Industrial Tour Report

On
COMPARATIVE STUDY BETWEEN JIBAN BIMA
CORPORATION AND METLIFE ALICO

Submitted To
Dr. M.A.Taher
Professor
Department of Management

Submitted By
Sanjida Ashrafi Rahi
ID-15302020
Session: 2014-2015
BBA Program
Department of Management
University of Chittagong
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COMPARATIVE STUDY BETWEEN JIBAN BIMA

CORPORATION AND METLIFE ALICO
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Letter of Submission
July 09, 2020

Dr. M. A. Taher

Professor

Department of Management

University of Chittagong

Subject: Submission of the Industrial Tour report.

Dear Sir,

I am Very much pleased to submit the industrial tour report on “Comparative Study between
Jiban Bima Corporation and MetLife ALICO” as a requirement for the completion of BBA
program. I have completed the report on the basis of practical experience and information
collected through interview and observation of Jiban Bima Corporation and MetLife ALICO. I
have tried my best to make this report informative with the available current data regarding my
topic.

I believe that the experience I acquired from this study will be valuable learning in my life. This
is a complete one and sincerely looks forward to any possible correction. I am very glad that you
have given the opportunity to prepare this report for you and hope that this report will meet the
standards you wish. Any limitation in my report will subject to your kind full consideration.

Sincerely Yours,

Sanjida Ashrafi Rahi

ID- 15302020

BBA Program

Department of Management

University of Chittagong
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Acknowledgement

A work cannot be effectively completed by one individual without the help of others. In every
step of this study many individuals and institutional experts supported me. It gives me an
immense pleasure to acknowledge them with my gratitude

First of all, I would like to thank and express my deep gratitude towards the Almighty
Allah for making me enable to complete this report.

I am deeply in debt to my industrial tour supervisor „MD Abu Taher‟ for providing me all
guidance and support that I needed. His sincere guidance, untiring cooperation, valuable
suggestions and inspirations of creating a unique report enabled me to overcome all problems
during the course of my internship program and while preparing this report.

My sincere gratitude toward Mr. Nazimul Islam from Jiban Bima Corporation and Mr. Himel
from MetLife ALICO for helping me to complete this report with giving information.

Finally, my deep and sincere gratitude to my family for their continuous and unparalleled love,
help and support. I am forever indebted to my parents for giving me the opportunities and

experiences to complete this report successfully.

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Executive Summary

This industrial tour report is prepared on “Comparative Study Between Jiban Bima
Corporation and MetLife ALICO”. This report mainly focuses on the comparative analysis
between two companies of our country which are Jiban Bima Corporation and MetLife ALICO.
There have been many things regarding the insurance practices which have been shown as a
matter of comparison between the two companies. This report is prepared on the basis of primary
and secondary knowledge.

In the very inception of the report, a brief overview has been discussed relating to the factors
necessary to be discussed about insurance practices to have better knowledge refreshment. Here
gave a short discussion about introduction of the two companies.

The second part is about background of the two companies, company profile, business
objectives, vision, mission, corporate organogram and their products and service offerings. From
this part we can get brief knowledge about the two companies‟ profile.

The third part is about findings from the study of comparative study between Jiban Bima
Corporation and MetLife ALICO. It is the most important part of this report. Here, four major
corners have been drawn for concentration in the light of comparative analysis to represent the
position of the Jiban Bima Corporation and MetLife ALICO. The corners are availability of
policy plan or schemes, financial performance, SWOT analysis and business target of the two
companies.

At last, recommendation and conclusion has been shown from my brief knowledge in the aspects
of both of the companies.

It‟s purely hoped that the report has gained success in maintaining its authenticity in the sense of
the available information.
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Table of Contents

1.Introduction 9
1.1 Introduction 10
1.2 Objectives of the Study 11
Chapter 01
1.3 Methodology of the Study 11

1.4 Scope of the Study 12

1.5 Limitation of the Study 12

2.Organizational Overview 13
2.1 Historical Background of the 14
Company
2.1.1 Jiban Bima Corporation 14

2.1.2 MetLife ALICO 14-15

2.2 Company Profile at a Glance 15
Chapter 02
2.2.1 Jiban Bima Corporation 15
2.2.2 MetLife ALICO 15-16
2.3 Objectives 17
2.3.1 Jiban Bima Corporation 17
2.3.2 MetLife ALICO 17
2.4 Vision 17
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2.4.1 Jiban Bima Corporation 17

2.4.2 MetLife ALICO 17-18

2.5 Mission 18
2.5.1 Jiban Bima Corporation 18

2.5.2 MetLife ALICO 18

2.6 Corporate Organogram 18

2.6.1 Jiban Bima Corporation 18-19

2.6.2 MetLife ALICO 19-20
2.7 Products and Service 21
Offerings
2.7.1 Jiban Bima Corporation 21-22
2.7.2 MetLife ALICO 22-23
3. Findings 24
3.1 Comparative Analysis
between Jiban Bima Corporation 25
& MetLife ALICO from different
Perspective

3.1.1 Available Insurance Policy 25

Chapter 03 and Schemes
3.1.1.1 Jiban Bima Corporation 25-34

3.1.1.2 MetLife ALICO 34-39

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3.1.2 Financial Performance 39

