G.L.

BAJAJ INSTITUTE OF TECHNOLOGY AND MANAGEMENT

SUMMER INTERSHIP PROJECT
REPORT ON

“CUSTOMER SATISFACTION IN THE INSURANCE INDUSTRY”

TOWARDS THE PARTIAL FULLFILLMENT FOR THE AWARD OF DEGREE

OF

MASTER OF BUSINESS ADMINISTRATON (MBA)

(Dr. A.P.J. Abdul Kalam Technical University, Lucknow, Uttar Pradesh)

by
Deepak Kumar Jha
(Roll No. 2201920700104)
Session 2023-24

Under the Supervision of

Dr. Swati Raj

1
 DECLARATION

I hereby declare that the work presented in this report entitled

“CUSTOMER SATISFACTION IN THE INSURANCE INDUSTRY ", was
carried out by me. I have not submitted the matter embodied in this report for
the award of any other degree or diploma of any other University or Institute. I
have given due credit to the original authors/sources for all the words, ideas,
diagrams, graphics, computer programs, experiments, results, that are not my
original contribution. I have used quotation marks to identify verbatim
sentences and given credit to the original authors/sources.
I affirm that no portion of my work is plagiarized, and the experiments and
results reported in the report are not manipulated. In the event of a complaint of
plagiarism and the manipulation of the experiments and results, I shall be fully
responsible and answerable.

Name: Deepak Kumar Jha

Roll. No.: 2201920700104

Specialization: MARKETING AND OPERATION

(Candidate Signature)

2
 G. L. BAJAJ
INSTITUTE OF TECHNOLOGY & MANAGEMENT
Approved by A.I.C.T.E. & affiliated to Dr. A.P.J. Abdul Kalam Technical University

CERTIFICATE

This is to certify that Deepak Kumar Jha, ROLL NUMBER

2201920700104 has undertaken this project titled “CUSTOMER
SATISFACTION IN THE INSURANCE INDUSTRY” for the partial
fulfillment of the award of Master of Business Administration degree
from Dr. A P J Abdul Kalam Technical University, Lucknow (U. P.).
I wish him/ her all the best for his/her bright future ahead.

Date:
Project Supervisor
Department of
Management Studies

Head of Department
Department of
Management Studies

3
 ACKNOWLEDGEMENT

The internship opportunity I had with PNB MetLife India Co. Ltd. as a great chance for

learning and professionaldevelopment. Therefore, I am also grateful for having a chance to

meet so many wonderful people and professionals who led me though this internship period.

Bearing in mind previous I am using this opportunity to express my deepest gratitude and
special thanks to the Ravi Kumar of PNB MetLife India Co. Ltd. who in spite of being
extraordinarily busy with his duties, took time out to hear, guide and keep me on the correct
path and allowing me to carry out my project at their esteemed organization and extending
during the training.
I express my deepest thanks to my mentor DR. SWATI RAJ For taking part in useful

decision & giving necessary advice’s and guidance to make project easier. I choose this

moment to acknowledge her contribution gratefully.

I am using this opportunity to express my gratitude to DR. VIKAS TRIPATHI (HOD) who
supported me throughout the course and constantly reviewed my work and provide guidance
of this MBA project.

4
Chapter Contents Page
Name No

1 Introduction 7-15
➢ Insurance Indemnifies Assets & Income
➢ Insurance is The Science of Spreading of The Risk
➢ Insurance is A Method of Sharing of Financial Losses
➢ The History of Indian Insurance Industry
➢ Present Scenario in The Insurance Sector
➢ IRDAI

2 Company Profile 16-24

➢ History
➢ Product and Service
➢ Awards
➢ Other Achievements
➢ Pnb MetLife Values
➢ Vision and Mission
➢ Goal and Objective

3 Business Model 25-33

➢ Product of MetLife

4 Organization Structure 34-67

➢ Organization Performance of Pnb MetLife

5 Customer Satisfaction in The Insurance 68-80

Industry
➢ The Customer Satisfaction in The Insurance Industry

6 SWOT Analysis 81-82

5
7 Learning & Summary 83-86
➢ Learning
➢ Summary

8 Point View Regarding Company Profile 87-90

➢ Reference
➢ Books
➢ Magazine & News papers
➢ Internet

6
1.1 INTRODUCTION TO THE STUDY

OBJECTIVE OF THE STUDY

1. To analyse the customer satisfaction in PNB MetLife and to provide suitable

guidelines and suggestions for improvement of the same.
2. To analyse the main reasons behind the sluggish premium payments and
policy lapsation.
3. To study the service delivery system.
4. To study and analyse the issues that customers face while transacting with PNB MetLife.
5. To look out for the ways that can help PNB MetLife in retaining its existing customer base.

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 CHAPTER – 1

INTRODUCTION

8
INTRODUCTION

Insurance is nothing but a system of spreading the risk of one onto the shoulders of many. While it
becomes somewhat impossible for a man to bear by himself 100% loss to his own property or
interest arising out of an unforeseen contingency, insurance is a method or process which distributes
the burden of the loss on a number of persons within the group formed for this particular purpose.
Basic Human traits to be averse to the idea of risk taking. Insurance, whether life or non-life,
provides people with a reasonable degree of security and assurance that they will be protected in the
event of a calamity or failure of any sort .Insurance may be described as a social device to reduce or
eliminate risk of loss to life and property. Under the plan of insurance, a large number of people
associate themselves by sharing risks attached to individuals. The risks, which can be insured
against, include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon
these, may be insured against at a premium commensurate with the risk involved. Thus collective
bearing of risk is insurance.

INSURANCE INDEMNIFIES ASSETS & INCOME

Every Asset has a value and generates Income to its Owner. There is a normally expected Life-time
for the Asset during which time it is expected to perform. If the Asset gets lost earlier, being destroyed
or made Non-functional through an Accident or other unfortunate event the Owner is Prejudiced.
Insurance helps to reduce CONSEQUENCES of such Adverse Circumstances which are called Risks.

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INSURANCE IS THE SCIENCE OF SPREADING OF THE RISK

It is the system of spreading the losses of an Individual over a group of Individuals INSURANCE IS
A METHOD OF SHARING OF FINANCIAL LOSSES Of a few
from a common fund formed out of Contribution of the many who are equally exposed to the same
loss. What is uncertainty for an Individual becomes a certainty for a Group. This is the basis of All
Insurance Operations. Thus insurance convert uncertainties to certainty failure of any sort. Insurance
may be described as a social device to reduce or eliminate risk of loss to life and property. Under the
plan of insurance, a large number of people associate themselves by sharing risks attached to
individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents
and burglary. Any risk contingent upon these, may be insured against at a premium commensurate
with the risk involved. Thus collective bearing of risk is insurance.

INSURANCE IS A METHOD OF SHARING OF FINANCIAL LOSSES

Of a few from a common fund formed out of Contribution of the many who are equally exposed to the
same loss. What is uncertainty for an Individual becomes a certainty for a Group. This is the basis of
All Insurance Operations. Thus insurance convert uncertainties to certainty

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THE HISTORY OF INDIAN INSURANCE INDUSTRY

Life Insurance In 1818 the British established the first insurance company in India in Calcutta, the
Oriental Life Insurance Company. First attempts at regulation of the industry were made with the
introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this
Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the
power given to the Government to collect statistical information about the insured and the high level
of protection the Act gave to the public through regulation and control. When the Act was changed in
1950, this meant far reaching changes in the industry. The extra requirements included a statutory
requirement of a certain level of equity capital, a ceiling on shareholdings in such companies to prevent
dominant control (to protect the public from any adversarial policies from one single party), stricter
control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian
and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted
the higher echelons of society. “Unethical practices adopted by some of the players against the interests
of the consumers then led the Indian government to nationalize the industry. In September 1956,
nationalization was completed, merging all these companies into the so-called Life Insurance
Corporation (LIC). It was felt hat “nationalization has lent the industry fairness, solidity, growth and
reach.”

Some of the important milestones in the life insurance business in India are:1912:

The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance
business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurance businesses.

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1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance companies.

