legal principle that specifies an insured should not collect more than the actual cash value ofa loss but should be restored to approximately the same financial position as existed beforethe loss.Insurable Interest:-A condition in which the person applying for insurance and the person who is to receive thepolicy benefit will suffer all emotional or financial loss, if any untouched event occurs.Without insurable interest, an insurance contract is invalid,Insurance:-Social device for minimizing risk of uncertainty regarding loss by spreading the risk over alarge enough number of similar exposures to predict the individual chance of loss.Net Premium:-
22The portion of premium rate which is designed to cover benefits of the policy, excludingexpenses, contingencies and profit.Policy:-Is the legal document that has the conditions of the insurance contract?Premium:-It is the amount paid to secure an insurance policy.Salvage:-Recovery made by an insurance company by the sale of property which has been taken overfrom that insured as a part of loss settlement. The remains of damaged vehicle or any otherproperty.Third party:-Any person other than the two parties signing an insurance, contract.Underwriting:-Underwriting of a risk involves consideration of material, facts on the basis of which a
23MAJOR POLICY CHANGES:-Insurance sector has been opened up for competition from Indian private insurancecompanies with the enactment of Insurance Regulatory and Development Authority Act,1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory andDevelopment Authority (IRDA) was established on 19th April 2000 to protect the interests ofholder of insurance policy and to regulate, promote and ensure orderly growth of theinsurance industry. IRDA Act 1999 paved the way for the entry of private players into theinsurance market which was hitherto the exclusive privilege of public sector insurancecompanies/ corporations. Under the new dispensation Indian insurance companies in privatesector 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 orthrough its subsidiary companies or its nominees, do not exceed 26%, paid up equitycapital of such Indian insurance company;The companys sole purpose is to carry on life insurance business or general insurancebusiness 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 beenprescribed as Rs.200 crores.The Authority has notified 27 Regulations on various issues which include Registration ofInsurers, Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation ofInsurers to Rural and Social sector, Investment and Accounting Procedure, Protection ofpolicy holders interest etc. Applications were invited by the Authority with effect from 15thAugust, 2000 for issue of the Certificate of Registration to both life and non-life insurers. TheAuthority has its Head Quarter at Hyderabad.
24PROTECTION OF THE INTEREST OF POLICY HOLDERS:-IRDA has the responsibility of protecting the interest of insurance policyholders. Towardsachieving this objective, the Authority has taken the following steps:IRDA has notified Protection of Policyholders Interest Regulations 2001 to providefor: policy proposal documents in easily understandable language; claims procedurein both life and non-life; setting up of grievance redressal machinery; speedysettlement of claims; and policyholders servicing. The Regulation also provides forpayment of interest by insurers for the delay in settlement of claim.The insurers are required to maintain solvency margins so that they are in a positionto meet their obligations towards policyholders with regard to payment of claims.It is obligatory on the part of the insurance companies to disclose clearly the benefits,terms and conditions under the policy. The advertisements issued by the insurersshould not mislead the insuring public.All insurers are required to set up proper grievance redress machinery in their headoffice and at their other offices.The Authority takes up with the insurers any complaint received from thepolicyholders in connection with services provided by them under the insurancecontract.1.2 INSURANCE MARKET - PRESENTThe insurance sector was opened up for private participation eight years ago. For years now,the private players are active in the liberalized environment. The insurance market haswitnessed dynamic changes, which include presence of a fairly large number of insurers inboth life, and non-life segment. Most of the private insurance companies have formed jointventures with well-recognized foreign players across the globe. India’s life insurance markethas grown rapidly from 2001 to 2009.
