met Insurance project

7/25/2019 met Insurance project

1/27

Insurance:

1. Life insurance2. Disability insurance3. Auto insurance4. Home insurance

1.Page |6 INDUSTRY PROFILEWHAT IS INSURANCE? Insurance may be defined as social

device or tool to protect the economic value of the Life and other assets. Under the plan of

Insurance a group of people are brought together and their share of money is pooled to

manage the loss suffered by any of them. Insurance is defined as the equitable transfer of

the risk of a loss, from one entity to another, in exchange for payment. It is a means of

indemnity against a future occurrence of an uncertain event. Insurance is a contract whereby

in return of the payment of the premium by the insured the insurers pay the financial loss

suffered by the insured as a result of the loss by the unforeseen events. The term risk is

used to define the probability of loss. Risk management, the practice of appraising and

controlling risk, has evolved as a discrete field of study and practice. Insurance is a pool

where large number of people exposed to similar kind of risks makes contribution to the

common fund out of which the losses suffered by the unfortunate few due to accidental

events are made good. The sharing of risk among large group of people is the basis of

insurance.

2.7.Page |7 CHARACTERISTICS OF INSURANCERisks which can be insured by private

companies typically share sevencommon characteristics: 1. Large number of similar

exposure units: Since insurance operates through pooling resources, the majority of

insurance policies are provided for individual members of large classes, allowing insurers to

benefit from the law of large numbers in which predicted losses are similar to the actual

losses. 2. Definite loss: The loss takes place at a known time, in a known place, and from a

known cause. The classic example is death of an insured person on a life insurance policy.

Fire, automobile accidents, and worker injuries may all easily meet this criterion. 3.

Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or at

least outside the control of the beneficiary of the insurance. The loss should be pure, in the

sense that it results from an event for which there is only the opportunity for cost. Events that

contain speculative elements, such as ordinary business risks or even purchasing a lottery

ticket, are generally not considered insurable. 4. Large loss: The size of the loss must be

meaningful from the perspective of the insured. Insurance premiums need to cover both theexpected cost of losses, plus the cost of issuing and administering the policy, adjusting

losses, and supplying the capital needed to reasonably assure that the insurer will be able to

pay claims. 5. Affordable premium: If the likelihood of an insured event is so high, or the cost

of the event so large, that the resulting premium is large relative to the amount of protection

offered, it is not likely that the insurance will be purchased, even if on offer. Further, as the

accounting profession formally recognizes in financial accounting standards, the premium
http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-7-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-7-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-7-728.jpg?cb=1298552204


2/27

cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If

there

3.8.Page |8 is no such chance of loss, the transaction may have the form of insurance, but not

the substance.6. Calculable loss: There are two elements that must be at least estimable, if

not formally calculable: the probability of loss, and the attendant cost. Probability of loss is

generally an empirical exercise, while cost has more to do with the ability of a reasonable

person in possession of a copy of the insurance policy and a proof of loss associated with a

claim presented under that policy to make a reasonably definite and objective evaluation of

the amount of the loss recoverable as a result of the claim.7. Limited risk of catastrophically

large losses: Insurable losses are ideally independent and non-catastrophic, meaning that

the losses do not happen all at once and individual losses are not severe enough to bankrupt

the insurer; insurers may prefer to limit their exposure to a loss from a single event to some

small portion of their capital base.

4.9.Page |9 HISTORY OF INSURANCEOrigin of InsuranceAlmost 4,500 years ago, in the

ancient land of Babylonia, traders used tobear risk of the caravan trade by giving loans that

had to be later repaidwith interest when the goods arrived safely. In 2100 BC, the CodeofHammurabi granted legal status to the practice that, perhaps, was howinsurance made its

beginning.Life insurance had its origins in ancient Rome, where citizens formedburial clubs

that would meet the funeral expenses of its members as wellas help survivors by making

some payments.As European civilization progressed, its social institutions and

welfarepractices also got more and more refined. With the discovery of newlands, sea routes

and the consequent growth in trade, medieval guildstook it upon themselves to protect their

member traders from loss onaccount of fire, shipwrecks and the like.Since most of the trade

took place by sea, there was also the fear ofpirates. So these guilds even offered ransom for

members held captive bypirates. Burial expenses and support in times of sickness and

povertywere other services offered. Essentially, all these revolved around theconcept ofinsurance or risk coverage. Thats how old these concepts are,really.In 1347, in Genoa,

European maritime nations entered into the earliestknown insurance contract and decided to

accept marine insurance as apractice.The first step...Insurance as we know it today owes its

existence to 17th centuryEngland. In fact, it began taking shape in 1688 at a rather

interestingplace called Lloyds Coffee House in London, where merchants, ship-owners and

underwriters met to discuss and transact business. By the endof the 18th century, Lloyds had

brewed enough business to become oneof the first modern insurance companies.

5.10.P a g e | 10Insurance and Myth...Going back to the 17th century in 1693, astronomer

Edmond Halleyconstructed the first mortality table to provide a link between the lifeinsurance

premium and the average life spans based on statistical laws ofmortality and compoundinterest. In 1756, Joseph Dodson reworked thetable, linking premium rate to age.Entering

Companies...The first stock companies to get into the business of insurance werechartered

in England in 1720. The year 1735 saw the birth of the firstinsurance company in the

American colonies in Charleston, SC. In 1759,the Presbyterian Synod of Philadelphia

sponsored the first life insurancecorporation in America for the benefit of ministers and their

dependents.However it was after 1840 that life insurance really took off in a big way.The

trigger: reducing opposition from religious groups.The Growing Years...The 19th century saw
http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-8-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-8-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-9-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-9-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-10-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-10-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-8-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-9-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-10-728.jpg?cb=1298552204


3/27

huge developments in the field of insurance, withnewer products being devised to meet the

growing needs of urbanizationand industrialization. In 1835, the infamous New York fire drew

peoplesattention to the need to provide for sudden and large losses. Two yearslater,

Massachusetts became the first state to require companies by law tomaintain such reserves.

The great Chicago fire of 1871 furtheremphasized how fires can cause huge losses in

densely populated moderncities. The practice of reinsurance, wherein the risks are spread

amongseveral companies, was devised specifically for such situations.There were more

offshoots of the process of industrialization. In 1897,the British government passed the

Workmens Compensation Act, whichmade it mandatory for a company to insure its

employees againstindustrial accidents. With the advent of the automobile, public

liabilityinsurance this first made its appearance in the 1880s and gainedimportance and

acceptance.In the 19th century, many societies were founded to insure the life andhealth of

their members, while fraternal orders provided low-cost,members-only insurance.

