Project Report On SPSS

An Study Of Life Insurance Policy

Submitted by : Pradeep Singha (PGDMA-1135)

Dayananda Sagar Business School

An study of life insurance policy in urban and rural area.

Life Insurance is one of the fastest growing and emerging markets in India. Insurance penetration in the country is low mainly in rural area. The Insurance Industry has a significance contribution in socio-economic development. A majority of the underprivileged & rural poor society is still not insured and untouched by the benefits of Life Insurance. There is a tremendous scope for developing insurance business in the rural areas where human life and income generating rural assets need more protection. IRDA has acknowledged various reforms and initiatives for the welfare of rural people i.e. Micro- insurance especially designed to provide life insurance benefit to rural and economically backward class of the society. Present study is based on primary data which is collected through paper questionnaire. Randomly selected Respondents (Life Insurance Policyholders) based on BANGALORE and evaluative research methodology carried out in this paper. Aim of the present study is to examine the opportunities for insurers in the rural market and what would be new strategies to tap the highly underinsured rural area. Its also an attempt to understand consumer behavior in the insurance sector and identify challenges faced by insurance companies and how to overcome with those challenges.

Insurance Companies are focusing on customer satisfaction through increased customer choice and lower premiums, while ensuring the financial security of the insurance market. Insurance companies are targeting upon the customers by giving them a basket of returns with a mission to make them delight and satisfied. The Insurance sector has obviously started growing at a rapid place after the sector was opened up. The credit for enlarging the market should however goes to the private sector as they came up with an aggressive market strategy to establish their presence. The public sector has in its turn, redrawn its priorities, revamped their marketing strategy, and together the public and private sectors have enlarged the market. India, with its huge middle class households, has exhibited potential for the insurance industry. This has made international players to look at the Indian market. Moreover, saturation of markets in many developed economies has made the Indian market all the more attractive for global insurance majors.

Dayananda Sagar Business School

PURPOSE OF STUDY
To analyze the awareness about insurance policies and purpose of investment in insurance companies To study the age group, background and family size of existing customers of insurance companies. To study which type of insurance policy preferred by the customers and influencing factors for choose insurance companies. To study convenient source for getting insurance policy for common people. To examine the satisfaction about insurance premium policy and opportunities for insurers in the urban and rural market.

TOOLS & TECHNIQUES

In that project report we use many techniques to identify the frequency of all the data and relation between these data by different tests. Like frequency distribution, correlation, chi square test etc. The survey is carried out on randomly selected 100 respondents (Life Insurance Policyholders) who based in Bangalore. In correlation we find out the relation between area of respondent and purpose of respondent. By the chi square test we find out the relation between each variable. The researcher depends on primary data for the purpose of analysis and Interpretation. Data are presented in the form of tables and diagrams for easy understanding.

Dayananda Sagar Business School

Data Analysis
All data are collecting by taken random sampling of 100 respondents. 1. Age Group
Age Group Cumulative Frequency Valid 18 to 26 27 to 35 36 to 44 45 to 53 54 to 62 Total Missing Total System 16 14 24 23 23 100 4 104 Percent 15.4 13.5 23.1 22.1 22.1 96.2 3.8 100.0 Valid Percent 16.0 14.0 24.0 23.0 23.0 100.0 Percent 16.0 30.0 54.0 77.0 100.0

Interpretation: - from the above table it shows that 16 % respondents are of age group 18 to 26. 13% respondents are in 27 to 35 age group. 23 % from 36 to 44, 22% from 45 to 53 and 54 to 62 have 22 % respondents.

Dayananda Sagar Business School

2. Area of respondent
Area Cumulative Frequency Valid Rural Urban Total Missing Total System 48 53 101 3 104 Percent 46.2 51.0 97.1 2.9 100.0 Valid Percent 47.5 52.5 100.0 Percent 47.5 100.0

Interpretation: - from the table it shows that 45 % respondents are belong to Rural area and remaining 55% are belong to Urban area.

Dayananda Sagar Business School

3. Sex

Sex Cumulative Frequency Valid Male Female Total Missing Total System 50 50 100 4 104 Percent 48.1 48.1 96.2 3.8 100.0 Valid Percent 50.0 50.0 100.0 Percent 50.0 100.0

Interpretation: - from the table it shows that 50% respondents are male and remaining 50 % are female.

Dayananda Sagar Business School

4. Size of family
Size of family Cumulative Frequency Valid 1 to 3 4 to 5 6 yo 7 8 to 10 Total Missing Total System 22 28 26 24 100 4 104 Percent 21.2 26.9 25.0 23.1 96.2 3.8 100.0 Valid Percent 22.0 28.0 26.0 24.0 100.0 Percent 22.0 50.0 76.0 100.0

Interpretation: - from the table it shows that 23% respondents have 1 to 3 member in their
family. 27% have 4 to 5, 26 % have 6 to 7, 24% have 8 to 10 member in their family.