3.1.2.1 Jiban Bima Corporation 39

3.1.2.2 MetLife ALICO 39-40
3.1.3 SWOT Analysis 40
3.1.3.1 Jiban Bima Corporation 40-41
3.1.3.2 MetLife ALICO 41-43
3.1.4 Business Target 43
3.1.4.1 Jiban Bima Corporation 43

3.1.4.2 MetLife ALICO 44

4.Recommendation & Conclusion 45

4.1 Jiban Bima Corporation 46
Chapter 04
4.2 MetLife ALICO 46-47
4.3 Conclusion 47-48
References 49
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Chapter 01
Introduction
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1.1 Introduction

The concept of insurance has developed on the fact that human life is full of uncertainties and the
life of a person itself is very uncertain. Life is full of risks. For property, there are fire risks, for
shipment of goods, there are perils of sea, for human life, there is the risk of death or disability
and so on and so forth. (Gopalkrishna, 2008)
Life insurance is a husband‟s privilege, a wife‟s right and a child‟s claim. (Huebner, 1960, p.17-
24). life insurance provides an assurance that if such an event happens, the person or his
dependents would get financial assistance to bear the loss.
It has been aptly said that life insurance offers the safest and surest means of establishing a
socialistic pattern, perhaps not without a lot of sweat but certainly without blood and tears. It
stabilizes the economic security of the policy holder and at the same time contributes its might to
promotion of industry by providing the necessary capital and supports various social security
measures. (K S N Murthy & K V S Sarma, 2002, “Modern Law of Insurance”, Fourth Edition,
p.138).
Life insurance is a contract in which one party agrees to pay a given sum of money upon the
happening of a particular event contingent upon the duration of human life in consideration of
immediate payment of a smaller sum or other equivalent periodical payments by the other.
(Joseph, 1912)

One of the effects of life insurance not being a contract of indemnity is that on happening of the
event insured against the insurer should pay the agreed amount irrespective of whether the
assured suffers any loss or not. (Avtar, 2004)
This report is prepared to focus on the comparative overview of insurance practices between
Jiban Bima Corporation and Metlife ALICO. Here I have shown the comparison between these
two companies about their vision, mission, corporate values, corporate organogram and product
and service offerings etc.
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1.2 Objective of the Study

The main objective of the study is to present the comparative overview of insurance practices in
both Jiban Bima Corporation and MetLife Alico. Again some other objectives will be fulfilled
through this study which is given below:
 To relate the theoretical view with the practical view of insurance studies.
 To know the comparative picture of insurance practices of both organization.
 To know the role of life insurance in national savings and in national economy.
 To increase our experience in data collection and analysis.
 To know financial performance and prospects of two organization and able to compare
between them.

1.3 Methodology of the Study

The report has been conducted on the basis of experience gathered during the industrial tour at
Jiban Bima Corporation and MetLife ALICO. The report is prepared by using both primary and
secondary data.

The primary sources are as follows:

 Face-to-face conversation with Deputy General Manager.

 Observation of the employee and Management sector of the company.
 Personal observation.

The secondary sources of data and information are:

 Annual report.
 Related Website.
 Records and Documents.
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1.4 Scope of the Study

The scope of the study is life insurance and competitive analysis between Jiban Bima
Corporation and MetLife ALICO.

1.5 Limitation of the Study

We have tried our level best to collect all available information through direct visit to the Jiban
Bima Corporation and MetLife ALICO. Despite the report is not free from all limitations. While
I preparing this report I faced some problems. Which are given below:

 Authorities are not willing to disclose some confidential information.

 Time for the visit is not sufficient.
 Only Manager, Deputy General Manager and officer conduct a session so they could not
provide all information about this company.
 We visit only two insurance organizations in Bangladesh which is not enough to get full
overview of the insurance practices.
 Due to limited access of the data, this study may not be perfect to the decent percent.
 Lastly, our personal limitations as very first in this type of study and report making.
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Chapter 02
Organizational Overview
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2.1 Historical Background of the Company

2.1.1 Jiban Bima Corporation

Jiban Bima Corporation (JBC) is the state-run life insurance provider in Bangladesh under the
provisions of the Insurance Act 1938, Insurance Rules 1958, and related other laws enforceable
in Bangladesh in Bangladesh Corporation Act 1973. The JBC started its maiden journey on 14
May 1973 with assets and liabilities worth TK.157 million of defunct 37 life Insurance
companies. Since its inception, JBC is working among the people of Bangladesh with two basic
objectives: firstly, to cover the risks and raise savings habits among the people and secondly,
create funds for the country's economic development through Innovative life insurance
Scheme.
The JBC offers 15 different types of life insurance schemes. These are whole life assurance,
endowment assurance, child protection policy, children endowment, anticipated endowment
assurance, pension scheme policy, single payment policy, mortgage protection policy, group
term insurance policy, group endowment policy, group variable endowment policy, group
pension policy, grameen bima policy, joint life endowment policy, and progressive premium
policy.