25New business premiums have grown at 41% compounded annual growth rate (CAGR). Lifeinsurance market in India will double by2012.1.3 CAPITAL REQUIREMENTS AND FOREIGN PARTICIPATION:-Minimum capital requirement for direct life and Non-life Insurance company isINR 1000 million and that for reinsurance company is INR 2000million.A maximum 26% foreign equity stake is allowed in direct insurance and reinsurancecompanies. In the 2004-05 budget, the Government proposed for increasing the foreignequity stake to 49%, this has now come into effect.There are a total of 13 life insurance companies operating in India, of which one isa Public Sector Undertaking and the balance 12 are Private Sector Enterprises.INSURANCE COMPANIES:IRDA has so far granted registration to 12 private life insurance companies and 9 generalinsurance companies. If the existing public sector insurance companies are included, there arecurrently 13 insurance companies in the life side and 13 companies operating in generalinsurance business. General Insurance Corporation has been approved as the "Indianreinsurer" for underwriting only reinsurance business.Particulars of the life insurance companies and general insurance companies including theirweb address is given below:
26Table 2.1 Different Insurance companies operating in the IndianInsurance SectorLIFE INSURERS WebsitesPublic SectorLife Insurance Corporation of India www.licindia.comPrivate SectorAllianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.inBirla Sun-Life Insurance Company Limited www.birlasunlife.comHDFC Standard Life Insurance Co. Limited www.hdfcinsurance.comICICI Prudential Life Insurance Co. Limited www.iciciprulife.comING Vysya Life Insurance Company Limited www.ingvysayalife.comMax New York Life Insurance Co. Limited www.maxnewyorklife.comMetLife Insurance Company Limited www.metlife.comOm Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.comSBI Life Insurance Company Limited www.sbilife.co.inTATA AIG Life Insurance Company Limited www.tata-aig.comAMP Sanmar Assurance Company Limited www.ampsanmar.comDabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com
27GENERAL INSURERSPublic SectorNational Insurance Company Limited www.nationalinsuranceindia.comNew India Assurance Company Limited www.niacl.comOriental Insurance Company Limited www.orientalinsurance.nic.inUnited India Insurance Company Limited www.uiic.co.inPrivate SectorBajaj Allianz General Insurance Co. Limited www.bajajallianz.co.inICICI Lombard General Insurance Co. Ltd. www.icicilombard.comIFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.inReliance General Insurance Co. Limited www.ril.comRoyal Sundaram Alliance Insurance Co. Ltd. www.royalsun.comTATA AIG General Insurance Co. Limited www.tata-aig.comCholamandalam General Insurance Co. Ltd. www.cholainsurance.comExport Credit Guarantee Corporation www.ecgcindia.comHDFC Chubb General Insurance Co. Ltd.
292.1 MetLife: A Life Insurance Giant:-With over 140 years of experience in Insurance business Metlife has been named by Forbesas the Best Managed Insurance Co.in the Industry for 2008, an honour based on the trackrecord of the financial performance, innovation,leadership and execution shown by Metlife over years.Metlife has also been ranked 43 on the Fortune 500(2008), the MetLifecompanies are one of the world’s largest, strongest and most respected financialorganizations. To add to its cap is another feather in the form of its No.1 ranking in severalgroup product areas, including life, disability, auto and home, as well as institutionalannuities.Metlife serves over 90 of the top 100 FORTUNE 500 companies. It has around $558.6Billion Assets under Management, more than 49,400 employees worldwide and more than 70million customers around the world.Metlife is a truely global organization with distribution access to over 47 countries, some ofwhich include The Americas (Argentina,Brazil,Chile,Mexico, United States,Uruguay);(EMEIA) (Belgium,Ireland, Poland, UK (3), India);Asia Pacific (Australia, China,Hong Kong, Japan, South Korea, Taiwan)2.2 Metlife: Vision:-To build financial freedom for everyone.2.3 Metlife: Core Values:-The core values of Metlifeinclude : People Count , Financial Strength ,Partnership, PersonalResponsibility, Innovation and Integrity & Honesty.
30People Count: Its all about People, MetLifes key resource. MetLife will succeedbecause we are winning from within.Financial Strength: Operating with an intense dedication to managing monetaryresources for strong business results.Partnership: Functioning productively in teams towards a common purpose; realisingthe collective power of diverse work-groups.Personal Responsibility: "Coming into your own", performing as a Leader to bereally effective and successful by acting and making decisions independently to getresults.Innovation: Continuously creating and introducing new and original ideas and waysof doing things.Integrity & Honesty: Conducting all business endeavours with truth, sincerity andfairness.2.4 Metlife India Insurance Company Limited (Metlife):-MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and wasincorporated as a joint venture between MetLife International Holdings, Inc., The Jammu andKashmir Bank, M. Pallonji and Co. Private Limited and other private investors, with 25%stake in the hands of Metlife International and the sremaining 75% stake with its IndianPartners.Besides, its Bancassurance Partners include Axis Bank, Barclays Bank, DhanalakshmiBank, J & K Bank, and Karnataka Bank.Metlife commenced its operations in India in 2001 and since then the company has shown adouble digit growth, even in 2008 the company showed a growth of 14%.
