Project - Dipu

8/8/2019 Project - Dipu

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Customer satisfaction on insurance products

1.1. INTRODUCTION OF THE STUDY

This study is being conducted to increase the customer base of MetLife

India Insurance Company Limited. Taking into consideration the Market scenario,

MetLife India Insurance has tough time to play in the Market, why because there

are other players in the Insurance Sector, which has got good Market share as well

as given a good service like MetLife India Insurance. Therefore this study would

help MetLife India Insurance to opt the best for their move in the Market.Regarding service, MetLife India Insurance has a good remark from the customer.

I hope definitely this study will help the Company to understand the requirements

for enhancing their customer base.

When we consider the current market scenario, it will not be easy for

MetLife India Insurance to increase its performance. This is because there are

other players in the Insurance sector who have good Market share and the same

time giving excellent service as that of MetLife India Insurance. The Researcher

definitely hopes that this study will help the company to understand the

requirements for enhancing the customer base.

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1.2 SCOPE OF THE STUDY

Project entitled Study on Customer Satisfaction of Insurance Products of

MetLife India Insurance Co. in Alwaye helps to understand the untapped Market

Potential, derive ways for expanding the Market share and making the customer

satisfied with the product and service. Also in time to find out different ways for

taking advantage of customers long standing trust and relationship with

Insurance Sector.This project gives a clear picture of the products, service etc offered by

the Company. For a Company customer satisfaction is one of the important

factors to consider because of existence of a Company depends more on

customers.

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1.3 OBJECTIVE OF THE STUDY

The following are the objectives of the study

1.3.1 PRIMARY OBJECTIVE:

To assess the level of customer satisfaction for Life Insurance products of MetLife India Insurance.

1.3.2 SECONDARY OBJECTIVES:

1) To assess the awareness regarding the Insurance products of

MetLife India Insurance, in Alwaye city.

2) To know about customer preference for Insurance Products.

3) To find out more reason for customers selecting a particular

Company.

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1.4 RESEARCH METHODOLOGY

A research methodology defines what the activity of research is, how to

proceed, how to measure progress and what constitutes success.

STEPS THAT WAS TAKEN FOR THE MARKET RESEARCH:

The objective of the present study can be accomplished by conducting asystematic Market Research. The Market Research is the systematic design,

collection, analysis and reporting of data and finding that are relevant to different

Marketing situation facing the Company.

The descriptive Research includes survey and facts finding enquiries. The

major purpose of the descriptive Research is the description of state of affairs, as

it exists at present. The main limitation of this method is that the Researcher has

no control over the variable. He can only report what has happened and what is

happening.

1) DEFINE THE PROBLEM AND OBJECTIVE DESIGN

The research objective states what information is needed to solve the

problem. The objective of Research is to an opinion of existing customers both

the competitors and developing the Marketing strategies to improve the business.

This Research will also help to identify the competitors strengths and weakness,

their promotional strategies, various products and services offered by the

competitor.

As customers are major assets for the company, it is important that the

Company should aware of customer satisfaction level. If the customer is not

satisfied with the present condition then they should take the correct decision.

Therefore, this Research is very helpful to the Company. This study also aims to

identify who is the major player in the Market and who is stronger.

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2) Developing research plan

Once the problem is identified, the next step to prepare the plan for getting

the information needed for the Research. The present study will adopt the

exploratory approach in which large amount of information is needed and finallygetting into conclusion.

3) Research design

A research design is a framework for conducting the Market Research. It

includes the procedures necessary for obtaining the information needed to

structure or solve Marketing Research a good Research design will ensure that the

marketing Research should conduct effectively.

Typically a research involves the following steps.

Define information needed.

Design the exploratory, descriptive, and casual phases of the

Research.

Specify the measurement and scaling procedure.

Construct a questionnaire of appropriate form of data collection.

Specify the sampling procedure and sampling size.

Develop a plan for the data analysis.

The basic requirement for success in any formal Marketing Research

project is a sound Research design. A good Research design is purely the

framework or plan for a study that followed in completing a study.

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Descriptive Research

Descriptive studies are concerned with describing the characteristics of a

particular individual or group. They are undertaken in many circumstances. There

is a general feeling that descriptive studies or factual and very simple.

Descriptive study is well structured. It is necessary that the Researcher

give sufficient thought to frame the Research questions and deciding.

1.5 Source of Data

Primary data was obtained with the help of a structured questionnaire.The questionnaire was administrated by personal interview with respondents. The

questionnaire used for the data collection was a structured one. The questionnaire

consists of choice, closed and open-end questions.

Secondary data refers to the information or facts are already available. The

source of secondary data journals website etc.

Form of Data Collection

Main mode used for collecting data was through Survey Method.

Sampling Technique

The technique Method is used in the study was Random Sampling .

Sampling Size

Sample size for the study was 100. 100 Respondents were interviewed. Out

of this, 25 Respondents were MetLife India Insurance Customers and remaining

25 Respondents were Non- MetLife India Insurance Customers.

Area f Study

Area of study was limited to Alwaye.

Data Analysis

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The data collected from the survey requires an accurate analysis.

Therefore, this analysis was done using Percentage Method and Pie Diagram.

Tools of Data Collection

Questionnaire was designed in accordance with the primary data needed

for analysis. Secondary data was collected from the records of Companies and

Websites.

Questionnaire Design

Questionnaire contains both close ended and open ended questions.Close-ended questions specify all possible answers and provide answers that are

easier to interpret and own words and often reveals about their thinking.

1.6 Techniques Adopted for analysis

Percentage Test

Pie Diagram

Duration of the study

The study was carried out from 15 March to April 30, 2010 for a period of 45

days.

Limitations of the Study

1) The survey was conducted in Alwaye city, alone therefore the costume or

the result may not be applicable to more cities.

2) Some of the customers were reluctant at motive of the Survey to give their

views.

3) Most of the customers were busy. Therefore, the data supplied by them

may not be exact and accurate.

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CUSTOMER SATISFACTION

Customer satisfaction refers to how satisfied customers are with the

products or services they receive from a particular agency. The level of

satisfaction is determined not only by the quality and type of customer experience

but also by the customers expectations.

A customer may be defined as someone who:

Has a direct relationship with, or is directly affected by your agency and

receives or relies on one or more of your agencys services or products.

Customers in human services are commonly referred to as service users,

consumers or clients.

An organization with a strong customer service culture places the customer

at the centre of service design, planning and service delivery. Customer

centric organizations will:

Determine the customers expectations when they plan

Listen to the customer as they design

Focus on the delivery of customer service activities

Value customer feedback when they measure performance.

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IMPORTANCE OF CUSTOMER SATISFACTION:

There are a number of reasons why customer satisfaction is important in

Insurance Sector:

Meeting the needs of the customer is the underlying rationale for the

existence of community service organizations. Customers have a right to

quality services that deliver outcomes.

Organizations that strive beyond minimum standards and exceed the

expectations of their customers are likely to be leaders in their sector.

Customers are recognized as key partners in shaping service development

and assessing quality of service delivery.

The process for measuring customer satisfaction and obtaining feedback

on organizational performance are valuable tools for quality and continuous

service improvement

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INSURANCE

Functions of Insurances

There are two types of definitions of Insurance

1. Functional Insurance

2. Contractual Insurance

Functional Insurance

The term insurance may be defined as Co- operative mechanism to spread

the risk caused by a particular event over a number of people who are exposed it

and to ensure them against the risk.

Contractual Insurance

Insurance has been defined to be that in which a sum of money as a

premium is paid in consideration of the Insurance incurring the risk of paying a

large sum upon a give contingency.

