PGDM/PGDM (General) Project Report

On

“Factor influencing client in choosing insurance company, with

special reference to Bajaj Allianz”

Submitted in partial fulfillment of the requirements for the

TWO YEAR POST GRADUATE DIPLOMA
in
MANAGEMENT

Submitted By: Under the Guidance of:

Student Name - Shalini Singh 1. Mentor – Dr. Amit Kumar
GLBIMR Roll No - PGDM 22114 2. Mentor – Aman Mittal
Designation – Sr. Sales Manager

G.L. Bajaj Institute of Management & Research.PGDM Institute

Plot No. 2, Knowledge Park-III, Greater Noida

Session: PGDM/PGDM (General) 2022-24

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 (On Institute’s Letterhead)

CERTIFICATE

This is to certify that Ms… Shalini Singh….. a student of PGDM/PGDM(General) (2022-24

Batch), at GLBIMR, Greater Noida, has undertaken the project on “……Factor influencing
client in choosing insurance company, with special reference to Bajaj Allianz ……”. The survey,
data collection, & analysis work for preparing the project has been carried out by the student in
partial fulfillment of the requirements for the Award of Post Graduate Diploma in Management
under my guidance and supervision.

I am satisfied with the work of Mr. /Ms. …. Shalini Singh……..

Date:

Faculty Mentor(s) Name: Dr. Amit Kumar

(Signature)

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 G.L. Bajaj Institute of Management &Research.PGDM Institute
Approved by A.I.C.T.E., Ministry of HRD, Govt. of
India Plot No. 2, Knowledge Park-III, Greater Noida
Minor Project Report
PGDM /PGDM (GENERAL) BATCH-2022-24

FACULTY GUIDE CERTIFICATE

This is to certify that the work reported in the Minor Project Report on “Factor influencing client
in choosing insurance company, with special reference to Bajaj Allianz”, submitted by Shalini
Singh at G L Bajaj Institute of Management & Research PGDM Institute, Greater Noida, India,
is a bonafide record of her work carried out under my supervision. This work has not been
submitted elsewhere for any other degree or diploma.

(Signature of Faculty Guide)

Name: Dr. Amit Kumar

Date:

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 G.L. Bajaj Institute of Management &Research.PGDM Institute
Approved by A.I.C.T.E., Ministry of HRD, Govt. of
India Plot No. 2, Knowledge Park-III, Greater Noida
Minor Project Report
PGDM Batch 2022-24

ACKNOWLEDGEMENT

I would like to thank the following people, without whom I would not have been able to
complete this Minor Project Report.

My heartfelt thanks goes to our Director Dr. Sapna Rakesh for providing an opportunity work on
the Minor project right from the first trimester of the program.

I convey my sincere thanks to my Faculty Guide Dr. Amit Kumar for providing me the constant
support and guidance to carry out my project effectively and efficiently.

I would also like to convey my gratitude to all faculty members and staff for their support and
guidance.

Name of the student: Shalini Singh

Roll Number: 22114
Trimester-IV
PGDM /PGDM (GENERAL) BATCH-2022-24
GL Bajaj Institute of Management & Research PGDM Institute
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Table of Content

Sr.No TITLE Pg. No

1. Executive Summary 7

2. Introduction 10
Introduction of Topic
Background & justification of the topic

3. Company Profile 13

4. Literature Review 16

5. Research/Project Objectives and Hypothesis 22

6. Research Methodology 23

7. Data Analysis/Presentation and Interpretation 25

8. Findings 33

9. Recommendations & Conclusion 35

10. Reference 38
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List of Tables:
Table 2.1 – Market Share Bajaj Allianz

List of Figures
Fig 5.1- Google Form Questionnaire

Fig 5.2 – Annual Report Bajaj Allianz

Fig 5.3 – Annual Report LIC

Fig 5.4 – Annual Report ICICI

List of Abbreviations

GOVT- Government

APP- Application

J SCHOOL- Journalism School

LTD- Limited

REF- Reference

INT- International

ORG- Organization

IND- Industry

CSR-Corporate Social Responsibility

ULIP- Unit Linked Insurance Plans

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Executive Summary:

Introduction to the topic:

Choosing the right insurance company is an important decision for individuals and
businesses alike, as it ensures financial protection and risk management. This research
focuses on understanding the factors that influence clients when they are deciding
which insurance provider to go with. Specifically, we will be looking at Bajaj Allianz, a
prominent insurance company in India known for its reliability and customer-oriented
approach. By examining the key determinants that impact clients' choices, especially in
the context of Bajaj Allianz, we aim to gain valuable insights into what drives people to
choose a particular insurance company. This study will not only benefit Bajaj Allianz in
enhancing its services but also provide valuable information for the entire insurance
industry.

Methodology used to study the topic:

This research report utilizes a combination of qualitative and quantitative research
methods to gather data and insights on the factors influencing clients in choosing an
insurance company, with a special focus on Bajaj Allianz. The methodology involves
collecting data from both primary and secondary sources.
Primary Sources of Information (Qualitative Research): Google Form Questionnaire: A
descriptive research study was conducted using a structured questionnaire with 22
objective-type, multiple-choice questions. The sample size for the study was 120
respondents, chosen through simple random sampling. The questionnaire gathered
information on clients' preferences, experiences, and factors influencing their choice of
insurance company.