6.11.P a g e | 11Even today, such fraternal orders continue to provide insurance coverageto

members as do most labour organizations. Many employers sponsorgroup insurance policies

for their employees, providing not just lifeinsurance, but sickness and accident benefits andold-age pensions.Employees contribute a certain percentage of the premium for

thesepolicies.In IndiaLife Insurance in India existed from long time. The modern concept

ofInsurance was brought by Bruisers in India, and Oriental InsuranceCompany was the first

Insurance Company who did Insurance for theIndian in 1818 and was established in Calcutta

nowadays Kolkata. Thendue to no interference of government in it, private market players

ruledthe market as they want to, that is why government intervened in betweento protect the

interest of the mass and to safeguard the money involved init. All private companies were

took over by Government and Insurancemarket was turned to Public sector and Life

Insurance Corporation ofIndia was formed in 1956 to make the Insurance reachable at

remoteareas and that even by low premiums or better said as affordable premiumso as tosecure their life.From the beginning of Insurance in India till now a lot of changes havebeen

made but the most significant change was in 1999, when IRDA wasformed. IRDA means

Insurance Regulatory and Development Authority.This was formed to rethink upon opening

the insurance sector for thePrivate players again but along with that to have a check upon

thoseprivate players an IRDA has to act as a governing body to safeguard theinterest of the

public whose money is involved in it.From that time i.e. from the year 2001 insurance sector

was opened forthe private players too. Since then Insurance sector is on the boom

andbusiness is flourishing and a lot of private players are coming intobusiness. Here the

private players doesnt indicate to Indian PrivateCompanies but also foreign players are also

involved in it, but to managethe money flow in and outside the country IRDA takes care ofthecontribution of the money by foreign partners of private insurancecompanies. To control

that IRDA has set a limit of FDI i.e. 26%.

7.12.P a g e | 12The evolution of Insurance in India can be summarized as:-Year

Changes1818 Oriental Insurance Company. The first Insurance company in India1870

Bombay Mutual Life Assurance Company. First Indian Insurance company.1912 The Indian

Life Assurance Company enacted the first law to regulate the life insurance business in

India1926 The Indian Assurance company act enacted to enable the government to collect
http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-11-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-11-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-12-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-12-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-11-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-12-728.jpg?cb=1298552204


4/27

the statistical information about the insurance. The earlier legislation consolidated and

amended the life insurance act with the objective of protecting the interest of insurance in the

public.19381956 245 Indian and foreign players and prudent societies are taken once by

Central govt. And nationalizedThe number of companies in Insurance particularly in Life

Insurance haschanged drastically now the number is in 29.

8.13.P a g e | 13 Types of Insurance ContractWHAT IS LIFE INSURANCE?Life insurance is a

contract for payment of money to the person assured (or tothe person entitled to receive the

same) on the occurrence of the event insuredagainst.Usually the contract provides for i.

Payment of an amount on the date of maturity or at specified periodic intervals or at death,

whichever is earlier. ii. Periodic payment of insurance premium by the policy holder to the

corporation who provides the insurance.Who can buy a life insurance policy?Any person

above 18 years of age, who is eligible to enter into a valid contract,Subject to certain

conditions, a policy can be taken on the life of the spouse orthe children.What is a Whole

Life Policy?When most people think of life insurance, they think of a traditional whole

lifepolicy. These are the simplest policies to understand: You pay a fixed premiumevery year

based on your age and other factors, you earn interest on the policyscash value as the yearsroll by, and your beneficiaries get a fixed benefit afteryou die.The policy takes you into old

age for the same premium you started out with.Whole life insurance policies are valuable

because they provide permanentprotection and accumulate cash values that can be used for

emergencies or tomeet specific objectives. The surrender value gives you an extra source

ofretirement money if you need it.

9.14.P a g e | 14What is an Endowment policy?Unlike whole life, an endowment life

insurance policy is designed primarily toprovide a living benefit and only secondarily to

provide life insuranceprotection. Therefore, it is more of an investment than a whole life

policy.Endowment life insurance pays the face value of the policy either at theinsureds death

or at a certain age or after a number of years of premiumpayment.Endowment life insuranceis a method of accumulating capital for a specificpurpose and protecting this savings

program against the savers premature death.Many investors use endowment life insurance

to fund anticipated financialneeds, such as college education or retirement. Premium for an

endowment lifepolicy is much higher than those for a whole life policy.What is a Money

Back policy?This is basically an endowment policy for which a part of the sum assured ispaid

to the policyholder in the form of survival benefits, at fixed intervals,before the maturity date.

The risk cover on the life continues for the full sumassured even after payment of survival

benefits and bonus is also calculated onthe full sum assured. If the policyholder survives till

the end of the policy term,the survival benefits are deducted from the maturity value.

10.15.P a g e | 15 SCOPE OF LIFE INSURANCEWhy does one need Life Insurance?Lifeinsurance is designed to protect you and your family against financialuncertainties that may

result due to unfortunate demise or illness. You can alsoview it as a comprehensive financial

instrument as a part of your financialplanning offering you savings & investment facilities

along with cover againstfinancial loss. By choosing the right policy as per your needs i.e.

customizedsolutions, you will be able to plan for a secure future for yourself and yourloved

ones. i. Choosing the right plan. ii. Identifying the right plan basis your needs is the first

crucial step towards insurance planning. At Metlife India Insurance we help you through this


5/27

decision by identifying your various needs and offering plans that are customized for you.

You may also choose a plan for yourself by identifying the life stage you are at. iii. Analyzing

NeedsThe following needs of a person can be fulfilled by insurance:- a. Protection: Need for

a sound income protection in case of your unfortunate demise. b. Investment: Need to

ensure long-term real growth of your money. c. Saving: Save for the milestones and protect

your savings too. d. Pension: Need to save for a comfortable life post retirement.Once you

have analyzed your needs as per above classification, you need tothen ascertain important

factors such as type of cover, insurance amount as perones income, life stage and

dependents.

11.16.P a g e | 16 Objectives of Life Insurance1. To spread life insurance and provide life

insurance protection to the masses areasonable cost.2. To mobilize peoples savings through

insurance-linked savings schemes.3. To invest the funds to serve the best interests of both

the policy holders andthe nation.4. To conduct business with maximum economy, always

remembering that themoney belongs to the policy holders.5. To act as trustees of the policy

holders and protect their individual andcollective interests.6. To innovate and adapt to meet

the changing life insurance needs of thecommunity.12.17.P a g e | 17GENERAL INSURANCEGeneral (non-life) insurance provides a short-term

coverage, usually for aperiod of one year. General insurers transact fire insurance, motor

insurance,marine insurance, and miscellaneous insurance business. Among thesecategories

fire and motor insurance business are predominant. Motor vehicleinsurance is compulsory in

India and the motor insurance industry. Moreover,motor insurance due to third party liability

claims has substantially contributedto underwriting losses.General Insurance ProductsFire

insurance: Fire Insurance is a comprehensive policy which covers loss on account of fire,

earth quake, riots, floods, strikes, and malicious intent. It can be taken only by the owner of

the premises to be insured.Motor Insurance: In motor insurance, the rates were revised.

Upwards twice, once in 1982 and then in1990 as the high cost of repairs coupled with thirdparty claims had adversely affect the insured loss ratio. Motor insurance is Mandatory

leading to good amount of premium collection but it is not being fancied upon as it could lead

to litigation problem.Marine Cargo Insurance: a. Cargo in Transit. b. Cargo Declaration

policy. It includes insurance of Marine Hull Insurance Inland Vessels, ocean going Vessels,

fishing and scaling vessels, freight at risk, construction of ships, voyage insurance of various

vessels, ship breaking insurance, oil and energy in respect of onshore and offshore risks,

including construction risk.

13.18.P a g e | 18No-Traditional/Rural:Includes contractors all-risk cover and the marine-

cum- Cattle, crop, waterpump for agriculture, hut, and other livestock. Besides the

traditionalproducts, general insurers introduced longer-term contracts such as deferredhealthinsurance and project insurance erection risk cover and creditinsurance.

