Letter of Transmittal

December 08, 2015

Dr. Md. Abdul Momen
Lecturer,
East West University

Subject: Submission of the Assignment, Fall 2015

Dear Sir,
This is the Assignment for our course. We have tried to work hard to make it done as per your
instructions.

I have prepared the Assignment to cover my topic “Personal selling Policy of MetLife Alico in
Bangladesh”. We tried to analysis the overall situation regarding this topic. The study is about
the organizational background, vision of the company, job details, products and services,
operational methods etc. This is obviously a helpful process of learning by gaining practical
knowledge.

All information used in this report is collected through websites, members report and informal
face to face Interviews. My level best trying has given here to carry out a meaningful and
effective study on my topic to make my report efficient enough.

In this period, we have developed some good ideas regarding the insurance policy sector. The
study will help me a lot to develop my career in my upcoming future. Thank you for giving me
this opportunity.

Yours Sincerely
 Executive Summary

Through these assignment, field work help us a lot to realize the connection between our
institutional knowledge and actual corporate scenario. Today, the people of Bangladesh are quite
concerned about their present and future protection for various purposes. They are concerned
about their health protection, educational protection and so on. Life Insurance companies are
providing them those opportunities to make it real. MetLife Alico is such a Multinational
Insurance Company which is playing a vital role in this sector in Bangladesh. Their all products
and services are covering a broad demand of our people. MetLife Bangladesh has a team of
experienced and qualified people with in-depth understanding of the community. So, we have
decided to work with personal selling policy and its’ field. During our project preparing time, we
have learned how to deal with clients, how to sale service to their customer and how to maintain
a good relation with customer in MetLife.
 Company overview

American Life Insurance Company incorporated in 1921, is one of the largest international life
insurance company in the world. The company markets a broad range of life & other insurance
product in over 50 countries worldwide. METLIFE is a member of the American International
Group, Inc. (AIG), the leading U.S. based international insurance organization.

METLIFE Bangladesh is the oldest operation in the company’s Middle East, Africa & South
Asia (MEASA) division tracing its origin back to 1952 when it entered Pakistan with business
activities also extending to erstwhile East Pakistan. The company started full service branch
operation in BD in 1974 & has since been marketing individual & group life insurance product
with remarkable success. METLIFE has been the market leader in BD since 1997 & as at
yearend 2001, had about US$820 million (equivalent) of life insurance in force.

METLIFE plays an important role in the economy of BD. Its Assets in BD at year end 2001
totaled approximately US$153 million, METLIFE BD invests its entire investible surplus
locally, mostly in govt. securities / banks, thereby allowing usage of the progressively increasing
fund in such public interests as infrastructure development, industrialization & employment
generation. Besides, with nearly 4000 career agents & 230 dedicated employees, METLIFE is a
major employer in the country.

Introduction

Origin of report: The term paper “American Life Insurance Company (METLIFE) has started at
the beginning of the semester under the instruction of our course instructor (DR. MD. ABDUL
MOMEN)

Objective: the main objective of this report is to know the personal selling process of METLIFE.
 METHODOLOGY

Primary data:

We collected primary data through an interview with sells manager of MetLife.

Secondary data:

 Different Journals.
 Through web searching.
 Newspapers.
 Websites of MetLife

What is personal selling?

Personal selling is a strategy that salespeople use to convince customers to purchase a product.
The salesperson uses a personalized approach, tailored to meet the individual needs of the
customer, to demonstrate the ways that the product will benefit him.

Role of personal selling for MetLife:

 Often the major promotional method

 Firms invest in personal selling advantages of personal Selling to MetLife: Personal
selling can contribute in a number of ways to the successful marketing of insurance
services. The following are some of the advantages of personal selling to insurance
services.
 As a promotional tool, personal selling can be used as a veritable instrument for changing
the negative perception of the public towards insurance.
 Personal selling also helps in increasing the level of demand for insurance services by
both new and existing clients.
 Personal selling reduces the risks involves in purchasing insurance services due to its
complex and technical nature.
  Personal selling is a significant tool for building long lasting relationship that is mutually
beneficial between the insurer and the insured.
 The proper use of the personal selling strategy will lead to the creation of new clients and
thus help expand the market for insurance services.
 Personal selling provides opportunities for potential insurance buyers to know about new
insurance products in the market. Thus, it informs and educates the clients about new
products.
 Another benefit of personal selling to insurance services is that it guides clients in
selecting the policy that suits their requirements and taste.