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FUNCTIONS OF INSURANCES

Functions of Insurances can be suited in two parts.

Primary

Secondary

PRIMARY FUNCTION:

a) Insurance provide certainty :

The insurance provides certainty of payment at the uncertainty of loss.

b) Insurance provides Protection :

The main function of Insurance is to provide protection.

c) Risk Sharing :The risk is uncertain and therefore the risk arising from Insurance is

uncertain.

d) Prevention of Loss :

The insurance joins hand with those institutions which are engaged in

prevention losses of the society because the reduction in less causes lesser

payment to the assured and so more saving is possible which will assist in

reducing the premium.

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e) It provides capital :

The insurance provide capital to the society; the accumulated funds are

invested in productive channel.

f) It improves Efficiency :

The Insurance eliminates worries and miseries of losses of death and

destruction of property.

g) It helps Economic Progress :

The insurance by protecting the society from huge losses of dangers

destruction and death provide and initiate to work hard for the betterment of

the masses.

Types of Insurances:

Classification based on nature of Insurances

Life Insurances

Fire Insurances

Marine Insurances

Social Insurances

Miscellaneous Insurances

Business Point of view

Fire Insurances

General Insurances

Risk Point of view

Personal Insurances

Property Insurances

Liability Insurances

Fidelity Insurances

Role and Importance of Insurance

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The process of Insurance has been evolved to safeguard the interest of

people from uncertainty by providing certainty of payment at a given

contingency. The insurance principle comes to be more and more used and useful

in modern affairs. Not only does its serve the individuals, or of special groups of

individuals, it tends to pervade and to transform our modern social orders too.

Use to Individuals

1. Insurance provides security and safety.

2. Insurance afford piece of minds.

3. Insurance protects most property.

4. Insurance eliminates dependency.

5. Life insurance encourages saving.

6. Life insurance provides profitable investment.

7. Life insurance fulfills the needs of protection.

Uses to a special group of individuals / Business

1. Uncertainty of business losses is reduced

2. Business- efficiency is increased with Insurance.

3. Enhancement of credit

4. Business continuation

5. Welfare of employees

Uses to the society

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1. Wealth of the society is predicted

2. Economic growth of a country

3. Reduction in inflation

MARKET DEFINED

Marketing is a social process by which individuals and grows obtain what

they need and want through creating, offering and freely enhancing products and

services of value with others.

Service marketing includes all economic activities whose output isnt a

physical product or construction is generally consumed at that time it is produce

and provides added value in forms such as convenience, amusement, timelines,

comfort or health) that are essentially intangible concerns of its purchaser.

There will always, one can assume be need for some selling. However the

aim of Marketing is to make selling superfluous. The aim of marketing to know

and understand the customer so well that the product or service fits him and self

itself.

Ideally, Marketing should result in a customer who is ready to buy. All

that should be needed then is to make the product r service available.

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We see marketing management as the art and the science of choosing

target Markets and getting, keeping and growing customers through creating,

delivering and communicating customer superior customer value.

Therefore marketers start with Market segmentation. For chosen target

Market, the firm develops a Market offering. The offering is positioned in the

minds of the target buyers as delivering central benefits.

Marketers use numerous tools to elicit desired responses from their target

Markets. These tools constitute Marketing Mix.

Marketing Mix is the set of marketing tools that the firm uses to pursue its

Marketing objectives in the target Market.

SERVICE MARKETING MIX

1. Product

2. Price

3. Promotion

4. Place

5. People

6. Physical Evidence

7. Process

1. PRODUCT

a. Product variety

b. Quality

c. Design

d. Features

e. Brand Name

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f. Packaging

g. Sizes

h. Services

i. Warranties

j. Return

2. PRICE

a. List price

b. Discounts

c. Allowancesd. Payment Period

e. Credit Terms

3. PROMOTION

a) Sales Promotion

b) Advertising

c) Sales Force

d) Public Relations

e) Direct Marketing

4. PLACE

a) Channels

b) Coverage

c) Assortments

d) Locations

e) Inventory

f) Transport

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5. PEOPLE

a) Employees

Recruting

Training

Motivation

Rewards

Teamwork

b) CustomersEducation

Training

6. PHYSICAL EVIDENCE

a) Facility Design

b) Equipment

c) Signage

d) Employee Dress

7. PROCESS

a) Flow of activities

b) Number of steps

c) Customer involvement

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The ultimate purpose of the Marketing is to help Organizations to achieve

their objectives. Todays Companies are facing the toughest competition ever.

Companies can outperform the competition if they can move from a product and

sales philosophy to a Marketing philosophy. Companies can go about winning

customers and outperforming competitors by doing a better job of meeting and

satisfying customer needs. Only customer centered companies are adept at

building customers, not just products. They are skilled in Market engineering, not

just product engineering. There is a growing Market for services and increasing

dominance of service in economies worldwide. Services are a dominant force in

Countries around the world. The tremendous growth and contribution of theservice Sector has drawn increasing attention to the issues and problems of

service Sector Industry.

INTRODUCTION TO INSURANCE

Today, only one business, which affects all walks of life, is insurance

business. Thats why insurance industry occupies a very important place among

financial services operative in the world. Owing to growing complexity of life,

trade and commerce, individuals as well as business firms are turning to insurance

to manage various risks.

Therefore a proper knowledge of what insurance is and what purpose does it serve

to individual or an organization is therefore necessary.

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The future is never certain, so its rightly said,

AN INSURANCE POLICY IN HAND KEEPS THE TENSION AWAY.

The earliest transaction of insurance as practiced today can be traced

back to the 14 th century AD. The business of insurance started with marine

business by Traders who used to gather in the Lloyds coffee house in London,

wherein they had agreed to insure their ships in transit.

The 1st Life Insurance Policy was issued on 18th June, 1583, on the life

of William Gibbons for a period of 12 months.

Industry organization.

The insurance industry provides protection against financial losses resulting

from a variety of perils. By purchasing insurance policies, individuals and

businesses can receive reimbursement for losses due to car accidents, theft of

property, and fire and storm damage; medical expenses; and loss of income due to

disability or death.

The insurance industry consists mainly of insurance carriers and

insurance agencies and brokerages. In general, insurance carriers are large

companies that provide insurance and assume the risks covered by the policy.

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Insurance agencies and brokerages sell insurance policies for the carriers. The

insurance industry also includes a number of independent organizations that

provide a wide array of insurance-related services to carriers and their clients.

One such service is the processing of claims forms for medical practitioners.

Other services include loss prevention and risk management. Also, insurance

companies sometimes hire independent claims adjusters to investigate accidents

and claims for property damage and to assign a dollar estimate to the claim.

Insurance agencies and brokerages sell insurance policies for the

carriers. While some of these establishments are directly affiliated with a particular insurer and sell only that carriers policies, many are independent and

are thus free to market the policies of a variety of insurance carriers. In addition to

supporting these two primary components, the insurance industry includes

establishments that provide other insurance-related services, such as claims

adjustment or third-party administration of insurance and pension funds.

Goods and services.

The insurance industry provides protection against financial losses resulting froma variety of hazards. By purchasing insurance policies, individuals and businesses

can receive reimbursement for losses due to car accidents, theft of property, and

fire and storm damage; medical expenses; and loss of income due to disability or

death.

