Ishika Agarwal SIP Report
Ishika Agarwal SIP Report
Ishika Agarwal SIP Report
A Project Report on
Submitted By
Ms. Ishika Agarwal
Roll no – 20191042
MBA (Finance)
And
Dr. Siddharth Joshi
Professor S. Com
International School of Business & Media
CERTIFICATE
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
DECLARATION
This is to certify that the present project is the outcome of my own efforts and my
indebtedness to other publications has been duly acknowledged at relevant places. It
has not been submitted in part or full for any other diploma or degree of any
university. I have taken proper care and shown utmost sincerity in completion of this
project. This project report is prepared in accordance with the guidelines issued by the
international School of Business & Media, Pune.
Date:
Place
Ishika Agarwal
20191042
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
ACKNOWLEDGEMENT
Lastly, I would like to thanks to the ALMIGHTY and my parents for their moral and
financial support and my colleagues with whom I shared my day-to-day experiences
and received lots off suggestions that improved my work quality.
EXECUTIVE SUMMARY:
PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the
leading life insurance companies in India. PNB MetLife has as its
shareholders MetLife International Holdings LLC (MIHL), Punjab National
Bank Limited (PNB), Jammu & Kashmir Bank Limited (JKB), M. Pallonji and
Company Private Limited and other private investors, MIHL and PNB being
the majority shareholders. PNB MetLife has been present in India since
2001.
This report has been prepared for explaining the task carried out by me
during my internship period with The Capital Box. This is prepared using
the standard format that was designed by the Institution. The task was to
convince the customers to buy the policies from the company as a loss
protection even when they have other policies with them.
The learning’s of the project was that customers are slowly learning about
importance of the life insurance. Convincing power, objection handling was
the main learning from the task given to us which lead to discussion with
many potential customers.
TABLE OF CONTENTS:
ii) Acknowledgement 4
iii) Executive summary 5
Chapter 1 Industry and company profile 8-20
1.1 Industry profile 8-13
1.2 Company profile
14-20
28-35
Chapter 4 Learnings 36-37
Roles and responsibilities 36
Learning outcomes
37
Chapter 5 Conclusions and recommendations 38
Chapter 6 Bibliography 39
CHAPTER-1
1.1 INDUSTRY
There are 57 insurance companies in India's insurance industry - 24 are in the life
insurance business, while 33 are non-life insurers. Among the life insurers, Life
Insurance Corporation of India (LIC) is the only public sector company. In the non-
life insurance segment, there are six public sector insurers . Apart from these, General
Insurance Corporation of India is the sole national re-insurer. Other stakeholders in the
Indian insurance market include agents (personal and corporate), brokers, surveyors
and health insurance agents.
Market share:
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
Government policy of insuring the non insurers has gradually pushed the penetration
of insurance and has proliferated insurance schemes in the country. Gross premiums
by life insurance companies in India increased from 2.56 trillion (US $ 39.7 billion) to
7.31 trillion (US $ 94.7 billion) in FY12. During FY12 – FY20, premiums from new
business of life insurance companies in India grew at a CAGR of 15 percent to reach
2.13 trillion (US $ 37 billion) in FY20.
Since it's launch, Enrolments under the Pradhan Mantri Suraksha Bima Yojana
(PMSBY) has reached 154.7 million untill December 2019
In FY20, Pradhan Mantri Fasal Bima Yojana (PMFBY) has benefitted over 53.8
billion farmers
In April 2020, 29 per cent stake in Max Life Insurance was acquired by Axis
bank
Competition Commission of India (CCI) approved acquisition of shares in SBI
General Insurance by Napean Opportunities LLP and Honey Wheat in
September 2019
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
Government innitatives:
In per Union Budget 2019-20, 100 % foreign direct investment (FDI) was
allowed for insurance intermediaries.
