SUMMER TRAINING PROJECT REPORT ON “RECURITMENT AND DEVELOPMENT OF FINANCIAL ADVISORS”. MetLife INSURANCE COMPANY Submitted In Partial Fulfillment Of Requirement For The Award of Degree Bachelor of Business Administration (BBA) Submitted By Under the Guidance of AASHA SHARMA Ms.AARUSHI MALHOTRA
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SUMMER TRAINING PROJECT REPORT
ON
“RECURITMENT AND DEVELOPMENT OF
FINANCIAL ADVISORS”.
MetLife INSURANCE COMPANY
Submitted In Partial Fulfillment Of
Requirement For The
Award of Degree
Bachelor of Business Administration
(BBA)
Submitted By Under the Guidance of
AASHA SHARMA Ms.AARUSHI MALHOTRA
Bharati Vidyapeeth UniversitySchool of Distance Education
Academic Study Center: BVIMR, New Delhi
Batch: 2008-2011
STUDENT UNDERTAKING
I AASHA SHARMA have completed the Industrial Report on “METLIFE” under
the guidance of Ms. AARUSHI MALHOTRA in the partial fulfillment of the
requirement for the award of BBA of BVU, SDE, Academic Study Center
BVIMR, New Delhi. This is an original piece of work & I have neither copied
and nor submitted it earlier elsewhere.
AASHA SHARMA
CERTIFICATE
CERTIFICATE
ACKNOWLEDGMENT
I wish to express my profound gratitude to my faculty Ms. AARUSHI
MALHOTRA, who gave a hearing and understanding the various facts.
AASHA SHARMA
TABLE OF CONENT
Chapter – 1 INTRODUCTION OF METLIFE
1.1 Industry Profile
1.2 The principle kinds of insurance are as follows
1.3 Insurance sector reforms
1.4 Needs for Life Insurance
1.5 Global Life Insurance Trends
1.6 Company Profile
1.7 Product
1.8 Marketing Tools
1.9 Corporate Objective
1.10 Future Plans
1.11 Swot Analysis
Chapter-2 RESEARCH METHODOLOGY
2.1 Research Methodology
2.2 Objective of the study
2.3 Source of Collection Data
2.4 limitations of The Study
Chapter-3 Data Analysis
Chapter-4 Finding & Recommendations
Chapter-5 Conclusion
. BIBLIOGRAPHY
. APPENDIX
CHAPTER - 1
INDUSTRY PROFILE
1.1 History of insurance:
Insurance began as a way of reducing the risk of traders, as
early as 5000 BC and 4500 BC in. Life insurance dates only to ancient
Rome; "burial clubs" covered the cost of members' funeral expenses
and helped survivors monetarily. Modern life insurance started in late
17th century, originally as insurance for traders: merchants, ship
owners and underwriters met to discuss deals at Lloyd's Coffee House,
predecessor to the famous.
The first insurance company was formed in 1732, but it provided only
fire insurance. The sale of life insurance in the U.S. began in the late
1760s. The Synods in and created the Corporation for Relief of Poor
and Distressed Widows and Children of Presbyterian Ministers in
1759; Episcopalian priests organized a similar fund in 1769. Between
1787 and 1837 more than two dozen life insurance companies were
started, but fewer than half a dozen survived. Prior to, many insurance
companies in the United States for their owners, in response to bills
passed in 2001 and in 2003, the companies have been required to
search their records for such policies for example reported that
Nautilus sold 485slaveholder life insurance policies during a two-year
period in the 1840s; they added that their trustees voted to end the sale
of such policies 15 years before the General information:
Human have always sought securities. This quest for security
was an important motivating force in the earliest formation of families,
clans, tribes, and other groups. Indeed, groups have been the primary
source both emotional and physical security since the beginning of
humankind. They ensured a less volatile source of life necessities then
that which ensures isolated human & families could provide and help
their less fortunate members in the time of crises.
Human today continue their quest to achieve security and
reduce risk uncertainty. We still rely on group for financial stability.
The group may be our employer, the government, or an insurance
company, but concept is the same. In some ways however, we today
are more vulnerable that our ancestors. The physical and economical
securities formerly provided by the tribes or extended family
diminished with industrialization. Our income dependent, wealth
acquiring lifestyle renders and our families more vulnerable to
environment and societal changes over which we have no control.
Humans are exposed to many serious perils, such as property
loss from fire or windstorm, and personal losses from incapacity and
death. All through individual cannot predict or completely prevent
such occurrences, they can provide for their financial effects.
Encyclopedia of finance and banking defines insurance as the
elimination of or protection against risk amenable to actual calculation,
voidance or reduction of losses occurring through misfortunes such as
death, fire, accident, tornado, shipwreck, etc. insurance is a contact
between an insurer and insured where by the insurer identifies the
insured against loss due to specific risks such as from fire, storm and
death. Insurance contracts require an agreement, considerations,
capacity, legality, compliance with the status of frauds and delivery.