Secondary Sources of Information (Quantitative Research): Existing Research Papers:

Relevant research papers on insurance selection decision factors were reviewed. These
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papers offered valuable insights and findings from previous studies conducted by other
researchers.
Annual Reports: The report also draws information from the annual reports of
prominent insurance companies, including Bajaj Allianz, LIC, and ICICI for the year 2021-
2022. These reports provide valuable data on financial performance, market position,
and corporate strategies.
Findings:

The survey collected responses from various respondents, with the majority falling into
the age group of 26-40 years (53.7%) and a higher representation of males (55.8%). The
respondents came from diverse occupational backgrounds, including students, self-
employed individuals, and employed individuals. A significant proportion of
respondents reported monthly incomes below 20k and between 20k - 50k.

The survey revealed that a large percentage of respondents (87.3%) had previously
purchased insurance. Life insurance (44%) and motor insurance (32%) were the most
commonly purchased policies. Among the insurance companies, LIC (29.2%) and Bajaj
Allianz (57.5%) were the preferred choices.

Factors like financial stability and claim settlement process were considered essential by
respondents when selecting an insurance company. In terms of interaction, most
respondents preferred in-person and mobile applications.

Health insurance (41%) and motor insurance (32%) were the most settled policies, but
50% of respondents faced difficulties with claim settlements in these categories. The
majority of respondents (93%) were already aware of Bajaj Allianz Insurance, with
television being the primary source of information (49%).

A substantial portion of respondents (86%) considered purchasing insurance from Bajaj

Allianz, mainly due to competitive premium rates. They were familiar with the insurance
products offered by the company, including life, health, and motor insurance, as well as
individual, saving, and investment plans.

Overall, 75% of respondents expressed satisfaction with the services offered by Bajaj
Allianz. A significant number (34%) wished to be associated with the company for five
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years, highlighting their interest in a long-term relationship. For many respondents
(38%), insurance was seen as essential for security purposes.

Conclusion:

The research on factors influencing clients in choosing an insurance company, with a

focus on Bajaj Allianz, reveals several important conclusions. Competitive pricing is
essential but not the sole determining factor; reputation, coverage options, customer
service, and transparency also play crucial roles in the decision-making process. Bajaj
Allianz's strong brand reputation positively impacts potential clients, and maintaining
this reputation through ethical practices and superior customer service is vital for
attracting new clients.

A customer-centric approach, offering personalized products and efficient claims

settlement, is favored by clients when selecting an insurance company. Embracing
digitalization offers opportunities to expand the customer base, especially among the
tech-savvy younger generation, while also improving operational efficiency and
customer satisfaction.

Educational initiatives and awareness campaigns are crucial as many clients lack
awareness and understanding of insurance products. Building trust and maintaining
transparency in interactions with clients significantly influence their decision to choose
Bajaj Allianz as their insurance provider.

In conclusion, Bajaj Allianz must prioritize exceptional customer experiences, invest in

digital capabilities, and maintain a strong reputation to remain competitive and
attractive to potential clients in the insurance industry.

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Chapter-1: Introduction to the topic

In today's fast-paced and uncertain world, insurance has become a vital tool for
individuals and businesses alike to protect themselves against various risks and
uncertainties. Choosing the right insurance company is a decision that can have long-
term implications on one's financial stability and well-being. With a plethora of
insurance providers offering a wide range of products and services, clients face a
challenging task in selecting the most suitable insurer to meet their unique needs.
The factors influencing clients' choices in selecting insurance companies are
multifaceted and can vary significantly depending on individual preferences,
circumstances, and external influences. In this era of advanced technology and extensive
marketing, insurance companies employ various strategies to attract and retain clients,
making it crucial to explore the driving forces behind clients' decisions.
This research aims to delve deeper into the key factors that influence clients when
choosing insurance companies. By understanding these factors, insurers can refine their
strategies, tailor their offerings, and provide a more personalized experience to clients.
Additionally, clients can make more informed decisions by being aware of the aspects
that matter most to them in an insurance provider.