14.19.P a g e | 19 OBJECTIVE OF INSURANCE1. The main Objective Of insurance behind the

nationalization: Life Insurance in the rural areas and in the socially and economically

backward classes with a view to reach all insurable persons in the country and providing

them adequate financial coverage at a reasonable cost.2. Conduct business with utmost

economy and with the full realization that the money to the public.3. Meet the various life

insurance need of the community that would arise in the changing social and economic
http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-16-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-16-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-17-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-17-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-18-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-18-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-19-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-19-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-16-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-17-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-18-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-19-728.jpg?cb=1298552204


6/27

environment.4. Maximize mobilization of peoples saving by making insurance linked

securing adequately attractive.5. Involve all people working in the corporation to the best of

their capability in furthering the interests of the insurance public by providing efficient service

with courtesy.6. Bear in mind, the investment of funds, the primary obligation to its policy

holders, whose money it holder in trust, without losing sight of the interest of the community

as a whole; the fund is to be deployed to the best advantage of the investors as the

community as whole, keeping in view national as well as the community attractive return.

15.20.P a g e | 20 BENEFITS TO THE INSURANCE POLICY HOLDER(1) Tax Benefits:Relief

in income tax is available for amount paid by way of premium for lifeinsurance investment

qualifying for rebate viz. insurance premia, premium paidtoward annuity plans for life

insurance are specified under section 88(2) of theincome tax Act.(2) Safety:Savings through

insurance guarantee financial Protection against risk of deathof the police holder. In life

insurance, on death, the full sum assured is payable(with bonuses wherever applicable)

whereas in other saving scheme, only theamount (saved with interest) is payable.(3)

Liquidity:Loans can be raised on sole security of the policy which has acquired a paid-

upvalue. Besides, a Life Insurance policy is also generally accepted as security foreven acommercial loan/housing loan,(4) Aid to Thrift:Life Insurance encourages thrift Long term

saving can be made in a relativelypainless manner because of easy instalment facility

(Premium can be madethrough monthly, quarterly half-yearly or yearly instalment). The

salary savingscheme, popularly known as SSS provide a convenient method if

payingpremium each month through deduction from ones salary. The salary savingscheme

can be introduced in an institution of establishment subject to specifiedterms and condition.

(5) Money at the time of Requirements:A suitable insurance plan or a combination of different

plans can be taken tomeet specific needs that are likely to arise in future such as childrens

education,start in-life or marriage provision or even periodical needs for cash ones

apredetermined stretch of time. Alternatively, policy money can be so arrangedto be used forother investments subject to certain conditions, loans are grantedto policy holders for house

or for purchase of flats.

16.21.P a g e | 21(6) Insurance affords peace of mind:The security is the prime motivating

factor. The security ends the tension andfinally leads to peace to mind.(7) Insurance

Eliminate Dependency:At the death of husband or the father or any lead person, the family

would suffera lot. The insurance is here to assist then like to provide adequate amount at

thetime of suffering. The economic dependency if the family is reduced.(8) Insurance

encourages savings:In most of the life policies, element of saving is predominant, this

policiescombine of programme of Insurance and saving. Saving with insurance hascertain

extra advantage.(9) Economic Growth of the country:For the growth of the country insuranceprovides string hand and mid to protectagainst loss of death. From the insurance government

get more financialresource and utilize strengthen the economic condition of the country.

17.22.P a g e | 22 LIST OF INSURANCE COMPANIES LISTED IN DIFFERENT YEARS List of

Insurance CompaniesSl. Registration Date of Name of the CompanyNo. Number Reg.1 101

23/10/2000 HDFC Standard Life Insurance Company Limited2 102 23/10/2000 Royal

Sundaram Alliance Insurance Company Limited3 103 23/10/2000 Reliance General

Insurance Company Limited4 104 15/11/2000 Max New York Life Insurance Company


7/27

Limited5 105 24/11/2000 ICICI Prudential Life Insurance Company Limited6 106 04/12/2000

IFFCO Tokio General Insurance Company Limited7 107 10/01/2001 Kotak Mahindra Old

Mutual Life Insurance Limited8 108 22/01/2001 TATA AIG General Insurance Company

Limited9 109 31/01/2001 Birla Sun Life Insurance Company Limited10 110 12/02/2001 Tata

AIG Life Insurance Company Limited11 111 30/03/2001 SBI Life Insurance Company Limited

18.23.P a g e | 2312 113 02/05/2001 Bajaj Allianz General Insurance Company Limited13 114

02/08/2001 ING Vysya Life Insurance Company Private Limited14 115 03/08/2001 ICICI

Lombard General Insurance Company Limited15 116 03/08/2001 Bajaj Allianz Life Insurance

Company Limited16 117 06/08/2001 MetLife India Insurance Company Limited17 121

03/01/2002 Reliance Life Insurance Company Limited18 122 15/05/2002 Aviva Life

Insurance Company India Private Limited19 127 06/02/2004 Sahara India Insurance

Company Limited20 128 17/11/2005 Shriram Life Insurance Company Limited21 130

14/07/2006 Bharti AXA Life Insurance Company Limited22 131 03/08/2007 Apollo DKV

Insurance Company Limited23 132 04/09/2007 Future Generali India Insurance Company

Limited24 133 04/09/2007 Future Generali India Life Insurance Company Limited25 134

16/11/2007 Universal Sompo General Insurance Company Limited26 135 19/12/2007 IDBIFortis Life Insurance Company Limited27 136 08/05/2008 Canara HSBC Oriental Bank of

Commerce Life Insurance Company Limited

19.24.P a g e | 2428 138 27/06/2008 Aegon Religare Life Insurance Company Limited29 140

27/06/2008 DLF Pramerica Life Insurance Company Limited List of General Insurance

CompaniesSl. Registration Date of Name of the CompanyNo. Number Reg.1 123 15/07/2002

Cholamandalam General Insurance Company Limited2 124 27/08/2002 Export Credit

Guarantee Corporation Limited3 125 27/08/2002 HDFC-Chubb General Insurance Company

Limited4 139 27/06/2008 Bharti AXA General Insurance Company Limited5 141 15/12/2008

Raheja QBE General Insurance Company Limited

20.25.P a g e | 25 COMPANY PROFILE INTRODUCTION OF METLIFE INC.MetLife, Inc. is theholding corporation for the Metropolitan Life InsuranceCompany or MetLife for short. The firm

was founded on March 24, 1868. Formost of its life the company was a mutual organization,

but it went public in2000.MetLife is the largest life insurer in the United States, with more than

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

for individuals, small business, and large institutions, MetLifeserves 90 of the largest Fortune

100 companies.The company is headquartered at 1095 Avenue of the Americas in

MidtownManhattan, New York City, though it retains some executive offices and itsboard

room in the MetLife Building, which it sold in 2005.The MetLife companies offer life

insurance, annuities, auto and homeinsurance, retail banking and other financial services to

individuals, as well asgroup insurance and retirement & savings products and services tocorporationsand other institutions. For more information, please visit www.metlife.com.