31MetLife is one of the fastest growing life insurance companies in the country. It serves itscustomers by offering a range of innovative products to individuals and group customers atmore than 600 locations through its bank partners and company-owned offices. MetLife hasmore than 50,000 Financial Advisors, who help customers achieve peace of mind across thelength and breadth of the country.MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas,Asia Pacific and Europe. Affiliated companies, outside of India, include the number one lifeinsurer in the United States (based on life insurance inforce), with over 140 years ofexperience and relationships with more than 90 of the top one hundred FORTUNE 500®companies. The MetLife companies offer life insurance, annuities, automobile and homeinsurance, retail banking and other financial services to individuals, as well as groupinsurance, reinsurance and retirement and savings products and services to corporations andother institutions.Metlife in India enjoys a Pan India Geographical Presence with over 112 branches in over 87cities. (As in May 2008)..Table 2.1 Performance of Metlife based on Key ParametersParameters 2008 August 2010Offices 49 114Agency Units 101 222Paid Up capital( in crores) 536 1480AFYP (in Crores) 220 555.2Market share 1.8% 3%Banca tie ups 3 5Agent base <10,000 31,895
32FACT SHEETFounded 2001Started Operation FY 2001-02Headquarters Bangalore, IndiaWorld Wide Web Address www.metlife.co.inManaging Director Rajesh RelanEmployees 7688Financial Advisors 56,072Bancassurance Tie-Ups 5 (J&K Bank/Axis Bank/DhanalakshmiBank/Karnataka Bank/Barclays)Number Of Products Over 20 productsPresence Through MetLife Offices 192 offices in 131 citiesPresence Through Bank Partners 1910 offices in 686 cities
33Core Team Member of Met Life India Insurance Co.Ltd:-Rajesh RelanManaging DirectorMSVS Phanesh MurthyAppointed ActuaryShilpaVaidDeputy Director- Human ResourcesGaurav SharmaDirector - Customer Service and OperationsGirishMalhotraDirector- AgencyKR Anil KumarDirector - Financial Planning& ControllerKS RaghavanChief Administrative OfficerPreetinderChadhaDeputy Director - Corporate Sales & TrainingP. S. SankaranDirector – Business SupportSameer BansalDirector- BA & BPVijay RaghavanDirector - Marketing & Strategy
383.1 Introduction :-The marketing of insurance policies involves unique practices when compared to themarketing of any other product. Insurance policies are intangible innature, so people do not realize the need and importance of insurance.But with the advent of private players in the Indian Insurance Sector, there has been anincrease in the awareness among the general public as regards the importance of insurance.At the same time, the products offered by insurance companies have been innovated over aperiod of time.Unit Linked Insurance Plans (ULIP) is also an outcome of the innovation undertaken by theinsurance companies.3.1.1 About Unit Linked Insurance Plans (ULIP):-Till recently, individuals seeking to provide protection to their family had no other optionexcept a life insurance term plan. The plan promised a stipulated amount to the family ofpolicyholder in the event of his death.However, the insurance sector has evolved over the last few years and a number of innovativeproducts have been introduced in the market. One product category that is increasinglycatching the fancy of individuals is the Unit linked Insurance Plan (ULIP).These plans, are a combination of insurance and investment and they provide thepolicyholder with life cover and in addition to that offer the opportunity to earn returns on thepremium paid.ULIPs give investors the best of both worlds -- risk cover and high returns. These combinelife cover with the potential for a bigger nest egg. ULIPs are insurance policies in which theinvestment element, expenses and benefits are to the account of the policy holder.
39The unit linked product in the long run is a very effective and efficient product on offer forthe customers, both in terms of returns and costs. The basic investments are identifiable. Theassets of the fund can be equity share, fixed income securities, money market instrument,property and derivative instruments.ULIPs are riding high these days on their equity investments, increasingly making theirpresence felt as savings and investment tools, a trend that is getting reflected in terms of bothperformance and average ticket size.Unit-linked products, the domain of which is seen to be expanding steadily, will continue toattract sections of the investing populace. (based on the performance of these plans andpeople’s interest towards this innovative product.)ULIPs, which are contemporary products across the world, are fast gaining in popularity inIndia. Some of the factors contributing to their success are the simplicity, transparency andflexibility of these plans.These policies are adaptable to the changing needs of the customers over their lifetime. Theyalso give the choice to the customers to select an investment fund based on their risk profileand offer all the benefits of a traditional life insurance plan.The response to these plans is so encouraging that more and more players launching theirversions of ULIP.Today, ULIP accounts for the bulk of the first year premium income that mostinsurers earn going as high as 95 per cent for Birla Sun Life and ICICI Prudential.
40According to data released by IRDA for April- December 2006, ULIP constituted almost50% of the total portfolio in terms of premium income, a rise of 5% over the previouscorresponding period.Premium earned from ULIP increased as much as 127% in the same period. Even in LICduring the previous fiscal, ULIPs contributed 72% ofindividual business portfolio, compared to just 50% during 2005-06.Share of traditional products in private insurers’ total portfolio has declined from 21% duringApril-December 2005 to 13% in April-December 2006.In case of LIC in declined from 68% to 61% during the same period.In simple terms ULIP is an Investment cum Insurance product, which works as a mutual fundon one hand and an insurance product on the other hand. The entire investment made is keptin the guaranteed fund in the first year.This guaranteed fund forms the basis of loyalty additions paid by the company in the 10thyear and later years.The entire amount is invested in the share market from the second year onwards, dependingon the debt-equity ratio decided by the policy holder.On the insurance side of ULIP, the policy holders are offered 5 or 10 or 20 times of thepremium paid as insurance cover as chosen by them.ULIPs being more lucrative in terms of returns associated with them, are preferred bycustomers over other insurance products.The Research study is directed towards determining the Customers preference for ULIPs. Inaddition to this the age influences the people’s decision to invest in UlIPs, so finding out themost suitable age for ULIP investors would help the company in segmenting and accordinglytargeting people based on the need analysis.