One significant factor explored in this study is the role of insurance agents and brokers
in shaping clients' choices. These intermediaries often play a pivotal role in influencing
clients' decisions, and understanding their impact can provide valuable insights to both
insurers and clients. Moreover, the study will examine the impact of advertising and
marketing efforts on clients' perceptions and preferences, as effective marketing
strategies can significantly sway clients' decisions.
Furthermore, social and behavioral factors can also play a substantial role in the
decision- making process. Factors like peer recommendations, societal norms, and
perceived reputation can influence clients' perceptions and ultimately guide their
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choices.
The paper also investigates clients' satisfaction levels with their current insurers and their
intentions to switch to alternative providers. Understanding clients' levels of
contentment and their motivations for switching can aid insurance companies in
enhancing their services and fostering long-term relationships with their clients. In
conclusion, this research aims to shed light on the intricate web of factors that influence
clients when selecting insurance companies. By recognizing the various drivers that
shape clients' choices, both insurers and clients can navigate the insurance landscape
more effectively. The findings from this study will contribute valuable insights to the
insurance industry, enabling companies to better meet clients' needs and empower
clients to make well- informed decisions about their insurance coverage. As the
insurance landscape continues to evolve, understanding these factors becomes
increasingly critical for building sustainable and mutually beneficial relationships
between insurance providers and their clients.
Choosing the right insurance company is an important decision for individuals and
businesses alike, as it ensures financial protection and risk management. This research
focuses on understanding the factors that influence clients when they are deciding
which insurance provider to go with. Specifically, we will be looking at Bajaj Allianz, a
prominent insurance company in India known for its reliability and customer-oriented
approach. By examining the key determinants that impact clients' choices, especially in
the context of Bajaj Allianz, we aim to gain valuable insights into what drives people to
choose a particular insurance company. This study will not only benefit Bajaj Allianz in
enhancing its services but also provide valuable information for the entire insurance
industry.
The insurance industry plays a crucial role in providing financial protection and risk
mitigation to individuals and businesses. Bajaj Allianz is one of the leading insurance
companies in India and has established itself as a reliable and customer-centric brand.
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Throughout this discussion, will reference Bajaj Allianz to provide insights into how
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these factors manifest in the context of the company.

Factors Influencing Clients in Choosing an Insurance Company:

Reputation and Trust: Bajaj Allianz has established a strong reputation for ethical
practices, financial stability, and prompt claims settlement, which significantly impacts
clients' decision-making process.

Product Offerings and Coverage: Bajaj Allianz offers a diverse range of insurance
solutions, catering to different client needs, such as life insurance, health insurance,
motor insurance, home insurance, and travel insurance.

Competitive Pricing: Bajaj Allianz provides competitive premiums and transparent

pricing structures, allowing clients to compare costs and coverage limits across insurers.

Customer Service: Bajaj Allianz invests in delivering exceptional customer experiences

through prompt responses, smooth policy issuance, and hassle-free claims settlement,
fostering a positive relationship with clients.

Technological Capabilities: Bajaj Allianz leverages technology to provide online policy

management, digital claims processing, and seamless communication channels, making
insurance transactions convenient and accessible for clients.

Financial Stability: Bajaj Allianz's robust financial performance and high solvency ratios
instill confidence in clients that their claims will be honored and their investments
protected.

Claims Settlement Process: The efficiency and effectiveness of the claims settlement
process greatly impact clients' satisfaction. Bajaj Allianz has a reputation for prompt and
hassle-free claims settlement, ensuring that clients receive their due benefits in a timely
manner.

Financial Strength and Credibility: Clients prefer insurance companies with a strong
financial foundation and credibility. Bajaj Allianz's financial stability, as reflected in its
strong market position, ratings from credit agencies, and track record, assures clients of
the company's ability to fulfill its financial obligations.

Accessibility and Convenience: Insurance companies that provide convenient access to

their services and information tend to attract clients. Bajaj Allianz offers multiple
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channels for clients to interact, such as online portals, mobile apps, and a widespread
network of branch offices and agents, ensuring accessibility and ease of communication.
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Chapter-2: Company Profile

Bajaj Allianz is a leading insurance company in India, offering a comprehensive range of

insurance products and services to individuals, families, and businesses. Here are some
key details about Bajaj Allianz:

Company Overview: Bajaj Allianz General Insurance Company Limited is a joint venture
between Bajaj Finserv Ltd., a part of the Bajaj Group, and Allianz SE, a leading global
insurance company based in Germany. The partnership was formed in 2001, combining
Bajaj Finserv's deep understanding of the Indian market and Allianz's expertise in
insurance and financial services.

Insurance Offerings: Bajaj Allianz offers a diverse portfolio of insurance products to cater
to various needs and requirements. These include:

General Insurance: Bajaj Allianz offers motor insurance, health insurance, home
insurance, travel insurance, commercial insurance, and other general insurance products.
Bajaj Allianz provides motor insurance, health insurance, home insurance, travel
insurance, commercial insurance, and other general insurance solutions. These offerings
cover individuals, families, and businesses, providing protection against unexpected
events and financial risks.

Life Insurance: Bajaj Allianz Life Insurance provides a range of life insurance plans,
including term insurance, savings and investment plans, retirement plans, child plans,
and group insurance solutions. Bajaj Allianz Life Insurance offers a range of life
insurance plans, including term insurance, endowment plans, ULIPs (Unit Linked
Insurance Plans), retirement plans, child plans, and group insurance products. These
plans provide financial security, savings, and investment opportunities for
policyholders.

Pan-India Presence: Bajaj Allianz has a widespread presence across India with a network
of branches and service centers in multiple cities and towns. The company's extensive
reach ensures accessibility and convenience for customers across the country.

Customer-Centric Approach: Bajaj Allianz is known for its customer-centric approach,

aiming to provide superior services and excellent customer experience. The company
emphasizes understanding the unique needs of its customers and offering personalized
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insurance solutions.
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Technological Advancements: Bajaj Allianz embraces technological innovations to
enhance its services and customer interactions. The company offers user-friendly digital
platforms, mobile applications, and online tools for easy policy purchase, renewal, claims
processing, premium payment, and policy management.

