SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF
BACHELOR OF BUSINESS ADMINISTRATION
SUMMER TRAINING PROJECT REPORT ON
“Comparative study on HDFC Standard Life
Insurance & MetLife India Insurance”
Submitted By:
Name of student: Mayank Mahajan Enrollment No: 00120601709 Batch:2009-2012
INTERNAL GUIDE EXTERNAL GUIDE
Name: Mr. Mahtab Alam Name: Mrs. Veenu dua Designation: Assistant Professor Designation: Sales Manager
Trinity Institute of Professional Studies
Affiliated To Guru Gobind Singh Indraprastha University
CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN
This is to certify that the project work “Comparative study on HDFC Standard Life Insurance & MetLife India Insurance” made by Mayank Mahajan of BBA GEN I Shift 00120601709 is an authentic work carried out by her under guidance and supervision of Mr. Mahtab Alam.
The project report submitted has been found satisfactory for the partial fulfillment of the degree of Bachelor of Business Administration.
Internal Supervisor Signature Mahtab Alam Name (III)
ACKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere feeling towards my mentors who graciously gave me their time and expertise.
They have provided me with the valuable guidance, sustained efforts and friendly approach. It would have been difficult to achieve the results in such a short span of time without their help.
I deem it my duty to record my gratitude towards the External project supervisor Veenu Dua and Internal project supervisor Mahtab Alam who devoted his/her precious time to interact, guide and gave me the right approach to accomplish the task and also helped me to enhance my knowledge and understanding of the project.
Mayank Mahajan 00120601709 BBA GEN Ist shift (IV)
DECLARATION
This is to certify that I have completed the Summer Training Project titled ”Comparative study on HDFC Standard Life insurance and MetLife India insurance” under the guidance of “Mr. Mahtab Alam” in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration (BBA) at Trinity Institute Of professional Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.
MAYANK MAHAJAN Name of the Student
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EXECUTIVE SUMMARY
India has made tremendous progress in the field of Insurance over the last few years. Providing Insurance to the common man, however, has remained a highly debated issue; and there are several millions of people who remain out of access to even the basic amenities as regards personal care and hygiene. One of the reasons assigned for such an
unfortunate situation is the vast geographical spread of the population that remains out of reach for insurance facilities. For an economy that is growing at a faster rate than most developed nations, there is an urgent need for overcoming such irritants. Another oft-quoted reason for such a situation is the poverty that is the bane of several of these masses. The total percentage of the Indian population that is covered under the umbrella of any form of insurance protection is pathetically low. Unfortunately, insurance as a viable alternative has not been able to make giant strides of progress, although it has been growing, of late. A strong factor for the poor performance of insurance historically has been the moral hazard associated with it. Having paid the premium for a certain period, the policyholder imagines an inherent right in the enforcement of a claim. There is need for all the stakeholders to make the insured understand the basic elements of the insurance coverage. Some areas that insurers on their part may work on are widening the coverage of the policies – perhaps encouraging preventive care among the insured, for one. The per capita total expenditure on insurance in India is US$ 23, of which the per capita Government expenditure on health insurance is US$ 4. Hence, it is seen that the total insurance expenditure is around 5% of GDP with breakdown of public expenditure (0.9%); private expenditure (4.0%). The private expenditure can be further classified as out-of-pocket (OOP) expenditure (3.6%) and employees/community financing (0.4%). It is thus evident that public insurance investment has been comparatively low. In fact as a percentage of GDP it has declined from 1.3% in 1990 to 0.9% as at present. Furthermore, the central budgetary allocation for insurance (as a percentage of the total Central budget) has been stagnant at 1.3% while in the states it has declined from 7.0% to 5.5%.
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TABLE OF CONTENT
Particulars Page no.
(a) Title Page I
(b) Certificate of the company II
(c) Certificate of the college III
(e) Declaration V
(f) Executive Summary VI
(g) Chapter 1 (Profile of the Company) (1-17)
• Profile of the company 2
• Nature of the organization 3
• Company’s vision and mission 6
• Product range of the company 7
• Size of the organization 14
• Organization structure of the company 15
• Market share and position of the company 16
• Present leadership 17
(h) Chapter 2 (Objectives and The Research Methodology) (18-24)
• Research objectives of the study 19
• Research design 19
• Research methodology of the study 20
• Data collection 21
• Limitations(problem in data collection) 24 (i) Chapter 3 (Swot Analysis of the Company) (25-28)
• Strengths and weaknesses 26
• Opportunities and threats 27
• Competitive edge of the company 28
(j) Chapter 4 (Findings and Analysis) (29-48)
• Analysis 30
• Findings 41
• Analysis of the problem under study 42
• Interpretation of the result 43
(k) Suggestions/Recommendations (49) (l) Conclusion (51) (m) Limitations (52) (n) Bibliography (o) Annexure (VII)
CHAPTER-1
PROFILE OF THE
COMPANY
1.
Profile of the Company/Firm
Name- MetLife India Insurance Company Ltd.
Address-• Registered Office Address: Metlife India Insurance Company Ltd. 5th floor Orchid Centre
Golf Course Road, Sector 53, Gurgaon, phone:4179000, 456773422 Fax: 0124-2572748 Pin: 122002
• Branch Address(where training is done): MetLife India Insurance Company Ltd. Flat no.305 & 306 3rd Floor, Ashirwad Chowk, Aggarwal Mall Plot no.3 Sec-5 Dwarka, Delhi,
phone:01164736190, 01164736191 pin:110075 Website- www.metlife.co.in
Email- indiaservice@metlife.co.in
Type of Company- Multinational Company Branches of the
(India)
• Andhra Pradesh Haryana Puducherry
• Arunachal Pradesh Himachal Pradesh Rajasthan
• Jammu and Kashmir Tamilnadu West Bengal
• Bihar Jharkhand Tripura
• Chandigarh Karnataka Uttrakhand
• Chhattisgarh Kerala Gujarat
• Delhi Madhya Pradesh Orissa
• Goa Maharashtra
(2) (Foreign)
• America (main branch) Egypt Korea Russia
• Argentina Hong Kong France Pakistan
• Australia Italy Spain
• Brazil Japan United kingdom
• China Kuwait Portugal
Introduction of the organization-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. It is a private limited insurance company reaches more than 90 million customers around the world it is the capitalized private sector multinational company
MetLife, Inc. is the holding corporation for the Metropolitan Life Insurance Company or MetLife for short. The firm was founded on March 24, 1868. MetLife is the largest life insurer in the United States, with more than $3.3 trillion of life insurance in force. A leader in savings and retirement products and services for individuals, small business, and large institutions, MetLife serves 90 of the largest Fortune 100 companies. MetLife is insuring the lives of the people for around 140 years.
