1. The Death and Rebirth of Life Insurance:
How marketing directly to Middle Market and Multicultural
customers is critical to reviving the business
November 2014
© 2014 Metropolitan Life Insurance Company, NY, NY 10166

2. US Direct Business-Strategy & Planning
US Life insurance industry performance
2

3. US Direct Business-Strategy & Planning
Bottom
90%
The Focus Has Been on the Affluent
-$500
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
1989 1992 1995 1998 2001 2004 2007 2010
US$(000s)
<25 25-49.9 50-74.9 75-89.9 90-100
Percentile of Net Worth
Top 10%
U.S. Households
Net Worth by Percentile „89-‟10
source: http://www.census.gov/hhes/www/income/data/historical/household/ 3
• Focusing on such a small segment of the population is a dangerous
long-term strategy for growth

4. US Direct Business-Strategy & Planning
The Last 70+ Years: Worrisome Trends
4
POPULATION
311,590,000
132,120,000
US Census Data 1940-2011
2X
17,872,000
9,500,000
POLICIES PURCHASED
50%
LIMRA’s U.S. Individual Life Insurance
Sales Survey and LIMRA Estimates, 2011

5. US Direct Business-Strategy & Planning
Number of Agents Declining
5
0
100,000
200,000
300,000
1973 1989 1993 1996 1998 2001 2004 2007 2010
36 % DECLINE
256,735
163,814
LIMRA’s U.S. Individual Life Insurance
Sales Survey and LIMRA Estimates, 2011

6. US Direct Business-Strategy & Planning
Individual life insurance has continued to move up
market and has become a “niche” product…
U.S. Individual Life Insurance Industry
Average face size of the policies, 1985-2010, $ 000‟s
6
53 56
61 64
69
76 77 79 81 84
89
95
106
115
131
149
143
152
157
165
172
177
195 194
183
177
+233%
LIMRA’s U.S. Individual Life Insurance
Sales Survey and LIMRA Estimates, 2011

7. US Direct Business-Strategy & Planning
NumberofUSHouseholds
< $100K $200K +
$100-
$200K
7
But Life Insurance Industry is Not Keeping Up
Population Is Changing
Annual Household Income
US Population
Life Insurance
Ownership
LifeInsuranceOwnership%
LIMRA’s U.S. Individual Life Insurance
Sales Survey and LIMRA Estimates, 2011

8. US Direct Business-Strategy & Planning
8
Typical families don‟t have enough left over each
month to pay for expensive coverage.
Typical Household BudgetHigh Cost Structure
Losing the Mass Market Battle
Administration
Underwriting
Distribution
Claims
Discretionary
Spending

9. US Direct Business-Strategy & Planning
Consumers’ purchasing
behavior has changed.
We need to change along
with it.

10. US Direct Business-Strategy & Planning
10
Just as America is looking less like this…

11. US Direct Business-Strategy & Planning
11
And more like this…

12. US Direct Business-Strategy & Planning
12
THIS
CANNOT
BE YOUR
FATHER‟S
INSURANCE
BUSINESS.

13. US Direct Business-Strategy & Planning
Yet look at who is portrayed in Life Insurance ads
13

14. US Direct Business-Strategy & Planning
Lots of people want life insurance…so why do so many fail?
14
Over 60M people will shop for life insurance in the next 12 months1…and industry
research shows there is a $20Trillion coverage gap in the U.S. – highest worldwide
2013 U.S. population >18
years old
% planning to shop for or
purchase life insurance
over the next 12 months
Potential market:
Source: [1] MetLife Q1 2014 Segment Quantitative Survey; Q11. Do you plan to shop for or purchase any of the following life insurance products over the next 12 months? This includes
purchasing new products, adding additional coverage, or switching providers. Select all that apply.
242 Million
25%
60 Million
Yet Research shows 9 out of 10
who start the process - fail.