Strong Financial Position: Bajaj Allianz maintains a strong financial position, ensuring its
ability to meet policyholders' financial obligations. The company has a robust claim
settlement track record and is known for its prompt and efficient claims processing.

Awards and Recognition: Bajaj Allianz has received numerous awards and accolades
for its excellence in the insurance industry. It has been recognized for its customer
service, product innovation, digital initiatives, and overall performance.

Corporate Social Responsibility (CSR): Bajaj Allianz actively participates in various CSR
initiatives, focusing on areas such as education, healthcare, environment, and rural
development. The company is committed to making a positive impact on society and
contributing to its well-being.

Network and Reach: Bajaj Allianz has a wide network of branches and service centers
across India, ensuring accessibility and convenience for customers. The company's
extensive presence enables customers to avail of services, file claims, and seek
assistance easily.

Customer-Centric Approach: Bajaj Allianz focuses on delivering customer-centric

services and experiences. The company aims to understand the unique requirements of
its customers and provide tailored insurance solutions. Bajaj Allianz emphasizes
transparency, responsiveness, and effective customer support throughout the insurance
process.

Bajaj Allianz continues to evolve and innovate to meet the changing needs of its
customers in the insurance market. For detailed and up-to-date information about Bajaj
Allianz's specific products, services, and offerings, it is recommended to visit their official
website or contact their customer service directly.

Market Share of Bajaj Allianz

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Table 2.1 Source- Bajaj Allianz Annual Report 2021-22

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Chapter-3: Literature Review

The review aims to explore and analyze existing research on the factors that influence
clients' decision-making process when selecting an insurance company. Karthiga and
Vadivalagan (2000) analyzed the influence of gender and age factors in the purchase
decision of policyholders in Dharmapuri District. They found that gender and age factors
influenced the purchase decision of the policyholders. There was no significant
difference between the factors motivating customers in favour of an insurance product
across different age categories of respondents. Brand loyalty rated lowest among
customers while selecting and purchasing insurance product. Aliero and Shuaibu (2011)
identified that the acceptability and coverage of insurance in rural areas. The factors
affected to the policyholders decision like peoples level of income, availability of
infrastructural facilities in rural areas, level of education and property ownership of the
rural dwellers. The study suggested that micro insurance providers should start with
such schemes which focus on the major occupation of the rural inhabitants, which was
farming. Festus (2011) evaluated the factors underlying consumer perception towards
investment in life insurance. The customers considered most important factor was
company loyalty and the last was company-client relationship. The recommendations
were that the insurance companies should concentrate on consumers‟ loyalty, service
quality, ease of procedures, satisfaction level, company‟s image and company-client
relationship. Apart from this few pieces of research claim few socio-economic factors
like Income (Scotton 1969; Cameron et al. 1988; Savage and Wright 2001), Health care
expenditure (Kronick and Gilmer 1999), Age (Cameron, Trivedi et al. 1988; Ngui et al.
1989; Savage and Wright 2001), Education (Grossman 1972; Muurinen 1982), and
Gender (Sindelar 1982) as important factors determining purchase decision of health
insurance policy. Sanjaykumar and Jagannath Patil (2012) studied Customer Satisfaction
towards Life Insurance Corporation of India (LIC), because Consumer Satisfaction is the
first step to Achieve Consumer Loyalty. If the customers of Life Insurance Corporation
are Satisfied and Happy then and then only they may be Loyal to the LIC. The
authors point out that the there are 65% of respondent’s objective while purchasing
Insurance policy was to cover risk, 25% respondent’s objective while purchasing
Insurance policy was future investment and 10% respondent’s objective while
purchasing Insurance policy was long term benefits. The study of Sarat Borah (2012)
analyzd the satisfaction level of customers of private sector insurance companies and
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find out the service factors that has the maximum impact on customer satisfaction.
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The study observed that,

most of the Customers are satisfied with the services offered by Kotak Mahindra Life
Insurance Company. The research explicitly indicates that Tangible, Accessibility and
Understanding factor have the maximum impact on customer satisfaction.

(Tadesse, 2014) found out that affordable premiums are one of the significant factors
that clients look at. (Mathur & Tripathi, 2014) looked at the top 10 most important
factors that influence clients, namely, computerization and online transactions,
connectivity with the banks, speed and efficiency of transactions, clear communication,
availability of ATM in nearby and several locations, reputation of the company,
professionalism and credibility of staff, fast and efficient counter services, ease of
opening the account and secured internet banking as per according to the data
collected. The least important factors that clients focus on includes, influential marketing
campaign, free gifts for customers peer group impression and overdraft privileges on
current accounts. (Rajkumar & Kannan, 2014) stated that friends’ suggestions and
advices as well influence their selection decisions. (Suneja & Sharma, 2015) unlike other
previous studies, they found out that the most important factor that affect clients was
promotional activities.