Insurance is an integral part of most enterprises, risk management
program. Insurance does not prevent losses, it substitutes a small
certain loss (premium) for a possible or contingent large loss. The
insured is indemnified for the amount of loss, for the insured amount,
or for the face of his policy, in return for payment of periodic
premiums.
1.2 The principle kinds of insurance are as follows:
i. Life-term, ordinary, endowment, limited payment, group
industrial and annuities, with a variety of combinations of the
four basic forms.
ii. Fire & marine-fire, ocean marine, motor vehicle, inland
navigation, and transportation, tornado and windstorm,
sprinkler leakage, earthquake, riot and civil commotion,
explosion rain, hale, flood, aircraft, etc.
iii. Causality and surety -automobile liability, liability other than
automobile workers, compensation, fidelity and surety,
burglary and theft, automobile property damage, accident in 2
for a participation in dividends by all policy holders. In this way the
cost of insurance to the insured is reduced.
iv. Four classes of insurance business:
v. Life insurance
vi. Fire insurance
vii. Marine insurance
viii. Miscellaneous insurance.
1.2.1 Brief history of insurance sector in India:
The insurance sector in India has come full circle from being
open competitive market to nationalization and back to liberalized
market again. Tracing the developments in India, insurance sector
reveals the 360-degree turn witnessed over a period of almost two
centuries.
1818 – Oriental insurance company was established.
1870– Bombay Mutual Life Assurance Society, the first Indian life
insurance company started its business.
1912 – Indian life insurance companies act as the first statute to
regulate the life insurance business
1928 – The Indian insurance companies act enacted to enable the
government to collect statistical information about both life and non
life insurance business.
1938 – Earlier legislation consol dated and amended to by the
insurance act with the objective of protecting the interest of insuring
public.
1956 – 245 Indian and foreign insurers and provident societies taken
over by the central government were nationalized.
1.3 Insurance sector reforms:
In 1993 Malhotra committee, headed by former finance
secretary and RBI governor R N Malhotra was formed to evaluate the
Indian insurance industry and recommended its future direct on. The
Malhotra committee was set up with the objective of complimenting
the reforms initiated in the financial sector. Recommendation included
in the report submitted by the committee
Structure:
a. Government stake in the insurance companies to brought down
to 50%
b. Government should take over the wordings of GIC and its
subsidiaries, so that these subsidiaries can act as independent
companies.
c. All the insurance companies should be given greater freedom to
operate.
d. Competition:
e. Private companies with minimum paid up capital of Rs. 1
billion should be allowed to enter the industry; no company
should deal in both life and general insurance through single
entity.
f. Foreign companies may be allowed to enter the industry
collaboration with domestic companies.
g. Postal life insurance should be allowed to operate in rural areas
h. Only one state level life insurance company should be allowed
to operate in each state.
i. Regulatory body:
j. The insurance act should be changed
k. An insurance regulatory body should be set up.
l. Life insurers transact life insurance business; general insurers
transact the rest. No companies are permitted as per law.
m. Legislation (as on 1-4-2000):
n. Insurance is a federal subject in India; the primary legislation
that deals with insurance business in India is;
o. Insurance Act, 1938 and Insurance Regulatory & Development
Authority Act, 1999
p. Fire and miscellaneous insurance business are predominant
motor and vehicle insurance is compulsory.
q. Tariff Advisory Committee (TAC) lays down tariff rates for
some of the general insurance products.
Customer Protection:
Insurance industry has ombudsmen in 12 cities. Each
ombudsman is empowered to redress customer grievances in respect of
insurance contracts on personal lines where the insurance amount is
less than 20 Lakhs, in accordance with the ombudsmen scheme.
Address can be obtained from the officers of LIC and other insurers.
1.4 NEED FOR LIFE INSURANCE
Maslow’s need hierarchy theory:
Making the person feel “SAFE” other expression of the need
for safety occur when individuals are confronted with real emergencies
e.g. accidents, war, crime, natural calamities, etc. once physical needs
are met, another set to motives, safety or security needs, become
motivates. The primary motivating force here is to ensure reasonable
degree of continuity, order, structure and predictability in once
environment. Maslow suggested that the safety needs are most readily
observed in infant and young children because of their relative’s
helplessness and dependence on adults.
Security needs in original context co-related to such factors as
job security, salary increment, safe working conditions, unionization
and lobbying for prospective registration.
Risk and uncertainty are part of life great adventures accident,
illness, thefts, natural disaster. They are built into the working of
universe, waiting to happen. Insurance that is main answer to the
vagaries of life. If you cannot beat the manmade and natural
calamities, wealth, at least be prepared for them and aftermath.
