Mass Mutual Life Insurance – A global financial conglomerate

Mass Mutual Life Insurance Company (Massachusetts Mutual) is a global financial giant which has a major presence in industries like insurance, real estate, loans and mortgages, investor services, asset management, mutual funds, banking, etc., amongst many others. Its diverse presence is a recent evolution but its traditional base has always been life insurance. Mass mutual was established in 1851 and was one amongst the many entrants into the (then new) insurance industry. It was established as a mutual insurance company (company owned by its policy holders) and still continues to be one. For a long time after its inception, the Mass Mutual Life Insurance company only concentrated on selling life insurance, especially policies that only had death and maturity benefits. This approach coupled with aggressive marketing allowed Mass Mutual to quickly expand and establish many agencies across the United States. This era was a boom time for Insurance industry and Mass Mutual was one of the companies to benefit from it.

Within 50 years of its existence, Mass Mutual Life insurance Company emerged as one of the major players in the insurance market. During the early 1900s, insurance industry was rocked by scandals of unfair practices of insurance companies that were exposed by the investigations of a government appointed commission. Mass Mutual, to its merit was not touched by scandal because of proper and correct management practices. However, as a result of the scandals, people were disillusioned with the industry and insurance companies like Mass Mutual had to offer more services and products to attract the customers back. Contrary to its current diverse spread and dynamism, Mass Mutual till recent past, had always been a company that displayed reluctance to change. The changes that happened were also, most often than not, forced upon the company due to circumstances. Mass Mutual did not innovate or create new products but always followed the lead of other companies. Especially during the 1970s to 1980s, when other companies were moving ahead, keeping pace with the changing economy, Mass Mutual was lagging behind and a drastic change in approach was needed to keep the company on the top tier. Fortunately, during the 1980s, Mass Mutual started to show a willingness to explore innovative products and avenues. Introduction of new insurance schemes and entry into investor services sector marked the turn around of the company. Since then, the company’s diversification has been rapid, spreading across all major realms of the financial industry.

In 1995, Mass Mutual Life Insurance Company merged with Connecticut Mutual Life Insurance Company, to create the 5th largest mutual life insurance company in United States. Aggressive diversification meant that Mass Mutual acquired and created many subsidiaries. Some of the subsidiaries are: Oppenheimer Funds, (mutual funds), Babson Capital Management (investor services), Baring Asset Management and Cornerstone Real Estate Advisors (real estate investment management). In 1999, Mass mutual announced its new marketing name as MassMutual Financial Group; keeping in line with its diverse presence. The growth of Mass Mutual Life Insurance Company from an insurance provider to a global financial player has not been fast but it definitely has been steady and continuous.

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