Direct insurance carriers offer a variety of insurance policies. Life

insurance provides financial protection to beneficiariesusually spouses and

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dependent childrenupon the death of the insured. Disability insurance supplies

a preset income to an insured person who is unable to work due to injury or

illness, and health insurance pays the expenses resulting from accidents and

illness. An annuity (a contract or a group of contracts that furnishes a periodic

income at regular intervals for a specified period) provides a steady income

during retirement for the remainder of ones life. Property-casualty insurance

protects against loss or damage to property resulting from hazards such as fire,

theft, and natural disasters. Liability insurance shields policyholders from

financial responsibility for injuries to others or for damage to other peoples

property. Most policies, such as automobile and homeowners insurance, combine both property-casualty and liability coverage. Companies that underwrite this

kind of insurance are called property-casualty carriers.

Some insurance policies cover groups of people, ranging from a few to thousands

of individuals. These policies usually are issued to employers for the benefit of

their employees or to unions, professional associations, or other membership

organizations for the benefit of their members.

Among the most common policies of this nature are group life and health

plans. Insurance carriers also underwrite a variety of specialized types of

insurance, such as real-estate title insurance, employee surety and fidelity

bonding, and medical malpractice insurance.

Working Conditions

Hours.

Many workers in the insurance industryespecially those in

administrative support positionswork a 5-day, 40-hour week. Those in

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executive and managerial occupations often put in more than 40 hours. There are

several occupations in the insurance industry where workers may work irregular

hours outside of office settings. Those working in sales jobs need to be available

for their clients at all times. This accommodation may result in these individuals

working 50 to 60 hours per week.

Work environment .

Insurance employees working in sales jobs often visit prospective and existing

customers' homes and places of business to market new products and provide

services. Others working in the industry may need to frequently leave the office toinspect damaged property, and at times can be away from home for days,

travelling to the scene of a disastersuch as a tornado, flood, or hurricaneto

work with affected policyholders and various government officials.

A small, but increasing, number of insurance employees spend most of their time

on the telephone working in call centres, answering questions and providing

information to prospective clients or current policyholders. These jobs may

include selling insurance, taking claims information, or answering medical

questions.

INDIAN INSURANCE INDUSRY OVERVIEW

All life insurance companies in India have to comply with the strict

regulations laid down by Insurance Regulatory and development Authority of

India (IRDA). Therefore there is no risk in going in for private insurance players.

Life Insurance Corporation of India (LIC) remains by far the largest player in the

market.

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The private companies are coming out with better products which are

more beneficial to the customer. Among such products are the ULIPs or the Unit

Linked Investment Plans which offer both life cover as well as scope for savings

or investment options as the customer desires. Further, these types of plans are

subject to a minimum lock-in-period of three years to prevent misuse of the

significant tax benefits offered to such plans under the Income Tax Act. Hence

comparisons of such products with mutual funds would be erroneous.

Life Insurance in its current form came in India from the UK, with the

establishment of British firm, Oriental Life insurance Company, in 1818.

The 1st

Indian insurance company was the Bombay Mutual AssuranceSociety Ltd, formed in 1870. By the year 1956, when the life insurance business

was nationalized and the Life Insurance Corporation Of India ltd (LIC) was

formed on 1st September, 1956.

OVERVIEW OF INSURANCE REGULATION

The insurance sector in India is regulated under the Insurance Act,

1938 and the IRDA Act, 1999 . The Insurance Act, 1938 defines four categories

of insurance life, fire, marine and miscellaneous. In general, two categories of

insurers are licensed life and general (covering the last three product

categories).

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Every insurer seeking to carry out the business of insurance in India is

required to obtain a certificate of registration from the Insurance Regulatory and

Development Authority (IRDA) prior to the commencement of business. The pre-

conditions for applying for such registration have been set out under the Insurance

Act, the IRDA Act and the various regulations prescribed by the IRDA.

INSURANCE INDUSTRY POTENTIAL

Asia is amongst the worlds largest insurance markets contributing

nearly 39% of global insurance business.

The Life Insurance Industry has grown by 27% p.a. over the last 5 yearsand by about 62% in the first eleven months of 2006 -07.(Source IRDA

Journal -April2007)

Global Life Insurance Market: $1,521 billion, Global Non-Life Insurance

Market: $922 billion

India is 23rd in insurance business with 0.41% share.

Out of one billion people in India, only 35 million people are covered by

insurance.

TABLE NO:A1

INDIA INSURANCE DENSITY AND PENETRATION

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Year Life Non life Total2005 18.3 4.4 22.7

2006 33.2 5.2 38.4

2007 40.4 6.2 46.6

2008 41.2 6.2 47.4

Indian life insurance industry is considered the fifth largest life insurance

market, and growing at a rapid pace of 32-34 per cent annually, according to the

Life Insurance Council. However, industry experts now believe that India's life

insurance industry is likely to grow by around 10 per cent in 2010 over the

previous year, mainly due to increased efficiency but also due to expansion in

small towns and villages.

Growth Rate of Insurance sector

Public Sector: 5.5%

Private Sector: 57.4%

India: Investment in insurance sector up 18.6%, growth dips to 19.6%

Total investments of insurance sector as on March 31, 2009, stood at Rs 9,75,258

crore .

Noun 1. Crore - the number that is represented as a one followed by 7 zeros; ten

million, recording an increase of 18.61 % over the previous year.

While life insurers reported 19.63% increase in investments, non-life insurers

registered only a 4.64% growth. In both, life and non-life insurance business,

private sector insurers reported larger increase in investments than the public

sector ones. This may be owing to a lower base of private sector companies in the

previous year. Though total investments have increased, growth in 2008-09 stood

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at 19.63 %, lower than 26.78% recorded for 2007-08.

Both traditional funds as well as Ulips decelerated in 2008-09. Growth in

traditional funds was marginally lower. A substantial deceleration

deceleration /deceleration/ (de-sel?er-ashun) decrease in rate or speed.

Early deceleration was observed in Ulips from 98.48% in 2007-08 to 29.82% in

2008-09. Total investments of non-life insurers were Rs 58,893 crore, an increase

of 4.64% from Rs 56,280 crore as on March 31, 2008.

During 2008-09, the pattern of investments for general insurers remained the

same as observed in 2007-08, except for investments in infrastructure that have

gone up from 13.61% in 2007-08 to 15.25 % in 2008-09.

MAJOR LIFE INSURANCE COMPANIES IN INDIA

Presently there are about 18 Life Insurance companies in the country. There is

about only one public sector LIC and the rest are private sector. Although LIC has

been dominating The Life Insurance business since past few years the private

players have now started to take the momentum.

TABLE NO:A2

MARKET SHARE FOR 5 YEARS.

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LIFE INSURANCE COMPANIES IN INDIA

1. Life Insurance Corporation of India

PRIVATE PLAYERS

2. Tata AIG Life Insurance Company Ltd

3. Kotak Mahindra Old Mutual Life Insurance Ltd

4. Birla Sun Life Insurance

5. ICICI Prudential Life Insurance

6. Aviva Life Insurance

7. Allianz Bajaj

8. Max New York Life Insurance

9. Bharti Axa Life Insurance10. SBI Life Insurance

11. Reliance Life Insurance

12. ING Vysya Life Insurance

13. Sahara India Life Insurance

14. HDFC Standard Life Insurance

15. Shriram Group

LIFE INSURANCE CORPORATION OF INDIA

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PLAYERS 2003-04 2004-05 2005-06 2006-07 2007-2008 2008-2009

LIC 94% 87% 78% 74% 56% 64%

Private

Player

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LIC continues to be the dominant life insurer even in the liberalized scenario of

Indian insurance and is moving fast on a new growth trajectory surpassing its own

past records. LIC has issued over one crore policies during the current year. It has

crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005,

posting a healthy growth rate of 16.67% over the corresponding period of the

previous year. From then to now, LIC has crossed many milestones and has set

unprecedented performance records in various aspects of life insurance business.