In September 2018, National Health Protection Scheme was launched under
Ayushman Bharat with an objective of providing coverage of up to Rs 500,000
(US$ 7,723) to more than 100 million vulnerable families in the country. It is
expected that the scheme would increase penetration of health insurance in
India from 34 per cent to around 50 per cent.
The Insurance Regulatory and Development Authority of India (IRDAI) is
planning to issue redesigned initial public offering (IPO) guidelines for
insurance companies in the country, for those who are to looking to divest
equity through the IPO route.
IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1)
bonds which are issued by banks to augment their tier 1 capital, in order to
expand the pool of eligible investors for the banks.
The future of Insurance industry looks promising especially with the schemes
introduced by the Government. These schemes not only boost the overall economic
stature of the country but also provides necessary protection and planning for the
lower and middle income groups.
India’s life insurance companies witnessed 11.36 per cent growth in their collective
premium income at Rs 48.26 lakh crore (US$ 684.64 billion) during the fiscal ended
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March 2020. This means that with the advent and continuation of pandemic, people
has become more health conscious and thus, investment in Insurance will be given due
importance.
With as many as 52 players in the arena, the competition is all heated up with
consumer having vast array of choices to choose from. Though LIC of India has
most of the market share and despite any unlikely changes in the incumbent’s
outreach, the private players are emerging and expanding with innovative
schemes and policies to attract the customers.
THREAT OF SUBSTITUTES:
Though there are only a limited number of competitors, the threat of substitution
is incumbent since the insurance products are evenly matched in almost all
aspects and features. It becomes convenient and incurs almost no cost for the
consumer to switch insurers if he does not continue to see value for his
investments and money. This threat is multiplied by the fact that the regulator
facilitates such a move called “porting”.
The customer is the king of the market here since he has tremendous bargaining
power in terms of the customizations he needs and the numerous options he has.
Insurance companies these days have agents servicing individual customer
requirements. This has made insurance easily accessible to anyone, anytime and
anywhere.
Suppliers here are basically the insurance distributors/agents. They usually have
a lower bargaining power than the customers mainly because volume of policies is
an important target. Competition market it more difficult for them to hold any
sort of advantage with the insurance companies since policies can be substituted
easily. With the advent of E-Commerce, insurance can be obtained or taken
without any interaction or communication with agents. This is another roadblock
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PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the
leading life insurance companies in India. PNB MetLife has as its
shareholders MetLife International Holdings LLC (MIHL), Punjab National
Bank Limited (PNB), Jammu & Kashmir Bank Limited (JKB), M. Pallonji and
Company Private Limited and other private investors, MIHL and PNB being
the majority shareholders. PNB MetLife has been present in India since
2001
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
The PNB MetLife India Insurance Company Limited is one of the most
successful conglomerates in India. the company has been successfully
marching towards its mission of serving the insurance needs of people in
India for the last 18 years. PNB MetLife and its partners’ core aim is to
provide a range of life insurance products that would help them to secure
financing. Also, the insurance products of PNB MetLife Benefits individual
as well as their families.
VALUES:
Highlights
MILESTONES:
2001:
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
2008:
2009:
MetLife India launches Met Monthly Income Plan, pioneering the niche
“monthly income” market in India
2011:
MetLife India breaks even per statutory** and GAAP financials in the year;
among the few life insurance companies operating in India to turn
profitable.
MetLife India launches bancassurance partnership with Punjab National
Bank (PNB), one of the leading nationalised banks in India with around
6,000 domestic outlets across the country and a customer base of over 78
million. (as on FY2011)
2013:
Punjab National Bank (PNB) acquired 30% stake in MetLife India Insurance
Co Ltd.