15. 25% 25% 24% 25% 26% 28%
23% 21%
27% 25%23%
45%
59%
66%
79%
85% 87%
81% 79%
66%
0%
20%
40%
60%
80%
100%
>$15 $15 -
24.9
$25 -
34.9
$35 -
49.9
$50 -
74.9
$75 -
99.9
$100 -
149.9
$150 -
199.9
$200+ U.S.
Market
Intend to Purchase w/in 12 months Insured
Opportunity with multicultural and lower-income sub-segments
15
Note: [1] Coverage is self-reported and weighted to be consistent with the U.S. Market/ LIMRA‟s “The Facts of Life and Annuities – 2013”; [2] Excludes all other and mixed races, ~2% of the
mkt
Source: U.S. Census Bureau (2013 population estimates under the age of 18 from 2012); Q1 2014 U.S. Direct quantitative survey, Q1. Which of the following financial products and/or services
do you currently have or use?; Q11 Do you plan to shop for or purchase any of the following life insurance products over the next 12 months? This includes purchasing new products, adding
additional coverage, or switching providers. Select all that apply.
 Multicultural consumers indicate significantly
higher purchase intent than Caucasians (20%),
led by Hispanics (37%) and Blacks (31%)
Purchase Intent by Ethnicity1,2
31%
20%
27%
37%
25%
0%
20%
40%
Black Caucasian Asian Hispanic U.S. Market
Intend to Purchase w/in 12
months
Intend to Purchase w/in 12 months
Coverage & Purchase Intent by Household Income1
 The vast majority of uninsured consumers
are Middle Market (under $100K household
income):
- 80% of the 123 million U.S. households,
and 90% of uninsured households are
Middle Market
- Purchase intent is relatively consistent
across income levels, indicating a greater
opportunity to serve Middle Market
consumers

16. US Direct Business-Strategy & Planning
US Direct Vision
16
We help people act on their best intentions to protect their financial
future – for themselves and their loved ones
125MM people in the underserved US Middle Market
US Middle Market = $20 billion premium opportunity
60MM people will shop for life Insurance in next 12 months

17. US Direct Business-Strategy & Planning
MetLife US Direct is designed to transform the way life insurance is
understood and experienced by the middle market…
Developing new tools to educate
and empower
Re-engineering process to be fast
and painless
Opening new distribution channels
Creating a better, best-in-class
consumer experience… one that
continues beyond the initial sale
Transform the industry by...
1
2
3
4
17
That will be reflected in our...
Strategy
Business Model
Org.
Structure
Results

18. US Direct Business-Strategy & Planning
Simpler products
• SIT – Simplified Issue Term, Up to $100K in coverage, two
medical questions, MIB check, 5-year pricing banding.
Ages 18-80.
• GALI – Guaranteed Acceptance Life Insurance, designed
to cover final expenses (medical bills, credit card debt, and
funeral costs). Up to $50K in coverage, no medical
questions or exams. Ages 45-75.
• AD – Accidental Death, covers death resulting from
accident. Up to $500K in coverage, no medical questions
or exams. Ages 18-75.
18
The Simplified Issue Term Life Insurance Policy is issued by MetLife Insurance Company USA, Charlotte, NC 28277 (form # 5E-26-12) and in New York by Metropolitan Life Insurance
Company, New York, NY (form # 1E-26-13-NY). Guaranteed Acceptance Life Insurance Policy (5E-13-13) is issued in all states except NY by MetLife Insurance Company USA, Charlotte, NC
28277 and in NY (1E-13-13-NY) by Metropolitan Life Insurance Company, NY, NY 10166. The Accidental Death Life Insurance Policy is issued by Metropolitan Life Insurance Company, New
York, NY 10166 (form # 1EAH-10-13).