Dayananda Sagar Business School

5. Purpose of investment
Purpose of investment Cumulative Frequency Valid Tax Rebate Finacial compention Family Safty Risk Cover High Returns Others Total Missing Total System 15 17 15 16 23 15 101 3 104 Percent 14.4 16.3 14.4 15.4 22.1 14.4 97.1 2.9 100.0 Valid Percent 14.9 16.8 14.9 15.8 22.8 14.9 100.0 Percent 14.9 31.7 46.5 62.4 85.1 100.0

Interpretation: - from the 100 respondent its shows that maximum no of people take insurance policy because of tax rebate, it contain 15%. 17 % respondents say financial compensation. 16% risk cover, 24 % high return, 15% family safety and 10 % respondent define other purpose.

Dayananda Sagar Business School

6. Type of insurance
Types of Insurance Cumulative Frequency Valid Terms Endowment Money Back ULIP Others Total Missing Total System 16 25 13 19 27 100 4 104 Percent 15.4 24.0 12.5 18.3 26.0 96.2 3.8 100.0 Valid Percent 16.0 25.0 13.0 19.0 27.0 100.0 Percent 16.0 41.0 54.0 73.0 100.0

Interpretation: - from the data it shows that 16 % respondent have term plan. 25% have endowment plan, 13% have money back plan, 19% have ULIP, and 27% have other plans.

Dayananda Sagar Business School

7. Reason for preferring insurance

Reason Cumulative Frequency Valid Brand Name No of Branch location Quality Service Behaviour of Agent Admi. Charges Value add service Total Missing Total System 15 17 11 20 14 9 15 101 3 104 Percent 14.4 16.3 10.6 19.2 13.5 8.7 14.4 97.1 2.9 100.0 Valid Percent 14.9 16.8 10.9 19.8 13.9 8.9 14.9 100.0 Percent 14.9 31.7 42.6 62.4 76.2 85.1 100.0

Interpretation: - Above table shows the reason for preferring insurance. By this table we conclude that 15% respondent preferring insurance because of brand name. 17% because of no. of branches, 11% because of location, 19% because of quality service, 14% because of behavior of insurance agent, 9% because of administration charges, 15% because of value added provided by insurance company.

Dayananda Sagar Business School

8. Convenient source for getting insurance

Convenient Cumulative Frequency Valid Ins. Agent Bank Broker Direct Ins. Comp Total Missing Total System 17 31 18 35 101 3 104 Percent 16.3 29.8 17.3 33.7 97.1 2.9 100.0 Valid Percent 16.8 30.7 17.8 34.7 100.0 Percent 16.8 47.5 65.3 100.0

Interpretation: - From the above table it shows that 17% respondent get their insurance policy by insurance agent. 31% from bank, 18% from brokers and 34% from the direct insurance company.

Dayananda Sagar Business School

9. Premium policy satisfaction

Premium Cumulative Frequency Valid yes No Total Missing Total System 52 48 100 4 104 Percent 50.0 46.2 96.2 3.8 100.0 Valid Percent 52.0 48.0 100.0 Percent 52.0 100.0

Interpretation: - From the table it shows that 52% respondent are satisfy with the premium of insurance while 48% respondent are not satisfy with that.

Dayananda Sagar Business School

Chi square tests

By chi square test we find out the relation between different variable.

1. Area of respondent and purpose of investment

For these two variables we frame a hypothesis Ho = There is no significant difference in purpose of insurance at different area of respondents.
Area * Purpose of investment Count Purpose of investment Finacial Tax Rebate Area Rural Urban Total 8 7 15 compention 7 10 17 Family Safty 3 12 15 Risk Cover 6 10 16 High Returns 15 8 23 Others 9 6 15 Total 48 53 101

Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 9.502
a

Df 5 5 1

Asymp. Sig. (2-sided) .091 .078 .175

9.913 1.842 101

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.13.

Dayananda Sagar Business School

Interpretation: - from the chi square it shows that value of p is greater than 0.05 so the

null hypothesis is accepted. So there is no significant difference in purpose of insurance at different area of respondents.

Dayananda Sagar Business School

2. Age group and Type of insurance

For these two variables we frame a hypothesis Ho = There is no significant difference in taking different type of insurance by different age group of respondents.

Age Group * Types of Insurence Count Types of Insurence Terms Age Group 18 to 26 27 to 35 36 to 44 45 to 53 54 to 62 Total 2 3 4 3 4 16 Endowment 4 2 6 6 7 25 Money Back 3 2 1 6 1 13 ULIP 5 1 4 3 6 19 Others 2 6 9 5 5 27 Total 16 14 24 23 23 100

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 15.093
a

Df 16 16 1

sided) .518 .482 .703

15.586 .146 100

a. 19 cells (76.0%) have expected count less than 5. The minimum expected count is 1.82.

Dayananda Sagar Business School

Interpretation: - from the chi square it shows that value of p is greater than 0.05 so the null hypothesis is accepted. So there is no significant difference in taking different type of insurance by different age group of respondents.

