CH Institute Of Management, Indore (M.

P)

Questionnaire on

“Comparative Study Between Two Gear Companies”
Submitted in Partial Fulfillment of the Requirement of Master of Business Administration Guided By: Mrs.Garima Joshi Submitted By: Priyesh Jain

1

Garima Joshi Professor. a student of MBA (Full Time) III semester in. Indore 2 . CH Institute Of Management.) has opted for his MRP on “Customer Satisfaction and Role of Channel Intermediaries in Life Insurance Services:A Comparative Study” The synopsis is done under my guidance for the partial fulfillment of requirement of the degree of MBA.P.Certificate From Supervisor This is certified that Priyesh Jain. Indore (M. Mrs. MBA CHIM.

Priyesh Jain MBA III Semester CHIM.) pursuing MBA (Full Time) III semester has prepared the synopsis on the topic “Customer Satisfaction and Role of Channel Intermediaries in Life Insurance Services: A Comparative Study”.Student Declaration I am Priyesh Jain Student of CH Institute Of Management. Indore (M. Indore 3 . I hereby declare that the work is authentic and the data collected is genuine.P.

it can be difficult to think about or plan for such an event. TERM LIFE INSURANCE: Under a Term Life contract. Thus. this policy will accumulate certain "cash value" which you will be able to get back either during the period of the policy or at the end of the policy. It is a good method to protect your family financially. a portion of the money paid as premiums is invested in a fund that earns interest on a tax-deferred basis. The premium on such type of policies is comparatively quite low when compared with other types of life insurance policies. in case of death. 15. However. Term life insurance are the most popular in advance countries but were not so popular in India. on the happening of a certain event. 2. the insurance company pays a specific lump sum to the designated beneficiary in case of the death of the insured. 4 . by providing funds for the loss of income. there are many things to consider.Introduction:Life insurance: . 20 or 30 years. over a period of time. PERMANENT LIFE INSURANCE: . However. Types of Life Insurance 1. consulting with a life insurance professional can be vital! In technical term Life Insurance is a contract providing for payment of a sum of money to the person assured or. following him to the person entitled to receive the same. 10. mainly due to the fact that these policies do not carry cash value. There are many ways to protect your family with life insurance.In a Permanent Life contract. unfortunately. Although it may sound simple. after the entry of the private operators and aggressive marketing by few players this kind of policies are becoming popular. And.Life insurance is most commonly used to protect your family from any financial risk of your family in premature death. adequate planning is often put off until it's too late. These policies are usually for 5. So.

and lack vision of a broader service spectrum encompassing non-banking products. Agents Today's insurance agent has to know which product will appeal to the customer. group products or work site products do have a definite market that cannot be ignored.Channel Members of Life Insurance Services:1. To the average customer. For historical reasons the image that 'broker' carries in the minds of the customer is not very favorable. 4. real estate. Though a few banks provide online banking. At present most of the 5 . 2. every new company is the same. The insecurity associated with transactions over the net is still an inhibiting factor. The newer banks are constrained by their lack of reach and meager branch strength. and himself to the customer. and travel and tourism. are also plagued by a rigid unionized workforce and archaic systems. the usage is still a small fragment. the product. Work site marketing This area needs to be tapped. using net for transactions has not yet caught up. This will be a new experience for the insurance customer. Banks Banks in India are all pervasive. with their vast branch networks. as in any country one of the biggest markets is through the worksite. With changes in human resources management polices and compensation packages. this could be the next hope. Thus the new breed of insurance brokers faces the challenge of establishing credibility. especially for the urban market. especially the public sector banks. Can they also become the foremost channel for distribution of insurance? Perhaps in the future. For banks to become a predominant channel for selling insurance will require a paradigm shift 3. and also know his competitor's products in the same space to be an effective salesman who can sell his company. 5. Internet Though India is joining the fast growing breed of net users. Brokers With the broker regulation under review and expected any time. accustomed to brokers in financial services. The public sector banks.

The insurance cover is sold by an automobile /credit card company as an add-on product leveraging the brand of the retailer. automobile insurance. 6 Invisible Insurers In this model. The belief that all these channels will grow and seamlessly integrate to bring in business seems a fallacy. The Risk is carried by the insurance company. However there is great excitement in the industry over the impending broker regulations and companies are planning possible channels in their enthusiasm to increase volumes. and credit card related insurance could be distributed using this channel. and may not have sold the best possible product to the client. This arrangement worked adequately in the absence of competition. as is the case in most markets. which underwrites it. the insurance company or its representative is not the entity marketing the products. Almost all the new players follow this model primarily because the regulations for other channels are yet to be put in place. more new players coming in. and global marketing practices and 6 . Of course. The agents are from various segments in society and collectively cover the entire spectrum of society. Nonetheless. the profile of the people who acted as agents suggests they may not have been sufficiently knowledgeable about the different products offered. Role of Channel Members in customer satisfaction:Traditionally tied agents have been the primary channels for insurance distribution in the Indian market. It is already prevalent in some areas like credit card insurance and crop insurance for agricultural loans.insurance companies have product information and/or illustrative tools on the web. . This ensures the last mile touch point being closer to the customer. the customer trusted the agent and company. The new players are also attempting this model. What have emerged are a much more difficult and evolving market scene with existing players. supported by call centers to a small extent. In today's scenario agents continue as the prime channel for insurance distribution in India. This model can be adopted in all market segments for the lines of business mentioned. A person who has lived in the locality for many years sells the products of the insurance company with a local branch nearby. Products like creditor insurance. the public sector insurance companies have their branches in almost all parts of the country and have attracted local people to become their agents.

