Research Paper Report

On

“To Study the level of Customer Satisfaction towards Private Insurance

Players”

Submitted in the partial fulfillment of requirements for the award of Post Graduate Diploma
in

Management

Batch (2020-2022)

Under the Supervision of Submitted by:

DR. Shalini Sharma Manisha Verma

Associate Professor 920010

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 Declaration

I, Manisha Vermaof GNIOT Institute of Management Studies (GIMS), Greater Noida hereby
submit this report in particle fulfillment of the requirement for the award of Post Graduate
Diploma in Management (PGDM) from GIMS, Greater Noida. I declare that the work
presented in this report is my original and is not submitted anywhere else for the award of
any other degree/diploma by any other institution university. To the best of my knowledge
and belief, this report contains no material previously published or written by any other
person, except where due reference is made.

(Signature of Student)

Dater:

Name of Student Manisha verma

Countersigned:

(Signature of Supervisor)

-----------------------------------------

Name & Designation of Supervisor

Seal/ Stamp of the Institute

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 Acknowledgements

I offer my sincere thanks and humble regards to GNIOT Institute of Management Studies,
Greater Noida for imparting us very valuable professional training in Post Graduate Diploma
In Management (PGDM)

I pay my gratitude and sincere regards to Dr. Shalini Sharma my project Guide for giving me
the cream of his knowledge. I am thankful to her as he has been a constant source of advice,
motivation and inspiration. I am also thankful to her for giving his suggestions and
encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and
library staff for providing me an opportunity to utilize their resources for the completion of
the project.

I am also thankful to my family and friends for constantly motivating me to complete the
project and providing me an environment, which enhanced my knowledge.

Date: / / 2022

Name: Manisha Verma

Enroll. No.: 920010

Course: PGDM (V-Trimester)

(Signature of the Student)

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 Abstract
Man is exposed to many dangers and emergencies. For example, accidents, deaths, vandalism
property by fire; floods etc can happen at any time. Insurance or guarantee is used, or rather
the method. To minimize the negative effects of these risks and uncertainty in some way. It
does not eliminate the risks but provides protection against accidents. Insurance is a form of
risk management in which the insured extends the cost of potential losses. Another company
in exchange for monetary compensation known as premium. Insurance allows individuals,
businesses and other entities to protect against potential capital losses and financial difficulties
at affordable prices. Insurance is a tool for sharing financial losses that could happen to an
individual or family by accident-a specific event. Current research is trying to determine how
customers perceive health insurance products, service quality and satisfaction levels of Life
Insurance Corporation policy holders of India. Sample size of current research he is 70 years
old. The researcher has adopted a simple sampling method for selecting samples. A list of
questions was used collecting key data. Second sources such as books, and journals used in the
study. Current research has suggested that such measures are special policies for policyholders,
to provide timely service, reduce policy approval, increase amount of policy loans,
infrastructure upgrades, innovation and innovation, understanding policy holders' needs,
contact management policy plans, information provision, employee involvement, users
friendly skills, customer-friendly monitoring cell and quality improvement strategy will
improve the quality of service LIC of India. The conclusion is that most policy managers are
satisfied with the Private Insurance service.

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 Table of contents

SL. No. Subject Page No.

01 Introduction 06-08

02 Literature Review 09-11

03 Methodologies 12

04 Data Analysis 13-15

05 Conclusions, Implications and Recommendations. 16-17

06 References 18

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 Introduction
INSURANCE

Insurance is a tool that compensates for the loss of a small amount of money (premium
payment) collected in cash. Insurance is a protection against uncertainties in the future.

It is a system in which the losses of a few are extended to a few who are exposed to the same
risks. It is a protection against financial losses as a result of an unforeseen occurrence.
Insurance companies collect payments to provide security for that purpose. Losses are payable
on collections and the insurance companies act as trustees of the proceeds. These companies
have completed proposal forms to provide the required insurance details. Depending on the
responses to the proposal form, insurance companies assess the risk and decide on a premium.

Insurance companies are dangerous. They write down the risk as a return of the insurance
premium. the function of insurance is to provide protection, loss prevention, financial creation
etc. hence insurance can be defined as a tool where a sum of money as a premium is paid by
the insurer considering that the insurance puts you at risk of paying a large sum of money.
amount. can also be defined as a contract where one party (insurer) agrees to pay another party
(insured) or beneficiary, a certain amount in an emergency provided for which insurance is
required.

The insurance industry is making huge sums of money by selling insurance products to a large
number of clients. Insurance brokers also create debt and commit to compensating for losses
incurred by policyholders at a later date. It also plays an important role in the fundraising
process.