The General Insurance industry in India dates back to the Industrial Revolution and the subsequent
increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought
General Insurance to India, and a similar path was followed in the development of this industry. A
number of private companies were in existence for years and years until, in 1971, the Indian
Government decided that the public interest would be served by nationalizing the industry, merging
all the 107 companies into four companies, depending on the sort of business transacted (Marine, Fire,
Miscellaneous). These were the National Insurance Company Ltd., the Oriental Insurance Company
Ltd., the New India Assurance Company Ltd., and the United India Insurance Company Ltd. located
in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance Corporation (GIC)
was set up in 1972 as a ‘holding’ company, having these four companies as its subsidiaries.

PRESENT SCENARIO IN THE INSURANCE SECTOR

• Insurance agents are the main intermediaries in the Indian insurance market, but with liberalization
brokers will be an additional channel for selling insurance products

Brokers are likely to play a major role in ensuring clients get insurance covers tailor made to suit their
requirements at good terms.

• Fast growing middle class of 300 million who can afford insurance.

• Increasing financial strength of middle class with disposable income.

• Narrowing gap between rural and urban populace in terms of access to information
and services

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• More and more entrepreneurs in traditional and modern business areas.

• Increase in number of double income families leading to lifestyles and attitude changes

• Growth of rural market is at 4 times of urban markets

• The potential of the Indian insurance market is huge with current life insurance penetration being
only1.9 of the GDP

• Insurance market is set to touch 25 billion by 2010 in India. (It was only 7.2 billion in 98-99 survey.
At that time India’s rank in annual premium was 23rd for Life insurance and contribution in GDP was
merely 1.4%). Presently it is still lower then develops economy but increased to 2.61% of GDP in
2002.So immense opportunity can’t be ignoring.

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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous,

statutory body tasked with regulating and promoting the insurance and re-insurance industries in India.
It was constituted by the Insurance Regulatory and Development Authority Act, 1999, an Act of
Parliament passed by the Government of India. The agency's headquarters are in Hyderabad,
Telangana, where it moved from Delhi in 2001.

IRDAI is a 10-member body including the chairman, five full-time and four part- time members
appointed by the government of India.

Structure

Section 4 of the IRDAI Act 1999 specifies the authority's composition. It is a ten- member body
consisting of a chairman, five full-time and four part-time members appointed by the government of
India.At present ( 1 Sept, 2018 ), the authority is chaired by Subhash C. Khuntiaand its full-time
membersare P. J. Joseph, Nilesh Sathe, Pournima Gupte, Praveen Kutumbe and Sujay Banarji .

Functions

The functions of the IRDAI are defined in Section 14 of the IRDAI Act, 1999,[1] and include:

• Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations

• Protecting policyholder interests
• Specifying qualifications, the code of conduct and training for intermediaries and agents
• Specifying the code of conduct for surveyors and loss assessors
• Promoting efficiency in the conduct of insurance businesses

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• Promoting and regulating professional organisations connected with the insurance and re-
insurance industry

• Levying fees and other charges

• Inspecting and investigating insurers, intermediaries and other relevant organisations

• Regulating rates, advantages, terms and conditions which may be offered by insurers not covered
by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938)

• Specifying how books should be kept

• Regulating company investment of funds
• Regulating a margin of solvency

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 CHAPTER – 2

COMPANY PROFILE

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 PNB MetLife INSURANCE INDIA COMPANY

PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the leading life insurance
companies in India present since 2001. 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. The company serves customers in over 7000 locations providing a range
of health, life and retirement insurance products.

Type – Public company

Industry – Insurance services

Founded – 2001; 18 years ago

Headquarters – Mumbai, India

Area served – India

Key people – Ashish Kumar Shrivastava (Principal Officer &CEO)

Products – Life Insurance, Retirement Solutions, Employee Benefit Programs

Number of Employees – 10000+

Website – www.pnbmetlife.com

HISTORY
PNB MetLife was initially launched as MetLife India Insurance Company Limited in 2001. In 2011,
PNB picked up a 30% stake in MetLife India Insurance. Both PNB and MetLife India approached
17
the Competition Commission of India (CCI) on 7 December 2012. In January 2013, PNB received

18
full approval for acquiring 30% stake in MetLife India Insurance. This new private sector life insurer
was re-branded as PNB MetLife India Ltd.

PNB MetLife is now present in over 150 locations across the country and serves customers in more
than 7,000 locations through its bank partnerships with PNB, Jammu and Kashmir Bank
Limited (JKB) and Karnataka Bank Limited.

Key people

The key people of PNB MetLife India Insurance Company Limited as defined by Insurance
Regulatory and Development Authority of India (IRDA) are as follows:

Name of Key Person Designation

Ashish Kumar Principal Officer &

Srivastava CEO

P K Dinakar Appointed Actuary

Chief Investment
Sanjay Kumar
Officer

Viraj Taneja Chief of Internal Audit

Niraj Ashwin Shah Chief Finance Officer

Chief Compliance
Sarang Cheema
Officer

Anjan Bhattacharya Chief Risk Officer

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Product and Services

Some key plans include:

• MetLife Endowment Savings Plan – Endowment plan

• MetLife Money Back Plan – Money back at regular intervals
• MetLife Major Illness Premium Back Cover – Protection from 35 illnesses
• MetLife Mera Tera Plan – Protection for your family
• MetLife College Plan – Children’s education policy
• MetLife Retirement Savings Plan – Retirement plan
• MetLife Mera Wealth Plan – Life protection

AWARDS

• 2016: PNB MetLife won the ‘Website of the Year’ award at the E-Commerce Summit &
Awards in Mumbai.

• 2016: PNB MetLife won ‘Celent Model Insurer Asia’ award for the most responsive
eCommerce platform on a mobile.

• 2016: PNB MetLife won honors at the prestigious Asia Training & Development Excellence
Awards 2016 held in Singapore in two categories – Best Education Training Campaigns and
Programs and Best Sales Development Program.

OTHER ACHIEVEMENTS

The company launched its corporate social responsibility programme in August 2014 in support of
the education of children in Karnataka. This project, which is part of the existing Rajiv Gandhi
Crèche Scheme, works in tandem with the Government agenda towards strengthening and supporting
the 30 crèche centres.

On the occasion of World Health Day, PNB MetLife announced the fifth edition of Guinness
Record-holding PNB MetLife Satara Hill Half Marathon 2016.

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In June 2016, PNB MetLife rolled out a new digital campaign, which includes a 75-second film
conceptualised by McCann Erickson.

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PNBMETLIFE VALUES

22
VISION AND MISSION
VISION
• To evolve and postion the bank as a world class, progressive ,
cost effective and customer friendly institution providing
comprehensive financial and related services.
• Integrating frointers of technology and serving various segments
of society especially weaker section.
• Committed to excellence in serving the public and also excelling
in corporate values.

MISSION
• To provide excellent professional services and improve its
positions as a leader in financial and related services.
• Build and maintain a team of motivated workforce with high
work allow.
Use latest technology aimed at customers satisfaction and act as an
effective catalyst for socio economic development.

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GOALS &OBJECTIVES

• To minimize profit for the seek of management and

shareholders.

• The second objective is to perform social service to the

society by meeting the needs of the people.

• To provide service in the form of generating full

employment.

• To provide satisfaction as for by giving full assurance in

return of their investment.

• Customer oriented service is the main objective to solve

their Problem.