Today, when people are feeling a greater financial burden than ever before, MetLife is helping millions of its customers in creating their own personal safety net by taking insurance plans.
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METLIFE INDIA FACT SHEET
Founded 2001
Started Operation FY 2001-02
Headquarters Bangalore, India
World Wide Web Address www.metlife.co.in
Managing Director Rajesh Relan
Employees 7688
Financial Advisors 56,072
Bank/Karnataka Bank/Barclays) Number Of Products Over 28 products
Presence Through MetLife Offices 192 offices in 131 cities Presence Through Bank Partners 1910 offices in 686 cities
History- The origins of Metropolitan Life Insurance Company (MetLife) go back to 1863, when a group of New York City businessmen raised $100,000 to found the National Union Life and Limb Insurance Company .Organized by a group of New York City businessmen in 1863, the National Union Life and Limb Insurance Company began business in July 1864 insuring Civil War sailors and soldiers against wartime-related disabilities. By the end of 1864, National Union had written only 17 life and 56 accident policies, and was in last place among the 27 life companies operating in New York State and was running a deficit of $1,4000. On 25 march 1868, the first policy carrying the name of the Metropolitan Life Insurance Company was issued . Dr. James R. Dow, a retired physician from Brooklyn, New, was named Metropolitan Life’s first President. In 1863 President James R. Dow, (a medical doctor) and the board of directors decided to drop the casualty business and focus solely on life insurance business. And so began Metropolitan Life Insurance Company. (4)
Current Era- In 2001, MetLife was the first insurance company to establish a financial holding company with a nationally chartered bank through its purchase of Grand Bank, which was renamed MetLife Bank. The company also invested $1 billion in the U.S. stock market during 2001, immediately after the September 11th terrorist attacks.
MetLife acquired Travelers Life & Annuity and substantially all of Citigroup’s international insurance businesses for $12 billion. Current MetLife chairman C. Robert (Rob) Henrickson was appointed chairman of the board of directors, president and chief executive officer of MetLife in 2006.
In 2010, MetLife completed its purchase of American Life Insurance Company (Alico), from American International Group (AIG). The $16.2 billion acquisition of Alico expanded the company’s life insurance and employee benefits business into more than 60 countries compared to 17 countries before the acquisition. On March 21, 2011, MetLife announced
that Steven Kandarian, who had headed MetLife's investment department would succeed Robert Henrickson as President and CEO as of May 1, 2011.
Business Sector- Metlife is a fast upcoming professional insurance company in India.
It is operating in the insurance sector. MetLife is one of the fastest growing life insurance companies. T h e M e t L i f e o r g a n i z a t i o n i s a l e a d i n g p r o v i d e r of i n s u r a n c e , a n n u i t i e s a n d e m p l o y e e b e n e f i t p r o g r a m s . MetLife India has developed and distributes a range of life insurance products in India.
MetLife is a leader in savings and retirement products and services for individuals, small businesses and large institutions. The company conducts its business operations through five segments namely, institutional, individual, international, auto and home, as well as the corporate. MetLife is operating in the area of insurance.
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3. Company’s
Vision
and Mission
Vision Meaning: A vision statement is sometimes called a picture of your company in the future but it’s so much more than that. Your vision statement is your inspiration, the framework for all your strategic planning. A vision statement may apply to an entire company or to a single division of that company. Whether for all or part of an organization, the vision statement answers the question, “Where do we want to go?”
MetLife Vision-“to build financial freedom for everyone-guides the company’s to people’s growing needs for first rate financial products and services through various life stages and economic cycles.”
Mission Meaning: A mission statement is a brief description of a company's fundamental purpose. A mission statement answers the question, "Why do we exist?"
The mission statement articulates the company's purpose both for those in the organization and for the public. Every business should have a mission statement, both as a way of ensuring that everyone in the organization is "on the same page" and to serve as a baseline for effective business planning.
MetLife Mission-“Our company’s purpose is to simplify and aid the decision-making process for our customers in buying a financial product. We will make information available to the customer in the simplest and easily comprehendible way so that customers can make an informed choice best suited for their individual needs.”
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4. Product range
of the company
MetLife deals in the life insurance products. Product range of MetLife
Life Insurance Products Traditional Products
Term plan Endowment plan Money back plan Child money back plan Pension plan
Term plan-This is a plan to cover the risk of early death. Met suraksha, met suraksha trop, met suraksha plus etc are the terms plans of MetLife
*Met suraksha- It is a non participating term assurance plan which provides you life cover at a nominal cost. To put it simply, it is a life insurance plan that gives you complete protection to enjoy life to the fullest.
Minimum Entry Age 18 years Maximum Entry Age 60 years Maximum Maturity Age 65 years
Premium Paying Terms Single Pay, Limited Pay (3 years), Regular Pay
*Met Suraksha Trop- It is a plan with Return of Premium (TROP), a non participating term assurance plan which provides you life cover at a nominal cost. To put it simply, it is a life insurance plan that gives you complete protection to enjoy life to the fullest.
Minimum Entry Age 18 years Maximum Entry Age 50 years Maximum Maturity Age 65 years Policy Term 15 & 20 years
Premium Paying Terms Single Pay, Limited Pay(3 years)
*Met Suraksha Plus-MetLife offers ‘Met Suraksha Plus’- Term Assurance (TA) a non participating term assurance plan which provides you life cover. It is designed for people who want to take care of their financial commitments, should anything unfortunate happen, at a nominal cost.