HISTORY OF INSURANCE INDUSTRY IN INDIA

The insurance industry in India over the past hundred years has undergone major changes. In
India this industry reveals a 360 degree rotation. The 360 degree turn means it started in India
from being an open competition market to national inclusion and then reverted to a free market
again.

The insurance industry in India started out as a completely independent system with no
restrictions on international participation in the Nineteenth Century. Prior to independence, a
few British insurance companies owned the Market. Life insurance was first introduced in India
by a British company called Oriental Life Insurance Company in 1818, followed by Bombay
Assurance Company in 1823 and the Madras Equitable Life Insurance Society in 1829. Indian
lives. They were there confirming the lives of Europeans living in India. Some of the companies
that started later provided the Indians with insurance. However, they were treated as “inferior”
and therefore had to pay an additional 20% or more premium. The first company to have
policies that could be bought by Indians "at a reasonable price" was the Bombay Mutual Life
Assurance Society which started in 1871.

The first general insurance company, Triton Insurance Company Ltd., was founded in 1850. It
was owned and operated by the English. The first general insurance company was Indian

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Mercantile Insurance Company Limited founded in Bombay in 1907. In 1938; the insurance
market in India had about 176 companies (both health and non-health).

After independence, the industry moved to another. It became a government monopoly. The
industry began to see a problem similar to fraud. So many laws were enacted to reduce and
control the problems in the industry. Insurance was subsequently placed under state control. In
1956, then-Finance Minister SD Deshmukh announced the creation of a national health
insurance business and the general insurance business was acquired nationally in 1972. Only
in 1999 private insurance companies were allowed to return to the insurance business at a rate
of up to 26% in foreign countries holding.

Indian Scenario

INDIAN INSURANCE INDUSTRY

INSURANCE INDUSTRY

LIFE NON LIFE

INSURANCE INSURANCE

Public Private Public Private

Sector (1) Sector (15) Sector (4) Sector (9)

PLAYERS BRING THEMSELVES TO THE HEALTH INSURANCE SYSTEM

The various independent actors in the health insurance industry and their
organizations and foreign companies are provided below:

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 INDIAN FOREIGN TOTAL FDI FOREIGN
COMPANY PROMOTER/PARTNER INSURER CAPITAL (%) CAPITAL
(RS MN.) (RS MN.)

AMP RELIANCE None 2,170 0 0

SANMAR GROUP(ADAG)
Aviva Life Dabur Aviva (UK) 4,590 26 1193.4

Bajaj- Bajaj Auto Allianz 3680 26 960

Allianz (Germany)
Birla Sun Aditya Birla Group SunLife 4,000 26 1,040
Life (Canada)
HDFC HDFC StandardLife 2,500 18.9 470
Standard (UK)
ICICI ICICI Bank Prudential 10,850 26 2,820
Prudential (UK)
Kotak Kotak Mahindra Bank OldMutual 2,600 26 680
Mahindra Old (South Africa)
Mutual
Max New Max India NewYorkLife 5,000 26 1,300
York (US)
Sahara Life Sahara India None 1,000 0 0
Ins. I
SBI Life SBI Cardiff 3,500 26 910
(France)
TATA AIG TATA Group AIG (US) 3,810 26 990

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 Literature Review

According to a recent report by loyod, the Indian insurance market is likely to change in the
next few years largely due to regulatory changes. In addition, the growth of the premium is
driven by other factors such as the growing consumer segment, the increase in foreign direct
investment, infrastructure development, and increased awareness of disaster risk.

Despite significant positive changes, the insurance market still faces the challenge of negative
customer perceptions and the risk that the pace of change will slow down. Many important
changes are expected in the insurance market that will contribute to the country's development
in the medium to long term.

To date, the influx of large numbers of Indian and foreign companies has led to a huge selection
of products and services for Indian consumers. The growing awareness of the benefits and
importance of high-quality insurance and insurance recovery tools has expanded the pool of
potential insurers. Given this background, the Indian insurance market has grown significantly
since its release in 2000. Over the next three years, the Indian insurance market is likely to see
its maturity process grow rapidly. Regulatory changes in four sectors — products, market
players, distribution and re-certification - will drive the transformation of the Indian insurance
market in the medium term.

• Price competition has begun to rise and is likely to continue to do so in the next 18 to 24
months.

• The practice of funding financing is likely to be eliminated as risk-based prices are widely
used in all products.

• As Indian insurance brokers create a profitable portfolio, they may have more access to
international insurance markets.

• Finally, the growing demand for insurance is likely to be met with increasing volume as
expatriates look to gain access to this growing market.

According to a recent study by Moody's - ICRA Global Insurance, the following facts related
to the performance of both private and public insurance companies have been made.