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 CHAPTER – 3

BUSINESS MODEL

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 Products of met life

1. MetLife Guaranteed income plan

✓ Guaranteed Returns
✓ Discount on Higher Sum Assured
✓ Survival and Maturity Benefits
✓ Tax Benefits

2. PNB MetLife Mera Heart and cancer care

✓ Inbuilt Life Cover
✓ Zero Survival Period
✓ Pay Outs at different Stages of Illness
✓ Return of Premium (net of claims paid)

3. MetLife Money Back Plan

✓ Guaranteed Returns
✓ Discount on Higher Sum Assured
✓ Survival and Maturity Benefits
✓ Tax Benefits

4. MetLife BachatYojana
✓ Reasonable Premiums
✓ Long Term Savings
✓ Financial Securities

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5. MetLife Guaranteed Savings Plan
✓ Guaranteed Additions on Cumulative Premiums
✓ Guaranteed Sum Assured on Maturity
✓ Life Cover for the entire Policy Term

6. MetLife Mera Wealth Plan

✓ Create your own Wealth Plan
✓ Enhance your Investment
✓ Protect your Loved Ones

7. MetLife Mera Term Plan

✓ Cover your Family’s Future
✓ Cover your Partner, Hassel-Free
✓ Flexibility to Increase Life Cover

8. MetLife PradhanMantriJeevanJyotiBinaYojana
✓ Protection at Nominal Cost
✓ Straight through processing, no Medicals required
✓ Ease of Enrollment, simplified Proposal Form

9. MetLife Smart Platinum

✓ Flexible Premium Payment Options
✓ Auto Rebalance Investment Portfolio
✓ Option to change Sum Assured

10. PNB MetLifeUnit Linked Employee Benefit Plan

✓ Choice among Five Funds
✓ 4 Free Switches in a year
✓ Tax Benefits

11. PNB MetLife Traditional Employee Benefit Plan

✓ Interest on Each Contribution
✓ Motivate Employees
✓ Retain Talent
12. PNB MetLife Superannuation
✓ Group Variable Insurance Plan
✓ Excellence means of Attracting, Retaining quality talent.

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13. MetLife Guaranteed income plan

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 ✓ Guaranteed Returns
✓ Discount on Higher Sum Assured
✓ Survival and Maturity Benefits
✓ Tax Benefits

14. PNB MetLife Mera Heart and cancer care

✓ Inbuilt Life Cover
✓ Zero Survival Period
✓ Pay Outs at different Stages of Illness
✓ Return of Premium (net of claims paid)

15. MetLife Money Back Plan

✓ Guaranteed Returns
✓ Discount on Higher Sum Assured
✓ Survival and Maturity Benefits
✓ Tax Benefits

16. PNB MetLife Loan and Life Suraksha

✓ Joint Life Option
✓ Increases Loyalty among Customers

17. PNB MetLife Group Term Life Plus

✓ 100% of the Sum Assured on Death
✓ Provides Protection to the Family of Employee
✓ Tax Benefit to the Employer
18. PNB MetLife Complete Care Plus
✓ Serves Full Coverage at Reasonable Rate
✓ Availability of Accelerated Benefit Option
✓ Choose from 4 Riders

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19. MetLife Bhavishya Plus
✓ Waiver of Premium
✓ Financial Security
✓ Survival Benefits

20. MetLife Easy Super

✓ Reasonable Annual Premium
✓ Auto Rebalance Investment Portfolio
✓ Life Coverage

21. MetLife Endowment Savings Plan

✓ Offers Increase your Savings
✓ Limited or Regular Premium Payment Terms
✓ Tax Benefits

22. MetLife College Plan

✓ Regular Benefit Payouts
✓ Prepare for Child’s Education Expenses
✓ Waiver of Premiums-event of Death

23. MetLife Family Income Protector Plus

✓ Guaranteed Monthly Income
✓ Freedom to Choose Benefits
✓ Return of Premiums
24. MetLife Monthly Income Plan-10 Pay
✓ Guaranteed Monthly Income for your Family
✓ Financial Protection
✓ Tax Savings

25. MetLife Immediate Annuity Plan

✓ Financial Security through Regular Income
✓ Cover for Spouse
✓ Create Legacy Creation with Return of Premium.

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 26. MetLife Retirement Savings Plan
✓ Guaranteed Income for your Golden Years
✓ Part Lump Sum on Maturity
✓ Extend Accumulated Savings

27. MetLife Critical Illness Rider

✓ Additional Health Cover
✓ Flexibility to Meet your Needs
✓ Tax Advantage

28. MetLife Accidental Disability Benefit Rider

✓ Additional Health Cover
✓ Flexibility to Meet your Needs
✓ Tax Advantage

29. MetLife Smart Child

✓ Create Wealth for your Child’s Future
✓ Safeguard your Savings from Market Uncertainty
✓ Loyalty Additions(15-20 years term) on Maturity

30. MetLife Accidental Death Benefit Rider Plus

✓ Additional Health Cover
✓ Flexibility to Meet your Needs
✓ Tax Advantage

31. MetLife Serious Illness Rider

✓ Additional Health Cover
✓ Flexibility to Meet your Needs
✓ Tax Advantage

32. PNB MetLife Endowment Saving Plan Plus

✓ Protect your Family Future
✓ Additional Bonuses from 1st Policy Year
✓ Waiver of Premium against 35 Critical Illnesses
✓ Life Cover for entire Policy Term

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PNB MetLife Strategy

• Growing and diversifying our multichannel distribution footprint to

• strengthen our position in various geographies and customer

segments.
• Deliver products aligned to the diverse needs of Indian customers supported by an end-to-
end customer-centric service
• experience.
• Driving profitability by leveraging scale and increasing persistency.
• Utilizing information technology and implementing digitization to drive efficiencies.

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COMPETITORS OF PNBMETLIFE

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 CHAPTER – 4
ORGANISATIONAL
STRUCTURE

34
35
❖ MD & CEO: Ashish Kumar Srivastava
❖ Chief Financial Officer: Khalid Ahmad
❖ Appointed Actuary: P K Dinakar
❖ Chief Investment Officer: Sanjay Kumar
❖ Chief Compliance Officer: Sarang Cheema
❖ Head - Internal Audit: Viraj Taneja
❖ Chief Risk Officer: Anjan Bhattacharya
❖ Director & Head – Human Resources: Shishir Agarwal
❖ Director & Head - Operations & Services: Vijaya Nene
❖ Chief Information Officer: Samrat Das
❖ Chief Distribution Officer: Sameer Bansal
❖ Chief Strategy Officer: Vineet Maheshwari
❖ Head – Legal & Board Affairs: Agnipushp Singh
❖ Chief Marketing Officer: Nipun Kaushal
❖ Company Secretary and Compliance Officer: Yagya Turker

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 ORGANIZATIONAL PERFORMANCE OF
PNBMETLIFE

❖ FINANCIAL PARAMETERS:
During FY 2018-19, Pnbmetlife witnessed strong performance in line with our value accretive
growth strategy. We have recorded 17.86% growth in New Business Premium (NBP). In terms
of the value metrics, we delivered an improved Value of New Business margin of 21.1%. Our
operating return on embedded value has also improved to 16.8% a year.

Benefits of Life Insurance Policies.

Superior to any other savings plan:

Unlike any other savings plan, a life insurance policy affords full protection against risk of

death. In the event of death of a policy holder, the insurance company makes available the full

sum assured to policy holder’s near and dear ones. In comparison, any other savings plan would

amount to only the total savings plan accumulated till date. If the death occurs prematurely,

such savings can be much less than the sum assured which means that the potential financial

loss to the family is sizable.

1) Encourages and Forces Thrifts:

A saving deposit can easily be withdrawn. The payment of life insurance premium,

however, is considered sacrosanct and is viewed with the same seriousness as the

payment of interest on a mortgage. Thus, a life insurance policy in effect brings

about compulsory savings.

2) Easy settlement and protection against creditors:

37
 A life insurance policy is the only financial instrument the proceeds of which can

be protected against the claims of a creditor of the assured by effecting a valid

assignment of the policy.

3) Administering the Legacy for Beneficiaries:

4) Ready Marketability and suitability for quick borrowing:

A life insurance policy can, after a certain time period (generally three years) be

surrendered for a cash value. The policy is also acceptable as a security for a

commercial loan, for example, a student loan.

5) Disability Benefits:

Death is not the only hazard that is insured; many policies also include disability

benefits. Typically, these provide for waiver of future premiums and payment of

monthly installments spread over a certain time period.

6) Accidental death Benefits:

Many policies can also provide for an extra sum to be paid (typically equal to the

sum assured) if death occurs as a result of accident.

