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INTRODUCTION-
Life Insurance is a must for each and everyone these days because of the
importance of life and how precious life is. Therefore, with a population
of over 1.4 billion, national and international life insurance agencies see
India as huge market place of opportunities and big business. It is
important to note that till 2000, the market of life insurance in India as
we know was under the monopoly of the LIFE INSURANCE
CORPORATION (LIC). But since then, privatization took place and it
witnessed a dynamic spurt of changes in this particular insurance
industry, who tried multiple tactics to capture potential consumers into
actual consumers. Here, customers are the main pillar of life insurance
business.
Every company tries to attract and retain existing customers to keep their
business on high scale. The proper understanding and need assessment
of the customers and their expectations help the insurance companies to
bring about necessary improvements in their product as well as services
offered by them. In today's world class market, it is essential and
necessary for the companies to provide better customer services, spread
more awareness, emphasis on need based innovative products and at
reasonable prices. All this, so that, each and every individual may avail
benefits of insurance policies and what are their preferred choices while
selecting and purchasing insurance policies.
LITERATURE REVIEW-
Narayan. H. Jai (2009), in an article has made an emphasis on
importance of customer in the business of insurance. He explained in
phase of growing market competition, there is an intense need to go
beyond mere efficiency in designing products. To understand the
customer’s needs and to convey what they have to offer would perhaps
bring in higher efficiencies in customer service. Insurance business
revolves around the customer and fair treatment to customers is need of
an hour to win their loyalty and trust. In a service based organizations,
customer service is the most dominating feature that differentiate and
gives good return to the insurers. Proper dealing with customer
complaints, effective customer grievances handling mechanism and fast
claim settlement procedure are some of the ways through which
satisfaction level of customers can be increased. Hence to serve the
customers promptly and effectively is the key success of a life insurance
business.
4. To study and rank the preferences and factors responsible for the
selection of policies.
HYPOTHESIS-
1. Age and Income has no significant impact on the customer life
insurance investment decision as students at 21 years of age are planning
to purchase LIC policies.
3. LIC is the most trusted and preferred brand among other life insurance
companies.
Sources of data-
The data from the study has been collected from both primary and
secondary sources. The primary data has been collected through a well
drafted Questionnaire. The secondary data has been collected from
IRDA Annual Reports, Insurance Journals, Magazines and Insurance
Websites.
Research Plan-
Target Population- Kanpur and Bangalore cities
Sampling Unit- Life Insurance Policy Holders
Sampling Method- Convenience Sampling (Questionnaire)
Sample Size- 125.
IMPORTANT INSIGHTS
It is very important to know the difference of preferences of the Urban
and Rural population. Urban market is more influenced with product
based factors like Risk Coverage, Tax Benefits, Return, etc.
Whereas Rural population is influenced with non-product factors like
Credibility and Trustworthiness of Agents, Company's Reputation,
Trust, Consumer Services and Value Added Services, Company
Goodwill, Money Back Guarantee and Security, etc. These factors often
attract more people and convert them from potential consumers to actual
consumers.
QUESTIONNAIRE-
1. Name-
2. Gender-
3. E-mail-
4. Mobile Number-
5. Occupation-
16. Is your insurance company giving you any kind of tax benefit along
with the policy?
Yes
No
Above chart says that 35% policy holders are Govt. Class Officials,
around 27% are Private Workers, 26% are Businesspersons and 12% are
random students who are mature enough to purchase a policy.
It is quite evident that quarterly and annually payment options are more
in fad and people prefer those only over monthly and half yearly
payment options.
The company must have a trusted name to gain the customers trust and
validity, biggest example is LIC.
Good plans are second most trusted factor among companies and
consumers.
FINDINGS-
1. It is clearly visible that more than 50% of the respondents out of
125 total, are in the age bracket of 30-40 years and are aware of
the importance of purchasing life insurance policies at such a
young and critical age as well.
2. Again, the above pie chart shows that more than 75 respondents
that constitute of about 61% of total, are male and rest are
female.
SUGGESTIONS-
1. In present competitive world, customer satisfaction has become an
important aspect to retain the customers, not only to grow but also
to survive. Customer service is the critical success factor and
private insurers through their best services would be able to
reposition and differentiate itself from LIC.
2. Private insurers should emphasis more on advertising and building
brand awareness through different modes of communication. This
will help in spreading insurance awareness among the common
man.
CONCLUSION-
Life Insurance is an important form of insurance and essential
for every individual. Life insurance penetration in India is very
low as compare to developed nation where almost all the lives
are covered and stage of saturation has been reached. Customers
are the real pillar of the success of life insurance business and
thus its important for insurers to keep their policyholders
satisfied and retained as long as possible and also get new
business out of it by offering need based innovative products.
There are many factors which affect customers’ investment
decision inlife insurance and from the study it has been
concluded that demographic factors of the people play a major
and pivotal role in deciding the purchase of life insurance
policies.
THANK YOU