413.1. Title of the Study:-Unit-Linked Insurance Plan (ULIP) of Metlife India Insurance Company Limited andcomparative study of these plans of its three immediate competitors”3.2 Duration of the Project:-45 days (17 June to 2 August)3.3 Objectives of Research Study:-To determine Customer’s preference for ULIPTo study the preference of the customer among the selected private insurancecompanies viz. Bajaj Allianz, ICICI Prudential, Reliance Life as compared to MetlifeIndiaTo determine the parameters on which the ULIP plans of METLIFE needimprovement.To determine the degree (level) of impact of age on the buying behaviour and findingout the most suitable AGE for ULIP
423.4 Type Of Research:-Quantitative as well as Qualitative3.5 Sample Size And Method Of Selecting Sample:-Research Design QuestionnaireData CollectionThere are two types of data collection they are as follows1. Primary data and2. Secondary data1. Primary Data:-it is collected through survey. It can be collect in following ways:-ObservationPersonal interviewTelephone interviewsMailing of questionnaireSchedules2. Secondary Data:-they are those which have already been collected by someoneelse which has already been passed through statistical process. Sources of secondary data-InternetReportsNewspapersBooks, etc.Sampling Method:- Simple random sampling
443.5.1 Methodology:-The study was aimed at measuring the customer’s preference for life insurancecompanies and the comparison of ULIP plans of the selected companies on basis of variousparameters considered essential for determining where METLIFE’s ULIP plans could beimproved.For the above purpose a survey was conducted in Jaipur. A questionnaire was designed andused as a means to collect. For data collection Canopies were set up outside :a. Central Park ( C-Scheme) (50 questionnaires)b. Secretarait (15questionnaires)c. Crystall Mall ( 35questionnaires)In all 100 questionnaires were filled up during the data collection process.The methods used for data collection were:1. Field survey method2. Personal interview technique3. Secondary sources viz. company databaseThe data collected was represented in the form of tables for drawinginferences. Quantitative techniques like averages, percentages, range, two-way tables, chisquare test analysis were applied as required.
45The level of preference, perception of the customers about the product and company wereidentified by means of questions in the questionnaire asking the respondents to rate theirpreferences on a scale of 1 to 7.For the representation of data various charts and graphs have been used as per requirement.In order to make the comparative study possible, parameters were chosen and questions weredesigned eliciting ratings from the respondents. These ratings were tabulated and thenrepresented by means of line diagrams.3.5.2 Time And Cost Expectation:-The time involved in the data collection was 3 days as canopies were set up on theabove mentioned places in Jaipur on 3 different days.This was followed by analysis of the data collected with the help of Excel and spssDuring the process of data collection, considerable amount of time was spent inexplaining the purpose and the exact nature of the data required from thequestionnaires filled. In addition to this, in some cases questions had to be explainedto the respondents. Moreover, for some questionnaires had to be filled in as they werenot so well read and literate.The cost involved was basically on the stationary as the canopies were provided by thecompany.(Metlife)In addition to this, when we set canopies outside the above mentioned places, we alliedwith a clinic owner, wherein the owner provided us with weight measuring machines
46and blood pressure measuring equipments. In return forthis, the pamphlets of theclinic were distributed along with the company brochures.3.5.3 Factors Influencing The Buyers Decision To Invest In ULIP:-The decision to invest in ULIP plans varies from person to person. It dependsupon many factors. The factors can be classified into personal, social, economic,psychological and company related variables.Age and experience of policyholder are personal factors, while education is a social factor.Economic factors include occupation, income and wealth, and the psychological factorsconsist of perception, satisfaction about the services rendered by insurance companies, theimpact of advertisement and personal selling made by insurance companies on policyholders.Amongst the above mentioned factors, age directly influences people’s decision to invest inULIP. Questions regarding the scaling of age as a factor influencing the investment decisionhave been included in the questionnaire as also determining the most suitable age forinvestment in ULIP plans, based on customer preferences. This would be of great help to thecompany in segmenting and accordingly target prospective customers.Comparative study being one of the objectives of the research study, four parameters namelypremium charged, flexibility, number of funds and transparency were identified. These areeffectively the factors which influence the people’s selection of the Insurance Company,keeping in mind the product (ULIP) features.Questionnaire hasbeen designed to elicit preferences of the respondents for the selectedInsurance Companies, on the above mentioned parameters.
