A PROJECT REPORT ON

For

MetLife India Insurance Co. Ltd.

By ANJALI KUMARI SINHA

SUBMITTED TOWARDSPARTIAL FULFILLMENT

OF MASTER OF BUSINESS MANAGEMENT

(Approved by AICTE, Govt. of India) ACADEMIC SESSION

2008-2010

J.D.Women's CollegeBailey Road, Patna

Phone No.- 0612-2280666, 0612-2283355

“CONSUMER BUYING BEHAVIOUR ON INSURANCE”

For

MetLife India Insurance Co. Ltd.

IN THE PARTIAL FULFILLMENTOF MASTER OF BUSINESS MANAGEMENT

(Approved by AICTE, Govt. of India) ACADEMIC SESSION

2008-2010

SUBMITTED BYAnjali Kumari Sinha

Roll No.-22MBA IVth Sem

J.D.Women's CollegeBailey Road, Patna

Phone No.- 0612-2280666, 0612-2283355

“Consumer Buying Behaviour on Insurance”

ACKNOLEDGEMEMT

I am very thankful to MetLife India Insurance Co. Ltd.who has given me this opportunity to make this project.

I wish to express my gratitude to all those who have in one way or other helped me in the successful completion of my project report The Project was completed successfully with the valuable cooperation of company’s personnel. I would also like to thank MR.RAKESH GUPTA (Senior Sales Manager) MetLife India Insurance Co. Ltd., Patna who helped me to carry out the training successfully and the management of insurance and brokerage firms, banks and corporate agents and many people to whom I visited during my training period.

Finally, I would like to thank our college faculty Dr. Vijay Narayan (Head of MBADepartment) & other faculty members of J.D. Women’s College, Patna for encouraging me to go for such a challenging task and sharpen my skills. This Acknowledgement would be incomplete if I fail to express my deep gratitude towards all the facility of J.D. Women’s College who gave me a lot of support and guidance.

Anjali Kumari Sinha

CONTENTS Executive Summary

Section-1

IntroductionConsumer BehaviourObjectives of the studyProfile of the OrganizationOverview of MetLife India Life Insurance CompanyManagement ProfilePartnersProducts

Section-2

Research MethodologyResearch DesignMethodologySampling Techniques usedSelection of Sample SizeData CollectionStatistical Tools UsedLimitations of the Study

Section-3

Data Analysis and Findings

Section-4

Conclusion and SuggestionsConclusionSuggestionsAnnexureQuestionnaireBibliography

EXECUTIVE SUMMARY

This project is based on the Consumer Buying Behaviour of the MetLife India Insurance Co. Ltd.. It is done to find out whether the consumers are satisfied with the Benefits they get with their respective policies or not. Further, in this Project the study includes the introduction of the company wherein I told about the Objectives of the study and profile of the MetLife India Insurance Co. Ltd.

Section 2 includes the Research Methodology wherein I have discussed the Research Design and various sources of the Data Collection. Thereafter the relevant matter includes the Data analysis and Findings wherein I have analyzed the data collected from the Questionnaire. Lastly it represents the conclusion and the suggestions based on the customer buying behaviour survey.

Section-1Industry overview

INTRODUCTION

Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current.

With a large population and the untapped market area of this population insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20% annually. Together with banking services, it adds about 7 percent to the countries GDP. In spite of all this growth statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without life insurance cover and the health insurance. This is an indicator that growth potential for the insurance sector is immense in India.

It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation “Malhotra Committee” was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was participation of overseas insurance companies with 26% capital. Creating a more competitive financial system suitable for the requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many changes. The liberalization of the industry the insurance industry has never looked back and today stand as one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.

Insurance is the business of providing protection against financial aspects of risk, such as those to property, life health and legal liability. It is one method of a greater concept known as risk management –which is the need to mange uncertainty on account of exposure to loss, injury, disadvantage or destruction.

Insurance is the method of spreading and transfer of risk. The fortunate many who are exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect the assets but only compensates the economic or financial loss.

In insurance the insured makes payment called “premiums” to an insurer, and in return is able to claim a payment from the insurer if the insured suffers a defined type of loss. This relationship is usually drawn up in a formal legal contract.

Insurance companies also earn investment profits, because they have the use of the premium money from the time they receive it until the time they need it to pay claims. This money is called the float. When the investments of float are successful they may earn large profits, even if the insurance company pays out in claims every penny received as premiums. In fact, most insurance companies pay out more money than they receive in premiums. The excess amount that they pay to policyholders is the cost of float. An insurance company will profit if they invest the money at a greater return than their cost of float.

Reasons for insurance:

To financially support family members in the event of untimely death/ disability of earning member.

To cover medical expenses of the insured in the event of illness.

To cover risk of loss of property in the event of any uncertainty.

Classification of insurance:

The insurance industry in India can broadly classified in two parts. They are:

1) Life insurance.2) Non-life (general) insurance.

1) Life insurance:

Life insurance can be defined as “life insurance provides a sum of money if the person who is insured dies while the policy is in effect”.