STATEMENT OF THE PROBLEM

This Study will help us to understand the consumer’s perception about life

insurance policies. This study will help the companies to understand, How a

consumer selects, organizes and interprets the Quality of service and product

offered by life insurance companies.

2.1 SCOPE OF THE STUDY

38
 This study is limited to the consumers within the limit of Bangalore city.

The study will be able to reveal the preferences, needs, perception of the customers

regarding the life insurance products, It also help the insurance companies to know

whether the existing products are really satisfying the customers needs .

2.2 NEED FOR THE STUDY

1) The deeper the company’s understanding of consumer’s needs and perception,

the earlier the product is introduced ahead of competition, the greater the

expected contribution margin. Hence the study is very important.

2) Consumer markets and consumer buying behavior can be understood before

sound product and marketing plans are developed

3) This study will help companies to customize the service and product, according

to the consumer’s need.

4) This study will also help the companies to understand the experience and

expectations of the existing customers.

5) Apart from creating, manufacturing and distribution capabilities for life

insurance products, an in depth study of the consumers, their preferences and

demand for their product is very necessary for setting up an efficient marketing

network.

2.3 OBJECTIVE OF THE STUDY

1. Ascertain the profile and characteristics of potential buyers.

2. To gain a thorough understanding of the attributes that prospective buyers

39
 ascribe to life insurance policies.

3. To have an insight into the attitudes and behaviors of customers.

4. To find out the differences among perceived service and expected service.

5. To produce an executive service report to upgrade service characteristics

of life insurance companies.

6. To understand consumer’s preferences.

7. To access the degree of satisfaction of the consumers with their current

brand of Insurance products.

2.4 SAMPLE DESIGN :

The process of drawing a sample from a large population is called sampling.

Population refers to the total of items about which information is defined. Well

selected samples may reflect fairly and accurately the characteristics of the

population.

2.4.1) Sampling Unit:

The sample unit of this survey was the customers having life insurance policies in

Kottayam City, Kerala.

2.4.2) Sample Size :

The sample size was 50 customers of different life insurance companies, from

various parts of the Kottayam City

2.4.3) Sampling Technique Adopted :

Convenient sampling

2.4.4) : Source of data

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After identifying and defining the research problem and determining specific

information required to solve the problem the researcher will look for the type and

sources of data which may yield the desired results, while deciding about the

method of data collection to be used for the study, there are two types of data. They

are as follows

2.8.1) Primary Data :

Primary data are those which are collected for the first time. Primary data is

collected by framing questionnaires. The questionnaire contained questions

which are both open-ended and closed-ended. Open-ended questions are

questions requiring answers in the responders own words. Closed-ended

questions are those wherein the respondent has to merely check the

Appropriate answer from a list of options available. Any doubts raised by the

Respondents were clarified to get the perfect answers from the distributors.

Open-ended questions yielded more insightful information, whereas closed-

Ended questions were relatively simple to tabulate and analyze.

2.8.2) Secondary Data :

Secondary data means data that are already available i.e. they refer to the data

which have been collected and analyzed by someone and can save both money

and time of the researcher. Secondary data may be available in the form of

company records, trade publications, libraries etc .Secondary data sources are

as follows :

 Company Reports

41
  Daily Newspaper

 Standard Textbook

 Various Websites

2.9 FIELD WORK

An interview-schedule and well-structured questionnaire is administered to the target

respondents to collect primary data (Copy of questionnaire is attached in the

appendix).Open and close ended questions are used in the questionnaire. The order

of the questions is in such a manner that they begin with simple questions and lead

on the questions that needed more involvement from respondents.The secondary data

are collected from periodicals, magazines, journals and internet.

2.10 OPERATIONAL DEFINITIONS OF THE STUDY

1. Marketing:

Marketing is a social and managerial process by which individuals and group

obtain what they need and want through creating, offering and exchanging

products of value with others.

2. Marketing Management:

Marketing Management is the process of planning and executing the

conception, pricing, promotion and distribution of individual and

organizational goals.

3. Marketing Research:

Marketing research is the systematic and objective search for, and analysis

of information relevant to the identification and solution of any problems in

42
 the field of marketing.

4. Consumer Behavior:

Consumer behavior is the study of how individuals make decisions to spend

their available resources [time, money, efforts] on consumption related items.

5. Consumer Research:

Consumer research is the methodology used to study consumer behaviour.

6. Market Segmentation:

Market segmentation is the process of dividing a market in the distinct

subsets of consumer with common needs or characteristics and selecting one

or more segments to target with distinct marketing mix.

7. Positioning:

Positioning is the act of designing the company’s offering and image so that

they occupy a meaningful and distinct competitive position in the target

consumer’s mind.

8. Perception:

Perception is the process by which an individual selects, organizes, and

interprets information input to create meaningful picture of the world. For a

marketer to influence a motivated buyer to buy their products rather than a

competitors they must be careful to take the perception process into account

while designing their marketing campaigns. Perception therefore influence

what product consumer buys.

9. Brand:

43
 A brand is a name, term, sign, symbol, or design or a combination of them,

used to identify the goods or services of one seller or group of seller and the

differentiate them from those of competitors.

10. Attitude:

An attitude is a person enduring favourable or unfavorable evaluation,

emotional feeling, and action tendencies towards some object or idea

11. Values:

A value is a concept of the desirable. An internalized standard of evaluation

a person possession. These standards determine or guide an individual

evaluation of the many objects encountered in everyday life.

12. Attributes:

Attributes are the strengths and weaknesses of a brand that create attitudes

and are used by consumers to choose between brands that are relatively

similar or functionally equivalent.

2.11 LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful

planning there are several limitations which handicapped the research viz.,

1. Time Constraints:
The time stipulated for the project to be completed is less and thus there

are chances that some information might have been left out, however

due care is taken to include all the relevant information needed.

44
2. Sample size:
Due to time constraints the sample size was relatively small and would

definitely have been more representative if I had collected information

from more respondents.

3. Accuracy:

It is difficult to know if all the respondents gave accurate information;

some respondents tend to give misleading information

45
3.1 PROFILE OF THE INDUSTRY:

History and Development of Life Insurance

1. Life Insurance, in its present form, came to India from the United Kingdom with

establishment of a British firm, Oriental Life Insurance Company in Calcutta in

1818, followed by Bombay Life Assurance Company in 1823, the Madras

Equitable Life Insurance society in 1829 and Oriental Government security

Assurance company in 1874. Prior to 1871, Indian Lives were treated as sub-

standard and charged an extra premium of 15% to 20% . Bombay Mutual Life

Assurance Society, a Indian insurer which came into existence in 1871 was the

first to cover Indian lives at normal rates.

2. The Indian life Assurance Companies Act, 1912 was the first statutory measure

to regulate life insurance business. Later, in 1928, the Indian Insurance

Companies Act was enacted, to enable the government to collect statistical

information about both life and non-life insurance business transacted in India

by Indian and foreign insurers, including the provident insurance societies.

Comprehensive arrangement was, however, brought into effect with the

enactment of the Insurance Act, 1938. Efforts in this direction continued

progressively and the act was amended in 1950, making far-reaching changes,

such as requirement of equity capital for companies carrying on life insurance

business, ceiling on share holdings in such companies, submission of periodical

return relating to investments and such other information to the controller of

insurance as he many call for, appointment of administrator for mismanaged

46
companies, ceiling on expenses of management and agency commission,

47
 incorporation of the Insurance association of India and formation of

councils and committees there of.

3. By 1956, 154 Indian insurers, 16 non-Indian insurers and 15 provident societies

were carrying online insurance business in India. On 19th January 1956, the

management of the entire life insurance business of 229 Indian insurers and

provident insurance societies and the Indian life insurance business of 16 non-

Indian Life insurance companies then operating in India, was taken over by the

central Government and then nationalized on 1st September 1956 when the Life

Insurance Corporation came into existence.

Reforms and Implications

The liberalization of the Indian insurance sector has been the subject of much heated

debate for some years. The sector is finally set to open up to private competition.