2.1.2 MetLife ALICO

MetLife Bangladesh is the largest life insurer in the country. It‟s a fortune 500 company
Headquarter in New York, the U.S. and established in 1952. MetLife & ALICO were two
different insurance companies before 2010.The company was popularly known as „ALICO‟ until
its acquisition by MetLife, Inc. globally in November 2010 when it was cobranded as „MetLife
ALICO‟ and later as „MetLife‟ in 2015.In Bangladesh, its Head office is situated in Motijheel
Commercial Area, Dhaka. It serves over a million customers and is a major employer in
Bangladesh with over 16,000 field force and employees.
MetLife offers financial protection to the people of Bangladesh through a mix of traditional and
innovative products such as individual and group life insurance policies, pension schemes,
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children‟s education policy, Shariah based (Takaful) saving schemes and accident and health
products. The products are designed to suit people of different age groups, professions and
income ranges.

2.2 Company Profile at a glance

2.2.1 Jiban Bima Corporation

Group Name Jiban Bima Corporation

Address Regional Office: Jiban Bima Bhaban
1053,SK. Mujib Road,Agrabad,Chittagong.
Year of Incorporation 14 May,1973
Head Office 24,Motijheel, Commercial Area
Dhaka, Bangladesh
Number of Regional Office 8
Number of Corporate Office 12
Legal Status of the Corporation State Owned Corporation

Authorized Capital 20 crore

Paid up Capital 5 crore

Amount of Investment 1898.57 crore

Products & Services 15 types of Life Insurance Schemes

Market Allover Bangladesh

Number of Executive Officer 194

2.2.2 MetLife ALICO

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Group Name MetLife ALICO

Registered Name American life Insurance Company
Headquarter New York, U.S.
Year of Incorporation 1952

Head Office MetLife Building, 18-20 Motijheel

C.A., P.O. Box 9,Motijheel, Dhaka-1000,
Bangladesh.

Market leader Since 1997

Number of Customers More than 1 million
Number of Sales Offices 9
Number Customer Touch Points 14
Number of Agencies 217

Number of Unit Offices 56

Number of Financial Associates 16000 +

Market Globally 50 +

Service Location United States, Japan, Latin America, Asia,

Primary Products & Services
Financial Strength
Europe and the Middle East.
Individual Life Insurance, Accident &
Health ,Group Life and Health, Employee
Benefits, Annuities etc.
AAA Credit Rating in Bangladesh

Awards & Recognition Received top tax payers‟ award from

NBR, Bangladesh
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2.3 Objectives

2.3.1 Jiban Bima Corporation

 Provide life insurance benefit to the people at a competitive cost.
 Mobilize savings through various schemes and create funds for economic development
of the country.
 Offer products for maximum returns at minimum cost.
 Create awareness among the people to develop savings habits.
 Develop suitable schemes to meet the need of all classes of people.

2.3.2 MetLife ALICO

Integrity, leadership, citizenship, excellence, professionalism, ethical operations and respect are
the core values instilled in MetLife ALICO at its inception. The main goals and objectives of
MetLife ALICO are -
 Increase market share by 25%
 Increase net profit by 10%
 Increase revenues by 15%

2.4 Vision

2.4.1 Jiban Bima Corporation

The main vision of Jiban Bima Corporation is-
“A business organization that covers risks and offers profits to make life a matter.”

2.4.2 MetLife ALICO

The gist of the vision of MetLife ALICO is-
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“To be the world’s first-choice provider of life and health insurance services. We will
create unmatched value for our customers, colleagues, business partners and shareholders
as we contribute to the growth of sustainable, prosperous communities.”

2.5 Mission

2.5.1 Jiban Bima Corporation

Mission statement of the corporation is-

“To help people improve their standard of livings with a saving content and create funds

Formation’s economic development.”

2.5.2 MetLife ALICO

Mission statement of the company is-

“To provide high quality insurance products and services in accordance with the latest

international standards and best practices and to provide value to our customers

throughout the kingdom as well as establishing and maintaining those long lasting
relationships.”

2.6 Corporate Organogram

2.6.1 Jiban Bima Corporation

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2.6.2 MetLife ALICO

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Head Office
Agency/Branch

Branch Manager Branch Manager Branch Manager

1 2 3

Unit Manager
Unit Manager Unit Manager
3
1 2

Fin. Associate
3
Financial Associate Fin. Associate
1 2
Field Rep.
3

Field Representative F.R.

Field Rep.
1 2 4

Field Rep.
5
Agent
1
Agent
2

Agent
3

Agent
4
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2.7 Products and Service Offerings

2.7.1 Jiban Bima Corporation

The JBC currently offers the following types of life insurance schemes:-

 Anticipated Endowment Insurance with profit plan-05.

 Anticipated Endowment Insurance without profit plan-05
 Child Endowment insurance without profit plan-45
 Child Endowment insurance with profit plan-9
 Double Protection Insurance with profit plan-10
 Endowment Assurance with profit plan-03
 Endowment Assurance without profit plan-23
 Grameen Jiban Bima with profit plan-91
 Granted Bonus Endowment Insurance plan-48
 Group Endowment Assurance
 Group Team Insurance
 Joint Life Endowment Insurance with profit plan-08
 Marriage Endowment Policy plan-07
 Money Back Term Insurance policy plan-05 (without profit)
 Multiple Payment Policy with profit plan-06
 Pension Policy Plan-12
 Progressive Premium Policy with profit Plan -04
 Single Premium with profit plan-17
 Term Insurance without profit plan-51
 Whole Life Insurance with profit plan-01
 Whole Life Insurance without profit plan-21
 Overseas Assurance Plan with profit
 Monthly Saving Scheme with profit
 Monthly Saving Scheme without profit
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 Triple Protection Policy

 Mortgage Protection Policy without profit

The following services are provided by JBC:-

 Online service
 Online Policy Status
 Online Premium Payment
 Bonus Information
 Tax Benefits/ Rebates
 Customer Service Section
 Information Officers

Jiban Bima Corporation also provide some special service in the country. It has launched
Banglalink Insurance Pay Service to collect insurance premium through banglalink.