The same motives which inspired our forefathers to bring insurance into existence

in this country inspire us at LIC to take this message of protection to light the

lamps of security in as many homes as possible and to help the people in

providing security to their families

TATA AIG LIFE INSURANCE CO. LTD

American International Group, Inc (AIG). Tata AIG Life

combines the Tata Groups pre-eminent leadership position in India and AIGs

global presence as the worlds leading international insurance and financial

services organization. The Tata Group holds 74 percent stake in the insurance

venture with AIG holding the balance 26 percent. Tata AIG Life provides

insurance solutions to individuals and corporate. Tata AIG Life Insurance

Company was licensed to operate in India on February 12, 2001 and started

operations on April 1, 2001

The Tata Group is one of the Indias largest and, most respected

conglomerates. American Life Insurance (AIG), a world leader in insurance and

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financial services, is the leading international insurance organization with

operations in more than 130 countries and jurisdictions.

1) KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED

Kotak Mahindra is one of the Indias leading

financial conglomerates, offering complete financial solutions that encompass

every sphere of life. From commercial banking, to stock broking, to stock

broking, to mutual funds, to life insurance, to investment banking, the groupcaters to the financial needs of individuals and corporate.

The group has a net worth of over Rs. 5,824crores, employs around

20,000 people in its various businesses and has a distribution network of

branches, franchisees, representative offices and satellite offices across 370 cities

and towns in India and offices in New York, London, San Francisco, Dubai,

Mauritius and Singapore. The Group services around 4.4 million customer

accounts.

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2) BIRLA SUN LIFE INSURANCE COMPANY LIMITED

Birla Sun Life Insurance Company Limited (BSLI) is a

joint venture between the Aditya Birla Group and the Sun Life Financial Services

of Canada. It started operations in March 2001 after receiving its registration

license from IRDA in January 1001. The Aditya Birla Group is the second largest

business house in India, with a turnover exceeding Rs. 260 billion and an asset

base in excess of Rs. 180 billion. The Groups market capitalization is

approximately Rs. 150 billion. It has 7 lakh investors and employees around72,000 people.

Sun Life Financial has evolved from a single mutual fund life

insurance company into one of the most highly rated insurance and wealth

management institutions in the world. Sun Life Insurance Company of Canada,

Sun Lifes primary insurance arm, is among the largest international financial

services organizations in the world, with assets under management of over US$

201 billion.

3) ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED

ICICI Prudential Life Insurance Company is a

joint venture between ICICI Bank one of the Indias foremost financial services

companies and prudential plc- a leading international financial services group

headquartered in the United Kingdom. Total capital infusion stands at 42.72

billion, with ICICI Bank holding a stake of 74% and prudential plc holding 26%.

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4) AVIVA LIFE INSURANCE COMPANY INDIA LIMITED

Aviva is the UKs largest and the worlds fifth largest insurance group. It

is one of the leading providers of life and pensions products to Europe and has

substantial business elsewhere around the world. With a history dating back to

1696, Aviva has a 40 million-customer base worldwide.

In India, Aviva has a joint venture with Dabur, one of the Indias

oldest and largest Groups of companies. A professionally managed company,

Dabur is the countrys leading producer of traditional healthcare products. In

accordance with the government regulations Aviva holds a 26% stake in the jointventure and the Dabur group holds the balance 74% share.

5) BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED

Bajaj Allianz Life Insurance CompanyLimited is a Union between Allianz SE, one of the worlds largest Life Insurance

companies and Bajaj Auto, one of the biggest 2-&- 3 wheeler manufacturers in

the world. Allianz SE is a leading insurance conglomerate globally and one of the

largest asset managers in the world, managing assets worth over a Trillion Euros

(Over Rs. 55, 00,000). Allianz has over 115 years of financial experience in over

70 countries.

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8) SBI Life Insurance COMPANY LTD.

SBI Life Insurance is a joint venture between the State

Bank of India and BNP Paribas Assurance. SBI Life Insurance is registered with

an authorized capital of Rs. 1000 cores. SBI owns 74% of the total capital and

BNP Paribas Assurance the remaining 26%.

State Bank of India enjoys the largest banking franchise in India. Along

with its 7 associate Banks, SBI Group has the unrivalled strength of over 14,500

branches across the country, arguably the largest in the world. BNP Paribas, partof the worlds top 10 groups of banks by market value and part of Europe top 3

banking companies, is one of the oldest foreign banks with a presence in India

dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance

company in France, and a worldwide leader in Creditor insurance products

offering protection to over 50 million clients. BNP Paribas Assurance operates in

42 countries mainly through the banc assurance and partnership model.

9) Reliance Life Insurance COMPANY LTD.

Reliance Life Insurance Company Limited is a

part of Reliance Capital Ltd., a part of Reliance - Anil Dhirubhai Ambani

Group. Reliance Capital is one of India's leading private sector financial

services companies, which ranks among the top 3 private sector financial services

and banking companies. Reliance Life Insurance is not only one of India's fastest

growing life insurance companies, but also counts among the top 4 private sector

insurers. In just 2 years, the Company has crossed the mark of 1.7 Million

policies .

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10)ING VYSYA LIFE INSURANCE

Established in India in September 2001, ING Vysya

Life Insurance Company Limited is a joint venture between Vysya Bank, which is

one of the largest private sector banks in India, and ING Insurance Co., which is

the world's second largest life insurance company. This private life insurance

company has around 140 branches all over India, with head office in Bangalore.

ING Vysya Life Insurance Co. has around 3000 employees with over 21,000 sales

insurance agents and brokers. ING Vysya Life presently has around 4.5 lakh

customers, and is making a total income of Rs. 400 crore.

11) SAHARA INDIA LIFE INSURANCE

The Sahara Pariwars latest foray is in the field of Life

Insurance. The Pariwars life insurance company Sahara India Life Insurance

Company Ltd. - has been granted license by the insurance regulator the IRDA

on 6th February 2004. With this approval Sahara India Life Insurance Company

Ltd. becomes the first wholly and purely Indian company, without any foreign

collaboration to enter the Indian Life insurance market. The launch is with an

initial paid up capital of 157 crores. The Chairman of the company is Shri Subrata

Roy Sahara who is also the Chairman of Sahara Pariwar.

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12)HDFC STANDARD LIFE INSURANCE

HDFC Standard Life is a strong, financially secure

business supported by two strong and secure promoters HDFC Ltd and Standard

Life. HDFC Ltds excellent brand strength emerges from its unrelenting focus on

corporate governance, high standards of ethics and clarity of vision. Standard Life

is a strong, financially secure business and a market leader in the UK Life &

Pensions sector.

13) SHRIRAM GROUP

Shriram Life Insurance Company is the jointventure between the Shriram group and the Sanlam Group. The Shriram Group is

one of the largest and well-respected financial services conglomerates in India.

The Groups main line of activities in financial services include chit fund, truck

financing, consumer durable financing, stock broking, insurance broking and life

insurance. The Group gas a customer base of 30 lacs chit subscribers and

investors and operates through a network of 630 offices all over the country. The

group has the largest agency force in the Shriram Group. The Shriram Group is

one of the largest and well respected financial services conglomerates in India.

Sanlam Life insurance Limited, a part of Sanlam group,, is one of the largest

providers of Life insurance in South Africa with 3.2 million individual policies

under administration.

