1.

Introduction of the Company

MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers in over 50 countries. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East. In Middle East, Africa and South Asia region, MetLife companies provide consumers and businesses with life insurance, accident & health insurance, retirement planning, and wealth management solutions. Bangladesh is a key operation in the Middle East, Africa & South Asia (MEASA) Region and it is the hub for the South Asian sub-Region comprising Bangladesh, Nepal and Pakistan. MetLife Alico has a long history in Bangladesh tracing back to 1952. Today, it is the largest insurance company and a major employer in the country with over 12,000 Field Force and Associates. MetLife Alico Bangladesh has the highest Claims Paying Ability rating (AAA) from local Credit Rating Agency CRISL Insurance provides the protection against the risk of financial loss caused by specified events. The two primary types of insurers 1) Life and Health companies, Insurance which issue and sell products that insure against financial losses that result from the personal risks of death, disability, illness, accident, and outliving ones savings and 2) Property/casualty insurance companies, which issue and sell insurance policies to provide financial security from property damage risk and liability risk. The insurance industry constantly designs, modifies, and updates insurance products to meet various aspects of this need. Despite this product changes, the underlying purpose of insurance products remains the same; to provide protection against the risk of financial loss.
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Life insurance policy:

A policy under which the insurer promises to pay a

benefit upon the death of a named person. Policy: A written document that contains the terms of the agreement between the insurance company and the owner of the policy. Insured: The person whose life or health is insured under an insurance policy. Policyowner: The person or business that owns an insurance policy. Policy Dividend: The share of an insurers divisible surplus the insurer pays to the owner of a participating policy issued by the insurer. Policy reserves: Liabilities that represent the amount an insurer estimates it needs to pay policy benefits as they come due. Sometimes known as legal reserves or statutory reserves. Premium payment mode: the frequency at which insurance policy renewal premium premiums are payable. Premium rate: The amount an Insurer charges per unit of life insurance coverage. Typically, a coverage unit equals Tk. 1000 of Life insurance coverage, and thus, the premium rate is expressed as the rate per thousand. Premium: A specified amount of money an insurer charges in exchange for its
agreement to pay a policy benefit when a specific loss occurs.

2. Life Insurance Market in Bangladesh

Parliament on 03 March 2010 passed two insurance laws in a bid to further strengthen the regulatory framework and make the industry operationally vibrant. The new laws, came in to effect on 18 March 2010, are Insurance Act 2010 and IDRA 2010.There are 62 insurance companies operating in the country and they need to be regulated under comprehensive laws and guidelines and supervised by a strong regulatory authority. The Insurance Act 2010 said the sector needs to be managed properly and be strengthened by reducing business
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risks, and local and international insurance laws need to be harmonized considering the socio-economic aspect of the country, and protect the interest of policy holders and other beneficiaries. Up to 2010, the government has given permission to 43 general insurance companies and 17 life insurance companies in the private sector and Sadharan Bima Corporation(Gen. Ins) sector. Competition sharply increased since the entry of 11 new life companies into the market in 2010. The market now has 19 companies, Metlife Alico being the only foreign company. The four major market players control over 80% of the market (1) Metlife Alico (31.5% market share), (2) Jiban Bima Corporation (18.9% market share), (3) National Life (15.2% market share) and (4) Delta Life (14.8% market share). National Life is the fastest growing amongst the four. Life insurance pricing structure in Bangladesh is non-tariff and the rates determination is left to the companies to decide subject to certification by qualified actuaries that the rates are workable and sound. Distribution is primarily through Agencies (Brokerage, Direct business and Bank assurance are not specifically provided in the current law). Commissions are capped at 40% First Year and 5% Renewals as long as the policy is in force. Reinsurance of life insurance business is permissible both within and outside the country. & Jiban Bima Corporation (Life Ins.) are in public

3. Marketing Division
This division is responsible for Sales Management, guiding and motivating the field force and supervision of the overall agency system. This department focuses on- the career path under agency system, recruitment and training process of new agents, minimum qualification to get license as an agent, requirement to get promotion as a unit manager and agency manager. It also includes the rate of commission on sale of different insurance products, different incentives and
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bonuses to encourage agents, method of persistency calculation, conditions to be included in the Leaders Club, and different contest and awards that are organized every year to motivate field force.

4. Marketing & Distribution channel:

In our Insurance industry, marketing & sales have done through Agency distribution. There are many agencies for a company. Every agencies get commission according to their sales. Every agency owned by an agency manager (AM). He controls his agency & his sales forces (Unit manager & Agent). Agents are the main sales forces to sell insurance policies. Insurance companies use different types of training programs for different levels of field forces.