473.6LIMITATIONS:Some of the difficulties and limitations faced by me during my training are asfollows: Lack of awareness among the people – This is the biggest limitation foundin this sector. Most of the people are not aware about the importance and thenecessity of the insurance in their life. They are not aware how useful life insurancecan be for their family members if something happens to them. Perception of the people towards Insurance sector – People stillconsider insurance just as a Tax saving device. So today also there is always a rushto buy an Insurance Policy only at the end of the financial year like January,February and March making the other 9 months dry for this business. Insurance does not give good returns – Still today people think thatInsurance does not give good returns. They are not aware of the modern Unit LinkedInsurance Plans which are offered by most of the Private sector players. They arestill under the perception that if they take Insurance they will get only 5-6% returnswhich is not true nowadays. Nowadays most of the modern Unit Linked InsurancePlans gives returns which are many times more than that of bank Fixed deposits,National saving certificate, Post office deposits and Public provident fund. Lack of awareness about the earning opportunity in the Insurancesector– People still today are not aware about the earning opportunity that theInsurance sector gives. After the privatization of the insurance sector many privategiants have entered the insurance sector. These private companies in order to beatthe competition and to increase their Insurance Advisors to increase their reach tothe customers are giving very high commission rates but people are not aware ofthat. Increased competition – Today the competition in the Insurance sector hasbecame very stiff. Currently there are 14 Life Insurance companies working in Indiaincluding the LIC (life insurance Corporation of India). Today each and everycompany is trying to increase their Insurance Advisors so that they can increase theirreach in the market. This situation has created a scenario in which to recruit Lifeinsurance Advisors and to sell life Insurance Policy has became very very difficult
48 Others:-Time constraintsSmall sample sizeBusy schedule of corporate guide and his team.Business Month End Closing
504.1 Customer Preference For ULIPs:-ULIP being an innovative product, provides the customers with both investment andinsurance options. In addition to this ULIP provides other benefits like, Capital Appreciation,Inflation Protection, Tax Benefit. However, people hesitate to invest in ULIP due to the risksassociated with it and also the illiquidity associated with it, due to the Lock-in-Period.(3Years)With a view to determine the customers preference for ULIP, two broad factors wereidentified viz. Risk-Return Factors and Other Parameters (Capital appreciation, Inflationprotection and Liquidity)The following Table shows the data obtained from the respondents:
51Q 1;Customer Preference For ULIP:-Parameters High Low( in %) ( in %)Returns from Ulip 65% 35%Costs associated with Ulip 25% 75%Risks associated with Ulip 90% 10%Liquidity of Ulip 15% 85%Inflation protection through Ulip 67% 3365%25%90%15%67%35%75%10%85%33%0%10%20%30%40%50%60%70%80%90%100%returns costs risks liquidity inflationprotectionColumn1low
52Q 2:Customer Preference For ULIP:-From the above diagram, it can be inferred that 65% of the respondents think that the returnsassociated with ULIPs are high and 35% think returns are low. Similarly, only 75% of therespondents consider the cost associated with ULIPs to be high. Moreover, 67% of therespondents agree that ULIPs offer inflation protection.From these figures, it can be inferred that the customers have a high preference for ULIPplans due to the high returns, low cost and inflation protection offered by it, in addition to thetax benefit that it offers.On the flip side, 90% of the respondents are of the opinion that high risks are associated withULIP. Moreover, recessionary conditions have added to the risks with investment in ULIP.In addition to this, as many as 85% of the respondents consider ULIP plans to be illiquid.This is because once the money has been invested in Ulip, it can be withdrawn only after 3years, and this withdrawal comes at a cost as charges are deducted by the insurance companyand tax benefits can no longer be availed by the investors.So, it can be concluded that:People prefer ULIPs due to the high returns, low costs associated with them andinflation protection offered by them.People hesitate to invest in ULIP due to high risks and low liquidity associated withthem.
53Q3: The Influence Of Age On The Decision To Invest in ULIP’s:-Age is a crucial factor in making the decision to invest in ULIP plans. The age of the peopledirectly influences their willingness to bear risks. The younger the people , the more is thewillingness to bear risks and the older, the less is the willingness to bear risks.Questions eliciting respondents opinion regarding, age as a factor in making investmentdecisions have been included in the questionnaire.The respondents gave their opinion by rating the age related statements on a scale of 1 to 7.Their responses have been tabulated and represented by means of a line diagram below.
54Q4:Age and the Decision To Invest In ULIP:-Agree DisagreeParameters 1 2 3 4 5 6 7 TotalAge directlyinfluencesdecision toinvest in Ulip40 30 10 5 10 3 2 100Ulip is a SocialSecurity Tool1 3 5 11 15 20 45 10005101520253035404550age influences investmentdecisionulip as a social security tool
55Q5: Influence Of Age In taking The Decision To Invest In ULIP:-From the above diagram it is clear that majority of the respondents have agreed to the factthat the age of the investor directly influences their decision to invest in Ulip plans. As manyas 70 respondents marked 1 or 2 as their answer, implying that they agree to the statementthat age directly influencesthe decision to invest.On the other hand, when asked about their opinion about ulip as a social security tool, asmany as 65 respondents marked 6 or 7 as their answer, meaning that they disagree with thestatement that Ulip acts as a social security tool.This gives a fair idea, that the most suitable age for investment in Ulip as per respondentsopinion would be somewhere above 20 , but less than 55 years of age.Although, ulip is a product which is suitable for all age groups, but the investment decisiondepends on the willingness to take risks, which declines with age.The following table shows the responses of the respondents as regards the most suitable agefor investment in Ulip plans.