14) FUTURE GENERALI LIFE INSURANCE COMPANY LTD.

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The Company commenced business 16th of June,

2008 after receiving requisite approvals from the Insurance RegulatoryDevelopment Authority (IRDA). Canara HSBC Life has access to 4100 bank

branches all over India.The shareholding pattern of the Joint Venture is as follows

- Canara Bank holds 51% equity, HSBC Insurance (Asia Pacific) Holdings Ltd

26% and Oriental Bank of Commerce 23%. The Venture has an initial paid up

capital of INR 325 crores which will further increase in line with our expansion

plans.

19. AEGON RELIGARE LIFE INSURANCE COMPANY LIMITED

AEGON, an international life insurance, pension and

investment company, Religare, one of Indias leading integrated financial services

groups and Bennett, Coleman & company, Indias largest media house, havecome together to launch AEGON Religare Life Insurance Company Limited. This

venture is dedicated to build a firm future, both for customers and employees and

will continue to balance a local approach with the power of an expanding global

operation.

20. DLF PRAMERICA LIFE INSURANCE CO. LTD.

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DLF Pramerica Life Insurance Company Ltd.

(DPLI) is a joint venture between DLF Limited and Prudential International

Insurance Holdings, Ltd. (referred to hereafter as "PIIH"). PIIH is a fully owned

subsidiary of Prudential Financial, Inc. (referred to hereafter as "PFI"). The

combination of the strength of the DLF brand and PFI's insurance expertise

provide the strongest possible foundations for DPLI to succeed in the rapidly

growing Indian life insurance market.

21 STAR UNION DAI-ICHI LIFE INSURANCE COMP. LTD.

Bank of India and Union Bank of India, two leading

Public Sector Banks in India and the Dai-ichi Mutual Life Insurance Company,

leading Japanese Company in the Life Insurance market, have floated a Joint

Venture Company, "Star Union Dai-ichi Life Insurance Co. Ltd." for undertaking

Life Insurance Business in India. The Company has been incorporated / registered

with the Registrar of Companies, Maharashtra on 25th September, 2007. The

Company has been issued the license for undertaking life insurance business in

India by Insurance Regulatory and Development Authority (IRDA) on

26.12.2008ion Bank of India, The Company, has been incorporated / registered

with the Registrar of Companies, Maharashtra on 25th September, 2007. The

Company has been issued the license for undertaking life insurance business in

India by Insurance Regulatory and Development Authority (IRDA) on

26.12.2008. The Company has best insurance, IT, finance and investment

resources to ensure that it soon earns a prominent position in insurance sector.

TABLE NO:A3

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LIFE INSURANCE COMPANIES

Sl.No.

Insurers ForeignPartners

Regn.No.

Date of Registration

Year of Operation

1. HDFC StandardLife Insurance Co.Ltd.

Standard LifeAssurance, UK

101 23.10.2000 2000-01

2. Max New York Life Insurance Co.Ltd.

New York Life,USA

104 15.11.2000 2000-01

3. ICICI-PrudentialLife Insurance Co.Ltd.

Prudential , UK 105 24.11.2000 2000-01

4. Om Kotak LifeInsurance Co. Ltd.

Old Mutual,South Africa

107 10.01.2001 2001-02

5. Birla Sun LifeInsurance Co. Ltd.

Sun Life, Canada 109 31.01.2001 2000-01

6. Tata-AIG LifeInsurance Co. Ltd.

AmericanInternationalAssurance Co.,USA

110 12.02.2001 2000-01

7. SBI Life InsuranceCo. Ltd.

BNP ParibasAssurance SA,France

111 29.03.2001 2001-02

8. ING Vysya LifeInsurance Co. Ltd.

ING InsuranceInternationalB.V.,

Netherlands

114 02.08.2001 2001-02

9. Allianz Bajaj LifeInsurance Co. Ltd.

Allianz, Germany 116 03.08.2001 2001-02

10.

Metlife IndiaInsurance Co.Ltd.

MetlifeInternationalHoldings Ltd.,

USA

117 06.08.2001 2001-02

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11.

Reliance LifeInsurance Co. Ltd.(Earlier AMPSanmar LifeInsurance Co. from3.1.2002 to29.9.2005)

--- 121 03.01.2002 2001-02

12.

AVIVA AvivaInternationalHoldings Ltd.,UK

122 14.05.2002 2002-03

13.

Sahara LifeInsurance Co. Ltd.

--- 127 06.02.2004 2004-05

14.

Shriram LifeInsurance Co. Ltd.

Sanlam, SouthAfrica

128 17.11.2005 2005-06

15.

Bharti AXA LifeInsurance Co. Ltd.

AXA Holdings,France

130 14.07.2006 2006-07

16.

Future GeneraliIndia LifeInsuranceCompany Ltd.

Generali, Italy 133 04.09.2007 2007-08

17.

IDBI Fortis LifeInsuranceCompany Ltd.

Fortis, Netherlands

135 19.12.2007 2007-08

18.

Canara HSBCOBC LifeInsuranceCompany Ltd.

HSBC, UK 136 08.05.2008 2008-09

19.

Aegon ReligareLife InsuranceCompany Ltd.

Religare, Netherlands

138 27.06.2008 2008-09

20.

DLF PramericaLife Insurance Co.Ltd.

Prudential of America, USA

140 27.06.2008 2008-09

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21.

Star Union Dai-ichi Dai-ichi MutualLife Insurance,Japan

142 26.12.2008 2008-09

22.

IndiaFirst lifeinsurance company

Legal & GeneralMiddle EastLimited, UK

143 05.11.2009 2009-10

23.

Life InsuranceCorporation of India

--- 512 01.09.1956 1956-57

SKILLS AND TRAINING

Across the region, the insurance sector is characterised by a shortage of

skills- particularly product development, underwriting, and actuarial skills. The

absence of skills clearly affects the development of the sector, specifically in the

areas of product innovation, risk assessment and pricing. This situation is

exacerbated by the nationalization requirements in some countries, which extendthe time required to train and equip staff for key positions, and the availability of

highly attractive positions in other areas of the financial services sector.

Cultivating the growth of a pool of skilled local insurance professionals is

paramount to the development of the insurance sector, given the existing acute

shortage of skills. As such, the study proposes that policymakers and regulators

act as catalysts in the development of professional knowledge in three ways:

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In general, it is customary to set minimum requirements for insurance

professionals that go beyond educational attainment and include specialized

insurance qualifications. Regulators can influence the market in raising the

standards of training programs by adopting internationally accredited programs

and selectively approving local programs that meet minimum criteria.

Training programs can be organized by the regulators, the industry itself

(such as associations of insurance companies and the companies themselves), and

by the private sector as the demand for such training increases. In countries where

the demand for tactful products is growing rapidly, regulators need to ensure the

availability of training programs to educate the market on these relatively new

products.

PRESENT SCENARIO OF INSURANCE INDUSTRY

India with about 200 million middle class household shows a huge untapped

potential for players in the insurance industry. Saturation of markets in many

developed economies has made the Indian market even more attractive for global

insurance majors. The insurance sector in India has come to a position of very

high potential and competitiveness in the market. Indians, have always seen life

insurance as a tax saving device, are now suddenly turning to the private sector

that are providing them new products and variety for their choice.