Pre-contract training & basic training: For agents. Unit managers development program (UMDP): For Unit managers. Agency
managers development program (AMDP) & Skill development: For Agency managers.

5. Balancing Costs and Benefits of Training

Cost
Trainer's salary Materials for training Living expenses for trainer and trainees Costs of facilities Equipment Transportation Trainee's salary Lost production (opportunity cost)

Benefit
Increase in production Reduction in errors Reduction in turnover Less supervision necessary Ability to advance New capabilities Attitude changes BENEFIT

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6. Training Methods:
Insurance companies conduct the following training methods to train up their field forces:

Classroom Training; Lectures , Discussion & Demonstration; Job instruction Training; Role playing; Joint field work Outside seminars; Executive coaches.

7. Training at different levels:

7.1 Entry level:
This training is for agents. After recruiting, they get two types of training. Pre-contract training (PCT) Foundation Course (FC) Basic Training School (BTS)

7.1.1 Pre-contract Training: PCT is conduct by unit managers who recruits the agent just immediately after recruiting. Contents outline: Basic facts of insurance Orientation of the company Product knowledge at primary level

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7.1.2 Foundation Course: Training department in the head office with some newly recruited agents who successfully fulfilled some initial criteria conducts basic training. Training module: Title: Foundation Course. Duration: 2 days Location and address of the session: Training room. Objectives: To create dynamic sales force. Key points to be covered in the training session: Product knowledge, sale cycle process, selling skills. Training equipment and the audiovisual aids:

Whiteboard & marker Flip chart Laptop & projector

Transparent sheet

Contents outline: life insurance contract; Significance of life insurance; Importance of applications; Structure of the contract and settlement of claims; Agency requirements and contests; Group insurance; Personal accident and health related policies, and riders; Policy owner services selling skills Sale cycle process Planned and organized field work;

Training evaluation: Questionnaire Oral test

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7.1.3 Basic Training School: Training department in the head office with some selective agents who successfully fulfilled some initial criteria conducts basic training. Training module: Title: Basic training. Duration: 4 days Location and address of the session: Training room. Objectives: To create dynamic sales force. Key points to be covered in the training session: Product knowledge, sale cycle process, selling skills & objection handling. Training equipment and the audiovisual aids: Whiteboard & marker Flip chart Transparent sheet Laptop & projector

Contents outline:

life insurance contract; Significance of life insurance; Analysis of the rate book; Importance of applications; Structure of the contract and settlement of claims; Agency requirements and contests; Group insurance; Personal accident and health related policies, and riders; Policy owner services selling skills Sale cycle process Handling objections Planned and organized field work;

Training evaluation:

Questionnaire Oral test

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7.2 Mid level:

Mid level position of an agency means unit managers. Unit managers play the most effective position. They guide the agent mostly. Therefore, they are the most target area for development. If they developed agents will be ultimately develop.
Contents outline:

Sales agent recruitment & selection; Training the trainers; Managing people and performance; Coaching for high performance Managing stress

7.3 Senior level:

In agency, most senior position is agency manager. They take many plans to continue effective selling. They guide unit managers as well as agents to increase their productivity. Training department to increase their interpersonal & leadership skill conduct two types of training. Contents outline: Coaching & Counseling; One to one skill: Field Management Skills Giving & Receiving Feedback

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8. Recommendation:
MetLife Alico has a long history in Bangladesh tracing back to 1952. Today, it is the largest insurance company and a major employer in the country with over 12,000 Field Forces and 300 Associates in Bangladesh. To cover this huge number of field forces and associates the following things need to consider as recommendations to increase the effectiveness of training department:

online training for Interactive Module: Faster and easy way to implement training program as well as cost effective. E-learning: will provide vast range of learning materials in easy and fast and cost effective manner.

Increase the human recourse of training department to cover large field force. Trainer knowledge development in the course of TOT program Decentralization of training department may be another way to enhance the effectiveness of training for this large field force.

9. Conclusion:
The Training department of a company is typically responsible for identifying and responding to the training needs of the sales force. In addition to having broad product knowledge, good salespersons must be able to use their communication and negotiation skills to align their sales strategies with their customers' buying cycles, motivate their customer and Sell financial security like annuities and offer comprehensive financial planning service. Therefore, this sector requires training to build a dynamic sales force and development their future career with benefits.

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