2014:
PNB MetLife launches its CSR initiative in partnership with its bank
partners, JKB and KBL
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
2018:
2019:
STRENGTHS:
WEAKNESSES:
Here are the weaknesses in the MetLife SWOT Analysis:
1.Over-dependence on US
2.Lacking in global recognition as compared to competitors
OPPORTUNITY:
THREATS:
Objective of internship:
RESEARCH METHODOLOGY:
This section includes sampling design, data collection method, type of
research,
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For my research work the selected topic is of consumer awareness
. Consumer awareness refers
to the familiarity of the brand, company or product among the customers. F
or any company it isvery essential that the company should be present in a
wareness set in the minds of customers.Products of any company will not b
e sold until buyers of those products or services are awareabout it. Hence br
and awareness plays crucial role for the success of any company in the mar
ket.And so new companies spend lot of efforts for making their brands awa
re among mindset of customers. Once customers get aware about the brand
then the brand will come into theconsideration set followed by choice set an
d finally it will get purchased by the customers.Hence the finally purchase
decision greatly depends on the brand awareness. So companiesheavily adv
ertise their brands and products through different means to make their brand
s familiar with target market.
The data collection method for this report can be classified into
primary data and secondary data.
Primary data
Secondary data
PRIMARY DATA:
SECONDARY DATA:
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
The data has also been collected using secondary sources. The secondary
sources of data collection include internet, blogs, PNB METLIFE
insurance's brochures and newspaper as well as interaction with company’s
professionals. These sources have mainly been used for market analysis and
having an in-depth knowledge about the insurance sector.
SAMPLING DESIGN:
SAMPLING PROCESS:
For the purpose of this project, the respondents of various age groups are
selected randomly from all across the country.
SCOPE OF STUDY:
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
The scope of the study is confined only to PNB METLIFE insurance. The
study mainly involves analyzing the investing opportunities in insurance
sector with special reference to life insurance. It will be helpful for
professionals of PNB METLIFE insurance, interns and researchers to
understand the brand awareness of the company, about the policies offered
by PNB METLIFE insurance, the satisfaction level of its customers.
Similar studies in this line can be conducted to understand the performance
of other life insurance companies and investors’ interest in life insurance in
India as a whole.
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
LITERATURE REVIEW:
A large body of literature on insurance provides the basis for this study.
The literature reviewed mainly consists of journals published by the
Insurance Institute of India, Federation of Insurance Institute, IRDA and
insurance magazines. The researcher has also gone through the websites of
various insurance companies and IRDA. An attempt has been made to
briefly review previous studies in the area of privatisation, liberalisation,
rural insurance, bancassurance, IRDA, customer satisfaction, insurance
coverage, insurance marketing and insurance growth.
Harold D. Skipper (2000) in his paper explains the terms liberalisation and
deregulation. Liberalisation means the process by which the government
take actions to move towards liberal markets. It denotes a reduction of
government barriers to market access, especially as relates to foreign
insurers. A liberal insurance market is one which determines:-
who should be allowed to sell insurance?
what products should be sold ?
how the products should be sold ?
at what price the products should be sold?
Mathur (2003) has the opinion that joint efforts need to be made by all
insurance operators to extend coverage to millions of insurable people who
need insurance and points out the need for promoting different distribution
channels for expanding rural insurance market. LIC has contributed
immensely to the process of economic development through its multi
dimensional activities and services over twelve crore policies which is a
record for any life insurance company in the world.
S. Krishnamurthy (2005) points out that the life insurance industry has
shown extremely satisfactory results in terms of premium income and new
policies sold but a huge potential still remains unexploited. Experience
suggests that consumers still favour insurance as a saving tool. There is a
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
Since my internship was done during the pandemic, I realized and felt
deeply the impact of COVID on insurance sector particularly in Life
insurance sector.
Pandemic has quite literally changed the way people look at insurance and
has forces insurance companies as well to tweak their product strategies.
DEMOGRAPHIC CHARACTERISTICS
AGE GROUP
2%
18-30
30% 31-40
41-50
51 AND ABOVE
53%
15%
This indicates the age group of the respondents. 53% of the sample
population belongs to the age category of 41-50, which is apt for our
research.
GENDER RATIO:
This data shows the gender mix of the sample population. It shows that
male candidates clearly comprises the highest percentage of the study.