The Insurance Regulatory and Development Authority bill will clear the was for

private entry into insurance as the government is keen to invite private sector

participation into insurance. To address those concerns, the bill requires direct

insurers to have a minimum paid-up capital of Rest. 1 billion, to invest policy

holder’s funds only in India; and to restrict international companies to a minority

equity holdings of 26 percent in any new company. Indian Promoters will also have

to dilute their equity holding to 26 percent over a 10 year period.

Over the past three year, around 30 companies have expressed interest in entering

the sector and many foreign and Indian companies have arranged alliances. Whether

the insurer is old or new, private or public, expanding the market will

48
 Present challenges. A number of foreign Insurance Companies have set up

representative offices in India and have also tied up with various asset management

companies. Some of the Indian companies which have tied up with International

companies and its market shares are:

MARKET SHARES OF DIFFERENT FIRMS

Market share
Total capital
Company Promoter Based on
(Rs crore)
Premium
AMP Sanmar Reliance group 217 0.54
Aviva life Dabur 459 1.12
Bajaj Allianz Bajaj auto 368 6.12
HDFC Standard HDFC 250 2.96
Birla Sun Life Aditya Birla
400 1.84
Group
ICICI ICICI Bank
1085 7.11
Prudential
ING Vysya Vysya Bank 440 0.63
Kotak Mahindra, Kotak Mahindra
260 0.71
Old Mutual Bank
Max New York Max India 500 1.32
Met Life Jammu &Kashmir
355 0.4
Bank
Sahara Life Sahara India
100 0.06
Insurance
SBI Life SBI 350 1.52

49
Tata AIG Tata group 381 1.78

50
 The likely impact of opening up of India’s insurance sector is that private players

may swamp the market. International insurers often derive a significant part of their

business from multinational operations. Multinational insurers are indeed keenly

interested as; perhaps their home markets are saturated while emerging countries

have low insurance penetration and high growth rates. A small share of a large and

growing market can be profitable and attractive.

Type of life insurance policies

Whole life insurance

Whole life is a form of permanent insurance, with guaranteed rates and guaranteed cash

values. It is the least flexible form of permanent insurance.

Universal life insurance

Universal life is similar to whole life, except that you can change the death benefit (the

money paid to the beneficiary when the insured person dies), the amount of premiums

and how often you pay the premiums.

Variable life insurance

Variable life insurance is the riskiest form of permanent insurance, but it can also give

you the best return for your money. Essentially, the life insurance company will invest

your insurance premiums for you. If the investments do well, the death benefit and cash

value of the policy go up. If they do poorly, they go down. It's a little like putting your

savings into the stock market.

51
Group life insurance
Many companies allow their employees to buy group life insurance through the company.

52
Usually, you can get very good rates for this insurance but you have to give the insurance

up when you stop working there. For that reason, group insurance can be a good way to

buy a little extra life insurance, but it does not make sense to make it your main policy.

There are a number of policies for specific insurance needs. Some of these
include:

1. Family income life insurance.

This is a decreasing term policy that provides a stated income for a fixed period of

time, if the insured person dies during the term of coverage. These payments

continue until the end of a time period specified when the policy is purchased.

2. Family insurance.

A whole life policy that insures all the members of an immediate family --

husband, wife and children. Usually the coverage is sold in units per person, with

the primary wage-earner insured for the greatest amount.

3. Senior life insurance.

Also known as graded death benefit plans, they provide for a graded amount to be

paid to the beneficiary. For example, in each of the first three to five years after

the insured dies, the death benefit slowly increases. After that period, the entire

death benefit is paid to the beneficiary. This might be appropriate if the

beneficiary is not able to handle a large amount of money soon after the death, but

would be in a better position to handle it a few years later.

53
 4. Juvenile insurance.
This is life insurance on a child. Coverage is paid for by an adult, usually the parents or

guardians. Such policies are not considered traditional life insurance because the child is not

producing an income that needs to be protected. However, by buying the policy when the

child is young, the parents are able to lock in an extremely low premium rate and allow many

more years of tax-deferred cash value buildup.

4. Credit life insurance.

This insurance is designed to pay off the balance of a loan if you die before you

have repaid it. Credit life insurance is available for many kinds of loans including

student loans, auto loans, farm equipment loans, furniture and other personal

loans including credit cards. Credit life insurance can be purchased by an

individual. Usually it is sold by financial institutions making loans, like banks, to

borrowers at the time they take out the loan. If a borrower dies, the proceeds of

the policy repays the loan directly to the lender or creditor.

5. Mortgage insurance

This decreasing term coverage is designed to pay off the unpaid balance of a

mortgage if you die before the mortgage is paid off. Premiums are generally level

throughout the term of the policy. The policy is usually independent of the

mortgage, meaning that the financial institution granting the mortgage is separate

from the insurance company issuing the policy. The proceeds of the policy are

paid to the beneficiaries of the policy, not the mortgage company. The beneficiary

is not required to use the proceeds to pay off the mortgage

54
 6. Annuity

An annuity is a form of insurance that enables you to save for your retirement.

Basically, you give the insurance company money for a certain period of time,

and then after you retire they will pay you a certain amount of money every

year until you die. There are many different forms of annuities.

. Most people who buy annuities are 55 or older.

1.1 DATA ANALYSIS TOOLS USED:

In this research the data analysis tools used are percentages and graphs. The

various attributes were analysed separately and the importance to each was calculated on

the basis of the percentage. The rank having the maximum percentage was taken to be

preferred importance to the particular attribute.

After looking at each attribute separately, all the attributes were considered together to

develop a map on the most preferred rank for all the attributes.

55
 TABLE 1

AGE OF RESPONDENTS :-

SL.NO AGE IN YEARS NUMBER PERCENTAGE

OF OF
RESPONDENTS RESPONDENTS

1. 19 – 28 28 56 %

2. 29 – 38 9 18 %

3. 39 – 48 6 12 %

4. 49 – 58 6 12 %

5. 59 – 68 0 0%

6. 69 – 78 1 2%

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: The above table classified the respondents according to their age

group. The majority of the respondents belong to the age group 19 to 28 years with 56%

and the second age group is 29 to 38 years with 18%, followed by 39 to 48 years and 49

to 58 years with 12% each.

56
 GRAPH 1

AGE OF RESPONDENTS :-

60% 56%

50%

40%

30%

20% 18%

12% 12%
10%
2%
0%
0%
19 - 28 29 - 38 39 - 48 49 - 58 59 - 68 69 - 78
YRS YRS YRS YRS YRS YRS

INTERPRETATION

Majority of the insurance holders are belonging to the age group of 20-30 years.

57
 TABLE 2

DIFFERENCIATION OF THE RESPONDENTS INTO MALE AND FEMALE :-

TYPES OF NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS RESPONDENTS

MALE RESPONDENTS 37 74 %

FEMALE 13 26 %
RESPONDENTS

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: This table helps us to understand that there are more number of male

consumers with 74% market share than the female consumers with 26%

market share.

58
 GRAPH 2

DIFFERENCIATION OF THE RESPONDENTS INTO MALE AND FEMALE :-

80% 74%

70%

60%

50%

40%

30% 26%

20%

10%

0%

INTERPRETATION

Most of the insurance holders are male people, so we can reach a conclusion that the
male people are more aware about the insurance and its importance.

59
 TABLE 3

DIFFERENCIATION OF RESPONDENTS BASED ON THEIR OCCUPATION :-

SL.NO OCCUPATION NUMBER OF PERCENTAGE

RESPONDENTS OF
RESPONDENTS

1. STUDENTS 2 4%

2. 20 40 %
GOVERNMENT
EMPLOYEES

3. PRIVATE 24 48 %
EMPLOYEES
4. HOUSE WIVES 2 4%

5. RETIRED 2 4%
PERSONS

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: It could be inferred that majority of consumers of life insurance

policies are private employees with 48% and Government employees with 40%, followed

by students, house wives and retired persons with 4 % each.

60
 GRAPH 3

DIFFERENCIATION OF RESPONDENTS BASED ON THEIR OCCUPATION :-

60%

50% 48%

40%
40%

30%

20%

10%
4% 4% 4%

0%

INTERPRETATION

The above graph shows that the employees are the large proportion of insurance holders
compared to other categories.