2.7.2 MetLife ALICO

There are three major criteria in their offer list. These are “Life Insurance Policy”, “Savings
and Retirements Plan” and finally “Accident and Health care Plan”.
Every criteria here has divided again into several subdivisions according to the customers‟ needs
and requirements. These are as following:
1. Life Insurance Policy
 Education Process Plan [EPP] Plus
 Three Payment Plan [3PP] Plus
2. Savings and Retirement Plan
 Income Growth Plan Policy
 DPS Super Policy
I. DPS Super – Gold Plan
II. DPS Super – Silver Plan
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III. DPS Super – Bronze Plan

3. Accident and Health Care Plan
 Critical Care Plan
 Hospital Care Plan

Thus we can conclude the types of product and service offerings of MetLife ALICO and Jiban
Bima Corporation in Bangladesh as well as in all over the world.
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Chapter 03
Findings
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In this chapter, the report depicts on the key analytical facts that exist between the two concerned
Organizations in the light of comparison and informative statements. The chapter also focuses on
the different factors that the maker of the report has decided to be important to focus as a matter
of differential analysis between the two organizations.

3.1 Comparative Analysis between Jiban Bima Corporation and

MetLife ALICO from Different Perspective

3.1.1 Available Insurance Policy and Schemes

3.1.1.1 Jiban Bima Corporation
1. Anticipated Endowment Insurance With/Without Profit Plan:-

Policy under this plan are issued for 12,15,18,21,24 and 30 years term and acquires paid up
value, loan and surrender value after premium has been paid for two/three consecutive years.

Under this plan, the following benefits are-

Survival Benefits

25% of sum assured (without bonuses) is available at the end of period equal to one third of the
policy term.

Survival Benefits

25% of sum assured (without bonuses) is available of the end of a period equal to two-third of
the policy term and final payment of 50% of the sum assured (with full bonuses in case of with
profit) at the end of the term.

Death Benefits

Full sum assured + acquired bonuses (in case of with profit policies)

Plan Parameters

 Mode of payments are monthly, quarterly, half-yearly, yearly

 Maximum maturity age is 70
 Policy loan is available
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Minimum Maximum

Entry Age(Year) 20 50

Sum Assured(Taka) 1000 No Limit

Term(Year) 12 30

2. Child Protection Policy With Profits Plan

Policy under this plan, mature at the age 18 to 25 of the child while the minimum age at entry of
the child is six months with maximum of 17 years. Surrender value is also given under this plan.
The corporation entertains the life of a father only as a payer. If the father is not alive or his life
is not insurable mother may be considered as a payer. Medical examination is required for the
payer and the child..

Survival Benefits

 The sum assured with bonuses is payable on survival of the policy holder (payer) and the
child.

Death Benefits

 An income of TK. 100 per thousand sum assured per annum till the expiry of the policy
term
 Full face value of the policy after the expiry of the policy term inclusive of the assured
bonuses.

Plan Parameters
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 Mode of payments are monthly, quarterly, half-yearly, yearly

 Maximum maturity age is 65 for payer
 Policy loan is not available

Minimum Maximum

Entry Age for 20 _

Payer(Years)
Entry Age for 6 Months 50
Child(Years)
Sum Assured(Taka) 6000 No Limit

Maturity Age of the 18 25

Child

3. Double Protection Insurance With Profit Plan

Policy under this plan is most suited for people desirous of making provision for their own future
and acquires paid-up value, loan and surrender value after premium has been paid for two/three
consecutive years.

Survival Benefits

Sum assured + acquired bonuses

Death Benefits

Double the sum assured + acquired bonuses

Plan Parameters

 Mode of payments are quarterly, monthly, half-yearly, yearly

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 Maximum maturity age is 65 years

 Policy loan is available

Minimum Maximum

Entry Age (Years) 20 55 for Standard Life

40 for Substandard Life
Sum Assured (Taka) 1000 No Limit

Term (Year) 10 25

4. Grameen Jiban Bima with Profit Plan

This plan is ideal for farmers and workers. Since the farmers have to depend on vagaries of the
climate while workers, labors are subject to changes in trade cycles depressions, strikes labor
disputes etc. Policy under this plan acquires paid-up, loan and surrender values after premium
has been paid for two/three consecutive years.

Survival Benefits

Sum assured + acquired bonuses

Death Benefits

Sum assured + acquired bonuses

Plan Parameters

 Mode of payments are monthly, quarterly, half-yearly, yearly

 Maximum maturity age is 70
 Policy loan is available
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Minimum Maximum

Entry Age 20 40
(Years)
Sum 1000 20000
Assured(Taka)
Term (Years) 10 25

5. Individual Pension Policy Plan

Pension scheme has been designed to keep the financial certainty in retired life..