These intermediaries play the role of bridge between the insurance companies and customers. The study is based on the performance of intermediaries to reach at the satisfaction level of customers. Different customers have their own perception regarding the services offered. The satisfaction level of customers with the services offered will also be measured. 7 . the private as well as government sectors are coming in this market with a large variety of services for their customers. brokers. But none of this has changed the fundamental character of the market. The intermediaries in life insurance service include agents. The outcome of the study would show the role of intermediaries in persuading the customers and to provide the service to the customers. In the research factors which influence the customers to buy a particular policy will be measured. work site marketing. banks. which we believe will take more time than expected. The channel intermediaries play a vital role in providing life insurance services satisfy the customers with their services. Rationale:The insurance market in India is growing very rapidly.ideas being tested. internet. Life insurance is a complex product representing a promise to compensate the insured and third party according to specified terms and conditions should some well defined contingent event occur.

• • Hypothesis:8 . other objectives are:• To study the role of life insurance intermediaries in customer satisfaction. To study the role of service offered by different life insurance companies in customer satisfaction.Objectives:The primary objective of the research is to study the role of channel intermediaries in customer satisfaction in the life insurance services. To study the role of customer perception towards insurance intermediaries and services offered in their level of satisfaction.

H3:. H6:.Channel wise there is significant difference in customer’s towards timely service.channel wise there is significant difference in customer’s towards error free services.Channel wise there is significant difference in customer’s towards processing fee charged.Channel wise there is significant difference in customer’s towards quick action against customer complaints.Channel wise there is significant difference in customer’s towards technological support.Channel wise there is significant difference in customer’s towards claim management process. H5:. H13:. H12:.H1:.Channel wise there is significant difference in customer’s towards process of acquiring insurance policy. H9:.Channel wise there is significant difference in customer’s towards uniqueness in service offered. H7:. H2:.Channel wise there is significant difference in customer’s towards after sales service. H10:.Channel wise there is significant difference in customer’s towards information and advisory service. H11:.Channel wise there is significant difference in customer’s towards customized service. H8:.Channel wise there is significant difference in customer’s towards physical evidence of service place. H4:. satisfaction satisfaction satisfaction satisfaction satisfaction satisfaction satisfaction satisfaction satisfaction satisfaction satisfaction satisfaction satisfaction Review of Literature:- 9 .Channel wise there is significant difference in customer’s towards individual attention.

The process through which buyers are matched with insurers is Complex and multidimensional. and their customers. on average their counseling interviews take longer. the insurer’s reputation for claims settlement 10 . i.The study on “Agents and Brokers intermediaries in insurance markets an empirical analysis of market outcomes” in 2002 by martina eckrdt shows the following findingsMost of the variables used as indicators to assess the quality of information and advisory services supplied show highly significant differences. and then help their client select from competing offers. match buyers with insurers who have the skill. capacity. both in general as well as with respect to consultations on old-age security. the competitive pressure insurance brokers perceive is significantly lower than it is the case for insurance agents. This indicates that on average larger shares of consumers feel well advised by insurance brokers.” helping buyers to identify their coverage and risk management needs and matching buyers with appropriate insurers. David Cummins in 2005 indicates the following findingsIn commercial property-casualty insurance markets. Also as the legal setting would imply. Insurance brokers have higher success rates. also the output indicators differ significantly.e. Furthermore. As the quantitative input indicators show. Moreover. Insurance brokers spend a larger amount of their working time on the search for information on insurance companies. which not only leads to a rejection of the null hypothesis. The role of the intermediary is to scan the market. significant differences between insurance agents and brokers exist with respect to the proportion of their respective time budget spent on the acquisition of information and on counseling interviews. the intermediary plays the role of “market maker. The study on the topic “The Economics of Insurance Intermediaries” by J. Also important are the breadth of coverage offered by competing insurers. a higher proportion of their consultations leads to a contract conclusion compared to the success rates of insurance agents. These findings strongly indicate that the different legal rules applying to insurance agents and brokers do indeed lead to better information and better-suited advice for clients of insurance brokers. Correspondingly. the risk management services provided. Price is important but is only one of several criteria that buyers consider in deciding upon the insurer or insurers that provide their coverage. and financial strength to underwrite the risk. they attend further trainings and conferences more often than insurance agents. but also gives strong evidence that indeed insurance brokers may provide better advisory services than insurance agents. products. risk appetite.