21.26.P a g e | 26 INTRODUCTION OF METLIFE (INDIA)MetLife India Insurance Company

Limited (MetLife) is an affiliate of MetLife,Inc. and was incorporated as a joint venture

between MetLife InternationalHoldings, Inc., The Jammu and Kashmir Bank, M. Pallonji and

Co. PrivateLimited and other private investors. MetLife is one of the fastest growing

lifeinsurance companies in the country. It serves its customers by offering a rangeof

innovative products to individuals and group customers at more than 600locations through its
http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-23-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-23-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-24-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-24-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-25-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-25-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-26-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-26-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-23-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-24-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-25-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-26-728.jpg?cb=1298552204


8/27

bank partners and company-owned offices. MetLife hasmore than 50,000 Financial Advisors,

who help customers achieve peace ofmind across the length and breadth of the

country.MetLife, Inc., through its affiliates, reaches more than 70 million customers inthe

Americas, Asia Pacific and Europe. Affiliated companies, outside of India,include the number

one life insurer in the United States (based on life insuranceenforce), with over 140 years of

experience and relationships with more than 90of the top one hundred FORTUNE 500

companies. The MetLife companiesoffer life insurance, annuities, automobile and home

insurance, retail bankingand other financial services to individuals, as well as group

insurance,reinsurance and retirement and savings products and services to corporationsand

other institutions. For more information, please visit www.metlife.co.in.

22.27.P a g e | 27 METLIFE AND THE ENVIRONMENTAs an industry leader and a growing,

global enterprise, MetLife has committedto driving efforts that address sustainability, reduce

our carbon footprint andinvest in ventures that will have a positive impact on the environment.

As ourbusiness is built on promises, we recognize the tremendous importance ofmaking yet

another promise for the future by ensuring our world remains ahealthy and vibrant place for

the many generations to come through ourbusinesses, our associates and our businesspartners, we can and will make adifference by contributing to a growing, global effort that will

benefit everyonetoday and in the future.

23.28.P a g e | 28 ETHICS AND INTEGRITYFor more than a century, MetLife has built a

reputation as a company thatbelieves in fair dealing, integrity, and trustworthiness. We firmly

believe thatadherence to the highest standards of ethical conduct is the only acceptable

wayof doing business and is the personal responsibility of every one of ourassociates. The

companys well-known name and good reputation are reinforcedby our pledge to deliver value

and world class service to all who do businesswith us, always keeping in mind what is best

for our customers.The importance of ethics and compliance to the Company is demonstrated

bythe Companys extensive efforts and resources directed to this area. We arecommitted toour compliance vision of having MetLife be the worlds mosttrusted company.Supporting

these efforts are the MetLife core values of integrity and honesty,the fundamental building

blocks of our long and successful history, that shapethe way we do business. These values

are central to our efforts to achieve theMetLife vision to build financial freedom for

everyone and emphasize ouroutward focus on customers and their needs. We recognize

that our on-goingsuccess will spring from these values and, as we look to the future, we

remaincommitted to the highest standards of ethics, integrity and trustworthiness,while

continuing to pursue a strategy of building financial freedom foreveryone. This defines who

we are.

24.29.P a g e | 29 COMPLIANCE AND FRAUD HOTLINEMetLife is committed to the higheststandards of business conduct and expectsthe same from all people with whom we interact.

MetLife has implemented aprogram aimed at deterring, detecting, investigating and

prosecuting insurancefraud.Fraud is a major concern of everyone in the insurance industry

and is ofincreasing concern to lawmakers. Not only is insurance fraud a crime in moststates,

it also threatens the best interests of our customers because it raises thecost of insurance for

everyone. Compliance & Fraud Hotline at 1800-462-6565 DIVERSITYMetLifes Diversity and

Inclusion vision is to attract and retain the best talentand to foster an inclusive culture that


9/27

leverages our diversity to drive growthand profitability wherever we do business in the global

marketplace.At MetLife, diversity is core to our business, embedded at all levels of

ourcompany with clear accountability for success. Our commitment to diversityand inclusion

makes MetLife a more competitive company and allows us tobetter serve our customers,

attract and retain the best talent, and do businesswith the best companies and suppliers

around the world. It brings to MetLifefresh perspectives, new ways of thinking and more

innovative products. It helpsbuild relationships in the communities we serve and helps

support our brand. AtMetLife, diversity is a key driver of business performance and creates

lastingshareholder value.But examples really tell the story, and through this Diversity site,

youll learnmore about how MetLife delivers on its commitment to Diversity - from ourWork-

Life solutions to our Enterprise-wide Diversity Council and AffinityGroups, to how were

reaching Multicultural Markets.MetLife is an Equal Opportunity Employer.

25.30.P a g e | 30"Coming into your own", Its all about People, Functioning productively

performing as a Leader to MetLifes key resource. in teams towards abe really effective and

MetLife will succeed common purpose; successful by acting and because we are winning

realising the collectivemaking decisionsindependently to get from within. power of diversework-results. groups.Operating with an intense Conducting all business Continuously

creating anddedication to managing endeavours with truth, introducing new andmonetary

resources for sincerity and fairness. original ideas and ways ofstrong business results. doing

things. TAGLINE Peace of Mind, Guaranteed MASCOT- A DOG NAMED SNOOPY

26.31.P a g e | 31 PARTNERSGeojit Securities was founded by Mr. C.J. George in 1987 as a

Proprietorshipfor doing Broking business in Cochin Stock Exchange. In 1994, the

businesswas taken over by Geojit Securities Ltd, a Joint Venture between Mr. C.J.George

and the Kerala State Industrial Development Corporation Ltd. In thefollowing year, the

company came up with an IPO and the shares were listed invarious Stock Exchanges in

India in 1995.Jammu and Kashmir Bank Limited was incorporated on 1st October, 1938andcommenced its business from 4th July, 1939 at in Kashmir (India). The Bankwas the first

in the country as a State owned bank. According to the extendedCentral laws of the state,

Jammu & Kashmir Bank was defined as a govt.Company as per the provision of Indian

companies act 1956. In the year 1971,the Bank received the status of scheduled bank. It was

declared as "A" ClassBank by RBI in 1976. Today the bank has more than 500 branches

across thecountry and has recently become a billion Dollar Company. (Contd.)

27.32.P a g e | 32Mangaloreheadquartered Karnataka Bank, a leading private sector

Bankhaving a network of 433 branches across 19 States and 2 Union Territories, ismore than

84 years old. The Bank is a technology savvy, customer centricprogressive bank with a

national presence, driven by the highest standards ofcorporate governance and guided bysound ethical values. All the 433 branchesof the Bank are under the umbrella of core

banking solution.The Bank has a host of customer friendly deposit and advances

productsmeeting the varied needs and preferences of its customers. The Bank offers

aplethora of technology driven products like Internet Banking facility, Dematservices, Mutual

Fund products of reputed companies, Life and GeneralInsurance services, Visa enabled

Debit Card with wide acceptability across theglobe. The Bank has an ambitious business

turnover target of Rs. 35000 Croresfor the year 2008-09 with a branch expansion plan to


10/27

reach the tally of 460branches and additional ATMs to take the total to 180 by end-March

2009.In 1982, a group of Hyderabad-based practicing Chartered Accountants startedKarvy

Consultants Limited with a capital of Rs.1, 50,000 offering auditing andtaxation services

initially. Later, it forayed into the Registrar and Share Transferactivities and subsequently into

financial services. All along, Karvys strongwork ethic and professional background leveraged

with InformationTechnology enabled it to deliver quality to the individual. (Contd.)

28.33.P a g e | 33Established in 1921, Mini Muthoottu with an illustrious history of

bankingbehind them today operates from 75 branches in Kerala and 5 in Bangalore.

