1

A PROJECT REPORT ON
³CUSTOMER

SATISFACTION TOWARDS INSURANCE INDUSTRY´.

Submitted to CENTRAL UNIVERSITY OF HIMACHAL PRADESH

(In partial fulfilment of requirement of the prescribed course)

Masters of Business Administration (2010-2012)

Supervised By: Mr. Shabab Ahmed

Submitted by: PUNEET SHARMA Roll No. CUHP10MBA18

2

PREFACE
The liberalization of the Indian insurance sector has been the subject of much heated debate for some years. The policy makers where in the catch 22 situation wherein for one they wanted competition, development and growth of this insurance sector which is extremely essential for channelling the investments in to the infrastructure sector. At the other end the policy makers had the fears that the insurance preemie, which are substantial, would seep out of the country; and wanted to have a cautious approach of opening for foreign participation in the sector. As one of the rare occurrences the entire debate was put on the back burner and the IRDA saw the day of the light thanks to the maturing polity emerging consensus among factions of different political parties. Though some changes and some restrictive clauses as regards to the foreign participation were included the IRDA has opened the doors for the private entry into insurance. Whether the insurer is old or new, private or public, expanding the market will present multitude of challenges and opportunities. But the key issues, possible trends, opportunities and challenges that insurance sector will have still remains under the realms of the possibilities and speculation. What is the likely impact of opening up India¶s insurance sector? The large scale of operations, public sector bureaucracies and cumbersome procedures hampers nationalized insurers. Therefore, potential private entrants expect to score in the areas of customer service, speed and flexibility. They point out that their entry will mean better products and choice for the consumer. The critics counter that the benefit will be slim, because new players will concentrate on affluent, urban customers as foreign banks did until recently. This seems to be a logical strategy. Start-up costs-such as those of setting up a conventional distribution network-are large and high-end niches offer better returns. However, the middle-market segment too has great potential. Since insurance is a volumes game. Ther efore, private insurers would be best served by a middle-market approach, targeting customer segments that are currently untapped.

3

ACKNOWLEDGEMENT
The project period has been a great platform for me since it makes me experience certain things which could not be experienced during the studies in the university. The project was a great help in learning since it made me to observe and understand practical things which were far away from our course books.

My foremost thanks to our Vice Chancellor Mr. FURQAN QAMAR who provided us an opportunity and gave me the permission for this survey. I would like to thank Mr. SHABAB AHMAD (In charge) who guided me at all stages in the preparation of this dissertation. This project would not have been possible without his valuable suggestion and encouragement. This whole effort is the result of guidance, assistance and inspiration of several peo who helped me ple during my preparation of this report. I found no words to express my gratitude & thanks to all of them. Last but not the least all that I am capable of doing I owe to THE ALMIGHTY. I request the readers to excuse for the short comings.

4

EXECUTIVE SUMMARY
In today¶s corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70- 80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and get experience in highly competitive and enhancing sector. The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a particular insurance company has adequate agents in the market it can capture big market as compared to the other companies. For long run stay in insurance sector company must be loyal for its customers and provide them best services to compete with its competitors, otherwise it will lose its recognition from this corporate world. Agents are the only way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer. Thus every company wants that it have best agents with them which serve its customer in best way than any other company can serve. It¶s directly related to feel the customer satisfy.

........ ..................................................38 7..... .......................................................................23 4.. ......................................6 RESEARCH METHODOLOGY................................................ ............................ DATA ANALYSIS.............................................. ....................... ...39 .................................................. .3 SERVICE QUALITY AND CUSTOMER SATISFACTION................................... ...............1 TOPIC INTRODUCTION............................................... ....................................................34 5.1 QUESTIONNAIRE...........................5 SIGNIFICANCE OF THE STUDY....................20 3................................4CONCLUSION....3 LIMITATION OF RESEARCH......8 1................................................... ANNEXURE 7................................................ .............................................37 6................5 MARKETING OF INSURANCE IN INDIA............................................................................ .................... ...................24 5........................................................................................................................................................13 1........................................................................2 THE NEED TO MEASURE CUSTOMER SATISFACTION................12 MAJOR STEPS TAKEN BY INSURANCE INDUSTRY FOR CUSTOMER SATISFACTION.................. .....................................17 3.........................................................21 3.. BIBLIOGRAPHY.......10 MAJOR COMPAINES IN INSURANCE INDUSTRY.. ......................................6 1...........................................8 1................... .......................................................................4 EXPECTATIONS AND CUSTOMER SATISFACTION....................36 5..........22 3..........................................3 OBJECTIVES OF THE STUDY........................................ .................................................................................................................................................................2 SUGGESTION... ................. ...9 1........................11 1........1 FACTS/FINDINGS.....................................................................................................................................................1 NEED OF THE STUDY.... ................................... LITERATURE REVIEW..................22 3......................... INTRODUCTION 1.....2 TITLE JUSTIFICATION................ ..35 5............20 3...................................15 2........................................7 1.5 TABLE OF CONTENT 1............................................................................ ................................................................... ..................................................................................11 SWOT ANALYSIS OF INSURANCE INDUSTRY.................4 SCOPE OF THE STUDY..................