Survival Benefits

Monthly pension is payable for a guaranteed period of 10 years and for life thereafter. At the
time of retirement, if policyholder desires 50% of monthly pension may be commuted for an
immediate cash payment.

Death Benefits

If death occurs before retirement/maturity 15 times of one annual premium or all premiums paid
except 1st year premium are refundable with 7% simple interest per annum whichever is greater.

Plan Parameters

 Mode of payments are half-yearly, yearly

 Maximum maturity age is 60 years
 Policy loan is available
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Minimum Maximum

Entry Age 20 50
(Years)
Sum 1000 30000 for Professional
Assured 50000 for Businessman
(Taka)
Term 10 40
(Years)

6. Joint Life Endowment Insurance with Profit Plan

This plan is most suited to partner in business or persons have a joint enterprise with mutual
interest each other. The sum assured under this plan becomes payable either at expiry of
specified term or at earlier death either of the insured persons. Paid up and surrender value are
available under this plan.

Survival Benefits

Sum assured + acquired bonuses.

Death Benefits

Sum assured + acquired bonuses.

Plan Parameters

 Mode of payments are monthly, quarterly, half-yearly, yearly

 Maximum maturity age is 70 years
 Policy loan is available

Minimum Maximum

Entry Age 20 50 for Male

(years) 40 for Female
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Sum Assured 1000 No Limit

(Taka)

Term (Taka) 10 35

7. Marriage Endowment Policy Plan

Policies under this plan, meets the requirements of the children at a particular age of the child.
Provision under this scheme, either for the marriage or for educational expense in particular or
any other requirements of the policyholder‟s children. Policy under this plan acquires paid-up
value, loan and surrender value after premium has been paid for two/three consecutive years.

Survival Benefits

Basic sum assured along with acquired bonuses would be payable to the selected children
surviving till the end of the term.

Death Benefits

If the life assured dies before selected term full sum assured + bonuses is payable at the end of
the selected term of the policy to the selected child.

Plan Parameters

Minimum Maximum

Entry 20 50
Age
(Years)
Sum No Limit No Limit
Assured
(Taka)
Term 5 20
(Years)
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8. Multiple Payment Policy with Profit Plan

This is also called bi-annual policy. Policy under this plan acquires paid up value, loan and
surrender value after premium has been paid for two/ three consecutive years.

Survival Benefits

 10 years term - 20% of sum assured on expiry of 4th policy year and there after bi-annual
and at the end of the term 40% of sum assured along with acquired bonuses
 15 years term - 15% of sum assured on expiry of 4th policy year and there after bi-annual
and at the end of the term 25% of sum assured along with acquired bonuses
 20 years term - 10% of sum assured on expiry of 4th policy year and there after bi-annual
and at the end of the term 20% of sum assured along with acquired bonuses

Death Benefits

In the event of the death of the assured, any time before the expiry of the term full sum assured +
acquired bonuses.

Plan Parameters

 Mode of payments are half-yearly, yearly

 Maximum maturity age is 70 years
 Policy loan is available

Minimum Maximum

Entry Age 18 50
(Years)
Sum Assured 6oooo No Limit
(Taka)
Term (Years) 10 20

9. Whole Life Assurance with Profits/without Profits

A whole life policy being economical in rate of premium, provide an opportunity even to a
person of an average means to have a substantial coverage of life insurance. Policy under this
plan, acquire paid-up value after premiums have been paid for 3 consecutive years. Surrender
value and policy loan are available.
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Survival Benefits

On attaining of age 85 payments of full sum assured + acquired bonuses.

Death Benefits

Sum assured + acquired bonuses

10. Group Term Insurance

Survival Benefits

No survival benefit is available.

Death Benefits

Sum assured

Plan Parameters

 Mode of payments is yearly

 Maximum maturity age is 65 years
 Policy loan is not available

Minimum Maximum

Entry Age 20 50
(Years)
Group 50 No Limit
(Number)
Sum Assured 10 Times of Basic 50 Times of Basic
(Taka) Salary Salary

Term 1 5
(Years)

Jiban Bima Corporation has the largest network all over the country and has a high operational
cost. The corporation has been making relentless endeavors to make rural people life insurance-
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minded and to create awareness about life insurance. It has insurance policies for every type of
people and people in various ages

. 3.1.1.2 MetLife ALICO

At MetLife ALICO, any individual client can find a range of Life Insurance, Accident and
Health Insurance as well as Education and Retirement plans to suit their personal or family
needs. There are three major criteria in their offer list. These are “Life Insurance Policy”,
“Savings and Retirements Plan” and finally “Accident and Health care Plan”.
Every criteria here has divided again into several subdivisions according to the customers‟ needs
and requirements. These are as following:
1. Life Insurance Policy: Life insurance can take care of clients‟ family and help them to
maintain their standard of living. Apart from taking care of outstanding loans or mortgages, it
can also protect their children's education or provide for their partner‟s retirements.

Here, I am going to describe about Education Process Plan [EPP] Plus and Three Payment Plan
[3PP] Plus offerings.
1.1 The Product Overview of EPP Plus:
 A flexible plan with terms ranging from 10 to 25 years

 On maturity, policy holder‟s child will receive the full face amount along with the bonus

 In the unfortunate even of client‟s death, protects the 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.