Allbusiness concerns of Mini Muthoottu function under the strict guidelines set bythe

Department of Company Law Affairs and Reserve Bank of India. They alsohave a certificate

of compliance with the requirements regarding prudentialnorms from the Reserve Bank of

India. Mini Muthoottu, under the leadership ofits Chairman, Mr. Roy M Mathew, offers both

the resources and capabilitieslike any national player coupled with individualized attention to

its customers.Way2Wealth is a premier Investment Consultancy Firm that has been

launchedwith the aim of making investing simpler, more understandable and profitablefor the

investors. Way2Wealth brings a wide range of product offerings fromFixed Income Securities,Life Insurance and Mutual Funds to Equity andDerivatives (on the National Stock Exchange)

for the convenience and benefitof it customers. Way2Wealth has over 40 easily accessible

investment outletsspread across 20 major towns and cities in the country.

29.34.P a g e | 34 METLIFE PERFORMS IN OVER THE FOLLOWING STATESAndhra

PradeshAssamBiharChandigarhChhattisgarhDelhiGoaGujaratHaryana

Jammu & KashmirJharkhandKarnatakaKeralaMadhya PradeshMaharashtra

OrissaPunjabRajasthanTamilnaduTripuraUttar PradeshUttrakhandWest

Bengal

30.35.P a g e | 35 STRATEGIESTo achieve a top 5 market position in India through a multi-

distribution, multi-product platform.To adapt MetLifes best practice blueprints as a soundplatform for profitable growth.To leverage local knowledge, infrastructure and customer

base.To deliver high levels of shareholder return.To build long term value with our

business partners by enhancing the proposition to their customers.To be the employer of

choice to attract and retain the best talent in India.To be recognized as being close and

qualified by our customers.

31.36.P a g e | 36 PRODUCTS OF METLIFE INSURANCEChild PlanMet BhavishyaMet

Junior EndowmentMet Junior-Money BackRetirementMet Pension-ParSavingsMet

SukhMet SuvidaMet SaralMet 100Met Vishwas-RuralMet Svidha RuralMet

Grameen AshrayProtectionMet SurakshaMet Suraksha TROPMet Suraksha Plus

Met Mortgage Protector PlusMet ProtectInvestmentMet Easy SuperMet Smart OneMet Smart PlatinumHealthMet Health Care

32.37.P a g e | 37Monthly IncomeMet Monthly Income PlanMet Monthly Income Plan 7

Pay

33.38.P a g e | 38 RESEARCH METHODOLOGYResearch is a common language refers to a

search of knowledge. Research isscientific & systematic search for pertinent information on a

specific topic,infect research is an art of scientific investigation. Research Methodology is
http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-33-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-33-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-34-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-34-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-35-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-35-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-36-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-36-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-37-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-37-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-38-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-38-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-33-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-34-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-35-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-36-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-37-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-38-728.jpg?cb=1298552204


11/27

ascientific way to solve research problem. It may be understood as a science ofstudying how

research is done scientifically. In it we study various steps that aregenerally adopted by

researchers in studying their research problem. It isnecessary for researchers to know not

only know research method techniquesbut also technology.The scope of Research

Methodology is wider than that of research methods.The research problem consists of series

of closely related activities. At times,the first step determines the native of the last step to be

undertaken. Why aresearch has been defined, what data has been collected and what a

particularmethods have been adopted and a host of similar other questions are

usuallyanswered when we talk of research methodology concerning a research problemor

study. The project is a study where focus is on the following points:RESEARCH DESIGNA

research design is defined, as the specification of methods and procedures foracquiring the

Information needed. It is a plant or organizing framework fordoing the study and collecting

the data. Designing a research plan requiresdecisions all the data sources, research

approaches, Research instruments,sampling plan and contact methods.Research design is

mainly of following types: -1. Exploratory research.2. Descriptive studies3. Casual

studiesEXPLORATORY RESEARCHThe major purposes of exploratory studies are theidentification of problems, themore precise Formulation of problems and the formulations of

new alternativecourses of action. The design of exploratory studies is characterized by a

greatamount of flexibility and ad-hoc veracity.DESCRIPTIVE STUDIESDescriptive research

in contrast to exploratory research is marked by the priorformulation of specific research

Questions. The investigator already knows a

34.39.P a g e | 39substantial amount about the research problem. Perhaps as a Result of

anexploratory study, before the project is initiated. Descriptive research is alsocharacterized

by a Pre-planned and structured design.CASUAL OR EXPERIMENTAL DESIGNA casual

design investigates the cause and effect relationships between two ormore variables. The

hypothesis is tested and the experiment is done. There arefollowing types of casualdesigns:I. After only designII. Before after designIII. Before after with control group designIV.

Four groups, six studies designV. After only with control group design.VI. Consumer panel

designVII. Exposit facto designB) DATA COLLECTION METHOD DATA COLLECTION

METHOD SECONDARYPRIMARY Direct Personal Interview Indirect Personal Interview

PUBLISHED UNPUBLISHED Information from Correspondence SOURCES SOURCES

Mailed Questionnaire Questions filled by enumeratorsPeriod of Study: This study has been

carried out for a maximum period of 8weeks.Area of study: The study is exclusively done in

the area of marketing. It is aprocess requiring care, sophistication, experience, business

judgment, andimagination for which there can be no mechanical substitutes.
http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-39-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-39-728.jpg?cb=1298552204http://image.slidesharecdn.com/trainingreportonmetlife-shubhashish-110224125614-phpapp01/95/training-report-on-metlife-shubhashish-39-728.jpg?cb=1298552204


12/27

MetLife MetLife is a leading proider of insurance and ot!er "nancial serices

to indiidual and institutional customers. MetLife en#oys strong mar$et

position and is a leading brand in t!e %&. '!e company counts more t!an ()

million customers around t!e *orld. MetLife is t!e second largest proider of

indiidual life insurance and annuities in t!e %&+ *it! ,1- billion of statutory

indiidual life and annuity premiums and deposits till &eptember 3)+ 2))(.

ased on sales till &eptember 2))(+ t!e company *as ran$ed si/t! in t!e

indiidual ariable life insurance and nint! in t!e sale of indiidual life

insurance products in t!e %&. Ho*eer+ natural disasters could increase t!e

company0s claim payments+ primarily in t!e auto and !ome segment+

increasing t!e e/penses and t!ereby reducing t!e margins of t!e company.

age 1 of 2 MetLife &' Analysis &trengt!s+ ea$nesses+ pportunities and

'!reats &'5 Location of 6actor '78 6 6A9' 6aorable %nfaorable

Internal &trengt!s ; Leading position in %& insurance mar$et ; &trongdistribution net*or$ ; 9ompre!ensie range of products ea$nesses ;

ea$ international presence ; %& subprime mortgage e/posure 8/ternal

pportunities ;


13/27

External Analysis of Met Life Insurance Company

Introduction

Metropolitan Life Insurance Company Incorporated or simply MetLife Inc. is specialized in

the services related to the insurance of employees and job benefits, financial services and other

insurance services. The company has most of its operations directed in the United States and in

various reions of Latin !merica. MetLife also caters the needs of the mar"ets li"e !sia #acific,

$urope, Middle $ast and India respectively %one source, &'(().MetLife offers *ide rane of

services in the insurance and finance, includin, insurance of life, dental, disabilities, health care,

and in finance it offers annuity, home and automobiles insurance services respectively. MetLife

operates in five diverse business sements. These sements includes+ insurance products,


14/27

retirement plans, corporate fundin and benefits, home and automobile insurance plans, etc. The

company also operates in different ban"in sectors caterin the needs of the corporate and the

other clients. The ban"in services include MetLife an", -ational !ssociation and related

business activities %euters, &'(().