566: Most Suitable Age For Investment In ULIP:-Age groups Number of RespondentsBelow 20 1020 – 30 1530 – 40 5540 – 55 15Above 55 5Total 100The above table shows that the age group 30 to 40 has been marked by the respondents asthe most suitable age for investment in ULIP plans. It can inferred that the people belongingto this age group are most willing to take risks, as they are well settled and are earning andare ready to invest.This is the age group which the company should target for the sale of ULIP plans. This willhelp the company in saving the time wasted in convincing the prospects other than thepreferred age group to invest in ULIP plans.If the segmentation and targeting for ULIP plans is done keeping in mind the most suitableage group as mentioned above, then the sales of company’s ULIP Plans can be increased in ashort span of time.Below is a Bar Diagram showing the most suitable age as per the opinion of the respondents.
570 10 20 30 40 50 60below 2020-3030-4040-55above 55Most Suitable Age For Investment In ULIPNumber of Respondents
58Q7: Determining The Most Suitable Age For Investment In ULIP:-Comparison Of ULIP Plans Of Metlife With Other Players( 3 Immediate Competitors Of Metlife in shahjahanpur)Based on the company sources, Baja Allianz, ICICI Prudential, OmKotak Mahindra LifeInsurance have been identified as Metlife’s immediate competitors in Jaipur.The Questionnaire contained questions eliciting the respondents opinion about theirpreference for the company.For eliciting customers preference regarding investment in ULIP plans of the selectedInsurance companies, four parameters were identified for the purpose of comparison.These parameters were:i. Premium charged for ULIP products.ii. Flexibility in terms of the number of times the type of fund in which the money is tobe invested in case of ULIP products is permitted.iii. The number of fund options between which the investor can switch.iv. The Transparency of the work of the agents and employees of the company.Based on the data collected the following table has been drawn, which shows the customerpreferences for the chosen companies as regards the identified parameters.
6055% 58%45%35%45% 42%55%65%0%10%20%30%40%50%60%70%80%90%100%ReasonablePremiumGreater flexibility Greater number offundsMore TransparentdisagreedAgreed
61Q9: Customer Preference ForMetlife:-The above diagram shows that, respondents are of the opinion that Metlife chargesReasonable Premium, as many as 55% of the respondents agreed to this.58% of the respondents agreed that Metlife’sUlip plans offer greater flexibility.However, only 45% agreed that the number of funds offered to the investors for switching ishigh. At the same time, investors are of the opinion that, Metlife’s agents and employeesshould be transparent in their work and the investors should be informed about theirfunctioning.It becomes clear that Metlife needs to work on :a) The number of funds available to the investors for switchingb) The Transparency of the Company’s Agents and Employees.Below, a line diagram has been drawn which shows the percentage of respondents whoresponded favourably for the different Insurance companies, based on the features of the Ulipplans offered by them to the investors.
620%10%20%30%40%50%60%70%ReasonablePremiumGreaterFlexibiltyGreaterNumber OfFundsMoreTransparencyMetlifeBajaj AllianzICICI PrudentialOm Kotak Mahindra Life
63Q10: Comparison Based on Customer Preference:-The respondents have responded most favourably for ICICI Prudential , as is evident from theabove diagram. Metlife and Bajaj Allianz have been responded by the investors in almost thesame way.However, there have been a few differences in the responses in terms of the flexibilityoffered by ULIP plans of the two companies, wherein 58% of the respondents consider thatMetlife’sUlip plans offer greater flexibility and as against this only 50% of the respondentsagreed that Bajaj’s Ulip plans offer flexibility.As regards transparency, respondents consider that Bajaj’s employees work with greatertransparency as compared to Metlife’s employees. This is evident, since only 35% of therespondents agreed that there is more transparency in Metlife, whereas in the case of Bajaj,this figure came out to be 47%.Om Kotak Mahindra, another close competitor of Metlife has been rated as the lowest, as therespondents have responded the least favourablyforKotak Mahindra. Only 24% of therespondents agreed that the employees of Kotak Mahindra work transparently, 41% agreedthat their premiums are reasonable, 42% agreed that Ulipplans offered by Kotak offerGreaterFlexibilty and as low as 32% consider that Kotak offers greater number of funds forswitching purposes.So, from the above discussion it can be effectively concluded that:Respondents consider that the premiums charged for Metlife’sUlip plans arereasonable.Flexibility offered to the investors in terms of the number of times they can switchbetween different funds as regards Ulip is also satisfactory in the case ofMetlife’sUlip plans.However, the company needs to improve upon the number of funds available to theinvestors and the transparency of its employees.