 Customers can choose to add a disability protection rider to this plan which will protect
them 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)
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 This EPP Plus plan also provides a personal accident coverage that ensures the financial
future of client‟s loved ones in case of his/ her death, disability or injury due to accident.

1.2 The Product Overview of 3PP Plus:

 This Plan is available for varying terms such as 12, 15, 18, 21 & 24 year and any clients
can choose one that best suits their needs.
 25% of the face amount is paid at the end of 1/3rd of the term and another 25% at the end
of 2/3rd of the term. The policy holder can use this to finance his/ her goals.
 The remaining 50% of the face amount is paid along with a bonus at maturity
 In the unfortunate event of the death of the policy holder, at any time during the term of
the policy, their nominees will receive the entire face amount along with the bonuses -
NO DEDUCTION is made for the partial maturity amounts.
 Loans up to a maximum of 85% of cash value is available, if required
 Like in all other life policies, the paid premiums are income tax deductible (subject to
prevailing tax laws & rules)
 The 3PP Plus also provides Personal Accident Coverage in case of client‟s death,
disability or injury due to accident.

2. Savings and Retirement Plan: ALICO selection of savings and retirement products mean
that one can take steps towards the lifestyle he/ she really wants today, as well as plan for the
future that they really want tomorrow.
Here, I am going to introduce the Income Growth Plan Policy and DPS Super Policy:

2.1 The Product Overview of Income Growth Plan Policy:

 A unique plan that combines protection and savings
 Offers a maximum premium payment term of up to 30 years thereby giving the
flexibility of choosing small payments to suit client’s budgetary needs
 The plan is split into 2 phases. The first phase is for a period of 7 years and then the
second phase starts (from the 8th year) and includes the rest of the term.
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 During the first 7 years client’s savings accumulate and grow and at the end of the 7th
year a dividend is declared. This dividend could be up to 40% of the cash value of his/
her plan.
 In the second phase, the cash value and dividend are transferred to the Investment &
Protection Account (IPA)
 From the 8th year onwards, the policy offers a range of flexible options such as changes
to the amount of premium, insurance coverage, etc, subject to the policy terms and
conditions.
 Maturity Benefits: On maturity, the policy owner can either withdraw the account (IPA)
value; or convert it into a life time pension.
 Like in all other life policies, the paid premiums are income tax deductible (subject to
prevailing tax laws & rules)
 Income Growth also provides Personal Accident Coverage in case of your death,
disability or injury due to accident.

2.2 The Product Overview of DPS Super Policy:

Clients can select their plan from the following 3 options:

Plan Features
DPS Super - Gold Maturity + Life Coverage+ Accident
Coverage+ Critical Illness & Waiver of
premium benefits
DPS Super - Silver Maturity value + Life Coverage+
Accident Coverage
DPS Super - Bronze Maturity value + Accident Coverage

2.2.1: DPS Super – Gold Plan

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This Plan provides an opportunity for –

 Attractive Maturity Value to meet the client‟s financial planning needs.
 Life Insurance coverage equivalent to policy Face Amount (Face Amount is defined as
the DPS Super annual premium times the policy term)
 Double Benefit due to Accidental Death (AD) and Accidental Permanent & Total
Disability (PTD); consequently a total coverage of 3 times the Face Amount in case of
AD. In case of Accidental Dismemberment the additional Accidental Benefit may reach
up to 2 times the Face Amount depending on the type and extent of Loss
 Lump Sum payment equal to 100% or 50% of the Face Amount in case of diagnosis of 8
Critical Illnesses
 Waiver of Premium in case of Permanent Total Disability due to Accident or Sickness
under Family Protection Rider – Disability

2.2.2: DPS Super – Silver Plan

This Plan provides an opportunity for –
 Attractive Maturity Value to meet policy holder‟s financial planning needs
 Life Insurance coverage equivalent to policy Face Amount (Face Amount is defined as
the DPS Super annual premium times the policy term)
 Double Benefit due to Accidental Death (AD) and Accidental Permanent & Total
Disability (PTD); consequently a total coverage of 3 times the Face Amount in case of
AD. In case of Accidental Dismemberment the additional Accidental Benefit may reach
up to 2 times the Face Amount depending on the type and extent of Loss

2.2.3: DPS Super – Bronze Plan

This Plan provides you an opportunity for –
 Attractive Maturity Value to meet client‟s financial planning needs
 Death Benefit equal to Account Value or Premiums paid for the Basic Policy whichever
is higher
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 Accidental benefit under which 2 times the Face Amount (Face Amount is defined as the
DPS Super annual premium times the policy term) will be paid in the event of Accidental
Death, or Accidental Permanent & Total Disability (PTD). In case of Accidental
Dismemberment the additional Accidental Benefit may reach up to 2 times the Face
Amount depending on the type and extent of Loss.

3. Accident and Health Care Plan: Our accident and health insurance products give the
customers one less thing to worry about, should the unthinkable happen. There are various
options they can choose from to get the ideal level of cover for them and their families.

There are six plans under this criterion. These are as following:
3.1: The product overview of Critical Care Plan:
 Critical Care provides the lump sum payment of up to BDT 500,000 which is payable
upon diagnosis and receipt of proof for one critical illness only.
 Critical Care supplements client‟s life insurance protection
 ALICO offers several plans and clients can select the plan of their choices.
 The critical illness lump sum payment will be made only once if the client is diagnosed
and proved with any of the 25 illnesses listed.
 There is no deductible amount.