Metropolitan Life Insurance Companyis one of the larest companies in the field of insurance

and benefits prorams both internationally and domestically. !ccordin to the euters %&'(()

MetLife serves over /' million customers in more than 0' countries %usiness *ire, &''/1 Tulsa

*orld, &'('). MetLife throuh its subsidiaries retains the position of a leader in the various

mar"ets it operates in %Lehmann, &'('). MetLife Inc. is currently ran"ed at number fifty2one in

the 3ortune (''' companies list %one source, &'(()

SWOT Analysis

SWOT Matrix

The S45T analysis of Metropolitan Life Insurance Company Incorporated %MetLife) isas follo*s+

Strengths

Mar"et leader

6iverse rane of products

Stron net*or"in

Weaknesses

US mortae mar"et crises

Litiation issues

Opportunities

7ro*th in emerin mar"ets

6emoraphic shift

ac8uisitions

Threats

economic conditions

competition

chanes in reulations

Strengths


15/27

Metropolitan Life Insurance Company Incorporated is amon the leaders of the insurance

industry. MetLife is currently ran"ed at number fifty2one in the 3ortune Companies List %one

source, &'((). MetLife offers *ide rane of services in the insurance and finance, includin,

insurance of life, dental, disabilities, health care, and in finance it offers annuity, home and

automobiles insurance services respectively. MetLife operates in five diverse business sements.

These sements includes+ insurance products, retirement plans, corporate fundin and benefits,

home and automobile insurance plans, etc. The company also operates in different ban"in

sectors caterin the needs of the corporate and the other clients. The ban"in services include

MetLife an", -ational !ssociation and related business activities %euters, &'((). It has over

9: billion dollars mar"et capital in the mar"ets of United States, *ith #rudential 3inancial Inc. at

number t*o *ith the mar"et capital of ;(.9& billion dollars respectively %-


16/27

startin *ith BSC ban" *hich reported first hue loss due to the decline of mortae mar"ets

in &''> %C -e*s, &''>).

Opportunities

There are numbers of opportunities available to MetLife Insurance Inc. Some the

opportunities includes eApansion and ro*th in the emerin mar"ets. MetLife already has its

business in the mar"ets of apan, India, and !sia #acific etc. these mar"ets sho*s reat potential

for success and ro*th for the company. If it further eApands its business in the Chinese mar"ets

then MetLife *ill ain more financial benefits than its counterparts operatin internationally.

3urther, it can eApand its current product line in order to attract lare number of customers in

these mar"ets. Li"e*ise, the demoraphic structure of United States of !merica represents the

favorable structure for MetLife Inc. !ccordin to the CI! *orld fact boo" %&'('), there is lare

number of baby boomers in the US population %ae rane :' and over+ &'?). Most of these

people have reached old ae and are retired from their life2lon *or" related duties. This mar"et

sement offers the room of opportunities to Metropolitan Life Insurance Company Incorporated

in the form of retirement and pension plans and offerins. MetLife is enaed in the ac8uisitions

of the businesses in the past and it is eApected that it *ill continue to do this in future. The C$5

of MetLife reported that =much of MetLifeDs scale is the result of its aressive ac8uisition

stratey 22 it has bouht everythin from billion2dollar enterprises to distribution channels across

all its lines of business@ %5verby, &''&).

Threats

The insurance mar"ets in United States are hihly competitive in nature *ith a lare

number of mar"et players offerin *ide rane of products to the nation. Metropolitan Life

Insurance Company faces stiff competition *ith these mar"et players. The top three competitors

of MetLife Inc. are+ !merican International 7roup Inc., !llianz S$, and #rudential 3inancial,


17/27

Inc. %Boovers, &'((). !nother possible threat faced by Metropolitan Life Insurance Company is

the chanin reulations by the US overnment for auto mar"ets and health care reforms. The

overnment of United States has mandated insurance of vehicles and drivers. The recent

reulations involve the auto insurance based on the safety records of driver, the mileae driven

and the eAperience of driver in drivin respectively %Car Insurance rates, &'((). This reulation

has led many insurance providers to cut off the prices offered for various products in order to

comply *ith the re8uirements of the customers. Li"e*ise, the health care reforms have received

neative remar"s from various insurance companies li"e United Bealth roup etc. The

UnitedBealth 7roup company estimates noted that if it fails to comply *ith the pricin for the

medical costs, then its profitability *ill reatly suffer. They *ill face the declinin profits *hich

can materially affect their business and financial portfolios %UnitedBealth 7roup USS$C,

&'(').If these la*s further chanes then the business of MetLife Inc. *ill suffer badly as its main

area of eApertise is in health and auto insurance offerins %MetLife, &'(().

ESTEL Analysis

olitical

The federal la* prohibits companies to ma"e contributions in the political activities and federal

candidates1 Metropolitan Life Insurance Company ma"es contributions to the parties *here it has

liberty to ma"e corporate contributions. The US Supreme Court has dra*n restrictions on the

corporate spendin on the political activities %MetLife, &'((). MetLife Inc. has established its

political action committee called #!C. The MetLife #!C has so far spent around & million

dollars in the year &'(' as political contributions in the state, federal and local level political

parties %Center for esponsive #olitics, &'((). In the year &'(', most of the spendin *as made

in the favor of epublicans party %Center for esponsive #olitics, &'((). MetLife has hired lare

number of assistant roups that provide it assistance in the lobbyin activities to obtain favorable


18/27

ran"ins from the leislators. Metropolitan Life Insurance Company Incorporated has so far

spent around E((,:0',''' in the lobbyin activities throuh its lobby aents %Influence $Aplorer,

&'(().

Economic

The economic conditions of a country play an important role on determinin the success

and failure of a company. Since, most of the functions of Metropolitan Life Insurance Company

Incorporated are directed in the domestic mar"ets of United States, so its li"elihood of ettin hit

by the economic chanes and overnmental rulin is hih. The do*nfall in the economy of

United States has adversely affected lare number of oranizations operatin in United States

and increased the opportunity costs associated *ith their business sements and operations.The

MetLifeDs business operations are hihly effected by the international conditions of the capital

mar"ets and the economy of the *orld. These international conditions have increased the state of

stress and volatility in the mar"ets. 3luctuations in one mar"et can hihly impact and spread in

the other mar"ets.The lobal economic conditions and the capital mar"ets can reatly impact the

business and operations of Metropolitan Life Insurance Company Inc. if these conditions

remained the same or failed to improve in the future %USS$C, &'(().

Social

Metropolitan Life Insurance Company Inc.is effectively enaed in the social and community

related activities in order to raise the livin standards of people in the communities it operates in.

MetLife Inc. has created its foundation in order to achieve its community involvement based

objectives. The MetLife 3oundation *as established in (/>: to facilitate the corporate

involvements and contributions in the community. This community *as established to educate

people about health, productive life and strenthenin their lives at lare. Its main area of focus


19/27

is on the provision of education to the people of all aes. Li"e*ise, it ma"es rants in the health,

education, civic affairs and culture %MetLife, &'((). MetLife has initiated social investment

proram to offer loans and financial assistance to the investment projects aimed to eAcel the

development of communities and the people.