65My Learnings:-The Summer Internship Project done at Metlife India Insurance Limited has beenextremely helpful in enhancing overall selling and analytical skills.As part of the training program, a 7 day training session was kept, wherein thefundamentals of Insurance were explained in full details.This was followed by an online exam conducted by the IRDA( Insurance Regulatory AndDevelopment Authority). After the exam was cleared, a two day training session calledthe CST (Compliance and Sales Training ) was conducted to well equip the trainees tosell and close deals.As part of the CST, all the major products of Metlife were explained. Then began selling,where the first step was prospecting i.e., filling My Market 100, who shall be called uponfor sales purposes.Moving on, the first stage of maturity was considered to be when one is successful inobtaining time from the prospect to meet them. While calling your prospect in order to fixmeeting time ensure the following:Do not sound needyCome straight to the pointEnsure the prospect that their time will not be wastedRemain polite throughout while talkingPrepare your script before callingWhile on call (meeting your prospect on the date and time given by him/her), one has toensure the following:Try to analyze the need of the prospectExplain the importance of insuranceIf required , show your licenseGive them in written the documents they need to submitGive them an illustration of the premium payableAsk for references
66In addition to the Sales done, a Research Project as per the objectives mentioned above,helped in enhancing analytical abilities.Benefits To The Company:-In terms of the recommendations given above, the company will benefit immensely ifthese are implemented.Besides, the following benefits will accrue to Metlife from the research study conducted:A fair idea of the current and prospective investors’ opinion about Unit LinkedInsurance Plans (ULIP), based on the risk and returns associated with Ulips andthe unique features and benefits offered by Ulip plans.The impact of recession on the people’s decision to invest in Ulips has also beenbrought out through questions in the questionnaire. As many as 67% of therespondents were of the opinion that recession has badly impacted their decisionto invest in Ulip. Investors have lost a major share of the money invested in Ulipsdue to the current recessionary conditions.However, 33% of the respondents felt that Asia is not much effected due torecession and thereby, it does not affect their investment decisions.Segmenting the market for ULIP according to the most suitable age as per therespondents’ opinion. This will also save the company the time in offering wrongproducts to wrong customers. In other words, keeping in mind the age of theinvestor, a suitable plan can be offered and a sale obtained without muchdifficulties.Comparative study of Metlife with its 3 immediate competitors in Jaipur(identified as per company sources) would also be of help to the company. This hashelped in bringing out the areas of improvement and modifications in the existingULIP plans of Metlife keeping in mind customer’s preference. Thesemodification and improvements have been mentioned above in therecommendations.
68STRENGTHS:-1. Distribution network is wide as compared to others.2. Met life has a unique service & scheme.3. Healthy relationship with customer.4. Good commission in selling of product.WEAKNESSES:-1. Comparatively less awareness in the market2. Delivery problem3. Less coordination between organization employeesOPPORTUNITIES:-1.Product is different as compare to others2. Rural area is untappedTHREATS:-1. Competitors are offering better services2. Infiltration
70Conclusion :-From the above discussions it can be concluded that, the Research Project undertaken atMetlife India Insurance Limited, has been of great help both to the company for the reasonsdiscussed above and to the trainee.Sales, which had to be accomplished as a part of the Summer Internship, has been ofimmense help in developing basic sales & marketing skills.Following have been my achievements, during the Summer Internship Period:Survey done with interest of Metlife India Insurance Co. Ltd. has been conductedsuccessfully and results are discussed above.Sales done during the Internship Period has helped in improving selling skills. (Achieved Rising Star)Achieved the designation of a Financial Advisor (FA) and hold a license issued bythe IRDA ( can start selling insurance on my own also.)Entitled to commission on the sales achieved as per the company norms.Corporate exposure and building networks during the Internship Period.Finally, to conclude, Insurance Industry is a Sunrise Industry with opportunities for one andall. Particularly in India there is more to insure as the rural sector remains majorly uninsuredand even those insured are under insured.The importance of insurance and the scope it has in India is evident from the fact that themajor business houses have ventured in the Insurance Sector, since the opening up of thissector for private players.
71What remains to be achieved, is the trust and faith of the general public in the private players.In addition to this, the continuous innovation undertaken by the private players has widenedthe horizons of the Insurance Sector in India. But there is still a lot that can be achieved as faras insurance in India is concerned.The percentage of those insured can be effectively increased by bringing about a change inthe mentality of the people regarding insurance.It is time that we start taking insurance in the right spirit, rather than as a liability, especiallyin today’s risky and dynamic environment.