Minimum Entry Age 18 years Maximum Entry Age 60 years Maximum Maturity Age 70 years Policy Term 10-35 years
Endowment plan -This is a plan to provides savings and security. met suvidha, met saral, met 100 etc are the endowment plans of MetLife.
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*Met Suvidha-Met Suvidha is a Flexible Endowment Plan that combines savings and security. In addition to providing you protection till the maturity of the plan, it helps you save for your specific long term financial objectives.
Minimum Entry Age Par: 15 years - 60 years Non-Par: 15 years - 70 years Term Par: - 15 years - 30 years
Non-Par: 5 years - 30 years
Premium Paying Terms Single Pay, Limited Pay (5 or 10) & Regular Pay
*Met Saral- MetLife presents Met Saral – a non- participating endowment plan. It’s a simple savings plan which gets you into the savings habit without any medical tests. All you need to do is fill in a simple application form and you are ensured a guaranteed maturity amount of Rs 1,00,000, even in the case of your death during the term.
Minimum Entry Age 15 years - 50 years Maximum Maturity Age 60 years
Term 5 years / 10 years
Premium Paying Terms Regular Pay
Premium Paying Modes Annual, Semi-Annual
*Met 100- MetLife presents Met 100 – a whole life policy where you pay premiums for 15, 20 or 25 years. It helps create a legacy for the children, leaving money for a dependant spouse and, more importantly, provides insurance cover at affordable rates. Met 100 is available in 2 versions. PAR NON PAR
Minimum Entry Age 15 yrs 0 yrs Maximum Entry Age 70 yrs 70 yrs
Premium Paying Terms 15, 20, 25 yrs 15, 20, 25 yrs (9)
Money back plan- In Money Back Plans, the money comes back to the Life Insured after a specific interval of time as Survival Benefit. For ex met sukh, met vishwas are money back plans of MetLife.
*Met Sukh- a guaranteed Money-Back Policy which provides guaranteed periodic survival benefits at the end of 5, 10, 15 & 20 years and guaranteed additions of 10% of the Sum Assured for the entire term. It not only covers your life, but also guarantees you cash payments at various milestones along with guaranteed growth of your savings.
Entry Age Min-15years
Max-55 years Coverage Term 20 years Premium Payment Term Regular Minimum Sum Assured Rs. 75,000 Maximum Sum Assured No Limit
*Met Vishwas- MetLife offers 'Met Vishwas', - a single premium, micro insurance, non- participating term assurance plan which provides you life cover at a nominal cost. On survival, you get 110% or 125% of the premium.
Minimum Entry Age 18 years Maximum Entry Age 60 years Maximum Maturity Age 70 years Policy Term 5 or 10 years Premium Paying Terms Single Pay
Child money back plans -These are back plan that pays out funds to help you meet the education and career milestones of the child. met bhavishya, met junior moneyback, met magic plus, are some the child money back plans.
*Met Bhavishya- MetLife offers 'Met Bhavishya' – a guaranteed money back plan that pays out funds to help you meet the education and career milestones of your children. With this plan, the Life Insured is that of the parent. There are two options to choose from and fixed term benefits, periodic additions & terminal additions are payable based on the option that you select.
Option A Option B Minimum Entry Age of the
Child
0 years 0 years Maximum Entry Age of the
Child
8 years 12 years Minimum Entry Age of the
parent
20 years 20 years Maximum Entry Age of the
Parent 50 years
50 years Policy Term 21 years - Age at
Entry
25 years - Age at Entry
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*Met Junior Money back- 'Met Junior Money Back – a money back plan that combines savings and security. Your child's well-being is your highest priority. So we offer you a
money back plan which provides guaranteed periodic survival benefits at the end of 5, 10 & 15 years, along with guaranteed growth of your savings.
A plan which offers both timely and efficient "return on investment" with payouts at different milestones.
Par Non Par Minimum Entry Age of the Child 0 years 0 years Maximum Entry Age of the Child 14 years 14 years
Coverage Terms 20 years 20 years
Premium Payment Terms 20 years 20 years
*Metmagic Plus- Met Magic Plus is a Unit Linked Non-Medical Regular premium Life Insurance Plan, it secure your child’s future. Met Magic plus provides the benefit of insurance protection to your family, particularly your child, even when you are not around.
Minimum Entry Age 18years. Maximum Entry Age 55years. Maturity Age of Life Insured 70years.
Minimum Policy Term 10 Years, 15 Years, 20 Years & 25 Years
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Pension plan- A pension plan is a plan in which an employee transfers part of his or her current income stream toward retirement income which he gets in the future . Some of the pension plans of MetLife are Met smart one, met easy super, met pension par etc.
*Met smart one-met smart one , which is investment cum protection single premium plan which along with its various investment management options facilitates accelerated wealth creation with Loyalty additions.
Minimum Age at Entry(LBD) 0 years (3 months) Maximum Age at Entry(LBD) 65 years
Minimum/Maximum Age at Maturity 18/75 years
Policy Term 10-20 years
*Met Easy Super- Security for your family and your need of wealth creation should work together as you move ahead in life. Hence we bring you Met Easy Super – an Easy Protection, Super wealth creation plan.
Minimum Age at entry*
18 years Maximum Age at
entry*
60 years for 15 policy term & 55 years for 20 year policy term
Premium Payment term (years)
Entire term of the policy Policy Term 15 years and 20 years Premium Payment
modes
Annual (13)
*Met Pension Par-Met Pension (Par) serves as a friendly helping hand so you can stay financially independent even after retirement. It helps you build up a fund for your golden years. With this plan, you can ensure you enjoy retirement as a happy new chapter. Entry Age Minimum Term Min– 18 years Max – 60 years 10 years
premium
Premium Payment Term
Single Pay, Limited Pay (3 or 5 Pay) & Regular Pay
5. Size (
in terms of manpower and turnover) of the organization
Manpower-at the year ending 2010-2011 total manpower(employees) of MetLife is 63,760 in number of which approx 56,072 are its financial advisors.