Consumers remain the most important centre of the insurance

sector. After the entry of the foreign players the industry is seeing a

lot of competition and thus improvement of the customer service in

the industry. Computerisation of operations and updating of

technology has become imperative in the current scenario. Foreign

players are bringing in international best practices in service

through use of latest technologies

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The insurance agents still remain the main source through which

insurance products are sold. The concept is very well established in

the country like India but still the increasing use of other sources is

imperative. At present the distribution channels that are available in

the market are listed below.

Direct selling

Corporate agents

Group selling

Brokers and cooperative societies

Banc assurance

Customers have tremendous choice from a large variety of products

from pure term (risk) insurance to unit-linked investment products.

Customers are offered unbundled products with a variety of benefits

as riders from which they can choose. More customers are buying

products and services based on their true needs and not just

traditional money back policies, which is not considered very

appropriate for long-term protection and savings. There is lots of

saving and investment plans in the market. However, there are still

some key new products yet to be introduced - e.g. health products.

The rural consumer is now exhibiting an increasing propensity for

insurance products. A research conducted exhibited that the rural consumers arewilling to dole out anything between Rs 3,500 and Rs 2,900 as premium each

year. In the insurance the awareness level for life insurance is the highest in rural

India, but the consumers are also aware about motor, accidents and cattle

insurance. In a study conducted by MART the results showed that nearly one

third said that they had purchased some kind of insurance with the maximum

penetration skewed in favor of life insurance. The study also pointed out the

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private companies have huge task to play in creating awareness and credibility

among the rural population.

STATE OF THE MARKET

India is the fifth largest general insurance market in Asia with annual

premiums of $6.3 billion in FY09

Second largest population in Asia (and the world) and an increasing middle

class population + low penetration presents tremendous opportunityIt is projected that from 2006-2026 the working class population is

expected to increase from 675.8 million to 795.5 million

21 companies operating in India:

Intense competition and strong growth between FY01 and FY08

Market continues to be dominated by public sector, though share has

declined since FY01

Large middle class population, increased awareness and income levels

have fueled growth

Currently maximum foreign partner investment is 26% - soon expected to

increase to 49%

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The Road Ahead

Saturation of insurance markets in many developed economies has made

the Indian market more attractive for international insurance players, according to

'Booming Insurance Market in India (2008-2011). Further, according to the

report,

Total life insurance premium in India is projected to grow US$ 266 billion

by 2010-11 Total non-life insurance premium is expected to increase at a compound

annual growth rate (CAGR) of 25 per cent for the period spanning from

2008-09 to 2010-11

The home insurance segment is set to achieve a 100 per cent growth asfinancial institutions have made home insurance obligatory for housing

loan approvals In the next three years, health insurance is poised to become the second

largest business for non-life insurers after motor insurance

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CONCLUSION

Competition will surely cause the market to grow beyond current rates,

create a bigger pie and offer additional consumer choices through the

introduction of new products, services, and price options. Yet, at the same

time, public and private sector companies will have to be working together to secure healthy growth and development of the sector. Challenges such

as developing a common industry code of conduct, contributing to a

common catastrophe reserve fund, and chalking out agreements between

insurers to settle claims to the benefits of the consumer will require

concerted effort from both sectors.

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1.3 COMPANY PROFILE

METLIFE BUILDING

THE HEADQUARTERS OF METLIFE

HISTORY OF THE ORGANIZATION

METLIFE PROFILE

MetLife, Inc. is the holding corporation for the Metropolitan Life

Insurance Company or MetLife for short. The firm was founded on March 24,

1868. For most of its life the company was a mutual organization , but it went

public in 2000. The company is headquartered at 1095 Avenue of the Americas inMidtown Manhattan , New York City , though it retains some executive offices and

its board room in the MetLife Building , which it sold in 2005

MetLife is the largest life insurer in the United States , with more than

$3.3 trillion of life insurance in force. A leader in savings and retirement products

and services for individuals, small business, and large institutions, MetLife serves

90 of the largest Fortune 100 companies.

47
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Ranked 38 on the Fortune 500 list (April 2004) MetLife insurances (MetLife) is

one of the largest, strongest and most respected financial organizations. MetLife

through its' affiliates is the number one life insurer in the U.S with approx. @2.5

trillion of life insurance in force (as of Dec. 2002) and has been delivering

reliable, high quality service to its customers since 1868.

MetLife is a leader in group benefits that serve 88 of the top one

hundred FORTUNE 500 companies, and providing benefits to 37 million

employees and family members through its sponsors in the U.S.

The MetLife companies are also ranked #1 in group life and #1 in commercial

dental in the U.S. Headquartered in New York. MetLife through its affiliates,

subsidiaries and representative offices, operates in 15 countries throughout the

America, Europe and Asia. MetLife's institutional clients have approx. 35 million

employees and members. MetLife has assets under management worth $255

billion. (FORTUNE 500 is a registered trademark of FOURTUNE Magazine,

a division of Time, Inc)

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VISION

Build financial freedom for all through leadership in providing professionalfinancial advice and building long term relationships through innovative

protection, accumulation and retirement products, robust underwriting processes

and creating a world-class customer service experience for our customers.

OUR MISSION

By 2010, provide 5 million customers in India world-class solutions for

financial security and in the process add significant value to our shareholders,

associates and society.

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METLIFE INDIA INSURANCE COMPANY LIMITED

MetLife India Insurance Company Limited (MetLife) is an affiliate of

MetLife, Inc. and was incorporated as a joint venture between MetLife

International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co.

Private Limited and other private investors. MetLife is one of the fastest growing

life insurance companies in the country. It serves its customers by offering arange 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 70 million

customers in 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 in force), with over 140 years of experience and relationships

with more than 90 of 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

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corporations and other institutions.

MetLife is headquartered in Bangalore with officers and presence in major Indian

cities, and an additional 1000 outreach points through its channel partners.

Through our highly professional agency system, we are dedicated to helping

Indian consumers plan for their financial security through customized solutions.

MetLife is driven by the principles of uncompromising integrity and the highest

level of professionalism. Its mission is to work with utmost integrity, fairness and

financial prudence in all its dealings.

MetLife benefits from its parent company's global presence in the field

of insurance, track record of establishing successful insurance operations in

emerging markets and the unique strengths of its other Indian promoters. Drawing

from these experiences, MetLife will be able to address the needs of the Indian

customer.

MetLife aspires to build on MetLife history of meeting policy holder

and contract obligations and the, ability to withstand the impact of adverse

economic factors. The MetLife brand, known for empowering people to feel

protected, guided and hopeful about their lives, will do the same for its Indian

customers.

In the past two years, MetLife has made significant contributions to the

growth of MetLife international. Since selling its first policy in January 2002,

MetLife has experienced strong growth from its agency force, which increased

45% during 2003 alone. The company presently has more than 24,000 policies in

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place and has recently entered the institutional market with a group life product.

While group insurance in India is not currently a large market, the

segment is forecasted to grow rapidly in the next two-to-three years. By focusing

on this untapped market, MetLife can meet the needs of large corporations,

helping them establish benefit programs that help them attract and retain top

talent. However, it is pertinent to mention here that India's Banc assurance and

Corporate Agency has also played a significant role in contributing to this

success.

COMPANY VALUES

PERSONAL RESPONSIBILITY

"Coming into your own", performs as a Leader to be really effective and

successful by acting and making decisions independently to get results.

PEOPLE COUNT

It's all about People, MetLife's key resource. MetLife will succeed because we

are winning from within.

PARTNERSHIP

Functioning productively in teams towards a common purpose; realizing the

collective power of diverse work-groups.

FINANCIALSTRENGTH

Operating with an intense dedication to managing monetary resources for strong

business results.