In 1818 British introduced to India, with the establishment of the oriental life insurance company in Calcutta. The first Indian owned Life Insurance Company; the Bombay mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first statuary measure to regulate the life insurance business in India. In 1983, the earlier legislation was consolidated and amended by the insurance act, 1938, with comprehensive provisions for detailed effective control over insurance. The union government had opened the insurance sector for private participation in 1999, also allowing the private companies to have foreign equity up to 26%. Following the opening up of the insurance sector, 12 private sector companies have entered the life insurance business.

Benefits of life insurance:

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

Thus insurance is found to be very useful in the lives of the person both in short term and long term.

Fundamental principles of life insurance contract;

1) Principle of almost good faith:

“A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk being proposed whether requested or not”.

2) Principle of insurable interest:

“Relationships with the subject matter (a person) which is recognized in law and gives legal right to insure that person”.

2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be established in India in 1850, whose shares were mainly held by the British. The first general insurance company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was stabilized in 1907. There emerged many a player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of General Insurance Corporation (GIC) OF India undertook the post-nationalization general insurance business.

LIFE INSURANCE BUSINESS NON-LIFE INSURANCE BUSINESSLife Insurance Corporation.

ICICI Prudential Life Insurance.

HDFC Standard Life Insurance.

MetLife India Insurance Co. Ltd.

Max New York Life Insurance.

Birla Sun Life Insurance.

Om Kotak Mahindra Life Insurance.

Reliance Life Insurance.

Allianz Bajaj Life Insurance.

Dabur CGU Life Insurance.

ING Vyasa Life Insurance.

General Insurance Corporation.

National Insurance Company.

The New India Insurance Company.

The Oriental Insurance Company.

United India Insurance Company.

Reliance General Insurance.

TATA-AIG Insurance.

Royal Sundar ram Alliance GeneralInsurance.

Bajaj Alliance General Insurance.

ICICI Lombard Insurance.

SBI Life Insurance.

The Insurance Regulatory and Development Authority(IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decisions taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies were the launch of the IRDA’s online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year.

Duties, Powers and Functions:

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.Subject to the provisions of Act and any other law for the time being in force, the authority shall have the duty to regulate, promote and insure orderly growth of insurance business and reinsurance business.

Without prejudice to the generality of the provisions contained in sub section (1), the powers and functions of the authority shall include,

1. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration.

2. Protection of the interest of the policyholders, insurable interest, settlement of insurance claim, surrender value of policy, and other terms and contracts of insurance.

3. Specify requisite qualifications, code of conduct, practical training for intermediary or insurance intermediaries and agents.

4. Specifying the code of conduct for surveyors and loss assessors.

5. Promoting efficiency in the conduct of insurance business.

6. Promoting and regulating organizations connected with the insurance and re-insurance business.

7. Levying fees and other charges for carrying out the purpose of this act.

8. Calling for information from, undertaking inspection of, conduction enquiries andinvestigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business.

9. Control and regulations of the rates, advantages, terms and conditions that may be offered by insurer in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under the section 64U of the Insurance Act, 1938(4 of 1938).

10. Specifying the firm and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries.

11. Regulating investments of funds by insurance companies.

12. Regulating maintenance of margin of solvency.

13. Adjudications of disputes between insures and intermediaries or insurance intermediaries.

14. Supervising the functioning of the Tariff Advisory Committee.

15. Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f).

16. Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector.

17. Exercising such other powers as may be prescribed.

18. Exercising for the License

The IRDA has prescribed both qualifications and the disqualifications for a person to be given a license:-

Qualifications:

The person must be:

1. At least 18 years old.

2. Must have passed at least 12th standard or more (if the person is appointed in a place with population of 50,000or more), 10th standard otherwise.

3. Have undergone for at least 100 hours in life or general insurance business as the case may be form an institute, approved and notified by the authority.

4. Should have also passed the pre-recruitments examination conducted by the Insurance Institute of India or any other examination body recognized by the authority.

5. In case of an applicant for the composite insurance agent, the person should have completed at least 150 hours practical training in life and general insurance business, which may be spread over six to eight weeks.

Disqualifications:

The factors that would prevent a person from obtaining a license are that:

1. Has been found to be unsound mind by a court of competent jurisdiction.

2. Has been found guilty of criminal breach of trust, misappropriation, cheating, forgery or attempt to commit any such offence.

The licensed once issued can be cancelled whenever the person acquires a disqualification. In case of companies and firms who want to become agents, the test of qualification and disqualification would be applied to all the directors and partners.

There are two separate forms, one for individuals and other for those other than individuals, in which the applications are to be made. The two forms are numbered by IRDA-Agent VB and are annexed to the regulation. The applications in the respective forms have to be made to the designated person appointed by the insurer sponsoring the application.

The application for the license to be accomplished by proofs:

1. Of fee have been remitted to the authority.2. Of age.3. Of having completed the training and passed the prescribed examination.