Turnover-total turnover of MetLife India till 2010-2011 is 15550 crores. During the fiscal (2010-11) MetLife had a total revenue of Rs 2,615.13 crores, MetLife India breaks even, posts Rs 35 crores profit in the financial year 2010-2011
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6. Organization structure
of the company
Chairman
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7. Market
share &
position of the company in the industry
Market Share definition- The percentage of an industry or market's total sales that is earned by a particular company over a specified time period. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company to its market and its competitors.
Market Share of
MetLife:-M.D of
England M.D of France M.D of India M.D of Italy
M.D of Australia Zonal business head
HR Manager Zonal Zonal operation manager Zonal research manager Zonal territory manager Administration Manager Training Manager Regional training manager Financial
MetLife India Insurance Company Limited (MetLife), one of India’s fastest growing life insurance companies, today crossed the one million mark in policies issued, taking the total number of lives insured to two million (including the group business).The company, which started its operations in India in the year 2002, is today one of the fastest growing life insurance companies in the country, with a presence in over 690 locations and a market share of 3%. It is present at the 8 position in the insurance market of India.
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Here is the market share of various Life Insurance Companies in India at the end of FY 2010.
1. LIC 74% 9. Max New York 1.1% 2. ICICI Prudential 8% 10. Om Kotak 1%
3. Bajaj Allianz 5% 11. AVIVA 0.7% 4. SBI Life 3.3% 12. Tata AIG 0.5% 5. HDFC Standard 3.2% 13. ING Vysya 0.3% 6. Birla Sun life 3.1% 14. Shriram Life 0.3% 7. Reliance Life 3.1% 15. Bharti Axa Life 0.2% 8. MetLife 3%
8.Present
Leadership
I have done my Summer training under the guidance of Mrs. VEENU DUA at Dwarka Branch New Delhi. My working tenure was full of learning and development. I got the real exposure of corporate world during summer training. I was blessed with the great mentor who develop my skills and enhanced my knowledge.
Mrs Veenu Dua has given us training in the democratic style, which is generally the most effective leadership style. She offered guidance to trainees, she also participate in the training program and allow input from all the trainees. She encouraged trainees to participate in the training process, trainees feel engaged in the process and felt very motivated and creative. My mentor was full of skill which made inspire all the trainees. Some of the skills are as followed:
Skills of Mentor-1) communication skills 2) human skills
3) speaking skills 4) decision making skills 5) problem solving skills
CHAPTER-2
OBJECTIVE AND
RESEARCH
METHODOLOGY
1. Research Objectives
of the study
Objectives of Research Study:
• To know the most preferred policy.
• To study the Growth in private insurance sector in India.
To determine customers perception towards private insurance companies and their expectation from private insurance companies.
• To study the Regulatory Framework for insurance sector.
• To study the fundamental of Life Insurance Industry.
• Comparison between HDFC and Met life Insurance according to their product Portfolio.
2. Research design
Research designs are concerned with turning the research question into a testing project. The best design depends on your research questions. Every design has its positive and negative sides. The research design has been considered as a "blueprint" for research, dealing with at least four problems: what questions to study, what data are relevant, what data to collect, and how to analyze the results.
Research design can be divided into fixed and flexible research designs. Some economists have referred to this distinction with ‘quantitative research designs’ and ‘qualitative research designs’. However, fixed designs need not be quantitative, and flexible design need not be qualitative.
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3. Research Methodology
of the study
Research Methodology is generally a guideline for solving a problem, with specific components such as phases, tasks, methods, techniques and tools.
The various tools likely to be used to research are internet search, newspaper and general guidance from the external guide.
Research comprises defining & redefining problems, formulating hypothesis or suggested solution ,collecting ,organizing & evaluating data, making deduction & reaching conclusion
& at least carefully testing the conclusion to determine whether they fit the formulating hypothesis.
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. It involves data collection techniques, the method of analysis of data, their interpretation and final summarization.
Research methodology is a systematically solve the research problem. It has many dimensions and research methods constitute a part of research methodology.
Exploratory Research
The explorative research has helped to determine the best research design, data collection and selection of subjects. The reliance of exploratory research on secondary research, such as qualitative approaches: informal discussions with employees, management and more formal approaches through in-depth interviews, questionnaire has given a significant insight into the given situation. The research is primarily exploratory in nature. The sources of information are both primary & secondary.
A well-structured questionnaire was prepared and personal interviews were conducted to collect the customer’s perception and buying behavior, through this questionnaire.
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4. Data
Coll
ection
Meaning- Data are pieces of information that represent the qualitative or quantitative attributes of a variable or set of variables. Data is "bits" of information obtained from observation. In the context of science, it is usually physical traits observed during an experiment.
So data collection means collecting information during an experiment of a particular characters or trait.
Inferences. Quantitative techniques like averages, percentages, two-way tables, were applied as required. The level of preference, perception of the customers about the product and company were identified by means of questions in the questionnaire. For the representation of data various charts tables pie charts and graphs have been used as per requirement.
In order to make the comparative study possible, parameters were chosen and questions were designed eliciting ratings from the respondents. These ratings were tabulated and then represented by means of line diagrams.
During the process of data collection, considerable amount of time was spent in explaining the purpose and the exact nature of the data required from the questionnaires filled. In addition to this, in some cases questions had to be explained to the respondents. Moreover, for some questionnaires had to be filled in as they were not so well read and literate.
Sources of Data Collection: There are two sources of
data:-1. Primary data- Primary data is data that has not been previously published, i.e. the data is derived from a new or original research study and collected at the source, e.g., in marketing, it is information that is obtained directly from first-hand sources by means of surveys, observation or experimentation. (21)
2. Secondary data- Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data cannot be obtained at all.
• Primary Source: Through Questionnaire, collecting data from the insurance company to know about the sales of insurance
• Secondary source: Various insurance journal and government Journal like IRDA also through various insurance related website i.e internet.
Census servey Sample survey Sample method Types of sampling
Probability non probability Random sampling
Random Sampling Technique
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judgmental and convenient.