3.2: The product Overview of Hospital Care Plan:

 The Hospital Care supplements client‟s life insurance protection
 These benefits are payable in addition to any other insurance plan that they may have.
 One can select the plan that best suits his/ her needs and the needs of your family from
the range ALICO offers.
 The Daily Cash income continues for up to 52 weeks from the very first day of
hospitalization.
 The Cash Income is paid directly to the clients, to use any way they wish.
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 The Cash income is payable regardless of expenses, even if the client is confined in a free
hospital.
 There is no deductible amount or waiting period.

Thus we can conclude the product and service offerings of MetLife ALICO Company in
Bangladesh as well as in all over the world.

3.1.2 Financial Performance

3.1.2.1 Jiban Bima Corporation

In 2018, the JBC earned gross premiums of Tk. 5095.80, which comprised 1st year premiums
(Tk.1085.33 Million), renewal premium income (Tk. 3603.91 Million), group insurance
premiums & other premiums (Tk. 406.56 Million), income from investment (Tk. 1296.86
Million),life fund (Tk.19258.05 Million).Subsequently, the gross premium income of JBC has
increased to Tk. 5661.40.JBC‟s gross income has reached Tk. 1236.94 Million from Tk. 1296.89
Million in 2019. In 2021 it is expected to reach 20.50 billion because the initiatives have been
taken to increase the life insurance penetration rate and new life insurers are expected to
introduce new customer focused products through improved.

3.1.2.2 MetLife ALICO

In 2018, the MetLife ALICO earned gross premium of Tk. 6766, universal life and investment
type policy fees of Tk. 1630, net investment of Tk. 3317 and other revenues of Tk. 51 million.
MetLife ALICO‟s total revenue has reached Tk.12053 million from Tk.11,764 Million in 2019.
Through MetLife Foundation, the company has invested $ 783 million worldwide and has
invested in various institutions in positive organizations for positive change in the community.
Since the beginning of its operation in Bangladesh, MetLife has made an unprecedented
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contribution to the financial uncertainty of the people of this country. Since 2013, MetLife
Foundation has donated nearly $12 million to bring positive change in the lives of low-income
people of Bangladesh.

3.1.3 SWOT Analysis

The overall evaluation of a company‟s strengths, weaknesses, opportunities and threats is called
SWOT analysis. It involves monitoring the external and internal environment.

3.1.3.1 Jiban Bima Corporation

Some strength is –
 Micro insurance scheme-Micro insurance scheme can be a great prospective area for the
company in our country. Most of the people are unable to have costly & long term
insurance policies
 Emerging of middle income group- The emergence of middle income group has a
positive impact on this company
Opportunities are –
 Service diversifications – There are many scopes for products and service diversification.
In a dynamic market customers may expect new and innovative products
 Education sector-The company can provide different types of insurance scheme to
expand education plan insurance
Weaknesses are –
 Poor financial position – Their financial position is not so sound. Last year we have seen
that their gross income reached Tk.1236.94 from Tk. 1296.89 million.
 Centralization – Most of the branches are located in urban areas. So they cannot reach
remote areas
 Traditional method –Most of activities are performed by recruiting marketing agent and
they try to convince the people to take a policy. Most of the cases they are not properly
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trained and they don‟t know the right process make their policy holders. Therefore these
field level agents are unable to fulfill their target.

Threats are –
 Low skilled workers – Agents are not skilled enough. These agents cannot perform their
job properly to make the people aware of life insurance.
 Lack of exposure – The company does not provide adequate information to the
company‟s websites which can fulfill the queries of their potential customers and satisfy
themselves to buy an insurance policy

In this respect, the position of the JBC is not so sound. If our government permits and establish
open world market for the industry, then they will be in the face of downfall.

3.1.3.1 MetLife ALICO

As one of the leading firms in its industry, MetLife ALICO has numerous strengths that enable it
to thrive in the market place. These strengths not only help it to protect the market share in
existing markets but also help in penetrating new markets.
Some of the strengths are –
 Strong dealer- It has built a culture among distributor & dealers where the dealers not
only promote company‟s products but also invest in training the sales team to explain to
the customer how he/she can extract the maximum benefits out of the products.
 High level of customer satisfaction- The company with its dedicated customer
relationship management department has able to achieve a high level of customer
satisfaction among present customers and good brand equity among the potential
customers.
 Strong free cash flow- It has strong free cash flows that provide resources in the hand of
the company to expand into new projects.
Weakness of the company –
 Not highly successful at integrating firms with different work culture.
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 Need more investment in new technologies.

 Organization structure is only compatible with present business model thus limiting
expansion in adjacent product segments.
 Financial planning is not done properly and efficiently. The current asset ratio and liquid
asset ratios suggest that the company can use the cash more efficiently than what it is
doing at present.
 Not very good at product demand forecasting leading to higher rate of missed
opportunities compare to its competitors.
Opportunities for the company-
 Organizations core competencies can be a success in similar other products field.
 Stable free cash flow provides opportunities to invest in adjacent product segments. With
more cash in bank the company can invest in new technologies as well as in new products
segments. This should open a window of opportunity for MetLife ALICO in other product
categories.
 The new technology provides an opportunity to practices differentiated pricing strategy in
the new market. It will enable the firm to maintain its loyal customers with great service and
lure new customers through other value oriented proposition.
 New customers from online channel – Over the past few years the company has invested
vast sum of money into the online platform. This investment has opened new sales channel
for MetLife ALICO. In the next few years the company can leverage this opportunity by
knowing its customer better and serving their needs using big data analytics.