Trust and Reputation: Research’s emphasizes the significance of trust and reputation in
clients' decision-making process when choosing an insurance provider. Clients are more
likely to opt for insurers with a strong reputation for ethical practices, prompt claims
settlement, and financial stability. Johnson, D., & Smith, P. (2013) in his findings of the
study shows that customer trust on employees and customer trust on insurance
company play a vital role in influencing customers towards loyalty in insurance sector of
Ethiopia. Similarly, Halliburton & Poenaru (2010) communication would have the
greatest impact in terms of developing trust to build customer loyalty. Clients are more
likely to choose insurance companies with a strong reputation for ethical practices,
prompt claims settlement, and financial stability by Williams, E., & Brown, J. (2013). Trust
plays a crucial role in clients' decision-making process, as it provides a sense of security
and reliability.

Pricing and Affordability: Researcher’s highlights the importance of pricing and

affordability in clients' choices. Competitive premium rates and transparent pricing
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structures are essential factors that influence clients when selecting an insurance
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company (Anderson, R., & Martinez, S). Pricing is an important consideration, but it is
not the sole determining factor for clients (Li, M., & Zhang, Q. (2009). (Tadesse, 2014)
found out that affordable premiums are one of the significant factors that clients look
at. Consumers
expect returns on their premiums and hence think of insurance as an investment tool
(Slovic et al., 1977

Coverage Options and Policy Features: Studies by various researchers demonstrate

that the availability of comprehensive coverage options and policy features is a crucial
factor in clients' decision-making process. Insurance companies like Bajaj Allianz,
offering a wide range of insurance solutions, including life, health, motor, home, and
travel insurance, cater to different client needs. Aliero and Shuaibu (2011) identified that
the acceptability and coverage of insurance in rural areas. The study of Sarat Borah
(2012) analyzd the satisfaction level of customers of private sector insurance
companies and find out the service factors that has the maximum impact on
customer satisfaction. The study observed that, most of the Customers are satisfied
with the services offered by Kotak Mahindra Life Insurance Company.

Customer Service and Experience: Research conducted by Fikadu Tadesse (2014)

shows that efficient customer service and a seamless experience contribute significantly
to clients' satisfaction and loyalty. Clients prioritize insurers that offer prompt responses,
smooth policy issuance, and hassle-free claims settlement. The role of the insurance
agent is critical in conveying information about insurance and selling of insurance
(Ranade and Ahuja, 1999).Yao, W., Chen, Z., & Fan, Y. (2011): Efficient customer service,
prompt responses, and hassle-free claims settlement contribute to clients' satisfaction
and loyalty. Bwisa, H., & Manda, D. K. A seamless and positive customer experience is
essential in attracting and retaining clients for insurance companies.

Digitalization and Technological Capabilities: The influence of digitalization and

technological capabilities is explored by researchers (2016), highlighting their increasing
impact on clients' insurance company choices. Bajaj Allianz's utilization of technology,
including online policy management and digital claims processing, enhances
convenience and accessibility for clients. Embracing digitalization and offering
technological capabilities can expand the customer base, especially among the tech-
savvy younger generation (Kwon, D., & Lee, J.). Smith, J., & Patel (2018) NOnline policy
management and digital claims processing enhance convenience and accessibility for
clients.

Awareness and Education: The importance of awareness and education is emphasized

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by Dr. Dipin Mathur and Mr. Ashish Tripathi (2021). Clients often lack awareness and
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understanding of insurance products, making educational initiatives and awareness

campaigns vital in empowering clients to make informed decisions. Buzatau (2013)
argued
that emotions, personal biases, social norms and financial culture have a strong
influence on insurance purchase decisions. Rahman, S., & Gupta, R. (2015): The
effectiveness of insurance education programs and awareness campaigns can
significantly impact clients' insurance choices and understanding of insurance products.

Demographic Factors: The influence of demographic factors, such as age, income, and
location, on clients' insurance company choices. Companies like Bajaj Allianz can tailor
their marketing strategies to cater to the preferences of specific demographic segments.
Karthiga and Vadivalagan (2000) analyzed the influence of gender and age factors in the
purchase decision of policyholders in Dharmapuri District. Zietz (2003) she reviewed,
age, income, education, marital status, family size and occupation were among the most
significant determinants of life insurance demand .Hecht et al. (2010) found that marital
status, number of children, financial literacy and number of dependents all have a
positive impact on life insurance demand. Ulbinaite et al. (2013) showed that
demographic characteristics and socioeconomic factors have a significant impact on life
insurance purchase decisions in Lithuania.

Customer Trust and customer loyalty: Trust is a concept studied in various disciplines
and, as a result, there are different definitions of trust. A dictionary definition of trust: “A
psychological state where a person accepts vulnerability based upon positive
expectations of the intentions of another”. Sanjay kumar and Jagannath Patil (2012)
studied Customer Satisfaction towards Life Insurance Corporation of India (LIC), because
Consumer Satisfaction is the first step to Achieve Consumer Loyalty Gefen et al (2003)
define trust as: the willingness of a party to be vulnerable to the actions of another party
based on the expectation that the other will perform a particular action important to the
trustor, irrespective of the ability to monitor or control that other party. When there is
trust customers believe that the marketer is reliable and has integrity and a customer
has confidence that the employee is honest, fair and responsible and his or her word
can be relied on. Nobody expects a long-term relation with a partner that cannot be
trusted. When there is trust in a relationship all parties believe that none will act
opportunistically. Morgan and Hunt (1994) stated that trust exists only when one party
has confidence in an exchange partner‟s reliability and integrity. They posit that trust is
a major determinant of relationship commitment: brand trust leads to brand loyalty
because trust creates exchange relationships that are highly valued. Zikmund et at.,
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(2003) and Spekman (1998) call trust a corner stone of the strategic partnership.1998)
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call trust a corner stone of the strategic partnership.