(22) Universe:
The first step in developing any sample design is to clearly define the set of the objects technically called the universe to the studied. Universe can be either be finite or infinite. In finite universe the no. of item means the person who lived in local area of DELHI. Total number of persons approached for collecting data/information was 50.
Age-out of 50, 30 were aged between 30 to 40, 15 were between 50 to 60 and rest were above 60.
Gender-both males and females were approached for the data/information. Out of 50, 30 were males and rest 20 were females.
The respondents who were asked to fill out questionnaires are the sampling units. These comprise of employees of MNCs, Govt. Employees and Self Employed etc.
Sample size:
The sample size was restricted to only 50. Sampling Area:
The area of the research was Delhi, India. Research Instrument
Structured Closed Ended and Open Ended Questionnaire. Depth interviewing
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5. Limitation (
problems in data collection)
➢ Psychological Constraints- Most of the persons who were interviewed felt disturbed while responding to questions during their work hours; hence they made it a point to finish off answering the questionnaire as soon as possible.
➢ Constraints regarding confidential Issues- Most of the interviewed persons were reluctant to give information.
➢ No wide coverage- The Life Insurance Industry covers very vast area so it may be possible that some of that area might be not cover in this report.
➢ Increased competition - Today the competition in the Insurance sector has became very stiff. Currently there are 14 Life Insurance companies working in India. Today each and every company is trying to increase their Insurance Advisors so that they can increase their reach in the market. This situation has created a scenario in which to recruit Life insurance Advisors and to sell life Insurance Policy has became very difficult. ➢ Time constraint- There was a time constraint in the study.
➢ Daily changes in the Industry- In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.
CHAPTER-3
SWOT ANALYSIS OF
THE COMPANY
1. Strengths &
the Weaknesses of the Firm/Company
Strengths:
*With over 139 years of experience MetLife have approximately US $ 3.3 trillion of life insurance in force.
*Brand Image , Business Experience and Innovative products..
*Large number of young workforce, Service quality which is the crux of their mission. *Has tie up with banks like Axis , J&K , Barclays , Karnataka Bank and Dhanalakshmi bank.
*Paid-up capital of RS 1500 crores as on 2010 which shows company dependability. *Very less charges on ULIP plans as compared to other insurance players .
Weaknesses:
*Many competitors in the market of same products by the title and difference in premium and offerings.
*Sustainable to risk associated with investments in money market.
*Very less network branches due to which its difficult for customer to make payment easily.
*Not focusing on consumer awareness mainly concentrating on personal selling.
*More focusing in urban areas not touching rural area which has a very good potential market for insurance sector.
*Lacking in advertisement due to which they are not able to cover a large area or large no. of customer.
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2. Opportunities &
Threats that the Company faces
Opportunities:
*Huge market is literally untapped. Out of estimated 320 million insurable markets only 20% of the population is insured.
*Health insurance and pension schemes, an estimated market potential of approximately $ 15 billion.
*Nearly 70% of the Indian population is without Life , Health , and Non-Life insurance. *Per Capita life insurance premium in India in 2004 was $16 as compared to the world average of $ 292.
*Strong economic growth with increase in affluence and rising risk awareness leading to rapid growth in the Insurance sector.
Threats:
*Players like Bajaj and Birla sun life offer same plans with low premiums.
*Entry of many other private companies with equally strong experience and financial strength of foreign partners making the competition difficult and saturating the urban markets (example Idbi Fortis insurance , Bharti axa insurance and more)
*Current govt. policies do not encourage gross domestic savings. If the tax liability of the service class rises, the customer will have little money to invest.
*LIC has woken up from sleep and is following competitive strategies. Its huge surplus in life fund gives a capability to lodge price war.
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3. Competitive edge
of the company
Why choose MetLife??
Customer requirements and comfort are always our priority. That is why our interactions are distinguished by our expertise, compassion and sensitivity.
The MetLife companies are one of the world's largest and most respected financial services organizations. For over 140 years, we've been helping people build financial freedom. For some, this means protection for their families. For others, it means wealth optimization or preservation. Combined with our innovation, this makes the MetLife companies truly formidable players in the Life Insurance industry.
MetLife is the leading provider of Group Life Insurance serving over 28,000 group life customers, covering more than 29 million participants – including many of the top one hundred FORTUNE 500® companies. Our financial strength and experience allow us to
*We lead through Innovation to offer world class and competitive products to our customers. *We build Long Term Relationships with our customers by creating a world class service experience through operational excellence and the innovative use of technology.
*We create a Customer Centered and Result Focused Vision that inspires each one of our Associates and has their buy-in.
*We are committed to creating a High Performance Organization by creating an environment that allows each one of our Associates to perform at their peak. As a result we will also be recognized as an Employer of Choice.
*We are committed to Partnering with our internal and external Customers for mutual success. *We work with Integrity, Fairness and Financial Prudence in all our dealings keeping the interests of our Shareholders, Customers and Associates paramount.
CHAPTER - 4
FINDINGS & ANALYSIS
ANALYSIS
HDFC STANDARD LIFE
Profile
Housing Development Finance Corporation Limited or HDFC, founded 1977 by Hasmukhbhai Parekh, is an Indian NBFC, focusing on home mortgages. HDFC's distribution network spans 283 outlets that include 66 offices of HDFC's distribution
company and HDFC Sales Private Limited. Standard life is a Canadian company. The Standard Life Assurance Company was established in 1825 and was reincorporated as a mutual assurance company in 1925.
In addition, HDFC covers over 90 locations through its outreach programmes. HDFC's marketing efforts continue to be concentrated on developing a stronger distribution network. Home loans are also sourced through HDFC Sales, HDFC Bank Limited and other third party Direct Selling Agents (DSA).
