Training And 09 Development Programs

TRAINING AND 09 DEVELOPMENT PROGRAMS GROUP 5 KIITSOM

MET LIFE: TRAINING AND DEVELOPMENT PROGRAMS

Guided by:Prof. Mrs. Debjani Ghosh KIIT School Of Management Bhubaneswar PRESENTED BY-

PRAGNYA MISHRA-151

JAYDEEP-152 NIRUPAMA GHOSH DASTIDAR-153 BHAWANA MALLIK-154 ASHISH RANJAN JENA155

ACKNOWLEDGEMENT At the outset we express our most sincere grateful acknowledgement to the holy sanctum “KIIT school of management” the temple of learning, for giving us an opportunity to pursue the management course thus help shaping our career. We also wish to express our deep sense of gratitude to our PROJECT GUIDE Mrs. Debjani Ghosh , lecturer, for his continuous and tireless support and advice not only during the course of our

project but also during the period of our stay in “KIIT school of management”.

(Group 5)

CONTENTS 1)Company Overview 2) Met life – the life insurance company Functional structure 4)Bhubaneswar agency 3)

5)

Training process of Advisory Agents in Met Life Insurance

6)MDRT (Million Dollar Round Table)

7)Commissioned agents 8)Bibliography

COMPANY OVERVIEW: MetLife: A Fortune 500 company in India The Metropolitan Life Insurance Company (MetLife ®), established in 1868, is one of the largest insurers in the US, with over US$ 2.4 trillion of life insurance. MetLife serves approximately 10 million individual households in the US as well as 88 of the Fortune 100 companies. MetLife’s institutional clients have approximately 33 million employees and members. MetLife India Life Insurance Company Private Limited was incorporated in India in 2001 as a joint venture between MetLife International Holdings Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Pvt. Ltd. and other private investors. MetLife India has developed and distributes a range of life insurance products in India. MetLife India is headquartered in Bangalore with offices and presence in major Indian cities, and an additional 1000 outreach points through its channel partners. MetLife India is driven by the principles of uncompromising integrity and the highest level of professionalism. Its mission is to work with utmost integrity, fairness and financial prudence in all its dealings.

The company has 600 employees, 3,000 commission agents and 300400 other distributors. MetLife India has a capital base of US$ 35 million. Working towards a goal of 5 million customers by 2010, MetLife India currently has more than 100,000 customers.

ABOUT THE LIFE INSURANCE COMPANY – METLIFE

• MetLife is a joint venture between its parent company, Metropolitan Life Insurance Company (MetLife), Jammu and Kashmir Bank, M.Pallonji and Co. and other private investors. •

MetLife, having 130-year-old reputation, is the largest Life Insurance Company in the U.S.

• MetLife operates in 15 countries throughout Americas, Europe and Asia and it serves approximately 9 million individual households in the U.S as well as 87 of the Fortune 100 companies. • MetLife benefits from its parent company’s global presence in the field of insurance, track record of establishing successful insurance operations in emerging markets and the unique strengths of its other Indian promoters. • MetLife, headquartered in Bangalore, delivers value and worldclass service to customers through its financial advisors and corporate sales representatives.

STRUCTURE OF THE SALES FUNCTION

2007

2008

Pvt. Sector insurance growth rate (premium)

99%

91%

LIC growth rate(premium)

125%

-3%

Industry growth rate(premium)

116%

26%

MetLife India Growth rate(premium)

126%

152%

METLIFE’S FUNCTIONAL STRUCTURE: MetLife’s sales function is divided into two functional structures within the organization. These two Structures are:

Bancassurance Agency Both types of structures are described as follows:

BANCASSURANCE OR BANCA: - MetLife is a pioneer in offering life insurance solutions through banks and alliances. Within a short span of two years, and with nearly a large number of partners, B & A has emerged as a vital component of the company’s sales and distribution strategy, contributing to approximately one third of company’s total business. The business philosophy at B&A is to leverage distribution synergies with there partners and add value to its customers as well as the partners. Flexibility, adaptation and experimenting with new ideas are the hallmarks of this channel. The business philosophy at B&A is to leverage distribution synergies with its partners and add value to the business of both. Bancassurance Team include

Banks The Jammu and Kashmir Bank Axis Bank Dhanalakshmi Bank Karnataka Bank

Corporate Agents

Karvy Consultants Limited Geojit Securities Way2wealth Consultancy Mini Muthoottu Bank

AGENCY:-Agency is the largest distribution channel of MetLife comprising a large advisor force that targets various customer segments. The strength of agency lies in an aggressive strategy of expanding and procuring quality business. With focus on sales & people development, agency has emerged as a robust, predictable and sustainable business model. Generally this advisors works under the leadership of sales manager, who motivate them in every step by providing training and guidance to them, usually each sales manager have 20 to 30 advisors under them.