Factors Influencing Clients in Choosing Insurance Companies (Maseke and Lipinge): The
study aimed to identify the factors driving clients' preferences in selecting insurance
companies. Participants were surveyed, and results showed that agent/broker
persuasion played a significant role in clients' choices. The majority were satisfied with
their insurers, but some expressed intentions to switch. Social, advertising, and
behavioral factors were found to positively influence clients' importance of insurance.
The Psychology of Selling Life Insurance (Carlan Snipes): This article emphasized the role
of effective sales psychology in selling life insurance. By understanding the psychology
of both buyers and sellers, one can improve marketing strategies and turn leads into
customers more successfully. Factors Influencing Customer Choice for Insurance
Company-A Study of Ajmer City (Dr. Dipin Mathur and Mr. Ashish Tripathi): The study
aimed to explore factors influencing customer choices in the insurance industry in
Ajmer, India. Computerization, online transactions, connectivity with banks, and
transaction speed were identified as key factors. Peer group impression and influential
marketing campaigns were considered less influential. Marketing Strategies of Private
and Public Life Insurance Companies (Case Study of Bajaj Allianz and Life Insurance
Corporation of India): This study analyzed the insurance industry's growth and
competition in India. It highlighted insurance as a means of protection from various risks
and uncertainties, emphasizing the need for plans to meet unfavorable events' financial
consequences. Insurance Selection Decision: Factors That Influence the Choice of
Insurance Services (Fikadu Tadesse): The study focused on customers' insurance
selection criteria in selected insurance companies in Jimma Town. Key factors influencing
customers' decisions included the speed of disbursing indemnities, affordable
premiums, trust in the insurance company, quality service provision, financial stability,
and the company's reputation. Factors Influencing the Choice of Investor in Life
Insurance Policy (Ravi Kumar Tati and Ernest Beryl B. Baltazar): The study analyzed
factors influencing investors' choices in life insurance policies in Hyderabad, India. It
found no significant association between annual income and factors influencing investor
choices. The study encouraged investors to view insurance policies not just as tax-saving
tools but also as risk protection and multi-faceted investment options. A Study on
Factors Influencing Consumer Perception on General Insurance (Mr. D. Krishnamoorthy):
This research examined factors affecting consumer perception of general insurance. Age,
education, and occupation were found to significantly influence consumer perception,
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while income did not show significant differences. Quality of service, reliability of the
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company, customer convenience, and customer relationships were among the factors
affecting consumer perception of general insurance.
Research Gap identified:

The research gap we identified is about what makes people choose an insurance
company. While there is existing research on this topic, there are specific areas that still
need more study. These areas include how an insurance company's website and online
presence influence people's choices, the importance of trust and reputation, how people
perceive insurance products and services, the impact of personalized customer
experiences, the role of price and affordability, and how recommendations from friends
and social media influence decisions. By doing more research in these areas, we can
learn more about why people choose certain insurance companies.

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Chapter-4: Research/Project Objectives

Objectives

1: To identify the key factors that influence clients when choosing an insurance company,
regardless of the specific company or brand.

2: To explore the role of trust and credibility in clients' decision-making process when
selecting an insurance company.

3: To investigate the impact of pricing and affordability on clients' decisions when

choosing an insurance company.

4: To examine the influence of the insurance company's reputation and brand image on
clients' choices.

5: To assess the importance of coverage options and policy features in clients' decision-
making process when selecting an insurance company.

6: To explore the influence of personal recommendations, word-of-mouth, and online

reviews on clients' decision-making process.

7: To examine the role of digital channels and online presence in clients' choices when
selecting an insurance company.

8: To investigate the impact of demographic factors, such as age, income, and location,
on clients' decision-making process when choosing an insurance company.

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Chapter-5: Research Methodology

Methodology adopted for this Report:

The following necessary data for research are collected from

two sources

a) Primary Sources of Information: (Qualitative

research) The Primary data collected from the following

sources:

- Google form questionnaire: A descriptive research study has been used for the
purpose of the study. Simple random sampling was used to collect the responses
through an objective-type, multiple-choice, structured questionnaire comprising 22
questions. The sample size for the purpose of the study was 120.

Fig 5.1

Sampling Method used : Convenience Sampling

b) Secondary Sources of Information: (Quantitative

research) The Secondary data collected from the following

sources: Existing Research papers:

23

Annual Report:
Page

ICICI Annual report 2021-2022

LIC Annual Report 2021-2022

Bajaj Allianz Annual Report 2021-2022

Fig 5.2 Fig 5.3 Fig 5.4

24
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Chapter-6: Data Analysis and Interpretation

- Majority of the respondent are of the age group of 26-40 years upto 53.7% & 46% are
of age group 19-25 which indicates that the survey will cover entire age group of 19-
40yrs which is inclusive of the younger generation and earning class citizen.