Strategy we follow to develop a relationship:

 Adopt a win-win philosophy

 Project a professional image
 Maintain high ethical standards

How MetLife meet People

MetLife Bangladesh has a team of experienced and qualified people with in-depth understanding
of the community. These highly trained employees and field consultants are waiting to discuss
all your queries related to insurance

1. Face to face – Our Insurance Consultants are ready to meet you in person at your
convenience to discuss your requirement and to showcase our product portfolio
2. Over the phone – Our Customer Service team will be happy to answer your queries and
guide you to your nearest and most qualified consultant.
3. General enquiries – Our Customer Service team is also available to help you with more
day-to-day enquiries such as claims, policy information and extensions, address change
etc.
Channel Marketing, MetLife Direct

MetLife is seeking a strategic and accomplished consumer-marketing leader to join its US Direct
business as AVP, Channel Marketing. This role is one of several new senior positions created as
a result of the merger of the former direct-to-consumer and sponsor businesses and will be
responsible for developing and executing a comprehensive, innovative multichannel marketing
strategy to meet the high growth expectations of the integrated model. This is the campaign
marketing leadership role for insurance and non-insurance product portfolios and encompasses
B2C, B2B, and B2B2C marketing. Reporting to the VP, Customer Marketing, and this person
will be a critical member of the US Direct team with overall accountability for all the marketing
distribution channels. 

Overseeing 4 reports and a team of 8-12, this position leads the team of experts who manage all
the marketing acquisition and retentions campaigns across all channels including Direct Mail,
Digital, DRTV, Telemarketing and PR/ Communications.  The successful candidate will drive
profitable revenue growth and establish efficiency and scalability for MetLife products within
each tactic. Drawing on expertise in consumer research, segmentation, and analytics/ modeling,
the successful candidate will own end-to-end the delivery of all consumer touch points working
with digital strategy, consumer retention and cross/ up-selling. We are looking for a change
advocate with the vision, creativity, and drive to help get ahead of industry trends, deliver against
our goals, and contribute meaningfully to the MetLife culture through modeling our values.

Purposes of MetLife

The financial security that MetLife offers has enabled people to achieve more from life. Not
every company can make this claim. Their work makes a real difference in people’s lives—and
uniting behind a shared purpose allows them to better fulfill our promises, helping us become the
world’s leading global life insurance and employee benefits company.

Their purpose is clear:

We help people pursue more from life.

Values of MetLife

Put Customers First

Caring for and respecting customers is core to everything we do. It defines our work and shapes
the culture for our people, radiating out to our shareholders and communities.

Be the Best

We are relentless in our search for new and better ways of doing things. As a leader in our
industry, we constantly raise the bar, take calculated risks and learn quickly from our mistakes.

Make Things Easier

Products in our industry aren’t always easy to understand. That’s why we are always looking for
simpler ways to connect customers to the best solutions. By doing this, we aim to exceed their
expectations and build trust.

Succeed Together

United by our purpose, we live by a collective commitment to honesty, integrity and diversity.
We are open and inclusive, proudly taking and applying the best ideas from every part of our
company.
Developing customer strategies

Strategy and Implementation Summary

1. Emphasize service and ongoing support:

MetLife avoids selling only one policy at the lowest price for each customer and
concentration account selling which greatly enhances client retention.

2. Build an Insurance Partnership:

The customer does not want to shop every year for a new broker. Concentrate on building
a long term relationship their customers and make the client and their staff appreciate the
value of a long-term relationship.

3. Focus on target markets:

MetLife focuses on personal and business customers that we identify and select to insure,
instead of allowing potential customers to choose them, which could result in their
brokerage attracting problem clients from other brokers.

Marketing Mix

MetLife Insurance’s marketing mix is comprised of the following approaches to pricing,

distribution, advertising and promotion.

Pricing:

The customers are especially sensitive to value. MetLife must ensure that their price and service
are perceived to be good value to the client.

Their markets must offer several payment options to their clients that are convenient to the client,
not just to the company. Example - payment on insured's preferred day of month, not on the
company's, and accepting payment by credit or debit card. Many insured’s are on a fixed income
and receive their income on a set day of each month or a paycheck on a particular day.