The fee to be send to the authority directly is Rs.250 for new license and for renewals applied for within the prescribed period, at least 30 days before the date of expiry. If the application is made after the date of expiry it would be normally refused. But, if the authority is satisfied that hardship would be caused otherwise, the license may be renewed. Prior to renewal of the license the agent should have completed at least 25 hours practical training in life or general insurance or at least 50 hours practical training in life and general insurance business in the case of a composite insurance agent. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

Agency law regulations- agency

The basics of the insurance business in India are governed by the Agency law, which is the part of the Indian Contracts Act, 1982. Further after the industry got opened up the regulatory authority has been the Insurance Regulatory and Development Authority (IRDA).

Agent- The Definition

According to the section 182 of the Indian Contract Act, 1872, “an agent is a person employed to do any for another or to represent another in dealing with a third

person”. In the insurance sector the term ‘Agent’ is ordinarily applied to a person engaged by the insurer to procure new business.

Powers of Agent

An agent can act only to the extent of authority may be expressed or implied. An authority is said to be expressed when it is given by words spoken or written. It is implied when it is to be inferred from the circumstances of the case.

Life Insurance Agent

The Insurance Act, 1938 defines an agent as, “one who is licensed under the act and is paid consideration of his soliciting or procuring insurance business including business relating to continuance, renewal or revival of policies of insurance”.

What is Consumer Buying Behaviour?

Consumer Buying Behaviour refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:

Buyers reactions to a firms marketing strategy has a great impact on the firms success.

The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

Buying Behavior is the decision processes and acts of people involved in buying and using products.

Stages of Consumer Buying Behaviour

There are six stages of consumer buying behaviour

The 6 stages are:

1. Problem Recognition(awareness of need)--difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat.Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes.

2. Information search-- o Internal search, memory. o External search if you need more information. Friends and relatives

(word of mouth). Marketer dominated sources; comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked set.

Hungry, want to go out and eat, evoked set is

o Chinese food o Indian food

o Burger king

o Klondike kates etc

3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, Indian gets highest rank etc.If not satisfied with your choice then returns to the search phase. Can you

think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives.

4. Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc.

5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.

6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc.After eating an Indian meal, may think that really you wanted a Chinese meal instead.

OBJECTIVE OF THE STUDY

For every problem there is a research. As all the researches are based on some and my study is also based upon some objective and these are as follows.

1. To understand the insurance business and products of MetLife India Insurance Co. Ltd

2. To find out the people’s perception about life insurance.

3. To find out whether people were really aware of life insurance.

4. To find out how people think about private life insurance.

5. To find out what respondents expect from life insurance.

6. To understand Consumer buying behavior

7. To come out with conclusion and suggestions based on the analysis and the Interpretation of data.

SIGNIFICANCE OF THE STUDY

The project is concerned with the “STUDY ON CONSUMER BUYING BEHAVIOR of MetLife India Insurance Co. Ltd. This study is very useful as the financial market become more sophisticated and complex, investor needs a financial intermediary who provides the required knowledge and professional expertise on successful investing and Life insurance is a form of insurance that pays monetary proceeds upon the death of the insured covered in the policy. Essentially, a life insurance policy is a contract between the named insured and the insurance company wherein the insurance company agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as the insured's premiums are current.

COMPANY PROFILE

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.

MetLife Inc.

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).

The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions.  For more information, please visit www.metlife.com.

Management TeamRajesh RelanManaging Director

MSVS PhaneshAppointed ActuarySameer BansalDirector- Agency

Nitish AsthanaDirector- Bancassurance & Business PartnershipsJoydeep MukherjiChief Financial OfficerBalachander SekharDirector - MarketingKR Anil KumarDirector - Legal & Risk and Company SecretaryP. S. SankaranDirector – Compliance & Internal ControlsKS RaghavanChief Administrative Officer

Gaurav SharmaDirector - Customer Service and OperationsShilpa VaidDeputy Director- Human Resources

Partners:

Corporate Social Responsibility

MetLife has always been committed to making a positive difference in the lives of the individuals and communities. Today, that commitment drives volunteer work and philanthropy across the globe. Working with non-profit organizations, MetLife supports programs that provide young people with the skills they need to succeed in life and create opportunities for people of all ages.

MetLife’s core values are personal responsibility, people count, partnership, integrity and honesty, innovation and financial strength. These values also shape the responsibility to the communities where the organization conducts its business.

Protection

Met Suraksha

Met Suraksha Plus

Met Suraksha TROP

Met Mortgage Protector Plus

   Savings

Met Sukh

Met Suvidha

P roduct of MetLife India Insurance Company ltd

Met Saral

Met 100

   Investment

Met Easy Plus

Met Wealth Plus

Met Gold Plus

Met Fortune

Met Smart Life

   

Child

Met Bhavishya

Met Junior Endowment

Met Junior Money Back

Met Magic Plus

   RetirementMet Growth Super

Met Pension - Par

Met Pension Plus

   

RuralMet Vishwas

Met Suvidha Rural    

HealthMet Health Care

Monthly IncomeMet Monthly Income Plan

Section-2Research methodology

RESEARCH DESIGN

The research design of this project is exploratory. Though each research study has its own specific purpose but the research design of this project on MetLife is exploratory in nature as the objective is the development of the hypothesis rather than their testing.

METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis.

According to Clifford Woody,

“Research Methodology comprises of defining & redefining problems, collecting, organizing &evaluating data, making deductions &researching to conclusions.”

Accordingly, the methodology used in the project is as follows: -

Defining the objectives of the study

Framing of questionnaire keeping objectives in mind (considering the objectives)

Feedback from the employees

Analysis of feedback

Conclusion, findings and suggestions.

Sampling Technique Used

This research has used convenience sampling technique.

1) Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient.

Selection of Sample Size:

For the survey, a sample size of 100 has been taken into consideration.

Sources of Data Collection:

Research will be based on two sources:1. Primary data

2. Secondary data

1) PRIMARY DATA:

Questionnaire: Primary data was collected by preparing questionnaire for customers. The questionnaire was filled through personal interviews with the respondents.

2) SECONDARY DATA:

Secondary data will consist of different literatures like books which are published, articles, internet, the company manuals and websites of company- www.metlife.com. Magazines and brochures are some other sources of secondary data followed for the study.

In order to reach relevant conclusion, research work needed to be designed in a proper way.

This research methodology also includes:-

Familiarization with the concept of insurance and its various terms.

Thorough study of the information collected.

Conclusions based on findings.

Statistical Tools Used

The main statistical tools used for the collection and analyses of data in this project are:

Questionnaire Pie Charts Bar Diagrams

Limitations of study

Due to the following unavoidable and uncontrollable factors the factors, the result might not be accurate. Some of the problems faced while conducting the survey are as follows:

· Time and cost constraints were also there.· Chances of some biasness could not be eliminated.· A Samples size of hundred has been use due to time limitations.· A majority of respondents show lack of cooperation and are biased towards their own opinions.

Sampling plan:

It is very difficult to collect information from every member of a population .As time and costs are the major limitation that the researcher faces.

A sample of 100 was taken the sample size of 100 individuals were selected on the basis of convenient sampling technique. The individuals were selected in the random manner to form sample and data were collected from them for the research study.

Section-3Data Analysis

And Interpretation

Data Analysis And Interpretation

1. Do you think Insurance is Important?

Particulars No. Of Respondents Percentage

Yes 93 93

No 7 7

TOTAL 100 100

Particulars*Respondent Sex Cross tabulation

Particulars Respondents Sex TotalMale Female

Yes 57 36 93No 3 4 7

TOTAL 60 40 100

Particulars*Respondent Age Cross tabulation

Particulars Respondents Age Total18-25 26-35 36-45 46 & Above

 Yes 16 38 29 10 93No 4 2 1 0 7

TOTAL 20 40 30 10 100

Particulars*Respondent Occupation Cross tabulation

Particulars Respondents Occupation Total

Service Business ProfessionalSelf

Employee Retired OthersYes 59 7 9 3 7 8 93No 1 1 1 2 0 2 7

TOTAL 60 8 10 5 7 10 100

Particulars*Respondent Income Cross tabulationParticulars Respondents Income Total

0-1.5 lac 1.5-3 lac 3-5 lac 5 lac &Above

Yes 8 59 11 15 93No 2 1 2 2 7

TOTAL 10 60 13 17 100

NO. Of Respondents

93%

7%

Yes

No

2. Are you currently insured?

Particulars No. of Respondents PercentageYes 90 90No 10 10

TOTAL 100 100

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 93% of the respondents say Insurance is Important. b) 7% of the respondents say Insurance is not important..

Particulars*Respondent Sex Cross tabulation

Particulars Respondents Sex TotalMale Female

Yes 55 35 90No 5 5 10

TOTAL 60 40 100

Yes90%

3. Which type of Insurance policy do you prefer?

Particulars No. of Respondents PercentageTerm Insurance 12 12Child Policy 19 19Endowment Policy 8 8Retirement Policy 2 2Money Back Policy 31 31ULIP 28 28TOTAL 100 100

Particulars*Respondent Age Cross tabulation

Particulars Respondents Age Total

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 90% of the respondents say that they are currently insured. b) 10% of the respondents say that they are not currently insured..