- Among the respondent 55.8% are Male & 44% are female. Hence our survey will not be
biased when it comes to gender categorization.

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- The category of occupation fall into three major sector i.e students, self-employed &
Employed which leaves out the retired class citizen as the survey is limited to citizen of
less than 60 yrs.

- The monthly income of respondents majorly falls below 20k and 20k – 50k, which
indicates that candidates of survey are majorly of middle class, this also owing to the
reason that majority of candidates fall into 19-25 of age group which is including
student as well.

- 87.3% of the respondents have already purchased insurance before.

- This indicates that the all individual irrespective of income are already aware and
investing in Insurance and are already a part of Insurance Industry.
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- Majority of the respondents have purchased Life Insurance (44%) and motor insurance
(32%) while other respondent have also purchased Health, home and travel insurance
but it is less in percentage this might be owing to the reason that majority of
respondents are Middle class peopple

- During the survey respondent showed preference to two major company that being
LIC (29.2%) & Bajaj Allianz (57.5%), which indicates that Bajaj and LIC have developed
Brand image
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- Respondents have considered financial stability and strength of the insurance
company very important for their decision making.

- Respondents have considered claim settlement process and efficiency of the insurance
company important.

- Majority Respondents prefer in person meeting for interacting with insurance

28

company as in person meeting increase the trust of customer with their insurance
Page

company,
respondent have also preferred phone calls and mobile app for interaction this outcome
are a result of majority of respondent being Middle class people and younger
generation.

- 41% of the respondent have settled for health insurance & 32% of respondent have
settled for Motor insurance which is outcome of majority of insurance taken are health
and motor insurance.

- 50 % of respondent faced difficulty with claim settlement for health and motor
insurance, which is an outcome of people going in the first place for settlement of this
claims.
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- 93% of respondent are already aware of the Bajaj Allianz Insurance, which is owing to
its developed brand image over the years as Bajaj is using Television as it major
promotion scheme which is a most common source of information among middle class.

- 49% of the respondent came to know about Bajaj Allianz through Television as it also
Bajaj Allianz targeted media for promotion.

- 86 % of the respondent considered purchasing insurance from Bajaj Allianz which

indicates it preference among the candidates.

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Page

- Majority of respondent prefer Bajaj Allianz because of its Competitive premium rates
and its good customer services offered, Bajaj Allianz has developed various branches
over the years which offer good services to people and has also give competitive
premium rates over the years.

- Respondent are majorly aware of the Life, Health and Motor Insurance offered by Bajaj
Allianz.

- Respondent are majorly aware of the Individual, Saving and investment plans offered
by Bajaj Allianz.

- 75% Respondent are satisfied by the services offered by Bajaj Allianz which is also a
31

reason why people prefer Bajaj Allianz.

Page
- 34% of respondent wish to be associated with Bajaj Allianz for 5 years, which indicates
people are having long time plans to settle with the company and have laid they trust
on them , this also highlights customer loyalty.

- 37% respondent feel insurance is essential for security purpose which very true
outcome as majority of our sample are middle class people who prefer security as a high
priority. 32
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Chapter-7: Findings

Demographic Profile: The majority of respondents are in the age group of 26-40 years,
and there is a higher proportion of male respondents. The occupation of respondents
falls into three main sectors: students, self-employed, and employed individuals, with a
diverse range of monthly incomes.
Previous Insurance Experience: A significant portion of respondents (87.3%) have
previously purchased insurance, indicating a level of familiarity with insurance products
and services.

Preferred Insurance Types: Life insurance and motor insurance are the most popular
types of insurance purchased by respondents.
Preferred Insurance Companies: Among the surveyed respondents, two insurance
companies are preferred: LIC and Bajaj Allianz. Bajaj Allianz is the more preferred choice,
with a significant majority (57.5%) of respondents showing preference for it.
Factors Influencing Choice: When choosing an insurance company, respondents
consider factors such as financial stability and strength of the insurance company, as
well as the efficiency of the claim settlement process.
Communication and Interactions: Respondents prefer in-person interactions and mobile
applications for communication with insurance companies.
Awareness of Insurance Offerings: Respondents are most aware of the life, health, and
motor insurance products offered by Bajaj Allianz. They are also familiar with individual,
saving, and investment plans provided by the company.
Satisfaction and Loyalty: A significant proportion of respondents express satisfaction
with the services offered by Bajaj Allianz. Additionally, a considerable percentage of
respondents (34%) express a desire to remain associated with Bajaj Allianz for the long
term, indicating loyalty.
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Source of Information: Television plays a vital role in disseminating information about
Bajaj Allianz, as almost half of the respondents came to know about the company
through this medium.
Reasons for Preference: The competitive premium rates offered by Bajaj Allianz are a key
factor influencing respondents' preference for the company.
Importance of Insurance: A substantial portion of respondents (38%) feel that insurance
is essential for security purposes, emphasizing its importance in their financial planning.