MetLife is seeing the commercial markets now moving toward basic coverage and limiting the
"bells and whistles," all-risk products available to only those clients who have modern, well-
managed, profitable, low-risk operations. This should help stabilize pricing and, even more
important, ensure that there is an insurance market available for most risks. Continued insistence
by the industry on better proactive protection, i.e. fire and burglar alarms, upgrading of
buildings, etc., has started to lower loss ratios.

Many of the larger insurance markets have increased minimum premiums to $1,000 for any
commercial package policy. The Lloyds market should be able to accommodate these customers
with a minimum premium of approximately $600.

Distribution:

This will occur both at MetLife’s offices as well as on occasion at the insured's home.

Advertising and Promotion:

MetLife Alico has depended in the past on a small advertisement in the local newspaper, listings
in the Yellow Pages, and word of mouth. MetLife must begin to investigate alternate ways to
put its name in front of the public.

1. All advertising has to emphasize the differentiation points rather than just price. MetLife
will be developing a "Now what do I do?" message to emphasize the need for dealing
with MetLife's insurance professionals so that in the event a loss occurs, you know you
have the proper protection.
2. MetLife must sell the company, not the product. In spite of some companies' efforts to
minimize the importance of the broker, the clients still identify with the broker, not the
insurance company.
 3. MetLife Insurance must improve and increase contacts with the clients. All clients should
be contacted before renewal to ensure covers are current and adequate. Also, new
insurance should be solicited.
4. Make contacts and support senior citizen groups and cottage associations. Identify sports
and hobby groups that involve seniors and cottagers.
Additionally, two other methods will be employed, distribution of printed material and
the hosting of free public seminars.

Customer Service- The reality of the insurance brokerage industry is that the service is the
product. Insurance is a commodity-like purchase and it is the service of the broker that
distinguishes providers. With this important fact recognized, MetLife strives to provide the
highest level of customer service.
 Customer Value Model

Understand what drives value for

customers

Understanding the value proposition

Create more value relative to

competitors

Create a win-win price

Focus investments on your most

valuable customers
 Customer Value Creation

With these concepts in mind, think about ways you can improve customer value to grow your
business. Here are 5 steps that MetLife is following to create customer value:

Step 1:  Understand what drives value for customers

Talk to them, survey them, and watch their actions and reactions. In short, capture data to
understand what is important to your customers and what opportunities you have to help them.

Step 2:  Understand the value proposition

The value customers receive is equal to the benefits of a product or service minus its costs.  What
value does company’s product or service create for them? What does it cost them–in terms of
price plus any ancillary costs of ownership or usage (e.g., how much of their time do they have
to devote to buying or using your product or service?)

Step 3:  Identify the customers and segments where are MetLife can create more value
relative to competitors

Different customers will have varying perceptions of MetLife’s value relative to their
competitors, based on geographic proximity, for example, or a product attribute that one segment
may find particularly attractive.

Step 4:  Create a win-win price

They set a price that makes it clear that customers are receiving value but also maximizes their
“take.” Satisfied customers that perceive a lot of value in their offering are usually willing to pay
more, while unsatisfied customers will leave, even at a low price. Using “cost-plus” pricing (i.e.,
pricing at some fixed multiple of product costs) often results in giving away margin
unnecessarily to some customers while losing incremental profits from others.
Step 5:  Focus investments on your most valuable customers

Customers are the lifeblood of the business. So, they are the source of current profits and the
foundation of future growth. These steps will help to find more ways to grow the business by
better serving their best customers.

MetLife’s purpose and values

Their purpose is why they are in business and reflects what they stand for and believe in. Their
purpose is to help people pursue more from life. Their values are how They achieve that purpose,
through an expression of who they are, what they stand for as a company and how they conduct
their business.

Put Customers First

Caring for and respecting customers is core to everything MetLife do. It defines their work and
shapes the culture for their people, radiating out to their shareholders and communities.

Be The Best
They are relentless in their search for new and better ways of doing things. As a leader in their
industry, we constantly raise the bar, take calculated risks and learn quickly from their mistakes.

Make Things Easier

Products in their industry aren't always easy to understand. That's why they are always looking
for simpler ways to connect customers to the best solutions. By doing this, they aim to exceed
their expectations and build trust.