The Growing Impact of the Private Sector

Private companies continue to grow their market share steadily despite the fact that state-owned
companies have been around for a long time. Private insurance brokers enjoy great flexibility
in operation, while state-owned companies are overwhelmed by their culture and inability to
innovate.

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Market Sharing - Redistribution

Due to the effective implementation of independent marketing strategies, the market share of
insurance brokers is constantly declining. Given the rapid growth rate, the private sector market
share is still equal to that of the public sector and the two are likely to meet in the medium term.

The share of private companies in the third-party car business has been much lower in the past
than in state-owned companies as the previous ones did not follow this market due to its lack
of record. However, with the construction of a standard motor pool, the situation has changed.
Losses related to this segment are now shared by all players, leaving little motivation to avoid
this segment.

Fire and engineering now offer broadly the same portion of business as a whole to private and
public companies. In terms of business as a whole, the focus is on the automotive and health
sector, where positive growth is expected.

Distribution - Increased Bancassurance

The typical Indian insurance industry has historically been run by an agency station, where
75% of the total revenue is paid. But in recent times other channels - for example,
bancassurance, retailers, corporate agents, direct marketing and direct sales channels - are
becoming increasingly important. Many insurers now have relationships with banks, which act
as corporate agents and are paid commissions. For example, ICICI Lombard acquires a large
portion of its business through a partnership with ICICI Bank. Similarly, Bajaj Allianz General
Insurance Company Limited (BAIL, the second largest independent player) has a partnership
with several banks, offering a large share of the total amount of revenue.

As of 31 December 2007, 267 brokers are registered with the IRDA, including 228 direct
brokers, 33 composite brokers and 6 reinsurance brokers. In an unregulated environment, the
trading community will have more opportunities to be an integral part of insurance and risk
management processes. At present, less expensive channels such as telephone and internet
marketing have not been developed in India, mainly due to low information about insurance
products and low internet access.

Research Methodology
Objective of the study

1. Analyzing customer satisfaction level of insurance.

2. Analyze what factors consumers consider when considering investment.

3. Suggest the necessary recommendations to improve insurance services.

Procedure is a systematic problem-solving approach that combines research methods with

problem-solving and research-based problem-solving research methods.

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Data source - Primary and secondary data

How to collect data -Discussion and survey

Data collection tools –Questionnaire

Sample Design
The number of people targeted in the study included different respondents from different areas.
This study was conducted by collecting data from respondents.

Data Source
The data collection function begins after the definition of the research problem. In this study
data were collected from both primary and secondary data sources.

A. Primary Data

Key data is data, which is collected to collect information for the first time and to analyze a
problem. In this study preliminary data were collected among consumers using a questionnaire.

B. Secondary Data

The second data contains information that is already generated somewhere, collected for other
purposes. In this study secondary data was collected on company websites, magazines and
brochures.

Statistical Tools
Simple percentage analysis, measurement method and are the main mathematical tool used for
research.

Simple Percentage Analysis

Percentage means special master of measurement in comparing between two or more data and
defining relationships. Percentages can also be used to compare the terms of a relationship
between two or more data sources.

Percentage of respondents = Number of responders / Total respondents * 100

Ranking Method (Weighted Average Method)

This technique has been used to rank out the perception of consumer preferences in alternative
investment options. The eligibility order provided to respondents was converted into standards
using the following formula.

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Measuring Weight = ∑ Wi * Xj

Where Wi = Weight age value and Xj = Ranking Position value

Analysis and Interpretation

Objective I

Age Group

Age Group No. of Respondent Percentage

Below 30 years 36 36
31-40 25 25
41-50 16 16
51-60 5 5
Above 60 2 2

Total 84 84

Below 30 years
31-40
41-50
51-60
Above 60

Interpretation:

we see that 36% of respondents were under the age of 30, followed by 25% of the
age group aged 31-40, and 15% of respondents were 41-50. age and only 3% of
respondents aged 51-60 but no respondent from the age group above 60 years.

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Objective II

Annual Income Level

Annual Income Level No. of Respondent Percentage

Below 1 lakh 22 22
1-3 lakh 40 40
4
3-5 lakh 4
3
Above 5lakh 3

Total 69 69

Below 1 lakh
1-3 lakh
3-5 lakh
Above 5lakh

Interpretation:

From the table above we can see that 22% of respondents were part of the group with an annual
income of less than 1 lakh, followed by the top 40% of the annual income group between 1-3
lakh, and 4% with an annual income of between 3-5 lakh and 3% of respondents with an annual
income of more than 5 lakh.