Branch Sales Manager (BSM)/ Area manager Agency Manager(AM) Sales Manager (SM) Advisors:- Advisors are the people who are the regular employees of the METLIFE, [Commissioned agents are also a part of agency but they are not the regular employees of the company and are being paid for insuring peoples with Metlife’s traditional and non traditional insurance policy.]

BHUBANESWAR AGENCY MetLife Bhubaneswar branch is divided into three agency headed by one agency manager with senior sales managers and sales managers in their individual team. Then the sales manage appoint financial advisors who work as the agents for the company. The multiple distribution channels will help an insurance company to offer a range of contact points to the customer, thereby increasing the chances of success. However, along with these distribution channels comes the challenge of 'relationship management'. Since most of the new channels involve collaboration with various entities whose demands and powers of negotiation are varied, it requires delicate skills on the part of the insurance company to manage these relationships. Effective management of channel conflict, and curtailing the costs of distribution will be of utmost importance. The advisory agents undergo proper training prior to join the organization in assigned branches.

Training of Advisory Agents in Met Life Insurance The training program of the insurance agents in Met Life Insurance is called Pathshala and is divided into four modules which are as follows: ➢ ➢ ➢ ➢

CST (Compliance and Sales Training) PAP (Professional Advisory Program) EAP (Expert Advisory Program) MAP (Master Advisory Program)

CST Training Program: CST Program also known as Compliance and Sales Training program is the first module in the training program that is designed specifically to enhance the functioning of the agents. Attending this program is important for the growth of the agent and is a prerequisite for the Trigger and Eagle awards. Module Overview:Duration: 3 days of 8 hours each.

Purpose: The purpose of this module is to induct the agent into the life insurance professional sales career.

Learning Objective: ➢ Understand & relate to MetLife ➢ Comprehensive understanding of the products ➢ Understanding and practice basic script for an effective sales process in the natural market ➢ Through understanding of various processes including underwriting, claims. Understanding and relate to MetLife: Under this part the agents are introduced to the company so that they could come to know about the history of the company, the values that the company holds and culture that is being followed in the company so that they could easily relate themselves to the company. Comprehensive understanding of the products: Under this part the agents are introduced to the different products that the company is offering which help them to gain sufficient knowledge about the product portfolio. They come to know about the different types of the different types of the products (e.g. Met Suvidha, Met Bhavishya, ULIP etc.), the benefits they are providing, the target market of the product (e.g. Met Suvidha is target mainly the married/unmarried peoples, people with family and children, key persons of the organization etc. while Met Bhavishya mainly target the childrens), the premiums of different products.

Understanding and practice basic script for an effective sales process in the natural market: Under this part the agents are trained how to start their business in their known market (natural market) by automatically creating a relationship between them and the prospect for a personal reason. They are also taught the benefits that are associated with the natural market, from where to start and what should be their expected results.

PAP Training Program: PAP Program also known as Professional Advisory Program is the second module of the training program. Module Overview Duration: 3 days 8 hours Learning Objective: ➢ ➢ ➢ ➢

Understanding taxation for the current financial year How to sell problems through illustrations Objection handling Building business on Referral Model.

EAP Training Program: EAP Program also known as Expert Advisory Program is the third module of the training program. This course will work wonders for the agents, provided that they work the course well.

Module overview: Duration: 2 days 8 hours each Purpose: The purpose of this module is to enable the agents to sell in referral market professionally. Learning Objectives: At the end of this module the agents will be able to understand: ➢ MetLife Sales Process ➢ How to migrate to referral market ➢ How to do need based selling to achieve higher average premiums and more closing ➢ Goal setting

Sales Process In this part the agents are introduced about their customers. They follow an outline called sales Turbine and practiced it week after week until it becomes natural to them. The outline is as follows:

PROSPECTING Prospecting is the first step of the sales process which means to prospect for different customers through personal contacts or from any other source. We can also prospect a customer by taking referrals from our old customers.

APPROACH Approach is the process after prospecting a customer in which we have to make an approach to the customer for an appointment at his/her convenient time and introduce your company and its service.

FACT FINDING In this process we have to find out the need of a customer in order to provide a suitable product. This is done by explaining the financial securities three corner i.e. protection, accumulation and retirement. SOLUTION This is the step in which we have to find out the perfect product which will solve the requirement of the customer CLOSING This is the last step of the complete sales process in which we assist the customer in underwriting process. This policy takes the agents to the next level by giving them insight into the advanced concepts of life insurance advisory that will enable them to reach greater levels of success. The program discusses critical subjects such as persistency and case rate and also some important traditional products. It also puts lights on important topic of retirement planning, which is an integral part of financial planning for all their clients.