18-25 26-35 36-45 46 & Above

Term Insurance 0 5 5 2 12Child Policy 0 10 7 2 19

Endowment Policy 1 5 0 2 8

Retirement Policy 0 0 0 2 2

Money Back Policy 4 10 15 2 31

ULIP 15 10 3 0 28

TOTAL 20 40 30 10 100

Particulars*Respondent Income Cross tabulation

Particulars Respondents Income Total  0-1.5 lac 1.5-3 lac 3-5 lac 5 lac &Above

Term Insurance 1 6 1 4 12Child Policy 2 12 2 3 19

Endowment Policy 1 3 2 2 8

Retirement Policy 0 0 1 1 2

Money Back Policy 5 15 6 5 31

ULIP 1 24 1 2 28

TOTAL 10 60 13 17 100

0

10

20

30

40

1

No.Of Respondents

Term Insurance

Child Policy

EndowmentPolicy

RetirementPolicy

Money BackPolicy

ULIP

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 12% of the respondents say that they prefer Term Insurance. b) 19% of the respondents say that they prefer Child policy c) 8% of the respondents say that they prefer Endowment policy.. d) 2% of the respondents say that they prefer Retirement policy e) 31% of the respondents say that they prefer Money back policy f) 28% of the respondents say that they prefer ULIP

4. What is the purpose of Insurance?

Particulars No. of Respondents PercentageA tax saving plan 43 43A tax saving scheme with good return 17 17A financial security for the family. 14 14Risk coverage 10 10All the above 16 16TOTAL 100 100

Particulars*Respondent Occupation Cross tabulation

Particulars Respondents Occupation Total

  Service Business ProfessionalSelf

Employee RetiredOthers

A tax saving plan 35 0 3 2 0 3 43A tax saving scheme with good return 10 3 1 1 1 1 17A financial security for the family.

11 00

0 0 314

Risk coverage 2 2 3 0 2 1 10All the above 2 3 3 2 4 2 16TOTAL 60 8 10 5 7 10 100

0

5

10

15

20

25

30

35

40

45

1No.of Respondents

Purpose of Insurance

A tax saving plan

A tax savingscheme with goodreturn

A financialsecurity for thefamily.

Risk coverage

All the above

5. From which source you came to know about the policy? Please rank 1 for the most important and 4 for least important.

Particulars No. of Respondents PercentageAdvertisements 13 13Friends and relatives 62 62Direct from selling agent 14 14 Internet 11 11TOTAL 100 100

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 12% of the respondents say that they prefer Term Insurance. b) 19% of the respondents say that they prefer Child policy c) 8% of the respondents say that they prefer Endowment policy.. d) 2% of the respondents say that they prefer Retirement policy e) 31% of the respondents say that they prefer Money back policy f) 28% of the respondents say that they prefer ULIP

Sources

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1

No.Of Respondents

Advertisements Friends and relatives

Direct from selling agent Internet

6. What factors do you consider for choosing an Insurance policy? Please rank in order of preference on a 1 to 6 scale.

Particulars No. of Respondents PercentageBrand Name 10 10Service 16 16Advisor 24 24Policy Scheme 15 15Term of the plan 10 10

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 13% of the respondents say that the source of the policy is Advertisements. b) 62% of the respondents say that the source of the policy is Friends & relatives c) 14% of the respondents say that the source of the policy is Direct from selling agent

Return of the plan 25 25TOTAL 100 100

1016

0 10 20 30

Brand Name

Service

Advisor

Policy Scheme

Term of the plan

Return of the plan

No.Of Respondents

7. Who influences you to buying an Insurance policy?

Particulars No. of Respondents PercentagePersonal (family, friends & neighbours) 83 83Financial Advisor. 17 17Charter Accountant 0 0TOTAL 100 100

Particulars*Respondent Age Cross tabulation

Particulars Respondents Age Total  18-25 26-35 36-45 46 & Above

Personal (family, friends & neighbours) 20 35 22 6 83Financial Advisor. 0 5 8 4 17Charter Accountant 0 0 0 0 0TOTAL 20 40 30 10 100

ANALYSIS:From the survey it was found that amongst 100 respondents

a) 10% of the respondents say that the factor consider of Insurance is Brand Name. b) 16% of the respondents say that the factor consider of Insurance is Service c) 24% of the respondents say that the factor consider of Insurance is Advisor d) 15% of the respondents say that the factor consider of Insurance is Policy scheme. e) 10% of the respondents say that the factor consider of Insurance is Term of the plan.f) 25% of the respondents say that the factor consider of Insurance is Return of the plan.

0

20

40

60

80

100

NO. OF RESPONDENTS

Personal (family,friends &neighbours)Financial Advisor.

Charter Accountant

8. Do you have any idea about the amount of Insurance you require?

Particulars No. of Respondents PercentageYes 55 55No 45 45

TOTAL 100 100

Particulars*Respondent Sex Cross tabulation

PARTICULARS Respondents Sex TotalMale Female

Yes 45 10 55No 45 30 45

TOTAL 60 40 100

ANALYSIS:

From the survey it was found that amongst 100 respondents

a)83% of the respondents say that influence to buying a policy is Personal (family, friends & neighbours) b) 0% of the respondents say that influence to buying a policy is Financial advisor c) 17% of the respondents say that influence to buying a policy is Charter Accountant

No. Of Respondents

Yes55%

No45%

Yes

No

9. Which type of return do you prefer?

Particulars No. of Respondents PercentageFixed return 21 21Variable returns 0 0Balanced return 79 79TOTAL 100 100

Particulars*Respondent Age Cross tabulation

Particulars Respondents Age Total18-25 26-35 36-45 46 & Above

Fixed return 5 10 5 1 21Variable returns 0 0 0 0 0Balanced return 15 30 25 9 79TOTAL 20 40 30 10 100

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 55% of the respondents say that they know the amount of Insurance they require. b) 45% of the respondents say that they have no idea about the amount of Insurance they require.