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
POPULATION
MALE
31% FEMALE
OTHERS
69%
OCCUPATION:
Sales
16% 23%
PRIVATE JOB
SELF EMPLOYED
GOVT JOB
STUDENT
33%
29%
FREQUENCY
23% COVERED
NON COVERED
78%
Sales
SHRIRAM LIFE
INSURANCE
BAJAJ ALLIANZ
LIC
PNB METLIFE
ICICI PRUDENTIAL
Sales
There are many reasons for getting covered under life insurance
which are mentioned above. However, the combined reasons
induces people to get insured followed by security to the family.
Tax benefit is the least significant factor and does not play the
major role in inducing people to get an insurance.
Column1
PREIUM RETURNS
GOODWILL OF THE COMPANY DURATION OF THE POLICY
CLAIM SETTLEMENT PERCENTAGE NOT THOUGHT THOROUGHLY
Premium and returns are the two most significant reasons that
influence investment in insurance sector. There are around 18% of
the population who isn’t even aware of the influencing factors and
thus makes random, unplanned decisions.
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
Column1
19% YES
NO
81%
The data reveals that 19% of the samples population aren’t aware
of or do not consider Insurance sector as a platform for investment.
Column1
Column1
NO YES
Column1
DIVERSIFIED
RISK TAKER
PORTFOLIO
2% 9% RISK TAKER
SAFE PLAYER
LESS EXPOSURE LESS EXPOSURE
42%
DIVERSIFIED PORTFOLIO
SAFE PLAYER
47%
Those who life insurance ok priority basis are either a safe player
or lacks exposure related to the other investment opportunities
available and the process of investment there in. These two factors
accounts for 89% of the response.
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
Learning outcomes:
The set parameters or expectations before the start of the internship and the
learnings during the course of the internship clearly speaks in itself that the
learnings supersede far more than what my expectations were. Having said
that, I wish though, that I was able to gain a more market exposure
had there not been the pandemic. The pandemic to a very limited extent
restricted my learnings as the movements were restricted and tasks were
assigned keeping in mind the pandemic situation.
For conclusion, I would just like to say that the people preferences and
perception are changing regarding insurances nowadays, earlier Insurance
was a means for wealth creation and that too for a longer period as returns
were comparatively significantly low but as compared with the data in the
current past it can be said that people are shifting towards Insurance sector
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
not only for tax saving but for future planning, life covering risk against
security, and other multiple reasons. But again when compared with other
investment options people still prefer Bank Deposits, Equity & Mutual
Funds because they provide a higher percentage of return and in less time
when compared with Insurance Sector.
REFERENCES:
https://www.televisory.com/blogs/-/blogs/insurance-industry-in-india-the-
way-forward
https://www.mbaskool.com/brandguide/banking-and-financial-
services/1246-shriram-life-insurance.html
https://www.investopedia.com/articles/active-trading/120814/life-
insurance-smart-investment.asp
https://bfsi.economictimes.indiatimes.com/amp/news/insurance/kpmg-
explains-how-coronavirus-can-impact-insurance-sector/75067123
https://www.google.com/search?
q=vision+and+mission+of+pnb+metlife&oq=vision+and+misson+of+pmb
+&aqs=chrome.1.69i57j0l2.10575j0j4&client=ms-android-xiaomi-
rev1&sourceid=chrome-mobile&ie=UTF-8
https://www.mbaskool.com/brandguide/banking-and-financial-
services/620-metlife.html
https://www.google.com/search?
q=vision+and+mission+of+pnb+metlife&oq=vision+and+misson+of+pmb
+&aqs=chrome.1.69i57j0l2.10575j0j4&client=ms-android-xiaomi-
rev1&sourceid=chrome-mobile&ie=UTF-8
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SUMMER PROJECT REPORT ON INVESTMENT IN LIFE INSURANCE
https://www.wishpolicy.com/insurance-companies/pnb-metlife-india-
insurance-company-limited/
THANK YOU !