INTEGRITY AND HONESTY

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Conducting all business endeavors with truth, sincerity and fairness.

INNOVATION

Continuously creating and introducing new and original ideas and ways of doing

things

THE GOAL OF METLIFE

To contribute significantly to the MetLife mission of reaching 100

million customers by 2010. To help reach that goal, MetLife plan on launching

innovative products in the near future, this will act as a major differentiator among

competitors. In additions, with the launch of the new MetLife television

commercials, which is a first for our India operation, this will add greatly to

MetLife's global brand recognition. The combination of this brand and the

continued outstanding efforts will provide the fuel to drive MetLife further up the

road of success. MetLife delivers value and world-class service to customersthrough its financial advisors and corporate sales representatives. The mission of

MetLife Insurance is to build financial freedom for all.

What is financial freedom?

It is all about securing one's future. It about approaching lifes major

milestones without any worries. True financial freedom arises from identifying

your financial capabilities, setting realistic goals based on your dreams and

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aspirations and achieving them through a comprehensive plan. Most importantly,

while you set out to draw up financial plans for your life- you need to understand

that it isn't a one-time plan. The planning that goes into attaining your financial

freedom should be dynamic, since life itself is dynamic. What's good for you

today might not be next year.

During the course of your life you need to achieve your aspirations (life

owning of house), meet certain financial obligations (life educating your children

or-getting them married), ride over unforeseen contingencies and plan a

financially independent retirement phase. The Met Advice Financial Planning

could be the first step in your planning exercise. It attempts to give you onoverview of the various investment options available in the market today

MANAGEMENT TEAM

RAJESH RELAN

MANAGING DIRECTOR

Rajesh has twenty years experience in the financial services

sector, of which he has spent ten years in the Indian Life Insurance industry.

Visualizing the scope and growth, he became a part of this sunrise industry in

1999, much before it was opened to the private players.

Over these years, he has contributed significantly through his strategic

vision to the development of the private life insurance industry in areas like

regulatory & policy formulation, product development, policyholders protection

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and distribution models. He is widely recognized for the pivotal role he played

towards three different life insurance ventures in the country. In the first, he

played a critical role as a key project team member that led to the successfulformation of the JV. With the second life insurance company, a start-up, he was

one amongst the first five employees instrumental in launching and growing its

Indian operations. Finally, in his third stint he has been leading another life

insurance company MetLife, of which he is the Managing Director for India for

the last three and a half years. Rajesh joined MetLife India in 2006 and has

transformed the organization since then. With exceptional skills in business

strategy & planning, he has laid the foundation for MetLifes success in the Indian

market.

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57

TABLE NO: 4

MSVS PhaneshAppointed Actuary

Sameer Bansal Director- AgencyNitish Asthana Director- Bancassurance &

Business PartnershipsJoydeep Mukherji Chief Financial Officer KR Anil Kumar Director - Legal & Risk and

Company SecretaryP. S. Sankaran Director Compliance &

Internal ControlsKS Raghavan Chief Administrative Officer Gaurav Sharma Director - Customer Service and

OperationsShilpa Vaid Deputy Director- Human

Resources
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PRODUCTS OF MET LIFE

The plans provided by MetLife Insurance are listed below:

Protection Plans

Met Suraksha

Met Suraksha TROP

Met Suraksha Plus

Savings Plan

Met Sukh

Met Suvidha

Met Saral

Met 100

Investment Plans

Met Wealth Plus

Met Easy Plus

Met Smart Life

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Met Gold Plus

Met Fortune

Child Plans

Met Bhavishya

Met Junior Endowment

Met Junior Money Back

Met Magic

Retirement Plans

Met Growth Super

Met Pension-Plus

Met Pension - Par

Investments Plans

Met Easy Plus

Met Wealth Plus

Met Gold Plus

Met Smart Life

Rural Plans

Met Vishwas

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Met Suvidha - Rural

Health Plans

Met Health Care

Monthly Income

Monthly Income Plan

METLIFES ACHIEVEMENTS

MetLife enjoyed a golden performance on May 15, 2009 (New York) -

At the 15th Annual FCS Annual Portfolio Awards, the Financial

Communications

Society (FCS): four awards, all Gold trophies, plus the Best-in-Show

Multicultural award for its "South Asian Brand Television Campaign,"

created by IW Group. The award was sponsored by Forbes. MetLife

also won Gold in the new ROI category, which recognized the successof marketing campaigns for their stated return on investment.

MetLifes corporate vision to build financial freedom for everyone

guides the companys response to peoples growing need for first-rate

financial products and services through various life stages and

economic cycles. MetLifes trusted brand, capital strength, and existing

relationships with millions of individual and institutional customers

around the globe uniquely position MetLife among its competitors.

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The "everyone" in MetLifes vision took on added meaning in 2000 as

the company welcomed an important new constituency: shareholders.

MetLife transformed itself from mutual to stock ownership in April of

that year through a demutualization and initial public offering that was

completed in just 18 months after Board authorization.

The year 2001 was a true test of the qualities that define MetLife. The

companys core values, brought to life in what MetLife does every day,

were no more evident than in MetLifes response to the tragic eventsthat shook our nation on September 11. MetLife responded quickly.

The company served its customers, communities and employees during

this difficult time. At the same time, MetLife invested $1 billion in a

broad array of publicly-traded common stocks.

In 2001, MetLife was the first insurance company to establish a

financial holding company with a nationally chartered bank.

Leveraging its unparalleled distribution channels, MetLife entered the

retail-banking arena with the launch of MetLife Bank, making it an

easy and convenient way for MetLifes customers to realize their

financial goals.

MetLife announced in 2002 that it would be continuing its long-

standing relationship with Snoopy and the rest of the PEANUTS

characters. The company signed a new contract that would allow thecharacters to appear in MetLifes domestic and international

advertising for the next 10 years.

The sale of State Street Research & Management Company to

BlackRock, Inc. was announced in 2004 . In line with MetLifes

strategy to focus on core business growth, the sale benefited many of

the companys Individual and Institutional Business clients who held

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investments through State Street Research, as it became part of one of

the largest publicly traded investment management firms in the U.S.

The Companys stated long-term goal is to become the recognized

leader throughout the world for relationship building, connectedness

and caring in financial services in the "giant league" with over 100

million people as MetLife customers by the year 2010.

MetLife took a major step toward realizing this goal in 2005, when it

acquired Travelers Life & Annuity and substantially all of Citigroups

international insurance businesses for $12 billion. Completed on July 1,

2005, the Travelers acquisition made MetLife the largest individual life

insurer in North America based on sales, the second largest provider of

retail annuities and the largest provider of institutional annuities.

Working Mother magazine honoured MetLife in 2005 by naming the

company one of the "100 Best Companies for Working Mothers," for

the seventh consecutive year. In 2005, the company was named to

Diversity Inc.s list of the Top 50 Companies for Diversity. In early

2006, MetLife was also named to the National Association for Female

Executives annual list of Top 30 Companies for Executive Women.

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

board of directors, president and chief executive officer of MetLife,

Inc. Henrikson was appointed CEO on March 1, 2006 and chairman of

the board on April 25, 2006.

Henrikson has been the architect of an aggressive growth strategy that

included double-digit organic growth, the divestiture of non-core

businesses, and an M&A strategy which resulted in market leadership

in all of MetLifes core product lines. Before it was commonly talked

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about, Henrikson recognized the opportunities presented by the

changing demographics in a global marketplace and set the company

on a course for continued success by developing innovative products

and services and strengthening the companys distribution power in the

U.S. and 16 markets in Asia Pacific, Latin America and Europe.