HDFC Standard Life Insurance Company Limited is one of the first companies to be licensed by IRDA to operate in the Insurance sector. The company came into existence on 14th August 2000. HDFC holds 81.4% share in HDFC and the remaining 18.6% stake
is with Standard Life. It integrates the strong expertise and stability of Standard Life and HDFC. It is one of the most trusted companies; it is easily accessible and approachable, offering value services to its customers. The company aims to provide:
Innovative products to cater to different needs of different customers Customer service of the highest order
Use of technology to improve service standards Value for money for customers
Increasing market share (30)
The values ingrained in the company are to provide financial security to policyholders, maintain trust and keep innovating to establish it as a unique player.
HDFC Standard Life Insurance, a joint venture between HDFC and Standard Life Assurance Company, Europe’s largest mutual life company, has identified the rural market as an important thrust area for its future growth.
The company, ranked number 5 among the private players in the insurance sector . Product Portfolio
At HDFC Standard Life, offer a bouquet of insurance solutions to meet every need. It cater to both, individuals as well as to companies looking to provide benefits to their employees.
➢ Term Product ➢ Endowment Product
➢ Money back Product
➢ Child Money Back Product ➢ Pension Product
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COMPARISON BETWEEN HDFC STANDARD LIFE AND METLIFE INSURANCE PRODUCTS INSTITUTION NAME PLAN NAME MAX TERM MAX SUM ASSURRED WHICH ONE IS BETTER
METLIFE HDFC STANDARD LIFE TERM PLAN TERM PLAN 60 YEARS 60 YEARS NO BAR NO BAR
BOTH PLANS ARE BETTER METLIFE HDFC STANDARD LIFE ENDOWMENT PLAN ENDOWMENT PLAN 70 YEARS 70 YEARS 60,00,000 50,00,000 METLIFE PLAN IS BETTER THEN THE HDFC PLAN
METLIFE HDFC STANDARD LIFE MONEY BACK PLAN MONEY BACK PLAN 70 YEARS 60 YEARS NO BAR NO BAR METLIFE PLAN IS BETTER THEN THE HDFC PLAN METLIFE HDFC STANDARD LIFE CHILD PLAN CHILD PLAN 50 YEARS 60 YEARS NO BAR NO BAR HDFC PLAN IS BETTER THEN THE METLIFE PLAN METLIFE HDFC STANDARD LIFE PENSION PLAN PENSION PLAN 60 YEARS 60 YEARS NO BAR NO BAR
BOTH ARE BETTER
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Marketing strategies of METLIFE
In consonance with the changes taking place in the insurance market, the corporation has undergone a transformation, simultaneously requiring a revamp in its image. Systematic and focused PR initiatives and widespread publicity have resulted in markedly improved visibility. The corporation has emerged with a much younger and sleeker image.
A conscious effort was made to bring about a transformation in the corporate image. Through various campaigns, the corporation tried to depict the organization as one oriented towards the younger generation. The corporation advertising campaigns assisted the marketing strategies.
PR Activities for Consumer Relations:
The business of insurance is purely service which cannot be seen or held. Hence, the consumer relations activities of METLIFE concentrate on the customer public and building relations with prospective customer.
The corporation has time and again made endeavors to reach out to the consumers, interact with them and keep them satisfied. The corporation tries to achieve its objective through a number of
means-Oral Communication:
Oral communication with the consumer public is the most effective means of presenting facts and creating understanding of the organization’s policies and practices. Employee-Consumer Communication:
The harmonious relationship that METLIFE has, through the years , built and maintained with its customers has only been possible due to its dedicated and committed team of Development Officers and scores of Insurance Agents throughout the country.
Press Conferences:
Press Conferences are organized to announce new appointments of top executives, introduction of new schemes, etc. Audio-Visual Communication
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Television and Radio broadcasts are a basic medium of consumer communication Television and Radio advertising
The corporation’s advertisements reached nearly 25 crore people through over 50 campaigns. There were 79 hours of TV advertising and 408 hours of Radio advertising. Trans-slides:
The Corporation has placed trans-slides at strategic places, like Railway Stations and Airports, for maximum exposure to public at large. Printed Communication. At METLIFE printed communications are used in conjunction
n with oral communication media. Press Release :
Press releases are frequently handed out to the media by the local PR department on behalf of the company. These generally comprise of any subject or issue concerning the
company, containing information for policy holders or any item of news value to the media and its readers.
Journals and Publications:
The corporation takes out its annual working results and several other publications from time to time to keep the public abreast of the happenings and achievements at METLIFE.
Financial Results:
The annual financial report of the corporation is published in the National dailies and is also circulated amongst the shareholders to keep them informed. It also aims at attracting new investors.
(34) Booklets, Brochures and Pamphlets:
Booklets, Brochures and Pamphlets are generally taken out to inform its internal and external public about its various new schemes and act as an effective medium of print communication.
Posters and Hoardings:
These tools are not only an advertising medium but also a very effective PR tool. METLIFE uses posters and hoardings to get quick public notice. Posters and hoardings are widely placed throughout the city at busy intersections like subways, railway stations, roadsides, bus shelters, etc. Other Amenities Provided by METLIFE
Website:
The Corporation’s website www.metlife.co.in gives information about the corporation’s products, services, subsidiaries and addresses of branches and about premium payment
through the internet. It also provides Press releases, News sections, Online policy status Online Premium Payment.
METLIFE has tied up with KARNATAKA Bank, DHANALAKSHMI Bank, J&K Bank, and service providers like Bill Junction.com, timesofmoney.com to offer the online premium payment facility to its customers in select cities.
Information Kiosks:
The corporation has installed online information kiosks at prominent places across the country. This provides information about the Products, services and policy status reports to the customers.
Customer Contact Programme:
The purpose of such a campaign is ‘to strengthen the relationship with the customers and to build bridges of understanding ’ FINANCIAL RELATIONS
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There are quite a few financial publics of METLIFE. 1) Government Agencies
2) Banks and Financial Institutions
3) Statutory Bodies e.g. IRDA (Insurance Regulatory and Development Authority) 4) Auditors
To communicate with them and to keep them informed of the company’s progress several activities are undertaken by the PR Department. The Annual General Meeting, The Annual Report, The annual report is released annually to inform all publics of the company’s working results.