MAP Training Program MAP program also known as the Master Advisory program is the forth and the final module of the MetLife sales training program. MetLife training goes hand in hand with the field achievements of the agents. This is a two day program which is offered as a commitment to the development of the agents that will give them the skills that will directly translated into more business. During this 2 days program the agents goes through some technical subject areas which are important for the growth in the profession.

Module Overview: Duration: 2 day 8 hours each. Purpose: Learning objectives: By the end of this 2 day MAP Module the agents should be able to ➢ ➢ ➢ ➢ ➢

Understand Financial Markets and their working Understand Estate Planning especially how it relates to insurance Aspire for international recognition with MDRT Understand claims and Reinsurance process Set Goals to achieve your dreams.

Understanding Financial Markets In this part the agents are introduced to the financial markets, it’s type i.e. classification of the financial market etc, mutual funds etc.

Understanding Estate Planning especially how it relates to insurance In this part the agents are introduced to estate planning, different methods of transferring the ownership, procedure to make a gift, what is a trust, what is the importance of will, what are procedures involved in the transfer of property based on a will.

MDRT MDRT stands for Million Dollar Round Table is the Primer Association of Financial Professionals. ➢ It is an international, independent association of more than 35,000 members, or less than 1%, of the world’s most successful life insurance and financial services professionals from 476 companies in 76 nations and territories. ➢ MDRT members demonstrate exceptional professional knowledge, strict ethical conduct and outstanding client service. ➢ MDRT membership is recognized internationally as the standard of sales excellence in the life insurance and financial services business. It is started in 1972 by 32 extraordinary life insurance producers as a forum in order to foster a high standard, professional approach to life insurance sales and service. Purpose of MDRT: ➢ To provide incentives for all insurance and financial services professionals and advisors to reach their full potential in the professional development, technical competence and sales performance. ➢ To evaluate professional standard and prestige of insurance and financial services of the professionals and advisors.

Mission Statement: The mission of the MDRT is to be valued, member-driven international network of leading insurance and investment financial service professionals/advisors who serve their clients by exemplary performance and the highest standards of ethics, knowledge, service and productivity. Code of Ethics: ➢ MDRT members should be ever mindful that complete compliance with and observance of the Code of Ethics of the Million Dollar Round Table shall serve to promote the highest quality standards of membership. ➢ These standards will be beneficial to the public, and the insurance and financial service profession. Annual Meeting of MDRT: ➢ A gathering of more than 6,000 of the world’s top financial services professionals in the world. ➢ Exposure to the finest and most innovative sales ideas in the life insurance-based, financial services business. ➢ Motivational and educational presentations by about 100 speakers. ➢ A unique opportunity to network with other top financial service professionals from around the world.

The MDRT Annual Meeting is an opportunity for the agents to: ➢ Celebrate being among the most elite financial professionals in the world; ➢ Learn cutting-edge ideas and concepts from the industry experts; ➢ Connect to other industry leaders- professionally and personally; ➢ Recharge yourself and let MDRT motivate you to have best year, every year; ➢ Grow through the life- and career-changing experience.

The advisory training is also provided to the commissioned agents. The Commissioned agents are not the regular employees of the company. But they undergo the same training as that of the advisory agents. The commissioned agents are required to cross each training module to get the specified incentives. The advisory agents after crossing all the four modules of training program are then placed in different branches of Metlife India.

Qualification Criteria for Commissioned agents: REWARDS

COMPLIANCE AND SALES TRAINING

1 NON TRADITIONAL + 2 TRADITIONAL POLICY

Rs.3000/-

Rs.2000/-

Rs.1000/-

PROFESSIONAL ADVISORY PROGRAMEE

2 NON TRADITIONAL POLICIES EXPERT ADVISORY PROGRAMEE

MASTER ADVISORY PROGRAMEE

2 NON TRADITIONAL POLICIES

From the above representation it is clear that the qualifying target for an commissioned agent to move to: ➢

➢ ➢

PAP Module is to have 1 Nontraditional insurance policy and 2 Traditional insurance policy. EAP Module is to have 2 Nontraditional insurance policy. MAP module is to have 2 Nontraditional insurance policy.

Bibliography Met Life India: Bhubaneswar 1) Sales Manager : Mr. Rahul Kanwal 2) Agency Manager: Mr. Pradeep Kumar Sethi 3) Training Manager: Mr. Durga Charan Chatterjee