61
 TABLE 4

TABLE SHOWING INCOME GROUP OF RESPONDENTS :-

SL.NO INCOME NUMBER OF PERCENTAGE

GROUP RESPONDENTS OF
RESPONDENTS

1. LESS THAN 9 18 %
5000

2. 5001 – 10,000 17 34 %

3. 10001 – 15000 14 28 %

4. 15001 – 20000 7 14 %

5. 20001 – 25000 2 4%

6. GREATER 1 2%
THAN 30000

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: The majority of dominant income group having life insurance policies

belong to the income group of 5,001 to 10,000, which is middle class group. Followed by

62
the income group of 10,001 to 15,00

63
 GRAPH 4

GRAPH SHOWING INCOME GROUP OF RESPONDENTS :-

40%

35%

30%

25%

20%

15%

10%

5%

0%
<5000 5001 - 10001 - 15001 - 20001 - >25000
1000 15000 20000 25000

INTERPRETATION

The above table shows that most of the consumers of insurance policies are belonging to

64
the income group of 5000-15000

65
 TABLE 5

DIFFERENCIATION OF RESPONDENTS ACCORDING TO THE ASSETS

OWNED :-

SL.NO ASSETS NUMBER OF PERCENTAGE

RESPONDENTS OF
RESPONDENTS

1. HOUSE 19 38 %

2. TWO 26 52 %
WHEELER
3. CAR 5 10 %

TOTAL 50 100 %

SOURCE :- SURVEY DATA

INFERENCE: This table helps us to know that most of consumers with life insurance

policies own two wheelers with 52%, 19% of consumers own house and 5% of the

consumers own car.

66
 GRAPH 5

DIFFERENCIATION OF RESPONDENTS ACCORDING TO THE ASSETS

OWNED :-

60%
52%

50%

38%
40%

30%

20%
10%

10%

67
 CHAPTER – 5
CUSTOMER SATISFACTION
IN THE INSURANCE
INDUSTRY

68
 THE CUSTOMER SATISFACTION IN THE INSURANCE
INDUSTRY
Customer satisfaction with a company's services is often seen as the key to a company's
success and long-term competitiveness. The insurance industry is getting a lot of attention
as Customer satisfaction. In the context of relationship marketing, customer satisfaction is
often viewed as a central determinant of customer retention.
The overall purpose of this article is to develop a conceptual foundation for investigating
the customer retention process, with the use of the concepts of customer satisfaction and
relationship quality. Customer satisfaction is a key metric for insurance companies to
monitor in order to gauge which areas of their customer service are strong and which areas
need improvement in order to maintain or increase their membership base.

Customer satisfaction is an obvious topic perhaps known by many companies, but basically
little or nothing from the management point of view, so, to start the wise management of
customer satisfaction, it must first be known, explored and therefore, '"measured"For this
reason, the customer’s attention has been widespread in the companies for a few years and
it goes beyond the traditional marketing approaches proposed by: the attention to each
customer .

The issue of client satisfaction in service industries is difficult to define, because of the
characteristics of intangibility (the process of service delivery is aimed at satisfying
the need and not the production of a physical good), heterogeneity (there are no exactly
standards services, nor always identical to themselves, because they depend from company to
company, depending on personal contact, so the quality specifications are set within a range
of acceptable quality levels within a margin of natural variation), perishability (inability to
keep the results of production processes for future moments of sale, hence the need to
synchronize demand and supply) and inseparability (the time between processing
anddelivery) of the service. This aspect enhances the contact between staff and customers.
This is called the "moment of truth", in which the customer perceives the quality of
the service actually.
And it’s 'necessary to improve training and recruitment of contact, in order to make the
customer's
participation, the process of service delivery insurance, as productive as possible.

For this reason, it’s been years since it was given emphasis to political loyalty, also

69
 called "customer retention" and exploitation of the "retention".
It has become clear that in the insurance market there has been a real revolution that has
led to changes in the market, strategies of companies, offering products and services, in the
manner of distribution of insurance products. The introduction of new technologies in the
insurance sector has led to further revisions to both the internal processes and to external
ones for the companies, especially distribution. In fact, companies are aware of the fact that
the real competitive challenge in the insurance sector is to play on the distribution front and
on the ability of firms to coordinate the traditional channels with the innovative ones.
Thereby, it will be possible to create customers’ values and gain competitive advantage
compared to competitors.

In the insurance sector, we know little experience using systems to monitor client
satisfaction, although it is felt among the experts, the importance of conducting evaluations
focused on customer satisfaction. From the foreign literature in the insurance sector -
mostly empirical work – the following elements emerge: The customer, faced with the
choice of the policy,

processes information using a variety of sources; Usually, the customer does not do any
large shopping , limited or referred to an agent; The overall client satisfaction is a
function of three key elements:

1. satisfaction about the relationship and contact with sales staff;

2. satisfaction about the product / service insurance; satisfaction with the insurance
company providing the service. The client satisfaction, compared to his own
product/service purchased (the policy), decreases when an individual has been
exposed to messages from other companies, conveyed by the media; For a complete
verification of client satisfaction is not enough to ask the customers to describe their
dissatisfaction about the products / services but also
the latent dissatisfaction of customers should be investigated. Events where the
customer service has failed, have a strong impact on customer satisfaction against the
insurance company. If the individual remembers where the company (as a whole) has
failed to adequately respond to his problem, it significantly reduces the satisfaction
with the company, demonstrating that the latter is the key component of client
satisfaction overall; Personal contacts have a strong positive impact in

70
relation to satisfaction with personal contact. In this perspective, post-sales activities,
while not an immediate sales, are a strong investment in the client.
The key benefits that customers and potential "online" customers, for example, may have
from the technological revolution are numerous and can be summarized as follows: Ability
to examine and, in some cases, to buy insurance products any time, seven days a week;
Offer greater transparency and access to a larger number of products, with the possibility
to compare the proposals of many companies to find the best deal in real time; Significant
price reductions compared to products purchased through traditional channels, with the
power to block the online requested quote; Acceleration of policies take-up and, in some
cases, immediate insurance coverage; Simplification of the complaint claims and
streamlining of the winding-up proceedings; Opportunity to provide on-line consulting
services and information made available on the websites of the companies; Besides the
advantages discussed so far, a number of disadvantages can also occur for online shoppers:
Difficulties the customer encounters in the establishment of some tasks on-line (quote
request, personal data entry etc.); Inability to achieve highly customized products
(especially for insurance and financial life product); Inability to establish a personal
relationship with the seller and have a custom-insurance financial advice; Difficulty to pay
online the policies taken out (concerning the security of transactions or complex payment
procedures); No immediate availability of documents certifying insurance coverage and
required by law (for example, the mark of the insurance policies car insurance). The
observation highlighted so far made us give increasing importance to the operation
and the characteristics of new distribution channels. But it is also essential to identify the
potential that they may express, both in terms of knowledge and interaction with the
customer, and in terms of satisfaction customer.
The evolution of competitive scenarios (from the early 90's) led
the senior management to adopt the principles of
customer satisfaction. Satisfying customers should be, always, the goal of every business
that wants to sell products and services For the company the client is an increasingly
scarce resource, and therefore expensive and difficult to manage: he is a precious heritage
for the company and here is therefore, the need to develop methods and processes by
which to measure the value of this valuable resource to manage it.
The basis of this value is customer satisfaction: a satisfied customer is worth much more

71
than an indifferent customer, a dissatisfied customer, however, is a floating mine
organizations normally do not know.
In the insurance sector, customer portfolio analysis suggests that customer retention (the
measure of detention or "preservation" of existing customers) have a strong impact on
the profit levels of insurance companies, especially after the liberalization of car
tariffs (mass market for insurance products is the best) which made the loyalty of the
customer base even more important.
It would seem, in fact, that the best way to compete is to satisfy their customers rather than
attack the competition. In fact, it is much more difficult to acquire a new customer than
repeat sales to the existing customers.