Dayananda Sagar Business School

3. Area of respondent and Convenient source of insurance

For these two variables we frame a hypothesis Ho = There is no significant difference in convenient source of insurance at different area of respondents

Area * Convenient Count Convenient Ins. Agent Area Rural Urban Total 9 8 17 Bank 17 14 31 Broker 8 10 18 Direct Ins. Comp 14 21 35 Total 48 53 101

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases a. 1.728
a

Df 3 3 1

sided) .631 .629 .230

1.734 1.443 101

0 cells (.0%) have expected count less than 5. The minimum expected count is 8.08.

Dayananda Sagar Business School

Interpretation: - from the chi square it shows that value of p is greater than 0.05 so the null hypothesis is accepted. So there is no significant difference in convenient source of insurance at different area of respondents

Dayananda Sagar Business School

4. Age group and purpose of investment

For these two variables we frame a hypothesis Ho = There is no significant difference in taking different type of insurance by different age group of respondents.

Age Group * Purpose of investment Count Purpose of investment Finacial Tax Rebate Age Group 18 to 26 27 to 35 36 to 44 45 to 53 54 to 62 Total 1 2 5 3 4 15 compention 4 2 3 4 4 17 Family Safty 4 2 2 1 5 14 Risk Cover 1 1 2 8 4 16 High Returns 5 3 9 3 3 23 Others 1 4 3 4 3 15 Total 16 14 24 23 23 100

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 21.979
a

df 20 20 1

sided) .342 .364 .581

21.576 .304 100

a. 27 cells (90.0%) have expected count less than 5. The minimum expected count is 1.96.

Dayananda Sagar Business School

Interpretation: - from the chi square it shows that value of p is greater than 0.05 so the null hypothesis is accepted. So there is no significant difference in taking different purpose of insurance by different age group of respondents.

Dayananda Sagar Business School

Correlation
By correlation we identify the relation between different variable.
Descriptive Statistics Mean Age Group Sex Area Size of family Purpose of investment Types of Insurance Reason Convenient Premium 3.23 1.50 1.52 2.52 3.59 3.16 3.87 2.70 1.48 Std. Deviation 1.377 .503 .502 1.087 1.686 1.468 1.993 1.118 .502 N 100 100 101 100 101 100 101 101 100

Correlations Age Group Age Group Pearson Correlation Sig. (2-tailed) N Sex Pearson Correlation Sig. (2-tailed) N Area Pearson Correlation Sig. (2-tailed) N Size of family Pearson Correlation Sig. (2-tailed) 100 .007 .943 100 .030 .768 100 .142 .159 100 .080 .428 100 -.203
*

Size of Sex .007 .943 100 1 Area .030 .768 100 .080 .428 100 1 family .142 .159 100 -.203
*

Purpose of Types of investment Insurence -.055 .584 100 -.107 .290 100 -.136 .176 101 .164 .104 -.038 .705 100 -.164 .102 100 -.155 .123 100 -.002 .984

Reaso Conveni Premiu n -.061 .550 100 .010 .920 100 -.132 .189 101 -.022 .828 ent .040 .691 100 .081 .423 100 .120 .231 101 .101 .318 m -.015 .881 100 -.080 .428 100 -.038 .704 100 -.036 .720

.042 100 .018 .861

101 .018 .861

100 1

.042

Dayananda Sagar Business School

N Purpose of investment Pearson Correlation Sig. (2-tailed) N Types of Insurence Pearson Correlation Sig. (2-tailed) N Reason Pearson Correlation Sig. (2-tailed) N Convenient Pearson Correlation Sig. (2-tailed) N Premium Pearson Correlation Sig. (2-tailed) N *. Correlation is significant at the 0.05 level (2-tailed).

100 -.055 .584 100 -.038 .705 100 -.061 .550 100 .040 .691 100 -.015 .881 100

100 -.107 .290 100 -.164 .102 100 .010 .920 100 .081 .423 100 -.080 .428 100

100 -.136 .176 101 -.155 .123 100 -.132 .189 101 .120 .231 101 -.038 .704 100

100 .164 .104 100 -.002 .984 100 -.022 .828 100 .101 .318 100 -.036 .720 100

100 1

100 .026 .797

100 -.040 .695 101 -.127 .209

100 .137 .172 101 -.179 .075 100 -.080 .426

100 .014 .888 100 .045 .653 100 .231

*

101 .026 .797 100 -.040 .695 101 .137 .172 101 .014 .888 100

100 1

100 -.127 .209 100 -.179 .075 100 .045 .653 100

100 1

.021 100 .070 .489

101 -.080 .426 101 .231

*

101 1

101 .070 .489 100

100 1

.021 100

100

Interpretation; In each cell of the correlation matrix we get person correlation coefficient, p value and n value. From the output we can see that correlation coefficient between age group and sex is .099 and p value is more then .005. From these figure we can conclude that there is a negative correlation between age group and sex, and this correlation is significant at the significant level 0.01. Same as correlation coefficient between age group and convenient source for getting insurance is .218 and p value is less than .005. From these figure we can conclude that there is a strong positive correlation between age group and convenient source for getting insurance. Results for correlation between other set of variable can also interpret similarly.

Dayananda Sagar Business School