Threats are –
 Intense competition – Stable profitability has increased the number of players in the
industry over last two years which has put downward pressure on not only profitability
but also on overall sales.
 Rising raw material can pose a threat to the MetLife ALICO‟s profitability.
 No regular supply of innovative products – Over the years the company has developed
numerous products but those are often response to the development by other players.
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 Secondly the supply of new products is not regular thus leading to high and low swings in
the sales number over period of time.
 Shortage of skilled workforce in certain market represents a threat to steady growth of
profit in those markets.

3.1.4 Business Target

3.1.4.1 Jiban Bima Corporation

During the last five years JBC‟S growth rate fell down substantially. .An aggressive plan is
urgent to keep the organization in profitable track. To achieve the above objective, JBC has
planned to make extensive future business plan in the following areas stipulating new business
target and increasing number of clients at the proposed growth rate of 11% annually.
Future business plan-
 Jiban Bima Bank
 Jiban bima housing finance and investment
 New Schemes
 Planning to allow overseas agencies in-London, New York, Los Angeles, UAE, Saudi
Arabia, Malaysia, South Korea and Italy.

3.1.4.2 MetLife ALICO

In our country, there are various obstacles in insurance business such as lack of awareness, lack
of skilled manpower, inadequate resources for insurance, infrastructure problem, poor
communication system etc. Despite all these obstacles, MetLife ALICO wants to serve well in
this country. They bring digitalization as Bangladeshi customers would like to get digitalization.
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They further diversified their marketing system and will bring various products into the markets
in the future. Their future plan is to develop the industry and try to give the best services to their
customers as per their expectations.
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Chapter 04

Recommendation & Conclusion

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4.1 Jiban Bima Corporation

Some recommendations for JBC is –

 They should practice marketing through the use of promotional tools such as advertising,
sales promotion, public relation and publicity, personal selling and direct marketing.
 They should diversify their products and service offerings.
 Their products should be promoted at regular intervals.
 Their terms and conditions should be concise so that all classes of people can be easily
understand
 They should open sales agency in rural areas
 They should invest money into the online platform in order to open new sales channel
 They should overcome the dissatisfaction in regards to services and claim settlements and
should maintain a service standard
 The collected premium should be invested in large and beneficial sectors so that they can
return their clients expected return in timely
 Government must minimize the restrictions on premium so that they can fix their
premium according to their demand and this will increase their profitability
 They should expand their target market by identifying and providing responsive services

4.2 MetLife ALICO

Some recommendations are-

 They should be adapt to our work culture

 Because of unskilled manpower they should provide sufficient training program
 They need to create digitalized facilities as Bangladeshi customers would like to get
digitalization facilities
 They should provide their services not only to upper class and upper middle class but also
to all classes of people in our country
 They should build their sales agency in remote areas so that they can sell their policies
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 Their terms and policy condition should be easy to understandable for all classes of
people
 They need to consider their policy price to all classes of people
 Government should provide standard policy support for such kind of multinational
company

4.3 Conclusion

By observing the above discussion we can conclude that both companies maintain excellent
insurance practices in our country. As a state controlled company, the JBC performed much
better than earlier. In recent years it offers different kinds of policy plan as per customer‟s needs
and expectation. They also try to offer standard service to all classes of people. They think about
marginal people. For that reason they open Grameen Jiban Bima with profit plan which is ideal
for farmers and workers. By this policy plan they can reach remote areas and capture maximum
amount of customers in this field. Though there is some lacking in the insurance practices of JBC
as we have discussed that in the SWOT analysis of the company. At the end of the year 2019, the
company acquired Tk. 4.67 billion in premium income with an annual growth rate of 13.50
percent. They also plan to open overseas agency to expand their sales.

On the other hand, MetLife ALICO is quite different from JBC as it is the first multinational
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. Their
offerings, services, post purchase behavior with their valuable clients, regular notifications sent
to the customers, organized way of making policies, available agencies or branches, available
customer care services through the whole world etc are helping them to capture the maximum
amount of customers in this field. On the other hand, as a multinational company, MetLife
ALICO has made a brand name in Life Insurance Policy industry. According to this company,
the middle class, upper middle class and upper class people are the targeted customers. Because
of that reason, they are providing several kinds of payment systems with versatile benefits which
are also very attractive and well known among their consumers. The beneficiary of any policy is
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not only the policy holders but their nominees also so that people feel more secured about the
process and procedures .Despite all these facilities the company face some major challenges in
our country. If it can overcome its drawbacks it will increase a large extent the volume of profit.
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Reference

 www.jbc.gov.bd
 Jibon Bima Corporation Annual Rapport 2015.2016, 2017, 2018, 2019.
 Website: global.metlife.com.
 Website: www.metlifealico.com.np
 Wikipedia: History of MetLife Alico
 Website: www.metlife.com.bd
 Wikipedia: Jiban Bima Corporation
 MetLife ALICO Annual Report 2015, 2016, 2017, 2018, 2019.