Since the change of the service provider has a cost for the customer, generally welldisposed
towards the old company, demonstrating a degree of loyalty variable, but in any case,
consistent. Since, in the process of service delivery insurance, it is always possible that the
latter does not fully meet the customer, misunderstandings can arise that build up if the
company does not intervene in time managing these negative situations and turning in their
favor (eg handling complaints and making
them clear, because the obvious and recognized claims by the company are certainly less
harmful in terms of customer loyalty, than those unspoken and unheard). Hence the
emphasis of the insurance companies upon strategies to maintain and/or increase customer
satisfaction.
However, what interests the insurance company is the customer loyalty, which is
manifested in the attitude of the repurchase, and it is, therefore, a conclusive customer
satisfaction index. Since, in view of marketing, the service consists of a set of attributes or
characteristics on which the customer defines his preferences, the customer satisfaction
must be measured on attributes or characteristics of the
service, and not on the service itself. Customers, in fact, define their own preferences on
salient features of the service; individuals, in fact for perceptualcognitive (related to the
ability of the human mind to process information), are not able to define preferences and
processing information on ' complete set of attributes of a product / service. Therefore, if
you are able to identify the salient attributes of a service, you identify those actually affect
your choice.

72
Another idea to be analyzed, in the survey on customer satisfaction, is the definition of his
expectations. The latter can be considered a prediction, a statement about the future and on
the possibility that the product / service shows events compared to positive or negative
attributes. So, the customer opens up to a shopping experience using a set of expectations
where he comes, however, unprepared.
According to another definition, a merely legal meaning, the expectation would not be a
prediction, but something akin to a "should", what the customer thinks about the
characteristics of the product/service. While in the first case, the individual does
rmance evaluation of perceived service through15 selected attributes.

In conclusion, in a becoming highly competitive market (in recent years, several thousand
insurance agencies have gone out of business) is no longer sufficient to grow only in
premium volume. Needless to say, in fact, that the Italian insurance business in the coming
years, according to the analysis of many economic institutions and insurance, will double.
This development, in anticipation of the aging Italian population and the ongoing
liberalization and privatization in our country (in the health sector, social security, etc..)
will cover life insurance, supplemental security, health insurance policies. It will involve a
wider spread between the insurance citizens through higher quality of the service, offer
tailored policies and targeted to the needs of customers, management and implementing
adequate expertise of the insurance contract, especially in what is still the weak link of
relationship with the insured: the stage of settling claims.
It is clear, then, that competition rather than pricing, will have to measure the ability to
grasp the opportunities offered by new technologies and certified quality of the contractual
relationship of the services offered and solvency, all aimed at the ability to establish
collaborative relationships and based on trust between the insurance company and its
stakeholders (customers and intermediaries primarily).
In fact, a remarkable act of emancipation is on, from the customer's distribution channel
(wide availability of statistics and comparisons, direct electronic distribution channels) that
gives him the opportunity to compare and change the products and companies, which would
make the insurance market more transparent and switching costs continuing to fall. This is
the result in a market increasingly oriented to customer needs.
It will also pay more attention to respect the rights of clients20 (in terms of fairness, trust,
transparency and speed of contract damages, as set out in the "Charter of rights of the

73
insured," that companies adhere to 'EU agreed to meet), if you want to achieve customer
loyalty, as well as acquire new ones.
In other words, from the ability to "listen" to customers (internal and external) will depend
on the skill which meet the requirements that determine, then, the criteria of choice of
policies (increasingly oriented, clients, research a relationship of trust, image, service
quality, performance, convenience of access and price); therefore ,a modern insurance
company will measure its success, primarily on customer satisfaction. Customer
satisfaction in the insurance industry is a multifaceted and critical aspect that influences the
success and reputation of insurance companies. In this comprehensive discussion, we will
explore the key factors contributing to customer satisfaction, strategies for improvement, and
the importance of fostering positive customer experiences.
1. Communication:
Transparent and effective communication is fundamental to customer satisfaction in the
insurance sector. Policies, terms, and conditions can be complex, leading to confusion among
policyholders. Insurance companies must prioritize clarity in their communications, ensuring
that customers fully understand their coverage and obligations.
Timely updates are equally important. Whether it's information about policy changes,
premium adjustments, or general updates, keeping customers informed fosters a sense of trust
and engagement. Accessibility to customer service channels, including phone, email, and
online chat, is crucial. Customers appreciate easily accessible support when they have
questions or concerns.
2. Claims Process:
The claims process is a pivotal moment in the customer-insurer relationship. The efficiency
of handling claims can significantly impact customer satisfaction. Insurers should focus on
streamlining processes to minimize the time and effort required from customers when filing
a claim.
Clarity is another vital component of the claims process. Customers should have a clear
understanding of the steps involved, required documentation, and the expected timeline for
claim resolution. Additionally, providing fair and prompt settlements is essential for
maintaining customer trust. A transparent and straightforward claims experience contributes
significantly to overall satisfaction.
3. Customer Service:

74
Responsive and knowledgeable customer service is a cornerstone of customer satisfaction
in the insurance industry. Quick response times to inquiries and effective problem resolution
contribute to positive customer experiences. Investing in ongoing training for customer
service representatives ensures they have the knowledge and skills to address customer
queries effectively.
Offering 24/7 assistance is increasingly important, especially for emergency situations.
Insurance companies should provide support beyond traditional business hours to cater to the
diverse needs and time constraints of their customer base.
4. Policy Offerings:
Insurance policies should be designed with customer needs in mind. Offering customizable
policies allows customers to tailor their coverage to match their specific requirements. Clear
and concise language in policy documents is essential to ensure that customers can easily
understand their coverage without ambiguity.
Insurance companies should continuously assess the market to remain competitive.
Providing innovative and comprehensive coverage options gives customers confidence in
their choice of insurance provider. Communicating the value of coverage relative to the cost
of premiums helps customers see the benefits and justifies the investment.

5. Premiums and Pricing:

Competitive pricing is a key factor in customer satisfaction. While customers want

affordable premiums, they also expect value for their money. Insurance companies should
regularly evaluate their pricing strategy to ensure it aligns with market trends and customer
expectations.
Communicating the factors influencing premium rates can also contribute to customer
satisfaction. When customers understand how their premiums are calculated and the factors
that impact pricing, they are more likely to perceive the costs as fair and reasonable.

6. Digital Experience:

In the digital age, the importance of a user-friendly online presence cannot be overstated.

75
Insurance companies should invest in intuitive and secure online portals and mobile apps.
These digital platforms should facilitate easy policy management, premium payments, and
claims submission.
Enabling customers to submit claims and documentation electronically not only enhances
convenience but also streamlines the claims process. A positive digital experience contributes
to overall customer satisfaction and is a key differentiator in a competitive market.

7. Proactive Risk Management:

Insurance companies can go beyond traditional offerings by actively engaging customers in

risk management. Education is a powerful tool – providing resources and information that
help customers understand and mitigate risks fosters a sense of partnership between the
insurer and the policyholder.
Implementing prevention programs, such as safety workshops or risk assessments,
showcases the insurer's commitment to helping customers avoid losses and accidents.
Proactive risk management measures contribute to a positive customer experience and
demonstrate a genuine interest in the well-being of policyholders.

8. Feedback and Surveys:

Regularly collecting feedback from customers is essential for understanding their needs and
identifying areas for improvement. Insurance companies can use surveys to gather insights
into customer satisfaction levels, the effectiveness of customer service, and the overall
experience with the company.
Acting on customer feedback is equally important. Customers appreciate when their
opinions are valued, and addressing concerns or making improvements based on feedback
demonstrates a commitment to continuous enhancement.

9. Community Engagement:

Community engagement is a strategic approach to building a positive brand image.

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Insurance companies can participate in local events, sponsor community initiatives, and
support charitable causes. Involvement in the community not only enhances the company's
reputation but also creates a sense of connection between the insurer and its customer base.
Supporting local initiatives aligns the company with community values, fostering a positive
perception among both existing and potential customers. Community engagement is a long-
term investment in building trust and positive relationships.