0

20

40

60

80

Fixedreturn

Variablereturns

Balancedreturn

Type of Return

NO. OFRESPONDENTS

10. Do you know about the MetLife India Life Insurance Policy?

Particulars No. of Respondents PercentageYes 60 60No 40 40

TOTAL 100 100

Particulars*Respondent Sex Cross tabulation

PARTICULARS Respondents Sex TotalMale Female

Yes 35 25 60No 25 15 40

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 21% of the respondents say that they prefer Fixed return. b) 0% of the respondents say that they prefer Variable return. c)79% of the respondents say that they prefer Balance return.

TOTAL 60 40 100

No. Of Respondents

60%

40%Yes

No

11. Please rank following Insurance Company in order of your preference on a 1 to 8 scale.

Particulars No. of Respondents PercentageMetLife 7 7 ICICI Prudential 10 10HDFC 8 8Birla sun life 5 5Bajaj Allianz 11 11LIC 46 46Tata AIG 6 6Reliance Capital 7 7TOTAL 100 100

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 60% of the respondents say that they know about the MetLife India Life Insurance Policy?. b) 40% of the respondents say that they don’t know about the MetLife India Life Insurance Policy?

05

101520253035404550

Insurance Companise

12. Would you like switch over your preferred brand of Insurance Company?

Particulars No. of Respondents PercentageYes 14 14No 86 86

TOTAL 100 100

Particulars*Respondent Marital Status Cross tabulation

PARTICULARS Respondents Marital Status TotalMarried Unmarried

Yes 10 4 14No 50 36 86

TOTAL 60 40 100

ANALYSIS:From the survey it was found that amongst 50 respondentsa) 7% of the respondents likes MetLife.b) 10% of the respondents likes ICICI.c) 8% of the respondents likes HDFC.d) 5% of the respondents likes Birla Sun Life.e)11% of the respondents likes Bajaj Allianz.f) 46% of the respondents likes LICg) 6% of the respondents likes Tata AIGh) 7% of the respondents likes Reliance Capital

No. Of Respondents

Yes14%

No86%

13. How will you prefer to buy an Insurance Policy?

Particulars No. of Respondents PercentageDirect from company 21 21Broker 11 11Agent 68 68TOTAL 100 100

Particulars*Respondent Income Cross tabulationParticulars Respondents Income Total  0-1.5 lac 1.5-3 lac 3-5 lac 5 lac &Above

Direct from company 2 8 3 8 21Broker 1 6 2 2 11

ANALYSIS:

From the survey it was found that amongst 50 respondents a) 14% of the respondents say that they switch over their preferred Brand of insurance. b) 86% of the respondents say that they don’t want to switch over their preferred brand of insurance.

Agent 7 46 8 7 68TOTAL 10 60 13 17 100

NO. Of Respondents

21%

11%68%

Direct fromcompany

Broker

Agent

14. Do you prefer any occassion to buy an Insurance policy?

Particulars No. of Respondents PercentageOn your Birthday 5 5Child’s Birthday 13 13Anniversary 11 11Tax-saving month 61 61Others (No specify time) 10 10TOTAL 100 90

Particulars*Respondent Marital Status Cross tabulation

ANALYSIS:

From the survey it was found that amongst 50 respondents a) 21% of the respondents say that they prefer to buy an Insurance Policy Direct from company. b) 11% of the respondents say that they prefer to buy an Insurance Policy from Broker. c) 68% of the respondents say that they prefer to buy an Insurance Policy from Agent

PARTICULARS Respondents Marital Status TotalMarried Unmarried

On your Birthday 3 2 5Child’s Birthday 13 0 13Anniversary 11 0 11Tax-saving month 47 14 61Others (No specify time)

6 410

TOTAL 80 20 90

Particulars*Respondent Occupation Cross tabulation

Particulars Respondents Occupation Total

Service Business ProfessionalSelf

Employee RetiredOthers

On your Birthday 1 1 1 1 0 3 5Child’s Birthday 2 1 1 2 5 2 13Anniversary 3 1 3 1 0 3 11Tax-saving month 52 3 1 1 1 3 61Others (No specify time)

2 24

0 1 110

TOTAL 60 8 10 5 7 10 100

0

20

40

60

80

NO. OF RESPONDENTS

Policy Occassion

On your Birthday

Child’s Birthday

Anniversary

Tax-saving month

Others (No specifytime)

15. What mode would you prefer to pay premium?

Particulars No. of respondents PercentageAnnual 57 57Semi-annual 15 15Quarterly 17 17Monthly 9 9Single 2 2TOTAL 100 100

ANALYSIS:

From the survey it was found that amongst 50 respondents a) 5% of the respondents say that they prefer to buy an Insurance Policy on On their Birthday . b) 13% of the respondents say that they prefer to buy an Insurance Policy Child’s Birthday. c) 11% of the respondents say that they prefer to buy an Insurance Policy on Anniversary. d) 61% of the respondents say that they prefer to buy an Insurance Policy on Tax-saving month. e) 10% of the respondents not specify any occassion.