Succeed Together
United by their purpose, we live by a collective commitment to honesty, integrity and diversity.
They are open and inclusive, proudly taking and applying the best ideas from every part of their
company.
 Selling Solutions

MetLife provide greater effort to identify and resolution of customer problems.

Their communication with the customers results in mutual answer share in favor of recognized
customer problems and its solutions. They emphasize benefits that are more encompassing than
its specific products. They also provide measurable results rather than vague descriptions.

An example of MetLife’s extern term selling solution is given below:

The benefits under Extern Term Insurance are that, company will continue that policy without
any premium payment till its maturity of 18 years period. In that case, if the client dies before the
maturity of the policy, his/ her nominee will get compensation money due to this circumstance.
Besides, if the client is alive till the maturity period, then he/ she will receive his/ her savings
money back at that time with some profit amount.

The TAILOR-MADE Solutions

MetLife’s products and services are perfect for large size employers who appreciate the wide
variety of plan options usually available to only large groups. In fact, large employee groups add
to the flexibility of our product portfolio.

We require the following from large organizations to provide a tailored, customized,

Flexible group employee benefits insurance proposal & rate quotation:

MetLife Request for Group Proposal Form (RFP) to be filled and duly signed by a authorized
person from your organization

The following information on Employees (and Dependents) who will be covered under the
Group Policy:

 Names of proposed insured (Employee or Dependent)

 Designation of employee or relationship of dependent with employee

  Gender of proposed insured

 Date of birth of proposed insured

 Joining date of employee (especially for new joiners)

 Insurance sum assured of each employee (especially Group Life coverage)

 Medical Plan for Proposed Insured (especially for More than 1 Medical Plans)

Servicing Arrangements

The existing servicing arrangements for all Transferring Business going to each of MEL, MAL
and ML will continue unaltered which will help to ensure continuity of service. In the future
each company may rationalize the servicing arrangements to improve efficiency and ease of
oversight of these procedures.

Treating Customers Fairly

I have considered the way in which the Scheme had been developed and whether or not due
regard was given to the requirement under the FSA rules to treat customers fairly. In particular
the FSA’s conduct of business rules will continue to apply to MEL, MAL and ML in respect of
their existing business and the Transferring Business. The Scheme has been developed with due
regard to the need to treat customers fairly.

Written Proposals

For the purpose of informing the clients about various information about the company and
provide detailed guidelines about their operations MetLife provide booklets for the customers or
its policyholders. The booklet mainly consists of following content.

 Your questions answered

 Summary statement of the transfer
 A Summary of the Independent Expert’s Report

 Legal Notice
 Company policy and practice:

For individuals

They divided their offers into three 3 categories:

1. Life insurance:

Life insurance can take care of your family and help them maintain their standard of living
should something happen to you or your partner. Apart from taking care of outstanding loans or
mortgages, it can also protect your children's education or provide for your partner's retirement.

It covers 2 areas.

Education Protection Plan (EPP) Plus

Product Overview

• You select the period of the plan at which you want the policy proceeds to be paid. You can
select any period from 10 to 21 years. The child's age plus the term should not exceed 21 years.

• On maturity, your child will receive the full Face Amount along with the Bonus(es).

• In the unfortunate event of your death, protects your child's financial future by paying out a
monthly sum of 1% of the Face Amount every month for his/her education till the maturity of the
policy. The policy also provides for a waiver of all future premiums in order to keep the policy
active and in-force.

• You can choose to add a Disability Protection Rider (DPR) to this plan which will protect you
in the event of a disability due to sickness or accident.

• Like in all other life policies, the paid premiums are income tax deductible (subject to
prevailing tax laws & rules).
• This EPP Plus plan also provides a personal accident coverage that ensures the financial future
of your loved ones in case of your death, disability or injury due to accident.

• In the unfortunate event of the child’s loss of life before the plan’s maturity, Face Amount plus
accrued Bonus(es) are payable, subject to Juvenile Endorsement. For details please see the
Policy Document.

Personal Accident Coverage:

If you qualify for Accident Coverage, this Plan provides following Benefits in case of your
Death, Disability or Injury due to Accident within the Premium Paying Period:

Three Payment Plan (3PP) Plus

The unique feature of the plan is that MetLife pays you 50% of the Face Amount (FA) much
before the maturity of the policy. It combines both Death and Living Benefits in the most
beneficial and convenient manner to you or your beneficiary.