10. Compliance and Ethics:

Maintaining ethical practices and compliance with regulations is foundational to customer

satisfaction. Customers trust insurers to act ethically and transparently. Clear communication
about the company's commitment to ethical conduct and adherence to industry regulations
builds confidence and trust.
Transparency in policies is crucial. When customers fully understand the terms and
conditions of their policies, there is a lower likelihood of disputes or misunderstandings.
Ensuring compliance with legal and ethical standards contributes to a positive customer
experience and protects the company's reputation.
In conclusion, customer satisfaction in the insurance industry is a complex interplay of
effective communication, streamlined processes, responsive customer service, and a
commitment to ethical practices. Insurance companies that prioritize these factors can build
lasting relationships with their customers, leading to increased loyalty, positive word-of-
mouth referrals, and a strong competitive position in the market. By continually assessing
and improving these aspects, insurers can adapt to evolving customer expectations and
maintain a customer-centric approach in an ever-changing landscape.

11. Personalization:

• Tailored Recommendations: Leverage data analytics to understand customer

preferences and behavior. Provide personalized policy recommendations based on
individual needs and circumstances.
• Customized Communication: Instead of generic communication, personalize
messages to address specific policy details, renewal reminders, or relevant insurance

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 information.

12. Loyalty Programs:

• Reward Systems: Introduce loyalty programs to incentivize long-term customer

relationships. Offer discounts, additional coverage, or other perks for customers who
renew policies or refer new clients.
• Recognition: Acknowledge and reward customer loyalty through personalized
communication, recognizing their tenure and contributions to the company.

13. Crisis Management:

• Proactive Support during Crises: In times of natural disasters, economic downturns,

or other crises, provide proactive support and clear communication to policyholders.
This can include temporary premium adjustments, expedited claims processing, or
additional assistance as needed.

14. Technology Integration:

• Artificial Intelligence (AI) and Chatbots: Integrate AI and chatbots into customer
service processes to provide instant responses, handle routine queries, and enhance
the overall customer experience.
• Blockchain for Security: Explore the use of blockchain technology to enhance the
security and transparency of transactions, providing customers with greater
confidence in the integrity of their policies and claims.

15. Mobile Solutions:

• Mobile Claim Processing: Develop mobile apps that enable customers to initiate and
track claims seamlessly. Mobile solutions enhance convenience and empower
customers to manage their policies on the go.

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• Mobile Notifications: Utilize mobile notifications for policy updates, payment
reminders, and other important information, keeping customers informed in real-time.

16. Social Media Engagement:

• Active Presence: Maintain an active presence on social media platforms to engage

with customers, address concerns, and share relevant industry updates.
• Customer Stories: Share success stories, testimonials, and positive experiences of
customers on social media, humanizing the company and showcasing its commitment
to customer satisfaction.

17. Data Security and Privacy:

• Robust Security Measures: Assure customers of the robust security measures in
place to protect their sensitive information. Cybersecurity is critical to maintaining
trust, and transparent communication about security practices is essential.
• Compliance with Data Regulations: Stay abreast of data protection regulations and
ensure strict compliance. Clearly communicate the company's commitment to data
privacy and ethical handling of customer information.

18. Continuous Innovation:

• Embrace Technological Advancements: Stay at the forefront of technological

advancements in the insurance industry. Embrace innovations such as telematics, IoT
(Internet of Things), and other emerging technologies to enhance the overall insurance
experience.
• Agile Product Development: Adopt agile methodologies for product development,
allowing the company to quickly respond to market changes and customer needs.

19. Environmental and Social Responsibility:

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 • Sustainable Practices: Emphasize environmental responsibility by adopting
sustainable practices in business operations. Communicate the company's
commitment to eco-friendly initiatives and social responsibility, resonating with
environmentally conscious customers.

20. Employee Training and Well-being:

• Empowered Employees: Invest in employee training to ensure that staff members

are knowledgeable, empathetic, and empowered to provide excellent customer
service.
• Employee Well-being Programs: Implement programs that focus on the well-being
of employees, recognizing that satisfied and motivated employees contribute
positively to customer satisfaction.
By incorporating these additional elements into their strategies, insurance companies can
further elevate customer satisfaction levels, strengthen customer relationships, and position
themselves as leaders in a competitive market. The evolving landscape of the insurance
industry demands continuous innovation and a proactive approach to meeting customer
expectations.

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 CHAPTER – 6
SWOT ANALYSIS

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Strengths 1. Strong brand name and good financial
position.
2. Major player in insurance sector.
3. Varied range of services and products.
4. Has its presence in 60 countries with a
customer base of 90 million.
5. Over 65,000 employees.

Weaknesses 1. Over-dependence on US.

2. Lacking in global recognition as compared to
competitors.

Opportunities 1.Expansion in other countries

2.Diversifying portfolios for customers
3.Acquisitions and JVs
4.New Emerging markets

Threats 1. Changing govt regulations and financial crisis

like recessions.
2. Natural disasters.
3. US financial service sector
4. Other competitors in the industry

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CHAPTER – 7
LEARNING &
SUMMARY

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LEARNING’S

1. Communication:
In an insurance role, you will be required to communicate with internal and external links stake
holders.

2. Customer service:
As an insurance professional you will be insuring that you understand customer need
.
3 .Team work:
Working collaboratively to identify new business opportunities an generate a solution to a problem.

4. Professionalism
Insurance is all about peace of mind and it is important that those working in the sector are
seen as the professional they are.

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 SUMMARY:

In pnb metlife, I get to know about the insurance sector.

Their different plans and policies for an individual or for their families as well.
Pnb metlife have many beneficial plans for the Customers related to life insurance
as well as general insurance.

In India, the most of the population don’t know the importance of insurance. that
it can help in many ways by securing their family, their child education and etc.

Their, I have learned how to deal with public how to convince for life insurance.
To tell them the importance and benefits of the insurance. These plans give them
many benefits related to their health issues as well as accidental benefit.

In the dynamic landscape of the insurance industry, staying ahead requires a commitment to
innovation and adaptability. Implementing cutting-edge technologies like augmented reality
(AR) and virtual reality (VR) for virtual inspections and risk assessments can revolutionize
the claims process, providing a more immersive and efficient experience for policyholders.
Furthermore, fostering a culture of continuous improvement is paramount. Regularly conduct
customer feedback sessions, focus groups, and surveys to gain insights into evolving
customer preferences and expectations. Act on this feedback to make incremental
improvements and showcase a genuine commitment to customer-centricity.
Collaboration with insurtech startups and other industry disruptors can also inject fresh
perspectives and innovative solutions into traditional insurance models. By embracing
partnerships, insurers can explore new avenues for enhancing customer satisfaction, such as
offering innovative coverage options, implementing blockchain-based smart contracts for
transparent transactions, and integrating advanced analytics for more accurate risk
assessments.
Environmental, social, and governance (ESG) considerations are increasingly important to
customers. Insurance companies can align their practices with ESG principles by offering
green insurance options, supporting social causes, and ensuring ethical governance.
Communicating these efforts to customers reinforces the company's commitment to values
that resonate with a socially conscious clientele.

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In conclusion, the insurance industry's future success hinges on a holistic and customer-
centric approach that combines technological innovation, ethical practices, and a commitment
to sustainability. By embracing these forward-thinking strategies, insurers can not only meet
current customer expectations but also anticipate and exceed the demands of an ever-evolving
market.

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 CHAPTER – 8
POINT VIEW REGARDING
COMPANY’S PROFILE

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My Point of view Regarding Company’s
Profile
• Reputation of the company is good all over the world.
• Wide range of life ,health& retirement insurance products.
• Cooperative Staff
• Way of interaction to Clients is good.
• Different types of plans are available i.e PNB Metlife Endowment Saving Plan Plus
(PMESPP), Term Plan, etc.
• Working Timings are good
• Other privates investors.
• It has a trust of IRDA association as it comes under the IRDA association.

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REFERENCES
BOOKS:

1. Books of Insurance Institute Of India

MAGAZINE & NEWSPAPERS:

1. Times of India

2. India Express

3. Dainikjagran

INTERNET:

• www.metlife.com

• www.metlife.co.in

▪ www.insuranceindia.com

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