Technological

Metropolitan Life Insurance Company Inc. has implemented the latest information

technoloy systems to facilitate the flo* of information *ithin the offices and all the other

business divisions. ecently MetLife has upraded its customer service centers by employin the

latest technoloical advancements to boost its eAternal reconition capabilities throuh their call

centers. It is no* usin "no*lede manaement based platforms in the customer service centers

that help the customer service representatives *ith more accurate information in a reduced time

period to ac"no*lede the re8uests of customers. Moreover, 5D6onnell %&''/) reported that

MetLife has installed =interactive voice reconition %IF) soft*are to boost self2service

capabilities, ma"in it easier for customers to complete in8uiries *ith fe*er steps@.

En!ironmental

Li"e the other entire responsible corporations in the mar"ets, State 3arm Insurance Cos.

is also enaed in the activities that foster the environmental safety. It has started number of

activities in order to minimize its impact on the environment and atmosphere. !mon its

initiatives includes reduced carbon dioAide emission, paper recyclin and less consumption of

enery in all of its offices and subsidiaries. MetLife started the paper recyclin system in the year

(/>' by reprocessin the used ne*spapers and savin over ;',''' trees in return.!s a result of

its reen environment initiatives, MetLife has *on enery star a*ards from $#! for more than

ten of its US domestic business units %MetLife, &'(().

Legal


20/27

Metlife is subject to various leal proceedins currently in pipeline. Some of the la* suits

filed aainst the company includes+ 6relles v. Metropolitan Life Insurance Company %federal

class action for illeal sales practices), class action claims for *hich MetLife recently paid E0'

million in settlement %4ise, &''/), Barvey v. MetLife Class !ction La*suit Settlement %Bolter,

&'(')"etc. If these matters remain unresolved or the verdict is made aainst Metropolitan Life

Insurance Company Inc. then it could have material impact on its financial stability and the

mar"et position in the domestic mar"ets of United States and international mar"ets abroad.

orter#s $i!e $orces Analysis

%i!alry among esta&lished competitions

The level of competition amon the eAistin competitors in the industry is very stiff. The

top three competitors of MetLife Inc. are !merican International 7roup Inc., !llianz S$, and

#rudential 3inancial, Inc.%Boovers, &'((). In the health insurance industry, the customer

demands are associated *ith the increasin costs of medical options available to them. The

mar"et success and profitability of the firms operatin in the industry is dependent on their

operations and their ability to obtain favorable contracts *ith the medical and health care

personnel %Boovers, &'(().

'argaining po(er of suppliers

The barainin po*er of suppliers is derived by their po*er to demand the prices of their

o*n choice. The supplierDs po*er in the insurance industry is not a bi threat to the companies

operatin in it. ut the threat suppliers ta"in a*ay human capital does eAist in the industry. This

industry is entirely based on the human capital. If a talented person is *or"in in the small

company or in a company that maintains its niche in the mar"et, then there li"ely to be the case

of snatchin that human capital by the lare companies from those small companies.


21/27

The &argaining po(er of &uyers

The individual buyers do not have much po*er to influence the insurance industry at

lare. The lare corporate clients and other related businesses pay lare sums of money as health

insurance premium to these companies. These mar"et players in the insurance industry lon to

et hih marin corporate clients.

The threat of su&stitute products or ser!ices

The threat of substitutes is very hih in the insurance industry as there are plenty of

substitutes available in the mar"et. Many of the firms offer the services that are similar to that of

lare companies. There eAists hih level of competition on all the rounds *hether it is auto

insurance or health insurance. There are companies operatin in the mar"ets that offers uni8ue

products and services to their customers and have competitive advantae over their counterparts

*hich depends on the size of their business sements.

The threat of the entry of ne( competitors

The industry imposes certain barriers to the entry of the ne* companies in the mar"ets. This

means that the level of threat of ne* entrants is relatively lo* in the industry. There are varyin

reasons to the lo* rate of entry. !mon them is the entry barriers imposed by the industry. The

ne* entrants *ill have to comply *ith the overnmental reulations in order to ma"e their entry

in the mar"ets. Then the eAistin players are protected by the number of barriers *hich ma"es it

difficult for the ne* entrants to ive hard time to them. !mon them are+ entry restrictions, tariff

rates, hih capital re8uirement, distribution channels etc. These barriers limit them to compete

aainst the eAistin mar"et players.


22/27

%ecommendations

This study provided brief overvie* on the eAternal environment analysis of Metropolitan

Life Insurance Company Incorporated. The findins of the study suested that MetLife Inc.

should focus on the follo*in factors in order to eAcel its business and social imae in the *orld+

(. !c8uisitions have proved in the history of the company to be the financial success

of MetLife. It is therefore, recommended that MetLife can further pursue the

ac8uisitions and merers techni8ue to have a eoraphical eApansion in lare

number of reions

&. The developin mar"ets of !sia represent hue ro*th potential for the company.

MetLife should strateically advance *ith its products in these mar"ets in order to

obtain maAimized profits and sales.

;. MetLife should Innovate and eApand the eAistin product lines in the mar"et to

face the stiff competition *ith its counterparts.

9. It can enae in the positive reinforcement by advertisin its community

improvement based initiatives to attract lare number of customers.

%eferences

C -e*s %&''>) Timeline: Subprime Losses, -e*s.bbc.co.u". etrieved on uly ((, &'(( fromhttp+GGne*s.bbc.co.u"G&GhiGbusinessG>'/:H90.stmusiness 4ire %&''/)MetLife and Fidelity Introduce New Retirement Income Solution: AVariable Annuity Desined to !ro"ide Lifetime Income for T#ose Nearin or in Retirement. #ressrelease, retrieved on uly /, &'(( fromhttp+GG***.business*ire.comGne*sGhomeG&''/(((:''0/9&GenGMetLife23idelity?C&?!$2

Introduce2etirement2Income2Solution2FariableCar Insurance ates %&'(()Mandatory $ar Insurance Laws % Fines and !enalties for NotInsurin &our Auto', retrieved on uly /, &'(( from http+GG***.carinsurancerates.comGne*sG:&2mandatory2insurance2la*s2are2they2fair.htmlCenter for esponsive #olitics %&'(()MetLife: !arty Split by $ycle( retrieved on uly ((, &'((from http+GG***.opensecrets.orGpacsGloo"up&.phpstrI6JC'''9'/&;KcycleJ&'('

%&'(()MetLife: Spendin by $ycle( retrieved on uly ((, &'(( fromhttp+GG***.opensecrets.orGpacsGloo"up&.phpstrI6JC'''9'/&;KcycleJ&'('
http://www.businesswire.com/news/home/20091116005942/en/MetLife-Fidelity%C2%AE-Introduce-Retirement-Income-Solution-Variablehttp://www.businesswire.com/news/home/20091116005942/en/MetLife-Fidelity%C2%AE-Introduce-Retirement-Income-Solution-Variablehttp://www.carinsurancerates.com/news/62-mandatory-insurance-laws-are-they-fair.htmlhttp://www.carinsurancerates.com/news/62-mandatory-insurance-laws-are-they-fair.htmlhttp://www.opensecrets.org/pacs/lookup2.php?strID=C00040923&cycle=2010http://www.businesswire.com/news/home/20091116005942/en/MetLife-Fidelity%C2%AE-Introduce-Retirement-Income-Solution-Variablehttp://www.businesswire.com/news/home/20091116005942/en/MetLife-Fidelity%C2%AE-Introduce-Retirement-Income-Solution-Variablehttp://www.carinsurancerates.com/news/62-mandatory-insurance-laws-are-they-fair.htmlhttp://www.carinsurancerates.com/news/62-mandatory-insurance-laws-are-they-fair.htmlhttp://www.opensecrets.org/pacs/lookup2.php?strID=C00040923&cycle=2010