Community Relations:
METLIFE regularly provides ‘Health vans’ to various organizations across the country. The corporation also sponsors many sports events at the national level. Numerous publicity projects with a social purpose are undertaken at the zonal level. Recently the
North Zone(Delhi) associated itself with the ‘Perfect Health Mela’ to propagate the cause of good health.
Marketing Strategies of HDFC STANDARD LIFE Co. Ltd
It was time when the marketing team was thinking about an advertising campaign, almost everyone, including the company's board, pooh-poohed the idea. At that time people thought Company is wasting money. But HDFC discarded this “fear" typically used for hawking insurance, choosing instead a "happy" platform to convey a more positive message. Even today after it has rolled out so many campaigns, HDFC remains among the top advertisers: ad spends, as a percentage of new business premium, range between 0.5 per cent and 0.75 per cent.
(36) The Target audience:
Representing an ideal mix of medium to high net worth individuals: The consumers most disposed towards buying life insurance. Middle-aged professionals, primarily male, salaried and self employed, age group: 28 - 45 years, household income: Rs.20, 000 and above. Creative Strategy:
The essence of the creative strategy: To get the consumer to re look at Insurance as a means to lead a worry free life and not as a necessary evil. When HDFC STANDARD Life Insurance first began operations, the task was to present the visiting card of the company to the public at large and build credibility and stature and to give the consumer the confidence that 'here was a company that could be trusted to invest funds with'. This required a corporate campaign, which started with advertising to establish the brand, build awareness and give the brand a larger than life image. To this effect the core brand insight highlighted was "As head of the family it's my responsibility to take care of my loved ones and protect them from the uncertainties of life", summed up in
the advertising idea: ‘SAR UTHA KAR JIYO’. HDFC was positioned as an enabler of protection relevant to the needs of the life stage that you are in. Over the last few months, HDFC STANDARD LIFE has been advertising in outdoor, TV and press. The company launched a corporate television campaign – Saat Phere – which took the emotions and thoughts of initial Sindoor corporate film a few steps further. The film highlights the strength of promises that a husband makes to his wife, through the depiction of everyday situations, and then goes on to emphasize that HDFC STANDARD will stand by the husband to help him fulfill all these promises. The TV campaign has also been extended to outdoor. The company has also undertaken press and internet campaigns to inform customers about benefits of some of its products, particularly retirement solutions, through the ‘Chintamani campaign’.
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Once the corporate image and brand identity were established, and as the company expanded and its product range grew, the next phase of communication was to give the consumer a rational and tangible reason to buy – first of all insurance and secondly from Life. This was tackled through product-specific advertising, such as for HDFC STANDARD LIFE Smart Kid, retirement solutions or Lifetime.
The Creative execution:
Through television channels: Building image and creating a differential in the most creative and compelling manner. The creative execution heightened the emotional connect with the HDFC STANDARD LIFE brand- Indian; satisfaction of knowing that one’s loved ones are protected. Symbolic representation of the protector of the family through situations showcasing various life stages and creating endearing imagery of protection and familial bonding.
Press: Gave the consumer a rational and tangible reason to buy insurance first and secondly from HDFC STANDARD LIFE. The product specific advertising focussed on
changing the prevalent perception about insurance and breaking a few myths: non- affordability, insurance not being good investment option and the myth that insurance was good only for tax saving. After the hugely successful Chintamani (retirement) and Saat Phere (corporate) campaigns, HDFC Standard Life Insurance also introduced some innovations in the category, such as: having a tax planner by the name of Chintamani on radio, who would answer consumer’s queries about the role of insurance in financial planning.
Other Communications:
Other programs included direct mail, PR of communications campaign in press & TV, website marketing; and database generation through Bancassurance channels. Other initiatives included tie-up with the Dabbawalla Organization in Mumbai for a direct marketing exercise, to talk to the customer through a non-cluttered route, and thereby have a higher impact. (38)
The direct mailer was about HDFC STANDARD LIFE retirement solutions and the tax benefits that one can avail of buy investing in any of these. About 100,000 direct mailers were attached to the ‘dabbas’, in areas such as Churchgate, Bandra and Andheri where there are mostly office-goers. HDFC STANDARD Life Insurance has also announced a strategic distribution tie-up with Hariyali Kisaan Bazaar, the rural business arm of DCM Shriram Consolidated Ltd (DSCL). As a partner, Hariyali Kisaan Bazaar can now distribute HDFC Standard’s protection, wealth creation, retirement solutions and health insurance products to customers across the its growing number of rural business hubs in the country.
In addition to advertising, the company has also initiated several activities to raise consumer awareness about life insurance and HDFC STANDARD LIFE. “It includes seminars – HDFC STANDARD LIFE regularly holds consumer awareness meets on ‘the need for retirement planning’ in different cities such as Pune, Aurangabad, Coimbatore, Nagpur, Bangalore and Mangalore. These are very well attended and have contributed significantly towards increasing awareness about the category and the company. Apart from this, company also entered into alliances with telecom companies, as well as companies like BPCL and Dominos.
METLIFE VS HDFC STANDARD LIFE Comparison and
Analysis-With private players paying much attention to advertising and promotional activities, METLIFE, too, was forced to make efforts to increase its visibility and enhance its brand image. The company commenced intense, systematic and well-focused public relations and publicity activities both at the corporate and operational levels.
METLIFE upped its ad spend to tackle competition and succeeded in forging way ahead. METLIFE has advertised in satellite channels as well as terrestrial channels. METLIFE has to reach out to non-resident India policy holders as well as its other corporate customers who are based abroad. HDFC STANDARD LIFE has advertised on several channels from the Star TV bouquet, Zee Network and Sony.
The company have spent about Rs 50 million on TV advertising last year. With the geographical expansion, TV became a viable medium and the corporate campaign for HDFC STANDARD LIFE was run on TV, because the medium lends itself well to an emotional type of films that strike a chord with the audience. Product advertising, which needs to impart information, was largely done through print and outdoor channels, as these are appropriate for rational type of messages, HDFC STANDARD LIFE Insurance campaign was short-listed as one of the 12 most effective campaigns for the year 2001 in the EFFIE awards. According to an ORG MARG study, the HDFC STANDARD LIFE brand name and advertising had the highest recall amongst all private players, and was only marginally behind METLIFE.