which can be split into the broad themes of contentment/happiness. The word "satisfied" itself had a number of different meanings for respondents. Because it's critical that you form a close working relationship with your client.6 1. A customer may be defined as someone who has a direct relationship with. accessibility and attitude . consumers or clients. relief. wanted and loved. It¶s important to work closely with your customers to make sure the service you create or provide for them is as close to their requirements as you can manage. Attributes of customer satisfaction can be summarized as: 1) Product Quality 2) Product Packaging 3) Keeping delivery commitments 4) Price 5) Responsiveness and ability to resolve complaints and reject reports 6) Overall communication. It's a well known fact that no business can exist without customers. Customer in human service is commonly referred to as service users.1 TOPIC INTRODUCTION The meaning of satisfaction: "Satisfied" has a range of meanings to individuals. The level of satisfaction is determined not only by the quality and type of customer experience but also by the customer¶s expectations. What follows are a selection of tips that will make your clients feel valued. but it generally seems to be a positive assessment of the service. cu stomer service is of vital importance. Thus the ³customer satisfaction´ refers to how satisfied customers are with the products or services they receive from a particular agency. INTRODUCTION 1. and achieving aims and happy with outcome. or is directly affected by your agency and receives or relies on one or more of your agency¶s services or products.

. Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. companies can determine the actions required to meet the customers' needs. and discuss the steps that need to be taken in order to measure and track customer satisfaction. When buyers are powerful. So it is no wonder that the relationship between those assets and future income is becoming more and more tenuous. it is more important to pay attention to the customer. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. Focusing on competition has its place. This point is an attempt to review the necessary requirements. In many places in the world. Assets on the balance sheet ± basically assets of production ± are good predictors only when buyers are weak. They can identify their own strengths and weaknesses. the health and strength of the company's relationship with its customers ± its most critical economic asset ± is its best predictor of the future.2 THE NEED TO MEASURE CUSTOMER SATISFACTION Satisfied customers are central to optimal performance and financial returns.7 1. business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. As buyers become empowered. where they stand in comparison to their competitors. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction (CS) as an important strategic success indicator. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. but with buyer power on the rise. sellers have no choice but to adapt. chart out path future progress and improvement. With better understanding of customers' perceptions. Evidence is mounting that placing a high priority on CS is critical to improved organizational performance in a global marketplace.

and where positive preconceptions and high expectations make positive ratings more likely and seem to be an oversimplification.3 SERVICE QUALITY AND CUSTOMER SATISFACTION There is a great deal of discussion and disagreement in the literature about the distinction between service quality and satisfaction. and these in turn are determined by a very wide range of factors lower expectations will result in higher satisfaction ratings for any given level of service quality. In the service quality literature. . The service quality school view satisfaction as an antecedent of service quali y t satisfaction with a number of individual transactions "decay" into an overall attitude towards service quality.g. Customer's perception of Service and Quality of product will determine the success of the product or service in the market. You feel happy recommending the bank to a friend).8 1. poor previous experience with the service or other similar services is likely to result in it being easier to pleasantly surprise customers. consisting of four subscales: general satisfaction (e.g.4 EXPECTATIONS AND CUSTOMER SATISFACTION Expectations have a central role in influencing satisfaction with services. for example. Major overall satisfaction measure. Requests are carried out right first time). but will also make it harder to achieve high satisfaction ratings . there are clearly circumstances where negative preconceptions of a service provider will lead to lower expectations. Trust (e. Reliability (e. Staff have the knowledge to deal with any queries you have). 1. If experience of the service greatly exceeds the expectations clients had of the service then satisfaction will be high. This would seem sensible. However. and the gap between the two provides a measure of service quality. There is obviously a strong link between customer satisfaction and customer retention. perceptions of service delivery are measured separately from customer expectations.g.g. and vice versa. You trust the staff at your branch to do what is best for you). The satisfaction school holds the opposite view that assessments of service quality lead to an overall attitude towards the service that they call satisfaction. and professionalism (e.