The Living Benefits consists of, among others, Three (3) Installment Payments:

25% of the Face Amount is paid at the End of One-Third (1/3rd) of the Term of the Policy.

Another 25% of the Face Amount is paid at the End of Two-Third (2/3rd) of the Term.

The remaining 50% of the Face Amount is paid with Reversionary Bonus and Capital Growth
Dividends (if applicable) at Maturity.

The Death Benefit payment of the Full Face Amount along with Bonuses is paid in the event of
death at any time during the term of the policy. 3PPP is available for 12, 15, 18, 21 or 24 Years
of coverage.

2. Savings and retirement policies: our selection of savings and retirement products mean that
you can take steps towards the lifestyle you really want today, as well as plan for the future you
really want tomorrow.

They offer 6 retirement policies.

1. Income growth policy.

2. Life time pension plan

3. Dps super.

4. Thankful dps.

5. SDPS

6. EPP

3. Accident and health: Our accident and health insurance products give you one less thing to
worry about, should the unthinkable happen. There are various options you can choose from to
get the ideal level of cover for you and your family.

They offer 3 accidental and health plan

1. CI ROP
2. Critical care
3. Hospital care

For corporate

1. Employee benefit: Like all well run companies, yours will rely on your people to
succeed. It's therefore crucial to offer the best benefits package you can, to attract talented
people and to retain a motivated workforce. It’s also worth remembering that many
employees today see these benefits as a key consideration when assessing the
employment market.

2. Credit card insurance: MetLife is the pioneer in introducing Credit Life insurance in the
market. Our range of Credit Insurance products are comprehensive and flexible, giving
you the right mix of coverage, features and benefits to suit your customer segments.
 3. Insurance for non employee: MetLife also offers a range basic group death & disability
insurance protection solutions for client or membership base of large organizations.
These solutions are customizable giving you the right mix of coverage, features and
benefits to suit your customer segments.

Laws, contract and agreement

 
PART I
PRELIMINARY

1. Short title, extent and commencement

2. Definitions

PART II
PROVISIONS APPLICABLE TO INSURERS

2A. Insurers to be subject to this Act while liabilities remain unsatisfied

2B. This Act not to apply to certain insurers ceasing to enter into new contracts before
commencement of Act
2C. Prohibition of transaction of insurance business by certain persons
3. Registration
3A. Renewal of Registration
3AA. Insurers not to transact both life and general insurance business
3B. Rates, terms and conditions of operation of an insurer
3BB. Basis for determination of premium rates
3BBB. Determination of premium rates for general insurance business
3C. Provisions relating to collection of premiums
3D. Provisions relating to reinsurances and insurances abroad
3E. Licensing of branch offices of insurers
3F. Restriction on issue of certain policies at new rates, etc.
4. [Omitted.]
5. Restriction on name of insurer
6. Requirements as to capital and share-holdings
7. Deposits
8. Reservation of deposits
9. Refund of deposits
10. Separation of accounts and funds

INVESTMENT, LOANS AND MANAGEMENT

27. Investment of assets

27A. Insurers of general insurance business to have assets invested in Bangladesh
27B. Restriction on certain investments, etc.
28. Statement of investments of assets
29. Prohibition of loans
30. Liability of directors, etc., for loss due to contraventions of sections 27 and 29
31. Assets of insurer how to be kept
32. Appointment of managing agent prohibited
32A. Power to restrict payment of excessive remuneration
32B. Provisions relating to managers, etc.

INVESTIGATION

33. Power of Chief Controller of Insurance to order investigation

34. Powers of investigator
34A. Power to give directions to the insurer
34B. Power to require calling of meeting of directors, etc.
34C. Power to remove Chairman, Director, etc., of the insurer

AMALGAMATION AND TRANSFER OF INSURANCE BUSINESS

35. Amalgamation and transfer of Insurance business

36.Sanction of amalgamation and transfer by Court
37. Statements required after amalgamation and transfer

ASSIGNMENT OR TRANSFER OF POLICIES AND NOMINATIONS

38.Assignment and transfer of insurance policies

39.Nomination by policy-holder
 COMMISSION AND REBATES AND LICENSING OF AGENTS

40. Prohibition of payment by way of commission or otherwise for procuring business

40A. Limitation of expenditure on commission
40B. Limitation of expenses of management in life insurance business
40C. Limitation of expenses of management in general insurance business
40D. Remuneration
41. Prohibition of rebates