Particulars*Respondent Sex Cross tabulation

Particulars Respondents Sex Total  Male FemaleAnnual 40 17 57Semi-annual 5 10 15Quarterly 9 8 17Monthly 5 4 9Single 1 1 2TOTAL 60 40 100

0

10

20

30

40

50

60

NO. OF RESPONDENTS

Premium Mode

Annual

Semi-annual

Quarterly

Monthly

Single

ANALYSIS:

From the survey it was found that amongst 50 respondents a) 57% of the respondents say that they prefer to pay premium at annually b) 15% of the respondents say that they prefer to pay premium at semi- annually. c) 17% of the respondents say that they prefer to pay premium at quarterly. d) 9% of the respondents say that they prefer to pay premium at monthly. e) 2% of the respondents say that they prefer to pay premium at a single.

16. Does your agent provide adequate information about the policy?

Particulars No. of Respondents PercentageYes 70 70No 30 30

TOTAL 100 100

Particulars Respondents Sex Total  Male Female  

Yes 35 35 70No 25 5 30TOTAL 60 40 100

NO. Of Respondents

70%

30%Yes

No

ANALYSIS:

From the survey it was found that amongst 50 respondents a) 70% of the respondents say that their agent provides adequate information about the policy b) 30% of the respondents say that their don’t agent don’t provides adequate information about the policy

17. Are you satisfied with?

Particulars   No. of Respondents PercentageReturn On Investment Yes 79 79  No 21 21  TOTAL 100 100Company service Yes 86 86  No 14 14  TOTAL 100 100Agent service Yes 89 89  No 11 11  TOTAL 100 100Process & Scheme Yes 71 71  No 29 29  TOTAL 100 100

FINDINGS

On an analysis and evaluation of the data collected from the respondents the following findings were found:

Before establishment of private concerns the share of LIC was 22% hence there is a wide scope for private concerns to enter in to market.

Total 100 respondents have been approached out of which 75 are the potential respondents who have shown interest for investment and finance plan.

About 18% of respondents are not interest to give their personal records.

About 52% of respondents have already been covered by other insurance companies.

About 10% of respondents have given invalid records.

About 10% of respondents are newly employed or trainees.

About 10% of respondents interested for investment plan after knowing MetLife India Insurance Co. Ltd.products.

Most of the people buy life insurance as just a tax benefit tool or as a life cover while only a few of the respondent take it as a saving option. The reason for this is lack of knowledge of insurance benefits among the people.

A Majority of the respondent buy insurance products because of the need reason while rest of the respondents buy for the brand purpose.

A Majority of the people come to know about the policies from the Direct Selling Agents.

A Majority of the people are satisfied by the incentives associated with their policies.

Most of the respondents are satisfied by the services offered by there insurance company while some says that they are not satisfied by the services.

RECOMMENDATIONS TO COMPANY

. There are some recommendations.

Open some more branches in semi urban and rural area .

MetLife has almost its branches in urban area or metros. So in order to increase the no. of customer, MetLife should increase the approach towards potential customers. For that it has to increase the branches in the semi urban cities like C, D grade cities. And the rural marketing is the best option for MetLife to increase its base in the market.

Trained the financial advisors more efficiently .

In the changed scenario, more efficient training will be needed, so MetLife should provide good and efficient training to their financial advisors. Because they are the one who interact directly with the customers. So good training will give them the right way to deal with the potential customers.

Section-4Conclusions and suggestions

CONCLUSION

After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth MetLife in private sector, we come at the conclusion that

There is very tough competition among the private insurance companies on the level of new trend of advertising to lull a major part of Customers.

MetLife is not left behind in the present race of advertisement. The entries of more Pvt. Players in the Insurance Sector have expanded the

product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers.

MetLife has vast market and very firm grip on its traditional customers and monopoly of life insurance products.

IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.

SUGGESTIONSThe study has provided with the useful data from the respondents. There has a lot to be recommended. Following are the recommendations:

Insurance policy gives good return but it cannot compete with other financial tools (i.e. equity). So this is basic need to increase return in the field of insurance sector.

Due to AIG (it was going to be insolvent) and deflation financial environment, mostly people think that LIC is better than other private insurance company (due to Government protection). So in this time private company needs to know that how to win people’s belief.

There are lot of alternative distribution channel in insurance industry, but due to less awareness of the people they do not know/like to buy insurance from such type of alternative channel i.e. banc assurance, NGO’s. So there is some need to increase awareness of such type of alternative channel among public.

Policy scheme is main factor to choose insurance company. If insurance companies give more concentration on policy scheme then they can compete with another financial tool in better way (i.e. equity and mutual fund).