newer channels of distribution have to be utilized to intensify the reach of insurance both in urban and rural markets. corporate agents and brokers and this is an area where different companies will make different choices. The key to success is in providing insurance solutions.9 1. Technology can play a crucial role in delivering the highest standards of service set by the company and it will be imperative for any serious player to excel in all of these. In case of savings oriented products. not standardized insurance products. claim processing and so on. there are certain common characteristics that one can cull out from the possible strategies that companies adopt. However. from the individual who now have wider choices. In an under-insured economy. However. Marketing Mix Policies Different companies can choose to position themselves differently and hence the Marketing Mix is different. Product: The development of flexible products to suit individual requirements is what will differentiate the winners from the also-rans. Many companies like HDFC Standard Life are focusing on all channels whereas companies like Max New York Life are focusing on the tied agency force only.tied agency force. policy servicing. The channel options are . such as sales. This will create huge employment opportunities not only within insurance companies but also as agents and consultants of insurance companies. long-term returns generated are more relevant than just the price of the product. which has led to customization of products for individual needs.pure term insurance and in pure annuities. Price: Price is a relevant differentiator only in two segments . which see increased savings. which can look forward to long term funding being available. It is also a sector. to the infrastructure sector. The concept of riders/optional benefits has already been a huge innovation brought about by the new players. Here too. Customer interface will be a key challenge for life insurance companies and includes every that interaction that the customer has with the company. to the economy. service delivery and financial strength will need to be present at a minimum acceptable level for price to be a relevant differentiator. premium payments. A focus on generating good investment performance and keeping a tight .5 MARKETING OF INSURANCE IN INDIA Insurance is in a manner of speaking the last frontier in the financial sector to open. companies may differentiate themselves on the basis of product segments that they choose to focus on and excel in. Place: Different companies may however choose different channels and different geographies to focus on. which leads to benefits across the full spectrum. new business underwriting.

No matter what distribution strategy a company adopts. with auto insurance. People: The most important factor that materializes sales and maintains customer relationships on a long. the trained manpower. the TPA ties up with garages and authorized service centres for cashless settlement of auto insurance claims. Greater awareness of insurance and the need to have it as a protection tool rather than as a tax planning measure needs to be appreciated by the Indian people. The market needs to be developed. direct marketing and road shows contribute to all this and different companies take different approaches on these. Likewise. Process: Cashless settlement: One of the most defining and customer-friendly changes that we¶ve seen indecent years relates to the way claims settlements are made. customer relationship has to be taken care of in order to maintain the customer base on a long-term basis.10 Control on costs help in generating good long-term maturity value for customers. TPAs are entities who process claims on behalf of insurers: the IRDA licenses them after it is satisfied that they have the financial strength. The advent of the third-party administrator (TPA) regime has facilitated the transition to the hugely convenient era of cashless settlement of health and auto insurance claims. the infrastructure and the skills to undertake this activity. Norms have been laid down on all of these by IRDA and adhering to these while delivering good returns will be a challenge. .term basis is this factor. Promotion and Advertising: The level of demand is latent and will have to be activated considerably. Various communication tools including advertising.

K. there are more than 400 product combinations to choose from. In 1995-96. Kanpur and Bhopal. LIC is associated with joint ventures abroad in the field of insurance. 2. The Corporation also transacts business abroad and has offices in Fiji. They have a national presence with a network of 57 offices in 37 cities across India. Mauritius and United Kingdom. United Oriental Assurance Company Limited. Max New York Life Insurance Co. together with New York Life International. Max New York Life Insurance Company Limited is a joint venture that brings together two large forces Max India Limited. It has also entered into an agreement with the Sun Life (UK) for marketing unit linked life insurance and pension policies in U. Bahrain. .22 per cent per annum. LIC with its central office in Mumbai and seven zonal offices at Mumbai. operates through 100 divisional offices in important cities and 2. Hyderabad.6 MAJOR INSURANCE COMPANIES ARE AS UNDER : 1. a global expert in life insurance. and Life Insurance Corporation (International).C. namely. E. a multi-business corporate. LIC's claims settlement ratio at 95 per cent and GIC's at 74 per cent are higher than that of global average of 40 per cent. Chennai. Ken -India Assurance Company Limited. with 50 per cent subsidy in the premium rates. 1.048 branch offices. Nairobi.7 per cent growth in the rest of Asia (3. LIC has 5. During the last 15 years.4 per cent in Europe. Ltd.Life Insurance Corporation of India (LIC) Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread the message of life insurance in the country and mobilise people¶s savings for nation-building activities.59 lakh active agents spread over the country. LIC's income grew at a healthy average of 10 per cent as against the industry's 6. Calcutta. LIC has even provided insurance cover to five million people living below the poverty line.11 1.3 Billion. Kuala Lumpur. Delhi. With their various Products and Riders. Compounded annual growth rate for Life insurance business has been 19. LIC had a total income from premium and investments of $ 5 Billion while GIC recorded a net premium of $ 1.4 per cent in the US).