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Objective III

Hold Life Insurance Policy

Hold Life Insurance Policy No. of Respondent Percentage

Yes 45 45
No 30 30
Total 75 75

No. of Respondent

Yes
No

Findings
Findings from our research can be summarized as follows:

a) Bank Deposit is the preferred investment method available to people followed by other
methods such as Insurance, Sale, Gold and Silver, Mutual etc.

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b) The most popular scheme by insurers was life insurance schemes such as death benefits
followed by income-generating programs such as wealth building and high reimbursement
programs.

c) It has been found that approximately 36 respondents tend to save less than 15% and the most
preferred type of investment respondents are both long-term and short-term.

d) People who are members of a different age group have a different view on the most important
conditions before deciding on health insurance.

e) People who are members of a different leadership group also have a different view on
important health insurance requirements.

Finding of study

1. Customers who are part of the 50,000 to 200,000 lead group take up most of the insurance
policy.

2. Most customers choose LIC policy because of its reliability.

3. Most customers are satisfied with the agents behind the sales services

5. Most customers are satisfied with the speed of completion of private insurance.

6. Most clients have invested in LIC to generate income and investment growth.

RECOMMENDATIONS
1. Steps must be taken to increase awareness of insurance among customers.

2. Adopt an effective performance appraisal system to increase the efficiency of agents and
staff.

3. The closest customer relationship helps a company to keep existing customers and hold on

many customers.

4. Change their traditional style, because young people prefer private insurance

Companies.

CONCLUSION
The insurance sector has become more focused on India in recent times due to the changes
occurring in terms of the number of companies offering insurance products, a variety of
products in market. When a customer sees quality, it is reflected in customer satisfaction.
Customer satisfaction also, it can lead to an increase in revenue. Consumers are an economic

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asset, however, not enough to satisfy customers; for a business to be successful over time, it
must satisfy customers with a profit. Although there are many insurance companies in the
health insurance industry, with the exception of a few others striving for survival. Innovation
in every aspect is needed to survive and increase penetration level of insurance, campaigns
should be introduced to increase awareness of benefits and importance .Instead of pushing
policies on customers through agents, a need should be created for the customer pulls policies.
Each product and services launched by an insurance company must be available we favor the
growing need for policymakers. The IRDA should be more responsible for insurance sector by
determining a certain level. It should be mandatory for all insurers to do more and more
responsible and accountable to policy managers.

Bibliography
Websites

• http://www.google.co.in/

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 • http://www.en.wikipedia.org/
• http://www.scribd.com/
• http://www.slideshare.net/

Books and Magazines

• Kothari, C.R, "Research Methodology" Wishwa Prakashan, Delhi, 2004
• Business World and Business India Magazine

References
Project
Insurance
vInsurance
on Institute
Marketing
Instituteof
ofof
India,
India
Life(1987),
Insurance,
A the
Kirubashini, B. (1991), Life Insurance Policy Holdings: A Study on Influencing Factors,
Published Thesis.

Prakash, “Consumer Awareness of HDFC Standard in Life Insurance Company

Limited”,Research Journal of Commerce and Behavioural Science (2012)

Narendar & Sampath, “Consumer awareness towards life insurance sector in India”,
ABHINAV International Monthly Refereed Journal of Research in Management &
Technology (2014).

Appendix
Questionnaire
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 1. Name :
Gender :
• Male ( )
• Female ( )
Contact no.:
2. Age Group:
• Below 30 ( )
• 31-40 ( )
• 40-50 ( )
• Above 50 ( )
3. Educational Qualification:
• Under graduate ( )
• Post graduate ( )
• Diploma ( )
• Others ( )
4. Occupation:
• Student ( )
• Employed ( )
• Self-Employed ( )
• Others ( )
5. Annual Income Level:
• Below 1 Lakh ( )
• 1-3 Lakh ( )
• 3-5 Lakh ( )
• Above 5 Lakh ( )
6. What percentage of your salary do you usually save?
• Less than 15% ( )
• 15-20% ( )
• 20-25% ( )
• Greater than 25% ( )
7. Do you have life Insurance Policy?
• Yes ( )
• No ( )
8. If ‘Yes’ which Insurance Company Policy do you have ?
• LIC ( )
• Bajaj Allianz ( )
• Reliance Life ( )
• HDFC Standard ( )
• ICICI Prudential ( )
• Others ( )
9. What scheme of Insurance Policy have you taken?
• Life protection plan ( )

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 • Education plan ( )
• Health plan ( )
• Money growth plan ( )
• Retirement plan ( )
• Others ( )
10. If you don’t have life insurance policy, please give me Reason ?
• No money ( )
• Not aware about the features of life insurance ( )
• I will buy a life insurance in future ( )
• Others ( )

11. Suggestions

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