23/27

CI! 4orld 3act oo" %&'(') )nited States( retrieved on uly /, &'(( fromhttps+GG***.cia.ovGlibraryGpublicationsGthe2*orld2factboo"GeosGus.html

Case La* %&'';) 6relles F. Metropolitan Life Insurance Company, retrieved on uly ((, &'((from http+GGcasela*.findla*.comGus2;rd2circuitG(':(&0(.html

6566 %&''>) Senator Dodd: $reate( Sustain( !reser"e( and !rotect t#e American Dream of*ome +wners#ip, etrieved on uly ((, &'(( from http+GGdodd.senate.ovG8JnodeG;>;(Bolter, M %&'(')MetLife $lass Lawsuit Action Settlement, retrieved on uly ((, &'(( fromhttp+GG***.topclassactions.comGla*suit2settlementsGla*suit2ne*sGH9H2metlife2class2action2settlementBoovers %&'(() $ompetiti"e Landscape( retrieved on uly ((, &'(( fromhttp+GG***.hoovers.comGcompanyGMetLifeIncGcfyryi2(2(njea;.htmlInfluence $Aplorer %&'(()Metlife Inc,( retrieved on uly ((, &'(( fromhttp+GGinfluenceeAplorer.comGoranizationGmetlife2incG'b0HaHaH('&;9HbcH0a(d(;HH&9((a9>cycleJ&'('Lehmann, .. %&'(' une) MetLife Sees !lico 6eals as 6oor to 7ro*th in China, Middle $ast.SNL Insurance M-A.MetLife %&'(()About )s( retrieved on uly ((, &'(( fromhttp+GG***.metlife.comGaboutGindeA.html4T.acJ7-about

%&'(()MetLife - .n"ironment( retrieved on uly ((, &'(( fromhttp+GG***.metlife.comGaboutGcorporate2profileGcitizenshipGenvironmentGindeA.html%&'(()!olitical Transparency and Accountability !rofile, retrieved on uly ((, &'(( from

http+GG***.politicalaccountability.netGindeA.phphtJaG7et6ocument!ctionGiG9/H/MetLife USS$C %&'(() $ompany Distributors( 3orm ('2", retrieved on uly ((, &'(( fromhttp+GGservices.corporate2ir.netGS$CG6ocument.ServiceidJ#;Fyb6(odB*5iHvaIua40'Lndlc;s


24/27

Tulsa 4orld %&'(')MetLife .2pands /eyond slow rowt# ),S mar3et, retrieved on uly /, &'((from http+GG***.tulsa*orld.comGbusinessGarticle.aspAsubjectidJ9:KarticleidJ&'('';((9:$(h4allS('0/H9UnitedBealth 7roup USS$C %&'(')*ealt# Reform Leislation( 3orm ('2", retrieved on uly ((,&'(( from http+GG***.unitedhealthroup.comGinvestG&'('GU-B2&'('2('2P.pdf

4ise, 6. %&''/) 451 Million Settlement Reac#ed in MetLife Suit, retrieved on uly ((, &'(( fromhttp+GG***.la*.comGjspGarticle.jspidJ(&'&9;0;((&(HKslreturnJ(KhbAloinJ(

Research andMarkets(http://www.researchandmarkets.com/research/99badde5/metlife_inc_com) has announced theaddition of the "et!ife #nc.: $ompan% &rofile and'* +nal%sis"compan% profile to their offerin,.
http://www.tulsaworld.com/business/article.aspx?subjectid=46&articleid=20100311_46_E1_hWallS105984http://www.tulsaworld.com/business/article.aspx?subjectid=46&articleid=20100311_46_E1_hWallS105984http://www.unitedhealthgroup.com/invest/2010/UNH-2010-10-K.pdfhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_comhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_comhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_comhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_comhttp://www.tulsaworld.com/business/article.aspx?subjectid=46&articleid=20100311_46_E1_hWallS105984http://www.tulsaworld.com/business/article.aspx?subjectid=46&articleid=20100311_46_E1_hWallS105984http://www.unitedhealthgroup.com/invest/2010/UNH-2010-10-K.pdfhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_comhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_comhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_comhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_com


25/27

orld arket #ntelli,ence-s -et!ife #nc.: $ompan%&rofile and '* +nal%sis- contains in depthinformation and data about the compan% and its

operations. *he profile contains a compan% oeriewbusiness description financial ratios '* anal%siscompetitie benchmarkin, ke% facts ke% emplo%eeslocation and subsidiaries as well as information onproducts and serices.

*his '* anal%sis and compan% profile is a crucial

resource for industr% eecuties and an%one lookin, to,ain a better understandin, of the compan%-s business.

-et!ife #nc.: $ompan% &rofile and '* +nal%sis-report utili0es a wide ran,e of primar% and secondar%sources which are anal%0ed and presented in aconsistent and easil% accessible format.

'cope

1 2amines and identifies ke% information and issuesabout -et!ife #nc.- for business intelli,encere3uirements

1 'tudies and presents the compan%-s stren,thsweaknesses opportunities (,rowth potential) andthreats (competition). 'trate,ic and operationalbusiness information is ob4ectiel% reported

1 &roides anal%sis on financial ratios alon, with acompetitor benchmarkin, section


26/27

1 *he profile also contains information on businessoperations compan% histor% ma4or products andserices ke% emplo%ees

e% 6i,hli,hts

et!ife #nc. (et!ife) is a leadin, proider ofinsurance annuities and emplo%ee benefit pro,rams inthe 7nited 'tates 8apan !atin +merica the +sia&acific 2urope and the iddle 2ast. *he compan%offers ,roup life insurance products includin, ariableuniersal term and whole life products emplo%ee paidsupplemental life products and indiidual life insuranceproducts comprisin, ariable uniersal term andwhole life products and also a ran,e of mutual fundsand other securities products. #t also proides non1medical health products and serices which includedental insurance ,roup short1 and lon,1term disabilit%indiidual disabilit% income lon,1term care criticalillness and accidental death and dismembermentcoera,e-s and also emplo%er1sponsored auto andhomeowners insurance and administratie serices toemplo%ers and retirement products consistin, ofariable and fied annuities that are primaril% sells toindiiduals and emplo%ees of corporations and otherinstitutions. #n addition the compan% offers a dierseran,e of ,roup insurance and retirement and sain,sproducts and serices to corporations and otherinstitutions. et!ife is head3uartered in ew ;ork the7'.


27/27

Key Topics Covered:

< =usiness +nal%sis

> +nal%sis of e% &erformance #ndicators

? er,ers @ +c3uisitions and &artnerships

A Becent Ceelopments

5 '* +nal%sis

D $ompan% 'tatement

E 6istor%

F e% 2mplo%ees

9 e% 2mplo%ee =io,raphies

editEsortFnameGddrpF1GlayoutFlistGpliF1GpidF)C

e68l2A4?'A3'6#7#gt#%)?y))#I2L'$B?Mt78yM'%B?'l#$Gcinde/F

13J
http://www.researchandmarkets.com/research/99badde5/metlife_inc_comhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_comhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_comhttp://www.researchandmarkets.com/research/99badde5/metlife_inc_com

met Insurance project

Documents

Transcript of met Insurance project