a premier financial powerhouse and prudential plc.  Metlife India Insurance Company Pvt. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). 4. ICICI Prudential Life Insurance Company Ltd. . Ltd.  Dabur CGU Life Insurance Company Pvt. Kotak Mahindra Old Mutual Life Insurance Ltd. Others are:  Tata AIG Life Insurance Company Ltd. Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group and Sun Life financial Services of Canada.000 advisors. The company has a network of about 56. Ltd.  AMP SANMAR Assurance Company Ltd. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. (KMBL). Ltd. a leading international financial services group headquartered in the United Kingdom.  SBI Life Insurance Company Limited  ING Vysya Life Insurance Company Private Limited  Allianz Bajaj Life Insurance Company Ltd. as well as 7 banc assurance and 150 corporate agent tie ups. is a joint venture between Kotak Mahindra Bank Ltd. 5. and Old Mutual plc. Birla Sun Life Insurance Company Ltd.12 3. Om Kotak Mahindra Life Insurance Co.

2. Strong and well spread network of qualified intermediaries and sales person.7 SWOT ANALYSIS OF INSURANCE INDUSTRY STRENGTH 1. Further the burden of educating consumers will also be shared among many players. OPPORTUNITIES 1. export credit etc. Strong capital and reserve base. International companies will help in building world class expertise in local market by introducing the best global practices. Poor retention percentage of tied up agents. The companies also provide innovative products to cater to different needs of different customers. .13 1. The companies provide customer service of the highest order. WEAKNESS 1. 3. There will be inflow of managerial and financial expertise from the world¶s leading insurance markets. 4. Large pool of technically skilled manpower with in depth knowledge and understanding of the market. 7. such as fire. Insurance liberalization in India is expected to result in a wider choice of major commercial insurance covers. Low customer confidence on the private players. Domestic image of companies supported by Prudential¶s international image is strength of the company. 5. 2. 3. 2.Heavy management expenses and administrative costs. 3. 6. Huge basket of product range which are suitable to all age and income groups. Vertical hierarchical reporting structure with many designations and cadres leading to power politics at all levels without any exception. 4.

companies have the financial expertise required to manage your long -term investments safely and efficiently. 2. RANGE OF SOLUTIONS We have a range of individual and group solutions . Large numbers of competitor¶s especially major threat from the India¶s biggest insurance company i. Entrance of many more companies in insurance sector with better plans and schemes which attracts most of customer. which can be easily.14 THEARTS 1. 4. Because of fraud done by fake companies many of customers does not trust easily on private companies.e. . Switching of customers from one to other insurance company because of better schemes provided by other companies. LIC. INSURANCE INDUSTRY: KEYS STRENGHS FINANCIAL EXPERTISE As a joint venture of leading financial services groups . 3. customised to specific needs o u r group solutions have been designed to offer you complete flexibility combined with a low charging structure.

2. Rest assured. but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. This is very true. . RESPOND TO MESSAGES PROMPTLY & KEEP CLIENTS INFORMED This goes without saying really. BE FRIENDLY AND APPROACHABLE A fellow Site Pointer once told me that you can hear a smile through the phone. So make sure your customer service policy was presented and anywhere else it may be useful. what should they do? If the first option doesn't work. ENCOURAGE FACE-TO-FACE DEALINGS FOR CUSTOMER This is the most daunting and downright scary part of interacting with a customer. 3. it does get easier over time.8 MAJOR STEPS TAKEN BY INSURANCE SECTOR SATISFACTION 1. and at all times remain polite and courteous. There will be times when you want to beat your clients over the head repeatedly with a blunt object . If a customer has a problem. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. 4. then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service.it happens to all of us. It might not always be practical to deal with all customers' queries within the space of a few hours. HAVE A CLEARLY-DEFINED CUSTOMER SERVICE POLICY This may not be too important when you're just starting out. It's vital that you keep a clear head. though. It's very important to be friendly. but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. It's important to meet your customers face to face at least once or even twice during the course of a project. respond to your clients' wishes as best you can. We all know how annoying it is to wait days for a response to an email or phone call. let the customer know you're working on it.15 1. who should they tell? There's nothing more annoying for a client than being passed from person to person. courteous and to make your clients feel like you're their friend and you're there to help them out. Even if you're not able to solve a problem right away.