India people think that insurance is tax saving and protection tool, and not investment tool. If insurance company increase awareness among public, that insurance is good alternative saving and investment tool, this will do work as a value added service which will increase penetration of India.

Now only product knowledge is not sufficient for selling insurance, some thing should be added up in training program (age/front liner) i.e. human behavior, CRM, knowledge of another financial tools, communication program, and especially how to improve way of delivery.

In insurance, process is too much time taking, when we compare to other financial tools, so process work should be less, effective and flexible.

People are not much aware of alternative policy scheme (health, diabetics), so there are need to increase awareness of such type of policies among people.

Mostly, people are not satisfied from the post service of insurance companies due to dependence on agents or no knowledge about process, so there should be need to increase awareness about self service and awareness among people by training and advertisement.

Insurance is long term contract and saving tool, after a time people feel less interested towards it, so time to time motivation is important that they are doing a good job.

Annexure

Dear Sir/MadamI am the student of J.D.Women’s College, Patna, Department of

Management Studies, conducting a marketing survey on “consumer Buying Behaviour on Insurance” of MetLife India Life Insurance Company.

I request you to kindly fill the questionnaire below and assure you that the data generated shall be kept confidential.

QUESTIONNAIRE

SECTION-A

1. Name:______________________________________

2. Address:________________________________________________________

_______________________________Contact No.______________________

3. Gender

a) Male b) Female4. Age:

a) 18-25 b) 26-35 c) 36-45d) 46 or above.

5. Marital status:

a) Married b) Unmarried

6. Educational Qualification:

a) 10th or below b) 10+2 c) Graduate

d) Post Graduate or above e) Others (Please specify)______________

7. Occupation:

a) Service b) Business c) Professional d) Self Employee e) Retired f) others (Please

specify) _______________. 8. Average annual Income:

a) Up to 1.5 lac b) 1.5 lac-3 lac c) 3 lac-5 lac d) 5lac and more

SECTION-B

4. Do you think Insurance is Important?

a) Yes b) No If no, please specify________________.

5. Are you currently insured?

a) Yes b) No

6. Which type of Insurance policy do you prefer?

a) Term Insurance b) Child Policy c) Endowment policyd) Retirement policy e) Money back policy f) ULIPg) Others (Please specify) ______________.

4. What is the purpose of Insurance?

a) A tax saving plan. b) A saving scheme with good return.c) A financial security for the family. d) Risk coverage e) All the above.

5. From which source you came to know about the policy? Please rank 1 for the most important and 4 for least important.

a) Advertisements [ ]b) Friends and relatives [ ]c) Direct from selling agent [ ]d) Internet [ ]

7. What factors do you consider for choosing an Insurance policy? Please rank

in order of preference on a 1 to 6 scale.

a) Brand Name [ ]b) Service [ ]c) Advisor [ ] d) Policy Scheme [ ]e) Term of the plan [ ]f) Return of the plan [ ]

7. Who influences you to buying an Insurance policy?

a) Personal (family, friends & neighbours)b) Financial Advisor. c) Charter Accountant d) Others (Please specify) _______________________

8. Do you have any idea about the amount of Insurance you require?

a) Yes b) No

9. Which type of return do you prefer?

a) Fixed return b) Variable returns c) Balanced returnd) Others (Please specify) ___________________.

10. Do you know about the MetLife India Life Insurance Policy?

a) Yes b) No 11. Please rank following Insurance Company in order of your preference on a 1 to 8 scale.

a) MetLife [ ]b) ICICI Prudential [ ]c) HDFC [ ]d) Birla sun life [ ]

e) Bajaj Allianz [ ]f) LIC [ ]g) Tata AIG [ ]h) Reliance Capital [ ]

12. Would you like switch over your preferred brand of Insurance Company?

a) Yes b) NoIf yes (please specify) _______________________

13. How will you prefer to buy an Insurance Policy?

a) Direct from company b) Broker c) Agent d) Others (Please specify) ____________________.

14. Do you prefer any occassion to buy an Insurance policy?

a) On your Birthday b) Child’s Birthday c) Anniversary

d) Tax-saving month e) Others (Please specify)_______________

15. What mode would you prefer to pay premium?

a) Annual b) Semi-annual c) Quarterlyd) Monthly e) Single

16. Does your agent provide adequate information about the policy?

a) Yes b) No

17. Are you satisfied with?

a) Return on Investment Yes Nob) Company service Yes Noc) Agent service Yes Nod) Process & Scheme Yes No

18. Your suggestion to improve Insurance. Comments.

________________________________________________________________ ________________________________________________________________

________________________________________________________________Thank You

Signature……………………………………………

BIBLIOGRAPHY

Websites

www.metlife.co.in

Reference:Books;

Marketing Research Marketing and Management Sales Management Customer Relationship Management Class Notes

Magazines

Material provided by the company

Survey

Search Engines

www.google.com www.wikipedia.com www.yahoo.com www.irda.org www.alvisits.com