SPECIAL PROVISIONS OF LAW

45. Policy not to be called in question on ground of mis-statement after two years
46. Application of Bangladesh law to policies issued in Bangladesh
47. Payment of money into Court
47A. Dispute over claims on life policies of small amount
47B. Interest on late settlement of claims
47C. Dispute over motor insurance claim
47D. Qualifications of Chairman, etc.
47E. Resignation and removal
47F. Benches of the Board
47G. Fees for application
47H. Procedure and Powers of the Board
47I. Appeal
47J. Recovery of the claim as decided
47K. Notice to and hearing of insurance companies
47L. Other Jurisdiction of Board

MANAGEMENT BY ADMINISTRATOR

52A. When Administrator for management of insurance business may be appointed

52B. Powers and duties of the Administrator
52C. Powers of Administrator respecting property liable to attachment under section 106
52D. Cancellation of contracts and agreements
52E. Termination of appointment of Administrator
52F. Finality of decision of appointing Administrator
52G. Penalty for withholding document or property from Administrator
52H. Protection of action taken under sections 52A to 52D

WINDING UP

53. Winding up by the Court

53A. Unpaid-up share capital
54. Voluntary winding up
55. Valuation of liabilities
56. Application of surplus assets of life insurance fund in liquidation or insolvency
57. Winding up secondary companies
58. Schemes for partial winding up of insurance companies
59. Return of deposits
60. Notice of policy values
61. Power of Court to reduce contracts of insurance

SPECIAL PROVISIONS RELATING TO EXTERNAL COMPANIES

62. Power of Government to impose reciprocal disabilities on non-Bangladesh companies

63. Particulars to be filed by insurers established outside Bangladesh
64. Books to be kept by insurers established outside Bangladesh

PART III
PROVIDENT SOCIETIES

65. Definition of “provident society”

66. Restrictions on provident societies
67. Name
68. Insurable interest
69. Dividing business
70. Registration
70A. Renewal of registration
70B. Supplementary information and reports of alterations in particulars furnished with
application for registration
71. Certain provisions of Part II to apply to provident societies
72. Working capital

PART IV
MUTUAL INSURANCE COMPANIES AND CO-OPERATIVE INSURANCE SOCIETIES

95. Definitions
96. Application of Act to Mutual Insurance Companies and Co-operative [* * *]Life Insurance
Societies
97. Working capital of Mutual Insurance Companies and Co-operative Insurance Societies
98. Deposits to be made by Mutual Insurance Companies and Co-operative Insurance Societies
98A. Prohibitions of loans
99. Transferees and assignees of policies not to become members

PART V
MISCELLANEOUS

102. Penalty for default in complying with, or act in contravention of this Act
103. Penalty for transacting insurance business in contravention of sections 3, 7 and 9
104. Penalty for false statement in document
105. Wrongfully obtaining or withholding property
106. Power of Court to order restoration of property of insurer or compensation in certain cases

Recommendation

 Need to provide more sales training.

 If possible they can hire a sales training consultant.

 Can tie with a international sales training organization.

 Motivate sales person

 Provide more incentive to the sales person

 Focus more on promotional activity

 Focus more on b2b selling.

 Grab more market share

 Hire more intelligent employees

 Don't force for sales

 Branch offices are very strict

 Every single employee has to report or discus about their performance or problems with
their Agency Manager

 Provide more online based solutions and services

 Conclusion

MetLife Alico is doing well in this sector to satisfy people with their wants and demands in a
well mannered way. The process and procedures, the benefits, the proper and clear way of
premium calculations, an organized payment process etc are already got the popularity among
the targeted customers. As a first multinational Insurance company in Bangladesh, MetLife Alico
has completed more than 20 successful years in this country. Its efficient management team has
made its proper progress in every step throughout these decades. All agencies are the core
operational active places for their overall business. So, working in such agency is a remarkable
experience. As this company deals with people’s money so it’s very important to take care of it
properly. Agencies are the intermediaries between the people and the company. So, it is very
important to work properly in these branch or agency offices to minimize or reduce the risk and
faults regarding the sold policies.