HONOUR PROMISES The simple message. ANTICIPATE CLIENT'S NEEDS & GO OUT OF YOUR WAY TO HELP THEM OUT Sometimes this is easier said than done! However. delivers. and most importantly. it shows there are real people on the other end of that screen or telephone. technology can fail and sub-contractors don't always deliver on time. Projects can be late. wanted and valued. 6. when you promise something. it's something. Clients don't like to be disappointed. It shows you care. The most common example here is project delivery dates. Even if it's as small as sending a Happy Holidays email to all your customers. Sometimes.16 5. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss. 7. ATTENTION TO DETAIL Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalised sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective. . achieving this supreme level of understanding with your clients will do wonders for your working relationship. or you might miss a deadline through no fault of your own. but remember to do them. something may not get done. it makes the customer feel welcomed.

clearly signal your sentiment toward customers and reveals the collective "heart" of your organization. or promises. your business will suffer a failure that disappoints customers.. The key to retaining these customers when an error occurs is handling them right from the start. To enable effective customer lifecycle management . Customers see your true colours at these times more than at any other. How you explain. . CRM integration and analytical tools . We can recognize where we need to make changes to create improvements and determine if these changes. Adam Faulkner.and it's worth getting right.it's difficult.they're as inevitable as death and taxes.that can support the goal of a more integrated customer experience are only available as standalone systems. Jeanne Bliss October 23rd . The measure of a company is taken at such moments. but it's not impossible .WFM. but you can be proactive in redeeming yourself and retaining customers when things go wrong. Whether your company or organization delivers products. Elaine Fogel. 2006 Increasingly the companies that are winning . eLearning. services.are the ones that understand how contact centre business processes and their supporting technologies can be combined to allow for a more holistic customer experience.. and take accountability for your actions. 2007 Glitches happen and setbacks occur when we deal with customers -.like that being achieved by companies such as Churchill and BA . IVR. Currently many of the different technology and process components .17 2. with just basic links between the different components.the smarter organisations . its credibility and reputation is on the line when you don't deliver what you say you will. quality monitoring. LITERATURE REVIEW AshishBhave. and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. March 2006 The customer's requirements must be translated and quantified into measurable targets. after implemented. react. This provides an easy way to monitor improvements. have led to increased customer satisfaction. There's no magic pill to averting these situations.requires deep expertise in the integration and interoperability of all these different solutions . and when. remove the pain. 2007 At some point.

these researchers defined satisfactions as a ³highly personal assessment´ that is greatly influenced by ³individual expectations´. and happier staff. premium prices. they focus on the customer¶s entire experience with an organization or service contact and the detailed assessment of that experience. This definition views ³individual´ element as powerful force to create satisfaction. satisfaction can be experienced in a variety of situations and connected to both goods and services. a salesperson.18 Wikis Mandle 2002 Customer satisfaction. According to these researchers. this is the easy part. Very often. 2001) conceptualize customer satisfaction as an individual¶s feeling of pleasure or . Brady and Robertson. Surveys provide the reading that shows where attention is required but in many respects. It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. Likewise. To another extent. Paul & Nick Hague Developing a customer satisfaction programme is not just about carrying out a survey. the importance of customer satisfaction diminishes when a firm has increased bargaining power. business term. possibly involving cultural change. However. Some researchers completely avoid ³satisfaction´ as a measurement objective because it is ³too fuzzy an idea to serve as a meaningful benchmark. Time will be spent working out an action plan. 2007 Customer satisfaction differs depending on the situation and the product or service. or an attribute or any of these. Marcus Fidel. Training may well be required to improve the customer service. 1981. In a competitive marketplace where businesses compete for customers.´4 Instead. store. many researchers (Oliver. Costs will be incurred in the market research survey. an experience. However. customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. probably involving training of the staff. higher market shares. The result should be financially beneficial with less customer churn. there is a price to pay for these improvements. The implications of customer satisfaction surveys go far beyond the survey itself and will only be successful if fully supported by the echelons of senior management. is a measure of how products and services supplied by a company meet or surpass customer expectation. A customer may be satisfied with a product or service. major long lasting improvements need a fundamental transformation in the company. stronger brands and reputation. A group of researchers of the Centre for the Study of Social Policy (2007) conceptualize that satisfaction is based on the customer¶s experience of both contact with the organization (the moment of truth) and personal outcomes. a purchase decision. service provider.