73Recommendations to the Company:-During the surveys that were conducted and while interacting with people of Jaipur, itwas observed that:There is a lack of awareness among the people about Metlife and its products.People fear that they may end up losing money by making an investment in theproducts of Metlife.Investors are of the opinion that the work of Metlife’s employees should be mademore transparent.As regards Ulip plans of Metlife, it has been found that the number of fundsavailable for switching should be increased, thereby enhancing the choices to theinvestors.Based on the above findings, the following recommendations have been made to thecompany:Advertisements:With the objective of spreading awareness about thecompany and its products, Metlife should increase its expenditure onadvertisements in the form of T.V. Commercials, advertisements in the localdailies, pamphlet distribution and by means of radio. This will not only helpthe company to increase its sales, but also enhance the trust and the faithamong the people with regard to the existence of the company and itsproducts.Transparency:In order to enhance the trust of the people in the companyand its fair & just working, it is recommended that the company should makethe working of its agents and its employees more transparent. The investorscan be provided with statements showing the earnings and the sales of the
74agents as also a statement showing the benefits the investors will get throughthe investments made.Modify Existing ULIP Plans: As is evident from the comparative studyof Ulip plans of Metlife, Bajaj Allianz, ICICI Prudential and Om KotakMahindra Life that as regards premium charged and flexibility, the Ulip plansof Metlife need not much improvement. This is because the respondents are ofthe opinion that, premium charged for Ulips are reasonable and these plansoffer greater flexibility.However, the Ulip plans of Metlife need improvement with regard to thenumber of types of funds that are available for switching.Along with greater transparency and increased number of funds, the Ulip plansof Metlife can be made more favourable for the prospective investors.
76QuestionnaireQ1) Have you invested in ULIP?a) Yes b) NoIf Yes please specify the name of the Insurance CompanyIf No, would you like to invest in ULIP future?a) a)yes b) NoRISK-RETURN TRADE OFFRate the following on the basis of your preference on a scale of 1 to 7AgreeDisagree1 2 3 4 56 7Q2) The returns associated with ULIP are highQ3) The costs associated with ULIP are highQ4) The risk component is predominant in ULIPas compared to the insurance componentQ5) The recessionary conditions of the economyhave increased the risks associated with ULIP
77ULIP A BETTER OPTIONRate the following on the basis of your preference for investment in ULIP on a scale of 1to 7 LLow High1 2 3 4 5 67Q6) The Liquidity of ULIPQ7) Capital Appreciation resulting frominvestment in ULIPQ8) Inflation Protection offered by ULIPAGE DETERMINES THE INVESTMENT DECISIONRate the following on the basis of your preference on a scale of 1 to 7AgreeDisagree1 2 3 4 5 6 7Q 9) Age directly influences the decision toinvestment in ULIPQ10) ULIP is not popular among the olderPopulation (above 55 years of Age)Q11) ULIP cannot be relied upon for socialSecurity protection for the age(particularly above 55 years of age)
78Q12) ULIP holders mostly belong to the age group of:a)Below 20b)20 – 30c)30 – 40d)40 – 55e)Above 55
79THE CHOICE OF INSURERRate the following statements on the basis of Your preference for the insurancecompany:Agree DisagreeQ13)Thepremium charged is more reasonable1 2 3 4 5 6 7MetlifeBajaj AllianzOm Kotak Mahindra LifeICICI prudentialQ14)Their products offer greater flexibiltyAgreeDisagree1 2 3 4 5 6 7MetlifeBajaj AllianzOm Kotak Mahindra LifeICICI prudentialAgree DisagreeQ15)They offer greater number of funds
81PERSONAL INFORMATION:Q17) Specify your GENDER:a)Male b) FemaleQ18) Specify your AGE:a)Below 20b)20 – 35c)35 – 45d)Above 45Q19) Specify your OCCUPATION:a)Business Manb)Profession (specify)c)Studentd)Others (specifyQ20) Specify your INCOME level:a)
84WEB SITES:-www.metlife.co.inwww.metlife.comwww.irdaindia.govwww.indianinsuranceresearch.comwww.bimaonline.comwww.bimadeals.comwww.thefinancialexpress.mhtoutlookmoney_com-the false selling promises.mht (May 2, 2007)Artani online Investmentswww.personalfn.comUnit Linked Insurance Plan - 1971.mhtIndian Express Finance (ULIPs are suitable for all customers)Yahoo India Financewww.rgicl.comwww.ipruniverse.com
85www.irdaindia.orgwww.indiacore.comMAGAZINES:-INSURANCE PLUSBUSINESS INDIAECONOMIC TIMESMATERIAL PROVIDED BY THE COMPANYSURVEYSEARCH ENGINES:-www.google.comwww.yahoo.comwww.altavista.comBOOKS :-Marketing management by Philip KotlerInsurance Advisor kit of Met LifeYojna (Magazine)