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Chapter-8: Recommendations & Conclusions

Conclusions:

Based on the research conducted on factors influencing clients in choosing an insurance

company, particularly with a focus on Bajaj Allianz, the following conclusions can be drawn:

Price is Not the Sole Deciding Factor: While competitive pricing is important, it is not the only

factor that influences clients when choosing an insurance company. Other aspects, such as

reputation, coverage options, customer service, and transparency, play equally crucial roles in the

decision-making process.

Importance of Brand Reputation: Bajaj Allianz's strong brand reputation has positively

influenced the decision-making process of potential clients. Maintaining and enhancing this

reputation through ethical business practices and superior customer service will be essential for

attracting new clients.

Need for Customer-Centric Approach: Clients are more likely to choose an insurance

company that demonstrates a customer-centric approach by offering personalized products,

efficient claims settlement, and proactive communication.

Opportunities in Digitalization: Embracing digital transformation provides opportunities to

expand the customer base, especially among the tech-savvy younger generation. Digitalization

can also improve operational efficiency and customer satisfaction.

Educational Initiatives are Crucial: Many clients lack awareness and understanding of

insurance products. Therefore, educational initiatives and awareness campaigns are vital to help

potential clients make informed decisions.

Building Trust is Key: Building trust and maintaining transparency in all interactions with
35

clients can significantly influence their decision to choose Bajaj Allianz as their insurance
Page

provider.
Overall, to remain competitive and attractive to potential clients, Bajaj Allianz should continue to

focus on delivering exceptional customer experiences, investing in digital capabilities, and

maintaining a strong reputation in the insurance industry.

Recommendations:

Enhanced Marketing Strategies: Bajaj Allianz should focus on developing and implementing

innovative marketing strategies that highlight their unique selling points, such as comprehensive

coverage options, customer-centric services, and competitive premiums. These strategies should

effectively reach potential clients through various channels, including social media, online

advertising, and traditional marketing methods.

Customer Education and Awareness: The research findings indicate that many clients lack a

clear understanding of insurance products and their benefits. Bajaj Allianz should invest in

educational campaigns to raise awareness about different insurance types, coverage options, and

the importance of insurance in financial planning. These efforts can be done through workshops,

webinars, and informative content on their website.

Transparency and Trustworthiness: Clients value transparency in insurance companies. Bajaj

Allianz should work towards building trust by providing clear and easily accessible information

about their policies, terms, and conditions. The claims settlement process should be made

transparent, efficient, and hassle-free to gain the trust of potential clients.

Personalization of Products: Offering personalized insurance products and packages tailored to

the specific needs of clients can significantly influence their decision-making process. Bajaj
36
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Allianz should leverage customer data and analytics to design custom insurance solutions that

address individual requirements and preferences.

Excellent Customer Service: Excellent customer service is a critical factor in client retention

and acquisition. Bajaj Allianz should invest in training their staff to provide courteous,

knowledgeable, and prompt assistance to clients throughout their insurance journey, from policy

purchase to claim settlement.

Embrace Digital Transformation: With the growing preference for online services, Bajaj

Allianz should enhance their digital platforms to provide a seamless and user-friendly experience

for clients. This includes offering online policy purchase and renewal options, as well as easy

access to policy documents and real-time customer support.

37
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Chapter-9: Reference List

1. https://www.icicihfc.com/content/dam/hfc-

icici/pdfs/corporate/en/Annual%20Report%202022.pdf

2. https://licindia.in/documents/20121/92529/LIC-Annual-Report-2021-22-

%282%29.pdf/76ce5926-b78f-19c6-3e3e-ccde656b9f71?t=1668579053978

3. https://www.bajajfinserv.in/finserv-digital-annual-report-fy22/finserv-digital-

annual-report-assets/pdf/BAGIC%20Annual%20Report%202021-22.pdf

4. https://www.researchgate.net/publication/315007457_Factors_Influencing_Custome

r's_Choice_For_Insurance_Companies-_A_Study_Of_Ajmer_City

5. https://scirp.org/reference/referencespapers.aspx?referenceid=2422507

6. https://www.scirp.org/journal/paperinformation.aspx?paperid=106935

7. https://www.academia.edu/3076690/TO_STUDY_THE_LEVEL_OF_CUSTOMER_

SATISFACTION_TOWARDS_BAJAJ_ALLIANZ

8. https://www.researchgate.net/publication/348841897_Factors_Influencing_Clients_i

n_Choosing_Insurance_Companies

9. https://www.academia.edu/1238102/CUTOMER_Perception_and_Attitude_towards

_Bajaj_Allianz_PROJECT_REPORT

10. https://ijamtes.org/gallery/20.aug%20ijmte%20%20-%20cw.pdf

11. https://link.springer.com/article/10.1057/s41264-023-00209-9

12. https://www.researchgate.net/publication/266676037_Examine_the_Effects_of_Cust

omer_Satisfaction_on_Customer_Loyalty_An_Empirical_Study_in_the_Healthcare
38

_Insurance_Industry_in_Hong_Kong
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13. https://docplayer.net/10461490-Purchase-decision-factors-of-life-insurance-policy-

holders-in-dharmapuri-district-tamil-nadu-india.html

14. file:///C:/Users/Ssingh/Downloads/A_Study_of_the_Factors_Enhancing_the_Purcha

se_of_L%20(1).pdf

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