. it makes sense for servicing organizations to involve customer satisfaction measurement as their meaningful benchmark for development.19 Disappointment resulting from comparing a product¶s perceived performance (or outcome) in relation to his or her expectations. Jones and Suh (2000)stated that customer satisfaction is highly variable assessment individuals do based on their experiences with specific features of products and services they receive.

Age groups. The study deals mainly with studying the satisfaction level of customer in the insurance industry with a special focus on consumer behaviour towards the most emerging sector now a days in INDIA.2TITLE To determine customer satisfaction level towards Insurance industry. what the industry should do to serve its customer in more efficient and effective manner so the satisfaction level reaches to maximum level. .1NEED OF THE STUDY The project was an attempt to explore the ³Customer satisfaction towards INSURANCE INDUSTRY´ in JALANDHAR. The various segments of the markets divided in terms of Insurance Needs. In this process I meet 100 persons to get response from them to know about the satisfaction level. The project started in JALANDHAR region covering all the local market. TITLE JUSTIFICATION The above title is self explanatory. This study gives a bird¶s eye view of the hard and soft services provided by insurance companies to their clients. Area. the need of my research was that. 3. Also. The study basically focuses on measurement of customer satisfaction related to Services offered and rendered by the insurance industry. During my work I found the different response from the people about insurance and what they desire from it.20 3.

21 3. y To know how insurance companies can reach to a maximum level of satisfaction. y To study the types of benefits provided by insurance services. y To know the satisfaction level of the customers.3 OBJECTIVE OF THE STUDY y To determine reasons behind opting for an insurance and reasons for opting for that particular policies. . y To determine the feedback on services provided by insurance agent.

5 SIGNIFICANCE OF THE STUDY SIGNIFICANCE TO THE INDUSTRY This is a limited study which takes into consideration the responses of 100 people. This project will help to understand the current market scenario and marketing in stiff competition.22 3. SIGNIFICANE FOR THE RESEARCHER To facilitate and provide all the useful information to the companies. A study like this can attempt to guide the future of the industry based on current trends. Being a student of management I can draw the relevant conclusion from the market survey and give the appropriate suggestion to the companies. It is a rapidly changing and evolving sector. . This data can be explorated to take in the trends across the industry. People are only beginning to wake up to its vast possibilities.4 SCOPE OF THE STUDY A big boom has been witnessed in Insurance Industry in recent times. The study then goes on to evaluate and analyse the findings so as to present a clear picture of trends in the Insurance sector related to satisfaction of customer. 3. The significance for the industry lies in studying these trends that emerge from the study. A large number of new players have entered the market and are trying to gain market share in this rapidly improving market.

SAMPLING TECHNIQUE: Initially. PUNJAB. and Self-employed etc. Employees. A pilot study was done in order to know the accuracy of the Questionnaire. . INDIA. The sources of information are both primary & secondary. SAMPLING AREA: The area of the research was JALANDHAR. Govt. which comprised of mainly peoples from JALANDHAR due to time constraints. SAMPLING METHODOLOGY POPULATION: All the customers of different insurance companies having different policies.6 RESEARCH METHODOLOGY RESEARCH DESIGN The research is primarily descriptive in nature. a rough draft was prepared keeping in mind the objective of the research.23 3. SAMPLE SIZE: The sample size was restricted to only 100. A well-structured questionnaire was prepared and personal interaction was done. These comprise of employees of Private companies. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judgemental and convenient SAMPLING UNIT: The respondents who were asked to fill out questionnaires are the sampling units.

¡   27% % 5-10yrs any other .24 4. How long you have been the customer of insurance companies? a) 1-3 yrs___ b) 3-5 yrs___ c) 5-10 yrs___ d) any ot r (Speci y) _____ 0% 14% 1-3yrs 3-5yrs INTER RETATION As per survey t e pie chart shows that the invest ent rate of customers has been increased two times more in last three years as comparative to last five years. DATA ANAL AND INTE ETATION 1. This shows that Insurance industry increased its market.

25 2. In which plan have you invested? a) Market link___ b) Traditional___ PLAN IN WHICH INVE TED 31% Marked linked Traditional 69% INTER RETATION Most of the customers have invested in market link plan instead of traditional. Market link plan are related to mutual fund investment. This shows that most of them are ready to bear little bit market risk with assuring their life through insurance policies. .

