MetLife

Introduction

MetLife is one of the most advanced and a leading financial services company of the America (http://www.metlife.com/). It offers various financial services to its customers. From the very beginning, MetLife has introduced new policies and attractive options for its customers. The Company believes that the savings pattern in the USA, including the pattern of pension saving, is skewed by means testing. For many people, the future loss of means-tested welfare payments outweighs the possible benefits of saving. According to official statistics, almost one household in two had less than £1,500 in savings in 2007, and half of these households had no savings at all.

However, the potential to save is limited. In 2007, the 60% of households with the lowest incomes were, on average, spending more than their income. Only the top 10% of households by income appeared, in 2007, to be saving adequately for the future. Premium inflows for individual pensions reflect the fiscal benefits of pension saving for higher-rate taxpayers: a quarter of all tax relief on pension contributions goes to the top 1.5% of earners. The expected launch of Personal Accounts in 2012 is intended to revitalise mass-market pensions, but they are unlikely to make much difference to the volume of pension saving. New consumer research by MetLife shows that more than seven people in ten believe that pensions policy in the UK is in a mess. Five people in every six agree that a national debate is needed to decide how pensions will be paid for in the future. Almost seven people in ten say that pensions are currently too complex. Fewer than one person in four believes it is possible for workers on ordinary incomes to save enough for a comfortable retirement, and more than three in four women say they cannot afford to increase their savings.

Marketing Activity

In 2009, pensions marketing is muted in the extreme. Insurers are not particularly interested in promoting pensions to the mass market, especially before the planned introduction of Personal Accounts in 2012. Pensions for average earners are not likely to be adequately profitable for providers, whose focus is on high earners — those people who can afford to contribute multiple thousands of pounds each year. Business-to-business marketing is key for pensions, especially for the management and administration of occupational schemes, although defined-benefit schemes are a disappearing species and few ordinary employees are building up adequate funds in defined-contribution schemes.

Equity release is different. This is a potentially useful product for millions of elderly homeowners, and is likely to remain so. Thus, equity release is promoted strongly to the public, especially by Aviva/Norwich Union and Prudential. In the year to 31st March 2009, these two firms spent £3.7m and £2.6m respectively on consumer advertising for equity-release products.

Business Policy

Pensions are primarily a business-to-business sector. Pension providers selling through intermediaries spent £1.5m on consumer advertising in the year ending 31st March 2009. The largest advertisers were MetLife, MGM Advantage, Liverpool Victoria and AIG Life. Pension providers selling through intermediaries spent £1.5m on consumer advertising in ...