Insurance is contract between two parties one is insurer
(insurance company) and insured (the person or entity seeking the
coverage). Where the insurer agrees to pay the insured for the financial
loses arising out of any unforeseen events in return for a regular
payment of the premium.
These unforeseen events are determined as risk and that is why
insurance is called is the risk cover. Hence the insurance is the
essential means to financially compensate for loses that life throws at
people- corporate and otherwise.
India at glance:
a. Economy: India is 5th largest economy in the world in terms of
purchase.
b. GDP Growth rate: over 6% per year on an average for the last
decade.
c. Savings rate: around 26% of GDP
d. Estimated middle class population: 300 million
e. Insured population: 70 million
f. India has an enormous middle class that can afford to by life,
health and disability and pens on plan products. The level of
penetration of life insurance in India compared to other
developed nations can be judged by a comparison of per capita
life premium.
1.5 GLOBAL LIFE INSURANCE TRENDS
Country life premium per capita U.S. $ in 1994
JAPAN 3817
UK 1280
USA 964
INDIA 800
Life insurance market in India
INDIAN COMPANY FOREIGN COMPANY
HDFC Standard life
Tata Group AIG
Bajaj Allianz
Max India New York
IDBI Principal
SBI Alliance Capital
Bajaj Allianz Chubb
Cholamandalam Axa
ICICI Prudential
Vysa Bank ING
Spic Met Life
Sanmar Group GIO of Australia
Life insurance statistics:
Table showing premium collection by various insurance companies
CO
MP
ANY
200
6-
07(
RS.
IN
200
7-
08(
RS.
IN
%
GR
OW
TH
MI
N.)
MI
N.)
Kota
k
Mahi
ndra
352
.1
127
1.2
260
.98
Bajaj
Allia
nz
633
.89
179
7.0
5
183
.50
ING
Vays
a
179
.59
726
.27
311
.16
AM
P
San
mar
63.
15
278
.82
341
.51
SBI
Life
718
.81
195
9.0
1
172
.53
Tata
AIG
522
.08
180
1.5
5
515
.07
ICIC
I
Prud
entia
l
364
1.0
7
750
9.1
0
106
.23
Birla
Sun
Life
129
5.6
8
449
8.6
2
247
.20
Aviv
a
134
.66
771
.38
427
.84
Max 673 131 95.
New
York
.14 4.8
8
34
Met
Life
76.
99
233
.82
203
.70
HDF
C
Stan
dard
129
3.1
4
209
3.3
3
61.
88
Priva
te
total
958
1
242
54.
64
153
.15
LIC 159
767
.62
162
746
.87
1.9
3
TOT
AL
169
348
.92
187
101
.5
10.
48
Table showing market share of life insurance companies
COMPANY 2006-07
(IN %)
2007-08 (IN
%)
HDFC
Standard
0.76 1.12
Bajaj
Allianz
0.37 0.96
ING Vaysa 0.1 0.39
AMP
Sanmar
0.04 0.15
SBI Life 0.42 1.05
Tata AIG 0.31 0.96
ICICI
Prudential
2.15 4.01
Birla Sun 0.77 2.4
Life
Aviva 0.08 0.41
Max New
York
0.4 0.7
Met Life 0.05 0.12
LIC 94.34 87.05
TOTAL 100 100
Registration of Indian insurance companies
The registration of Indian insurance companies involves the following
contents
a. Requisition for the registration
b. Application for registration
c. Renewal of certificates of registration
d. Action in case default
e. Certificates to existing insurer
1.6 COMPANY PROFILE OF MET LIFE INSURANCE
COMPANY LTD.
MetLife (India)
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 a range of innovative products to
individuals and group customers at more than 600 locations through its
bank partners and company-owned offices. MetLife has more than
50,000 Financial Advisors, who help customers achieve peace of mind
across the length and breadth of the country.
MetLife, Inc., through its affiliates, reaches more than 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 inforce), 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
corporations and other institutions Celebrating 140 years, MetLife, Inc. is a leading
provider of insurance and financial services with operations throughout the United
States and the Latin America, Europe, and Asia Pacific regions. Through its domestic
and international subsidiaries and affiliates, MetLife, Inc. reaches more than 70
million customers around the world and MetLife is the largest life insurer in the
United States (based on life insurance in-force).
1.6.1 INSURANCE
Celebrating 140 years, MetLife, Inc. is a leading provider of insurance
and financial services with operations throughout the United States and
the Latin America, Europe, and Asia Pacific regions. Through its
domestic and international subsidiaries and affiliates, MetLife, Inc.
reaches more than 70 million customers around the world and MetLife