26 3. What is the reason to invest in Insurance Industry? a) Returns and savings___ c) By known agent ___ b) Tax benefits___ d) Security___ REASONS OR INVESTMENT Re u ax benefits 11% By known agent Secu i ty 63% 7% INTERPRETATION Through survey I find out that the main reason for investing in insurance sector by the customers is ³security´. Rest of them goes for tax benefits and through agents. ¥¤ £ § ¦ ¢ s and savings 19 . 63% of respondents were agreed that they have invested for securing their life from uncertain future risk whereas 19% of people have invested for the purpose of return and savings.

27 4. Have you invested in banking sector? a) Yes___ If yes. . then specify where_________ b) No___ INVE TED IN BANKING SECTOR 17% Yes No 83% INTER RETATION The pie chart clearly shows that 83% of customers of INSURANCE INDUSTRY have also invested in the banking sector and most of them specified that they have invested in Fi ed Deposits.

So it s not so good results for the company that 21% of its customers are not satisfied with the policy provided to them. Where the 21% of customer are not satisfied with the current policy due to some reason and rest of them did not give any response.28 5. Are you satisfied with current policy which you have taken? a) Satisfied saving tool____ c) Non responding___ b) Non satisfied___ SATISFIED WITH POLICY 5% Non satis ied Non responding 74% INTER RETATION Pie chart shows that maximum [74%] of the customers are satisfied with the current policy which they have taken. so the 21% of customer¶s possibility of re-investing in insurance industry also decreases with this result. © ¨ 21% Satis ied saving tool .

semantic barrier. So the industry is suffering from the problem of communication barrier which is n good for the ot image of companies. .29 6. miscommunication which leaves a bad impact of company on its customers. Is communication channels followed by the companies easily approachable? a) Always___ c) Never___ b) Sometimes____ APPROACH OF COMMUNICATION CHANNEL 4% 27% Always Sometimes 69% Never INTERPRETATION 27% of customers said that the communication channels is not easily approachable to them due to some barrier like. and 4% directly says that there is no communication source to communicate and 69% of them are fully satisfied.

They don¶t come to know the premium date. Does the company provides the needed information at right time? a) Yes___ b) No___ TIMLY INFORMATION 19% Yes No 81% INTERPRETATION The effect of bad communication is shown here.30 7. . any newly introduced schemes by the company andany other things which give direct benefits to the customers. maturity date. 19% of respondents do not get any important information on time which is the greatest barrier in front of customers.

Nearly most of respondent are agreed with the statement which is good for the industry. Is services provided same as they promised? a) Strongly agree ___ c) Disagree___ b) Agree___ d) Strongly disagree ___ SAME SERVICE RECEVIED 4% 13% 27% Strongly agree Agree Disagree 56% Strongly disagree INTERPRETATION Here 27% of customers are strongly agreed that the service provided same as promised to them and 56% of s respondents are agreed and rest of the respondents are not agreed upon the statement that is given in this question.31 8. .

.32 9. This result shows that the agents are not much concerned with their existing customers as they should. This behaviour can lose its existing customers in future. Are you satisfied with the service of agent? a) Every time___ c) Rarely___ b) Sometimes___ d) Never___ AGENT SERVICES 7% 14% 44% Every time Sometimes Rerely 35% Never INTERPRETATION Data gives that 44% of total respondentsare satisfied every time with the service of agent. 35% says sometimes and 14% says rarely.

5% customer response was poor and 2% was very poor.33 10.   Ver p  P     Ver g d  r r . From the above data I would like to conclude that services provided by insurance industry are quite satisfactory. But in comparison of other sectors it is bit unsatisfactory reason being its poor communication channel and unawareness of agents towards its customers. How would you rate the services provided by insurance industry in comparison to other sectors in which you have invested? a) Excellent___ c) Good___ e) Poor___ b) Very good___ d) Average___ f) Very poor__ % 11% Excellent 5% 17% G d 40% 5% Average INTERPRETATION Here the mixed response was given by the customers40% says that the service is very good as co pare to m other sector and 25% says its good where 11% says the service is excellent as .

4. The company should try to expand & build up its infrastructure because there is a large potential for insurance in India. Satisfaction Index (Customers Satisfaction over a period of time) . importance. 2.34 5.1 FACTS/FINDINGS 1. 3. Companies should come up with more branches in INDIA with the objective and goals to meet the demands & expectations of the public. Since Insurance industry is leading with several other sectors. Two major factors that can be determine from the survey data are: A. As the people think that insurance is a tool to protect their family & a tax saving device. it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship. They are aware of the fact & realizing its. Because the entrance of private players will increase the competition and it would be a tough task to secure a good position in market. Performance Matrix (Performance relative to customer¶s priorities) B.

the organization can mail the required information to their customer which is most need and useful to each and every customer and agents should be concerned with their existing and get proper feedback from them which helps to know the weak points where the company lacks in comparison to others. The collected data was analyzed to calculate the customer satisfaction for the different sets of respondent. This study is an earnest effort to enhance the practical knowledge by measuring the customer satisfaction as well as contributing to the organizational efficiency by suggesting ways to manage and improve the same profitably in the highly competitive time to come.2 SUGGESTION E-mails can be used effectively for disseminating information among customers. Since application of this is most cost effective. . Until or unless he becomes a loyal customer.35 5. Thus the company have to convert the entire satisfied customer into a loyal customer. This is the area where the organization can improve in the near future. Is a satisfied customer asset for a company? Definitely not.