19. US Direct Business-Strategy & Planning
Simpler Process – Customer Centric Functionality
• Simplified application using
new standards
• Mobile application
• ePolicy access
• Formalized onboarding with
welcome call, email
• Payment reminders
• Credit/debit payments
• “Pick your date” payment option
Highest NPS scores in the industry!
19

20. US Direct Business-Strategy & Planning
20
Sponsor Micro site Emails
MailClick to Call Social MediaSearch
Display Ads
DRTV
Kiosk
Simpler engagement – advertising where the
customer is, rather asking them to come in
MetLife.com

21. US Direct Business-Strategy & Planning
Even in Walmart!
• Yearly renewable term life
• $5 first month regardless
age, face, or gender
A new look. A new location. A new approach.
21
This Renewable Term Life Policy is issued by MetLife Insurance Company USA, Charlotte, NC 28277 (form # 5E-27-13).

22. US Direct Business-Strategy & Planning
Affordable rates for coverage
Simplified Issue Term*
coverage
Guaranteed Acceptance Life
Insurance (GALI)
22
* For $10K in coverage

23. US Direct Business-Strategy & Planning
Messaging based on customer insights and overcoming barriers:
DRTV – Leveraging Multicultural insights for Guaranteed Acceptance
23
A multi-generational family is featured, all segments are represented.
Matriarch is head of household.
Guaranteed
Acceptance product
indexes highly with
African American
adults.
African American family
is featured in this spot.
Mom introduces the
topic in this spot.

24. US Direct Business-Strategy & Planning
Need to act like a Direct Marketer - Optimizing advertising
Datamart
Targeting
O
E
T
D
M
Paid Search
Email
Telemarketing
Website Visit
Online Search
Email Inquiry
Call Center Call
W
O
E
C
Direct Mail
Mass Media
PPrint Media
D
Click ThroughC
Retail VisitR
Social ParticipationS
Display
Marketing Driven Activity Consumer Driven ActivityM C
Segmentation
SegmentA
15%
SegmentB
19%
SegmentC
32%
SegmentD
12%
SegmentE
21%
•College &
graduatestudents
•Newworkforce
•Mostlyfemale
•30& single
•Mostlymale
•NewParents &
suburban families
•EmptyNesters &
Families w/ teens
Demos
Customer
Behaviors
Media
Preferences
•Buys online
•Lowerorder
value
•Skews female
•Frequent
purchaser
•Higherorder
value
•Less frequent
buyer
•Wide range of
product range
•Prefers offline
•Responds to DM
•Youtube & Text
•Prefers humor in
advertising
•Email
•Online
advertising
•ESPN & TNT
•Business Week
•Heavyonline
•Parenting mags
•Disneychannel
& websites
•Time, WSJ,
Forbes
•Prefers quality of
service
Measure / Report
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
%Frequency
0
20
40
60
80
100
120
140
160
180
200
Index
Baseline 33.5% 7.6% 7.2% 11.5% 11.6%
PayPal 45.4% 13.6% 10.8% 15.8% 16.6%
Index 135 178 150 138 144
Yes 0-3 Years Old 4-7 Years Old 8-12 Years Old 13-18 Years Old
Indicates the presence of children in the household
Campaign Mgmt
Media
0
20
40
60
80
100
120
140
160
180
200
0.0 24.0 48.0
IncrementalRevenue
InvestmentAmount
Print
Radio
DirectMail
TV
Year 1 Year 4Year 3Year 2
Time
Revenue
24

25. US Direct Business-Strategy & Planning
But it is working…
• MetLife is the fastest growing direct life insurer in the
industry according to LIMRA (U.S. Individual Life Insurance
Sales Survey and LIMRA Estimates, 2011)
• The Direct business is the highest source for life insurance
applications in MetLife
• Multi-cultural customers significantly over-index as a
percentage of the total book of business
• 95% of the policies we originate are new policies, not
replacements!
25

26. US Direct Business-Strategy & Planning
It’s a challenge…
PEANUTS © 2014 Peanuts Worldwide

27. US Direct Business-Strategy & Planning
But we can get there!
PEANUTS © 2014 Peanuts Worldwide

28. US Direct Business-Strategy & Planning
THANK YOU
28
Metropolitan Life Insurance Company, NY, NY
L1114399356[exp0415][AllStates][DC,PR]