2% representative as part of Policy Details Confirmation Activities and had received direct explanations. complex international exposures) which have become the exclusive domain of the largest brokers. there are some risks (such as large.to-face service. 11 . and other factors. thereby confirming the importance of face. Even for large risks. there is considerable competition among the small and medium-sized intermediaries who can and do effectively compete with the global brokers for such accounts.2%. a promotional exercise or by referral from an existing client.and financial strength. The study on “Efforts to Improve Customer Service “by Nippon Life in 2009 shows that customer satisfaction in terms of “Sales representative response” rose for the fifth consecutive year for an overall customer satisfaction score of 83. one of the benefits of the model is that it clearly identifies where opportunities exist within the relationship to ‘cross-sell’ and make the relationship even more profitable. This model can be used as an operational and marketing tool to identify which areas management should be concentrating on at any given time over each stage and phase of the relationship. Customer satisfaction was overall Customer Satisfaction based on the Customer Satisfaction Survey particularly high for those customers who had been visited by a sales 83. For small and mid-sized risks. the absolute number of brokers and independent agents is very large. specialty or regional mid-sized brokers can sometimes compete with the mega-brokers. The study on the topic “Broker-Client Relationship: A Conceptual Framework” shows the following findingsMANAGEMENT ISSUESThe management of the broking organization will want to establish how the ‘prospect’ obtained details of their organization. But while the concentration is high. However. Management must also ensure that the insurance carriers are providing an agreed level of service and wide product portfolio. This will enable them to assess the effectiveness of each. The insurance brokerage industry is highly concentrated at the top of the marketplace with a handful of brokers accounting for most of the market share. whether it is as a result of networking. During the information gathering stage management must ensure that the appropriate level of technical quality is available is to ensure that the ‘prospect’ is given the correct advice thus ensuring the relationship foundations are firmly laid. Moreover.

The results of the study suggest that the largest returns to the FMA passage were realized by large investment banks and insurance companies. The study on the topic “customer satisfaction with the service quality in the life insurance industry in India” by promita goswami concludes that The responsiveness of service quality provides maximum customer satisfaction to the life insurance industry in India. translating into abnormal positive returns for businesses that are the likely candidate for mergers and consolidation. finance companies and insurance companies.The study on “Capital market reactions to the passage of the Financial Services Modernization Act of 1999” by Carrow Kenneth A. The stock prices of banks. thrifts. Research Methodology:The Study 12 . different players of the industry should invest to improve customer relationship. With the increase in the overall market size of the industry as well as increasing competition since 2000. financial and insurance sectors. both small and large. This would not only involve implementation of CRM solution but also internal marketing of the CRM concept. The study looks at stock excess returns across sectors and company size. The authors investigate how the passage of the Financial Services Modernization Act of 1999 (FMA) affected stock prices of banks. and Heron R. The idea is that the passage of the FMA opens doors for potential mergers and consolidations across banking. seemed to be unaffected by the new legislation while thrifts. finance companies and foreign banks lost value.

3.points was given for the answer strongly disagree.points was given for the answer disagree. Reference:13 . A score of 5-ponts was given for the answer strongly agree.points was given for the answer neutral.05 and factor analysis would also be conducted. Sample Size A sample size is taken as 100 customers of insurance companies. The Tools (Data Collection) The data will be collected through self developed questionnaire. correlation. Analyses of data will be done using parametric two sample ttest or z-test.The research is descriptive in nature.points was given for the answer agree. The objective of the study is to find out the role of channel intermediaries in customer satisfaction. at significant level 0. The Sample Non probability sampling technique will be used in the research in which the sample will be drawn on convenience basis. 2. 4. 1. The Tools (Data Analysis) The data was classified and tabulated using MS-Excel. For each statement of the questionnaire the respondent will be asked to indicate their perception.

 MBA project report on insurance www.Khanna (Taxmann).com 14 .Goyal (Eds. Finance and Insurance Industry (2009) Prof. Of Posts). (2007).com.Institutes.)  Examination Guide for Life Insurance Agents (Based on Approved Syllabus of IRDA of India).  Emerging Trends in Banking.info.  Careers in Banking.  Fundamental of LIFE INSURANCE . Anand M.Agrawal & Krishn A.  MBA projects on insurance collegeprojects.K. 2003 P.Bose (Retd. A Handbook on Postal Life Insurance (2005) J.Theories and Applications Kaninika Mishra.R.topshareware. Courses & Jobs SAP 3rd edition.  A comparative study on the performance of insurance company with its industrial competitors Projectscollege. Supdt.blogspot. Finance and Insurance .

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