3 LIMITATIONS OF THE RESEARCH 1. . The environmental changes are vital to be considered in order to assimilate the findings. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. analysis on one day or in one segment can change very quickly. There is no surety that respondents truly give their response. 2. The research is cost constraint as well as time constraint also. 4. 3. In a rapidly changing industry.36 5. 5. The research is confined to a certain parts of Jalandhar and does not necessarily shows a pattern applicable to all of Country.

Where the services are delivered best customer surely go for there and in the business customer is a king and he`s always right. Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. What would you want from your business if you were the client? How would you want to be treated? Treat your customers like your friends and they'll always come back. This is the main step towards satisfying your customer. is a practiced art that takes time and effort to master.37 5. like any aspect of business.4 CONCLUSION Customer service. All you need to do to achieve this is to stop and switch roles with the customer. An organisation with a strong customer satisfaction power places the customer at the centre of service design. planning and best service delivery. Customers have a right to quality services that deliver outcomes. .

com/article.marcommwise.com/doc/1G1-166778609.blogspot.html http://ezinearticles. 318-328. & Lafferty.html http://www.com/?Sales-Promotion---A-Cutting-Edge-Marketing-Tool&id=2035509 http://ezinearticles.highbeam. Paul Copley. Barbara.msi.com/?Marketing-Mix---Top-4-Promotion-Mix-Tactics&id=1398510 http://kalyan-city.atsinfotech. Cases and Practices. 2004 Sales Promotion: How To Create.phtml?id=7 http://www. REFERENCES y y y Marketing Communications Management: Concepts and Theories. Internet research. Implement and Integrate Campaigns.com/2010/05/marketing-marketing-mix-4-ps-of. 12.html http://www. Julian Cummings.informaworld.marketingterms.com/doc/1G1-198547971.com http://ezinearticles.38 6.org/publications/publication. Ronald.com www.cfm?pub=203 JOURNALS y Goldsmith.Com ± Vijay Mukhi WEBSITES www. Consumer response to websites and their influence on advertising effectiveness.com/smpp/content~db=all~content=a779581691s http://www. (2002).com/?Sales-Promotion---A-Sure-Way-of-Increasing-Consumers-BrandLoyalty&id=4013089 y y y y y y y http://www. 2003 Promotional Spending Trends 2008 .highbeam. BIBLIOGRAPHY BOOKS y y Marketing Management ± Philip Kotler Marketing.

Have you invested in BANKING SECTOR? a) Yes___ b) No___ If yes then specify ________________________________ 5. ANNEXURE 7. What is the reason to invest in INSURANCE INDUSTRY? a) Returns and savings___ c) By known agent ___ b) Tax benefits___ d) Security___ 4.1 QUESTIONNAIRE ON CUSTOMER SATISFACTION TOWARDS INSURANCE INDUSTRY: NAME: AGE: GENDER: OCCUPATION: 1. Is communication channels followed by companies are easily approachable? a) Always___ c) Never___ b) Sometimes____ . Are you satisfied with current policy which you have taken? a) Satisfied saving tool____ c) Non responding___ b) Non satisfied___ 6. How long you have been the customer of INSURANCE COMPANIES? a) 1-3 yrs___ b) 3-5 yrs___ 2. In which plan have you invested? a) Market link___ b) Traditional___ c) 5-10yrs___ d) Any other (Specify) ____ 3.39 7.

Is services provided same as they promised? a) Strongly agree ___ c) Disagree___ b) Agree___ d) Strongly disagree 9. please suggest_____________ . Are you satisfied with the service of agent? a) Every time___ c) Rarely___ b) Sometimes___ d) Never___ 10. Does the companies provide needed information at right time? a) Yes___ b) No___ 8. How would you rate the services provided by insurance industry in comparison to other sector in which you have invested? a) Excellent___ c) Good___ e) Poor___ b) Very good___ d) Average___ f) Very poor__ 11.40 7. How would the sector improve or provide better services to you.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.