HDFC STANDARD LIFE was awarded the INDY’s Award for Excellence in Mass Communication in the category of Most Creative Advertisement-Television.
Strategies Adopted By METLIFE
METLIFE started intense , systematic & well focused public relation and publicity activities both at the corporate and operational levels.
METLIFE has launched its SATELLITE SAMPARK offices. METLIFE has established state of art machinery.
Strategies adopted by HDFC STANDARD LIFE
• HDFC STANDARD LIFE launched the ‘TruLife Club’ for its high-value policyholders as part of its marketing strategy.
• Its Pragati Ki Anokhi Paathsaala or PKAP. PKAP aims to bring out the inherent creative skills amongst children.
• HDFC STANDARD LIFE has also partnered with e-governance kiosks in Andhra Pradesh - aponline.com and Rajasthan - emitra.com, to enable consumers renew their policies in their kiosks. (40)
Findings
Whereas MetLife vision is to help employers and employees select the right mix of life insurance and service features to fit their given situation, making group life a cornerstone to building financial freedom.
1. As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. There is a large potential for insurance in India.
2. The entrance of private players will increase the competition and it would be a tough task to secure a good position in market.
3. Since MetLife India Insurance is leading with several companies’ policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship.
4. As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can
be a good potential for the company and they should make an attempt to trap these customers.
5. As 43% of the customers are even ready to go for insurance if a service provider away from their city is providing it. But in turn they should provide good products and services. The company should try to convince these customers and get them in its favor. 6. Many people have a insurance policy it so that they are aware with it and think that it is so impartment the people.
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ANALYSIS
OF
THE
PROBLEM
UNDER
STUDY
Insurance is estimated to be Rs. 400 billion business in India and the gross premium collection is about 2% of GDP growing between 15% and 20% per annum. India also has the highest number of insurance policies in force in the world and the total investible funds with LIC alone are almost 8% of GDP.
Yet, more than three-fourth of India's insurable population has no life insurance cover. Considering that only about 65 million out of 250 million people are covered by life insurance, the potential is quite evident.
I tried and analyze the benefit that getting to the final customer covering under the Insurance and because various types of policies and instruments are coming up in the market to attract more customers. Most of the population of India is not insured, hence there is a lot of scope in this sector and a number of companies are planning to enter the sector. Every futuristic individual would want himself to get insured.
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INTERPRETATION OF RESULT
1. Please mention the name of the insurance company through which maximum through you like to cover your life
Category No of Respondent HDFC Standard life 8 BIRLAS 1 LIC 10 TPA 8 Others 6 Met life 6 ICICI Prudential 11 (43)
From here with this question we are trying to analyze that business opportunity of both the company i.e. HDFC standard life and Met life in current scenario or market and what percentage of market they are covering right now.
From our survey it is clearly mentioned that market leader insurance company is ICICI Prudential whereas 11 people out of 50 respondent having insurance from ICICI also LIC would be come in second place where as 10 respondent are taken insurance from the company of LIC. Now for the third and fourth slot the big fight is between Met Life where this company takes a share of 8 people out of 50 and the HDFC standard life which is renowned brand due to its market has 6 people in favor of out of 50.
2. Please mention the type of insurance policy you are covered under
Individual 30
Corporate 20
Here are one more clue that will reach HDFC & Met life plan to launch insurance HDFC & Met life services in India 60% people responded that they have individual insurance policy while 40% people still with corporate side. (44)
Recommendation for HDFC & Met life that that 60% people want more and more service from the insurance company and in coming days people want hazel free life if somebody tell him pay
for that they are ready to pay reasonable amount for the better and effective service. With the same product portfolio will increase the penetration of the insurance company.
3. Please mention the type of insurance you are covered under
Category No of Respondent
Accidental 11
Health 14
Life 23
Any other 2
Here from our survey we got to know that more respondent are taken multiple or Life insurance for taking them insured 23 people out 50 are insured by the life insurance.
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While 14 people are taken health insurance, and 11 are taken accidental insurance.
For recommendation of HDFC & Met life they tap life insurance company easily because the life insured people take any policy for lifelong so the HDFC & Met life involved at least more than 20 yrs, in fact health service is more complicated one so HDFC & Met life help client to better customer service rather than its competitor if they will take service of HDFC & Met life
4. Is MetLife Insurance more affordable than the other Insurance available on your nearest telecom shops? Strongly Agree 6 Agree 17 Disagree 8 Strongly Disagree 10 Neutral 9
This question gives us insight of the affordability of the Insurance or service. With low disposable incomes, Insurances need to be affordable to the Delhi consumer, most of who are on daily wages. Now we check what Delhi customer want from the company in terms of their Insurance prices.
Out of 50 sample size we consider to choose first strongly agree respondent who believes that HDFC Insurance is affordable for him/her 25% respondent out of 50 says HDFC Insurance is affordable in comparative of other competitor. While 33% are only agree with this statement that HDFC has much affordable price of their respective Insurance. Now moving ahead 28% respondent are still not agree or strongly disagree with this question they thought Met life Insurances are much costlier than the other mobile service provider companies Insurance.
14% respondent said they have mixed view about the affordability these people are those who are richer in Delhi region.
Recommendation for Met life would be target 28% people also to provide much more scheme and plan so they comes under the pie of affordable range.
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5. The various ranks given by the customers about their perception about different players in the market:
Attributes Brands ICICI HDFC Met life Others
Cheap 6 6 5 9
Easy Availability 10 10 7 6
Quality 9 7 8 6
Total 25 24 20 21
In the above table it is quite clear that ICICI is given the highest points in the product satisfaction and reliability on the parameters given above. Whereas HDFC has a 24 score out of 30 for their product portfolio It is evident that Met life has to improve lot on their product portfolio so that met life Insurance is having rises its lower number one due to its two main attributes it is not easy availability and cheap price.