Today, a time when consumers are feeling a greater financial burden

than ever before, MetLife is helping millions of customers create their

own personal safety net. At no time in the companys history has

MetLife been as well positioned to capitalize on its history, its

reputation for security and stability, and its innovative products andservices as it is today.

In the future, MetLife will continue to grow its business with focus,

innovation and profitability. This will be accomplished by drawing on

the reservoir of history that has produced an enduring set of corporate

values based on more than 138 years of integrity, social responsibility,

strong leadership and financial strength.

Some other achievements

Largest life insurer in the US with approximately $3.4 trillion of life

insurance in force1

Serves 70 million customers and experiences the existence of over 140

years in the industry

Ranked 39 on the FORTUNE 500 listingRanked 6th In Fortune Magazine 2009 List of Americas Most Admired

Companies

Named by Forbes magazine as The Best Managed Insurance Company in

America (2008)

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

& AC Nielson in 2008.

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METLIFE INDIA INSURANCE ON MASSIVE BRANCH EXPANSION

PLAN-INDIA

MetLife India Insurance plans to aggressively embark on a branch expansion programme and is eyeing a 275-strong network pan-India by End-March, a topcompany official said.

"The insurance market continues to be severely under-penetrated in India and we

need to leverage this opportunity. We plan to increase our number of branches

from the present 195 to 275 by March 2010," MetLife India Insurance's Managing

Director, Rajesh Relan.

The company has, so far this fiscal, infused a capital of Rs 370crore into thecompany which should suffice for present requirements, he said. The current

capital base of the company is Rs 1,950crore. The company also plans to increase

the strength of its financial advisors to over 1, 00,000 by December 2010.

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FIGURE A1

Graph showing the age of customers

15.0%

41.0%24.0%

20.0%

50&above

40-50

30-40

20-30

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INTERPRETATION

From the above graph, it is inferred that 20% of the customers were

between the ages of 20to30, 24%of the customers were between the age of 30 to

40, 41% of the customers were between the age of 40 to 50 and remaining 15% of

the customers were above 50 years.

FIGURE A2

Graph showing the occupation of customers

9.0%

56.0%

35.0%

others

own business

salaried

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INTERPRETATION

From the above graph, it is inferred that 35% of the customers were

salaried, 56%of the customers were having their own business and 9% of the

customers were having other occupation.

FIGURE A3

Graph showing the income level of customers

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17.0%

45.0%

30.0%

8.0%Above 4 Lakhs

2Lakhs-4Lakhs

1Lakhs-2Lakhs

Below 1 Lakhs

INTERPRETATION

From the above graph, it is inferred that 8% of the customers were having anincome level below 1 lakh, 30%of the customers were having an income level

between 1 lakh to 2 lakh, 45% of the customers were having an income level

between 2 lakh to 4 lakh and 17% of the customers were having an income level

above 4 lakh.

FIGURE A4

Graph showing the reasons prompted to take insurance policy

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23.0%

22.5%

20.2%

11.2%

23.0%

Tax Rebate

Savings

Risk Coverage

Medical Benef

Investments

INTERPRETATION

From the above graph, it is inferred that the investment and savings

was the main reason for customers to take insurance policy (accounted by 45.5%

of the Customers responses). This was followed by Tax Rebate (accounted by23% of the Customer Responses). Risk Coverage (accounted by 20.2% of the

Customers Responses) and Medical Benefit (accounted by 11.2% of the Customer

Responses). None of the Customers had taken insurance policy of Necessity.

FIGURE A5

Graph showing how customers come to know about METLIFE.

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60.0%

32.0%

Others

Insurance Advisors

Friends/Relatives

Advertisement

INTERPRETATION

From the above graph, it is inferred that 64% of the customers came to

know about METLIFE from the Insurance Advisors, and 32% of the customerscame to know from their Friends/Relatives and the other Customers came to

know from the Advertisements and other sources.

FIGURE A6

Graph showing what influenced customers to Purchase policy

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80.0%

18.0%

Trustworthy/Reliable

Relationship with Ad

Policy Plan

INTERPRETATION

It is inferred that 80% of the customers were influenced by the Relationship withthe Advisors to purchase the Policy,18% were influenced by the Policy Plan to

purchase Insurance Policy, only 2% of the customers were influenced by the

Trustworthiness or Reliability of the Company to Purchase the Insurance Policy.

FIGURE A7

Graph showing what influenced customers to take the policy

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56.0% 28.0%

15.0%

urance Advisors

Self

Friends

Family

INTERPRETATION

From the above graph, it is inferred that 56% of the customers take the

policy because of the Relationship with the Advisors,28% of the Customers

purchase the Policy because of their Friends/Relatives,15% were influenced by

the Family to purchase Insurance Policy, only 1% of the customers Purchase the

Insurance Policy for themselves.

FIGURE A8

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Graph showing whether the Customers are contacted by the Customer Care

dept.

INTERPRETATION

From the above graph, it is inferred that 70% of the customers says that

they were contacted by the customer care department and 30% says they are not

often contacted by the customer care department.

FIGURE A9

73

70.0%

30.0%

YES

NO


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Graph showing whether the customers are provided with proper

communications, updates and switch over details

27.0%

73.0%

No

Yes

INTERPRETATION


they were provided with proper communications, updates and switch over details

by the customer care department and 23% of the customers says that they were

not provided with proper communications, updates and switch over details by the

customer care department.

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FIGURE A10

Graph showing the satisfaction level of customers for the calls & notices

provided for the payment of renewal premium.

26.0%

59.0%

15.0%

Dissatisfied

Neutral

satisfied

INTERPRETATION

From the above graph, it is inferred that 59% of the customers are

Neutral in their satisfaction level,26% of the customers are dissatisfied with the

Calls and Notices provided for the payment of renewal premium and 15% of the

customers are satisfied with the calls and notices provided for the payment of

renewal premium.

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FIGURE A11

Graph showing the satisfaction level of customers for insurance products.

INTERPRETATION

From the above graph, it is inferred that 72% of the customers are

Neutral in their satisfaction level of their products, 23% of the customers are

satisfied with their products,2% of the customers are very satisfied with the

Insurance Products and 1% of the customers are dissatisfied with the Insurance

product.

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72.0%

23.0%

DISSATISFIED

NEUTRAL

SATISFIED

VERY SATISFIED


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FIGUREA12

Graph Showing how likely the Customers purchase a product from

METLIFE

41.0%

54.0%

Poor

Fair

Good

Very Good

INTERPRETATION

From the above graph, it is inferred that 54% of the customers werehaving a Good chance of purchasing a product, 41% of the customers were

having a fair chance of purchasing a product from METLIFE, 4% of the

customers were having a very good chance of purchasing a product from

METLIFE and 1%of the customers were not having a chance of purchasing a

product from METLIFE.

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FIGURE A13

Graph showing the quality of relationship METLIFE maintain with their

customers

25.0%

41.0%

34.0%

Good

Very good

Excelllent

INTERPRETATION


quality of relationship METLIFE maintain with their customers is Very Good,

34% of the customers says that quality of relationship METLIFE maintain with

their customers is Excellent and 25% of the customers says that quality of

relationship METLIFE maintain with their customers is Good.

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FIGURE A14

Graph showing the relation between the Reasons for selecting an insurance

products and the Occupation of the customers for taking Insurance policy

occupation of customers

othersown businesssalaried

p e r c e n

t a g e

100

90

80

70

60

50

40

30

20

10

Project - Dipu

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